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Poverty & Development in Morocco

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Jessica Whiting

on 13 February 2011

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Transcript of Poverty & Development in Morocco

Morocco: Poverty & Development The Sitch Government Efforts Challenges Successes Overview Uneven Distribution 9.8% unemployment rate
15% below the poverty line #39 in the world for public debt ($38.2 billion) ex External debt= $22.69 billion #58 for GDP ($153.8 billion) #147 per capita ($4,900) $706 million in international aid The multinational poverty index (MPI) is based on ten indicators including school enrolment rates, infant mortality, child malnutrition, access to electricity and ownership of certain consumer goods (radio, TV, telephone, bicycles and motorcycles, cars and tractors, cookers, toilets and other items) This puts the poverty rate at 28% Most affects children under 15, girls, and widows small number control the majority of the wealth poverty more prevalent in rural areas In 1998, the richest 20% controlled 46.6% of wealth; the poorest 20% controlled 6.5% Ranked 5th in African economies by their GDPs
In 2009, voted "the 2nd most competitive economy in North Africa behind Tunisia."
#1 spot in the Economist Intelligence Unit’ quality-of-life index also distributed geographically Effects Migration from rural to urban immigration 60% decline in social services *ed. & med.* and so much more! 1 1 1 1 1 1 1 1 poverty, illiteracy, and unemployment rates remain high. closing the disparity in wealth between the rich and the poor corruption expanding and diversifying beyond phosphates, agriculture, & tourism reducing government spending improving education and job prospects for young Moroccans Low property taxes, subsidies, and exemptions benefit the wealthier rather than the poor. Quality of Jobs: many jobs are temporary with no protection. Those who have taken these jobs to move out of poverty can easily backslide. The Weather: the amount of rainfall can greatly influence poverty rates. “The sector accounts for only around 14% of GDP but employs 40-45% of the Moroccan population.” 1 The Moroccan Prime Minister has insisted on the fight against poverty as the only means to consolidate democracy in the Kingdom. Public Health Care subsidized health products
& basic consumer goods Government Programs Trade Agreements Government Initiatives International Aid In the last decade, about 1.7 million Moroccans moved out of poverty And the poverty rate has declined by about 40% How? 1. Demographic changes 2. Tax Reform 3. Bank Credit 4. Microcredit Loans 5. Remittances 6. NGOs 7. Off-shoring ORMVA, INDH, ADA, the Green Plan, APP, & MCA Joined the Agadir Agreement with Egypt, Jordan, and Tunisia as part of the Greater Arab Free Trade Area Has a free exchange agreement with Turkey. Entered the Euro-Mediterranean free trade area agreement with the hopes of joining the European Free Trade Association by 2012. In 2008 entered into an advanced status in its 2000 Association Agreement with the EU. In 2006, Morocco entered a Free Trade Agreement (FTA) with the US In 2005, King MOHAMMED launched a National Initiative for Human Development
aimed at alleviating poverty and underdevelopment by expanding electricity to rural areas and replacing urban slums with public and subsidized housing, among other policies. $2 billion initiative The End
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