The head of government Aziz Akhannouch, presented the economic aspect of the program of his cabinet for the next 5 years, and questions related to its application occupy the minds of economists who see sizeable challenges.
The new government will have before it a “great challenge”, that of “demonstrating that what it had promised was real, tied up and well studied,” said economist Khalid Benali in a statement to MoroccoLatestNews FR.
What about debt?
In this program presented, “it should be recalled that during the elections, each party acted according to its own electoral program and after the results of the ballot boxes and the formation of the majority made up of 3 parties, logically the context of the document presented (…) constitutes the intersection between the electoral programs and the meeting of the points which exist in some and not in others ”, he indicated.
Aziz Akhannouch announced several measures to stimulate the national economy and address the exit from the coronavirus crisis. These measures concern all sections of society, including a focus on women.
“The expectations are there, and they have grown with this government, but the question that arises today is how to find the necessary resources to finance these commitments it has made to citizens? “Asks the economist.
While several experts predict that the government will have to resort to debt to finance its ambitious social-oriented program based on quantified commitments, this option is also problematic and worrying.
For Khalid Benali, “indebtedness is not easy” especially since it is linked to the international ratings of financial agencies. “When financial agencies downgrade your rating because of debt or because you are at risk, you can get into debt but it will be with higher rates,” he warned.
And to continue, that if the government had to resort to debt, it should be done “for structuring projects, economically large, and which will have impacts in the future. Debt could in no case finance social objectives or consumption ”.
Challenges already defined by the national emergency
In addition to its economic program aimed at creating social justice, quickly alleviating the effects of the epidemiological crisis for low-skilled people, increasing the proportion of working women, promoting “Made in Morocco” and creating at least 1 million jobs within 5 years, the executive already has a number of emergencies on the table.
And these should go hand in hand with his program, especially since they were announced and supported in the speech of King Mohammed VI on the occasion of the opening of the new parliamentary session.
In his speech, the Sovereign noted several strategic axes, the first objective of which is to create self-sufficiency. We must “make available and as quickly as possible, a responsible structure, based on self-sufficiency for raw materials, health and energy”, noted our interlocutor.
The second axis targeted by the sovereign is linked to the figures, notes Khalid Benali. The fact that the King quoted the figures, the growth rate in 2021, the available foreign currency balance of about 7 months of imports, the inflation fixed at 1% etc., showed that the current indicators are at green for Morocco, which did well at the height of the covid-19 crisis and puts the Akhannouch government in front of a great responsibility.
“These elements testify to a royal desire to bring to fruition the structuring projects on the economic and social levels,” said the economist, indicating that the government will be called upon to adopt an approach, in the short, medium and long terms. .
“To ensure self-sufficiency is in the short term, in the next three months, it will be necessary to find the means not to run out of stock”, he observed. This need is part of an international context of stock-outs which risk having repercussions on raw materials, and therefore on prices and consequently on citizens and hence inflation.
In the medium and long terms, the government will be called upon to put in place policies in accordance with the economic development model which aims for 2035, but it would also be necessary that projects such as social welfare, reform of the health system be integrated, said the expert, stressing that they must be implemented in accordance with the timetable set by law.
Finally, another element to be taken into consideration for the work of the new government is the context of global recovery. For Khalid Benali, this is “the big question” because “we can only say that we have emerged from the Covid crisis when most, almost all countries will be vaccinated at high rates, and the movement of people and goods will resume their normal course ”.
The executive will have to learn the lessons of the covid-19 crisis, which demonstrate that “each country must rely on its skills to overcome the difficulties”, especially in a context undermined by uncertainty, hence the need for acceleration of industrial transformation and digitization projects, and the creation of a strong and independent industry.
As long as there are restrictions on movement, supply of stocks, movement of goods, and as long as value chains are not established in a concrete way, the world will continue to face problems, explains the expert, who considers that it is also a strategic axis to be taken into consideration in the work of the government, taking up the challenges of coherence in government action.