Regional Project News

Morocco has made a successful transition to a free-market economy by entering into increasing numbers of trade agreements in recent years, according to a report published by the EU-funded research project FEMISE. However, its SMEs are penalised by inequality in terms of taxes and credit access, the report says, establishing a direct link between these access problems and productivity.

 

The 127-page report, ‘Deep Integration, Firms and Economic Convergence’, was produced by Patricia Augier, deputy director of the International Finance and Economic Development (DEFI) Research Centre at the University of the Mediterranean (l’Université de la Méditerranée), with the help of Moroccan and British researchers. It is the result of a year’s research.

 

The report says it is not enough to liberalise an economy, companies need to be able to access credit on a level playing field to grow, invest, innovate or plan research and training activities, adding that in Morocco, there is “a real resource allocation problem that stifles the competitiveness of business”.

 

The paper examines the quality of the Moroccan banking system, the development of infrastructure and the regulatory and administrative framework.

 

It highlights the need for Morocco to improve its corporate accounting system and insists on accounting transparency: “A mechanism needs to be put in place that provides banks with better visibility and allows them to take risks. Financial institutions must adjust their lending criteria.” Credit is generally awarded to exporters and big companies that have foreign capital or significant lobbying power.

 

FEMISE is an EU-funded project, which aims to contribute to the reinforcement of dialogue on economic and financial issues in the Euro-Mediterranean partnership, within the framework of the European Neighbourhood Policy and the Union for the Mediterranean. More specifically, it seeks to improve understanding of the priority stakes in the economic and social spheres, and their repercussions on the Mediterranean partners in the framework of their implementation of EU Association Agreements and Action Plans. (ENPI Info Centre)

 

 

Download the full report: Deep Integration, Firms and Economic Convergence

 

FEMISE – fiche and news

 

FEMISE – website