In addition to accelerating aggregate economic growth, equitable distribution of Moroccan wealth is key to achieving social harmony and tranquility. Unemployment approaches 20 percent and roughly 70 percent of the population is below the age of 25, thus creating serious social strains. Such tension manifest itself on June 19, when over 50 people injured during clashes in the capital city, Rabat, between Moroccan riot police and hundreds of jobless graduates protesting against government policies.
Morocco's authorities expect an economic revival in 2000, largely on the back of large-scale investment inflows. Many proposed investment projects focus on the tourism sector, which would eliminate dependency on the unpredictable agriculture sector and create vital employment opportunities. Nevertheless, recent history demonstrates that the performance of Morocco's agricultural-oriented economy rests on external factors, such as high levels of rainfall. If last year's drought repeats itself, no volume of capital inflows will succeed to revitalize aggregate financial activity.
© 2000 Mena Report (www.menareport.com)