Morocco’s Ruling Party Unveils Post-COVID Economic Recovery Plan

Through a note, the Islamist party has proposed a plan to revive the national economy that takes into account three areas: priority projects, support for supply and demand, and support for businesses and employment opportunities.

In terms of priority projects, the emphasis is on strengthening the health system in human resources and governance in order to make it more efficient, and on accelerating the implementation of the digital transformation roadmap, the program to generalize high and very high-speed internet access as well as fiber optics.

The note also proposes the implementation of a distance learning system at all levels, up to higher education. A portion of the aid intended for the needy categories could be granted to students from poor families, in order to allow them to access the means of distance education.

The PJD advocates for the generalization of social and health coverage in order to ensure a minimum income for people unable to work, which will guarantee equity, dignity and social cohesion.

Regarding support for supply and demand, the party advocates for the continuation of the state’s public investment effort, public institutions and local authorities, in order to meet the need of certain regions for economic and social infrastructure. The party also advocates for a overhaul of the system of tax and real estate incentives and public financial aid, by simplifying and reducing the number of taxes and duties, as well as lightening the administrative tax burden.

The PJD also emphasizes the need to develop a special plan to preserve production capacities and jobs and promote domestic tourism and crafts, the sectors most affected by the crisis. In the same vein, measures will have to be taken to encourage and facilitate entrepreneurship and private investment and to continue to improve the business climate.

As for support for businesses and job creation, financing mechanisms supported by the state must be put in place. The party proposes to strengthen the capital of companies and to finance public investment. This involves the creation of an investment fund with the contribution of the state, public institutions and the private sector, and the support of specialized international financial institutions in private equity.

In terms of monetary policy, the formation suggests the development of a strong expansionary monetary policy, capable of supporting supply and demand, by guaranteeing the necessary liquidity to banks to boost the national economy and finance investment at reduced rates. In this sense, the party proposes to reduce the main interest rate to 1% and the profit margin of banks. Thus, the new financing mechanisms proposed by the Economic Monitoring Committee (CVE) will have an interest rate of 2%.

According to the PJD, the development of the draft amending finance law will give new momentum to the national economy and contribute to strengthening Morocco’s positioning on international production and distribution chains.

At the social level, the party proposes to accelerate the generalization of social protection and to strengthen social programs, in particular the 3rd phase of the INDH, the Tayssir program, university scholarships, the Ramed program and support for widows and people with disabilities.

For the party, the post-covid-19 period is an opportunity to strengthen and accelerate the human development efforts undertaken by Morocco for several years.