Morocco resumes debate over compensation fund

Successful reform of the compensation fund will require the involvement of all Moroccans, the wealthy and the destitute, officials say.

By Hassan Benmehdi for Magharebia in Casablanca

[Hassan Benmehdi] Minister Delegate Mohamed Najib Boulif speaks at a Casablanca conference about Morocco’s compensation fund.
The debate over reform of thecompensation fund flared anew in Morocco, amid great public interest. Discussions infold in civil society, political and economic circles alike.

“When we reach the stage where we spent 51 billion dirhams on the Compensation Fund alone in 2011, which is 7% of GDP, we cannot put it off any longer,” Minister Delegate for General Affairs and Good Governance Mohamed Najib Boulif told Magharebia on the side-lines of a September 18th conference in Casablanca.

The compensation fund required urgent reform, he insisted.

Participants in the conference debated how to finance the fund, especially at this time of economic turmoil

“Of course there’s the human dimension, which is important, but right now we need to think about how the Fund is funded,” said Naim Barkaoui, an industrialist from Casablanca

“Let’s not delude ourselves; the challenge is to target those in real need, on the one hand, and have the political guts to take the subsidies away from those who have the means but are profiting from it, on the other,” said Abdelkeq El Omani, another industrialist from Ain Sebaâ in Casablanca.

Other speakers felt that involving all Moroccans would be crucial for the success of the reform.

“We mustn’t forget that, behind the financial aspect, there’s also the political aspect, insofar as subsidies for basic commodities in any state will ensure social cohesion and stability,” acknowledged Samira, a young business leader. “Political stability, which is a prerequisite for investor confidence, comes at a price.”

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According to Boulif, reforms to the fund will be progressive, co-ordinated and characterised by direct financial aid for those in need.

“We’re going to opt for a claims system where each family who feels they are entitled to direct financial aid must declare it to the local authorities, who will take the necessary steps to register and maintain a record of the beneficiaries’ names,” he explained.

Prime Minister Abdelilah Benkirane has placed the compensation fund reform on the top of his government agenda. “The compensation fund keeps me awake at night,” he said.

The outcome of all the discussions will be presented to Benkirane exactly one month from now, for introduction early in 2013.

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