Eurasia Review
By Siham Ali in Rabat
Controversy has erupted in Morocco over the economic recommendations given by the International Monetary Fund (IMF) to Moroccan authorities.
In parliament, MPs debating the draft 2015 Finance Law criticised the interference of international bodies in the Moroccan budget.
Constitutional Union MP Chaoui Belassel took issue specifically with the IMF directives to reform the Subsidies Fund and the Moroccan Pension Fund.
This view was shared by the leader of the Istiqlal group in the Chamber of Representatives, Noureddine Mediane, who said that the government was failing to consider the interests of the public and obeying the requirements of the IMF, leading the country into dependence in terms of its economic decision-making.
The government defended itself from these allegations.
Finance Minister Mohamed Boussaid said that the government was entirely independent in its decision-making and pointed out that Morocco had no debts to the IMF that would force it to comply with the organisation’s requirements.
The precautionary and liquidity line granted to Morocco by the IMF represents an insurance policy for the Moroccan economy and will not be used, he noted.
This line allows the country to take out international loans on advantageous terms, the minister said.
He underlined that contrary to the recommendations of international bodies, Morocco has focused on boosting industrialisation in 2015 in order to strengthen its economy.
IMF representative Jean-François Dauphin on Monday (November 17th) said in Rabat that his visit fell under the scope of article 4 of the IMF Articles of Agreement with regard to assessing the economic health of a country such as Morocco.
“The aim of this visit is not to impose anything,” he said.
Dauphin hailed the reform of the Subsidies Fund and called on the government to implement the pending changes to the Moroccan Pension Fund.
He also urged redoubled efforts to improve the situation of the most vulnerable members of society with regard to health, infrastructure, housing and employment.
For economist Mehdi El Hakim, the government is being criticised because it is seeking to achieve macroeconomic balance as recommended by the IMF at the expense of public welfare.
This criticism, he said, is being echoed at the international level, especially since the IMF has done nothing to improve the economy in several countries where it has intervened.
“During her visit to Morocco in May 2014, the Managing Director of the IMF, Christine Lagarde, called for the reforms to continue even though they are painful. It is this kind of recommendation that creates controversy,” he added.
Many Moroccans said they wanted the government to focus more on social welfare, instead of taking technical measures to satisfy international organisations.
The government’s economic management must be independent of international bodies whose guidelines do not prioritise the public’s interests, worker Karima Taki, 42, told Magharebia.
Magharebia
The Magharebia web site is sponsored by the United States Africa Command, the military command responsible for supporting and enhancing US efforts to promote stability, co-operation and prosperity in the region.
