The first stage of the development of the Compact began in April 2013 and gave rise to an analysis of the major constraints to Morocco's economic growth based on the HRV methodology developed by Hausmann, Rodrik and Velasco in 2005 at Harvard University and carried out by the African Development Bank (ADB) in partnership with the Government and MCC. The first conclusions of this analysis were delivered in February 2014. The final report was validated at the end of 2014.
The major constraints identified by the analysis are:
- Weak quality of human capital and its inadequacy in relation to the needs of companies;
- Difficulty for businesses to access land;
- Slow progress in the judicial system and enforcement of judgments;
- Taxation with problems of coherence and high taxation;
- Weak strategic coordination between public-public, public-private and private-private actors. This weak coordination limits innovation and makes synergies less developed;
- The rigidity of the labour market in hiring and layoffs. In addition, two other complementary analyses were carried out by the Government, in partnership with MCC, on private investment opportunities, social and gender issues.
The preliminary analyses were conducted using a participatory approach, which involved consultation with stakeholders from the public administration and public institutions, the private sector, civil society, academia and technical and financial partners.
Analysis of constraints to economic growth (documents to download)