Download Morocco

Morocco
Economic Commission for Africa
Debt Reconciliation
Background
Colonial and corruption has left much of Africa in a dilapidated economic state in
comparison with what these states are capable of achieving. In laying the foundations for
directly exploiting these African nations, European colonists left these countries still relying on
exports of resources as their primary means of income. This combined with internally
destructive regimes has left all of Africa at a disadvantage in the world of economics, with
extreme interest being paid as a percent of a nation’s GDP. Numerous debts, though needing to
be addressed on a country-by-country basis, can also be generally alleviated by solutions through
the Economic Commission for Africa, which is precisely what it is the primary task of this
committee to do.
This continues to be a dire situation, unresolved after many decades due to several
factors. First, money going to African nations as aid was reduced by 48% in the 90s. Natural
resources traded in Africa account for more of the average country’s income than the G8, so thus
it is necessary for production of products to increase, not merely the exports of raw materials for
a prospering economy to exist. It is necessary that a prospering economy exist because that kind
of stability is the only lasting solution for consistently paying off debt. For these reasons, the
African economy as a whole has been held back far too long.
UN Actions
Since cooperation between the nations of Africa and the globe is necessary for there to be
a hope of greatly swaying the tide of debt that is burdening African countries, the United Nations
is a key organization in tackling this difficult dilemma. Interestingly, this was acknowledged to
be one of the primary problems of the 21st century. The Millennium Development Goals clearly
stated that
Each economically advanced country will progressively increase its official
development assistance to the developing countries and will exert its best efforts
to reach a minimum net amount of 0.7 per cent of its gross national product at
market prices by the middle of the Decade (A/RES/2626)
Yet, attempt to rally support behind this dire cause unfortunately remains lacking in effect, as
richer nations are currently giving 2-4% of their GNP, lacking $100 billion compared to their
pledges (www.globalissues.com). In part of a statement, Action for Southern Africa and the
World Development Movement said at the G8 summit in 2002 that
the briefing reveals the context—the legacy of colonialism, the support of the G8 for
repressive regimes in the Cold War, the creation of the debt trap, the massive failure of
Structural Adjustment Programmes imposed by the IMF and World Bank and the deeply
unfair rules on international trade. The role of the G8 in creating the conditions for
Africa’s crisis cannot be denied. Its overriding responsibility must be to put its own house
in order, and to end the unjust policies that are inhibiting Africa’s development.
Acknowledging the G8’s responsibility on this issue is vital to ward global cooperation on this
issue. Thus, these nations can be expected to be able to sacrifice more to right past wrongs, such
as canceling odious debt. Thus, the United Nations has brought nations together to address this
topic and continues to do so in the Economic Commission for Africa.
Country Policy and Solutions
To address this multifaceted dilemma of such huge proportions, morocco believes that
reducing debt must be addressed on several levels to adequately secure the financial
sustainability of Morocco and Africa. Before solutions are addressed, however, it is necessary to
overview Morocco’s past and present economy. While Morocco is ranked 57th in their economy
and despite great gains, Morocco persistently has a 20% unemployment rate in cities. Debt
reduction is a major topic of focus in Morocco, as its public debt in 2006 was 70% of its GDP.
Morocco is further pursuing a plan of liberalization, but their agriculture is keeping the country’s
economy limited. Though there was a 6.7% growth in Morocco’s economy (CIA World Fact
book) , this was primarily due to good rains and increased agricultural production, which is the
backbone of Morocco’s economy. An economy based of such fluctuating weather patterns is not
made very stable without dramatic changes, and while Morocco’s textile industry is growing, the
country could greatly profit by expanding this sector. Currently, agriculture and resource exports
account for the vast bulk of the economy, yet this is not what will end up growing morocco the
best. For debt lasting reduction to occur, the economy must export more than natural resources
and must rely on other things than agriculture. Exports of products are necessary to truly break
the colonial cycle and end national debt. Thus, Morocco’s economy has been able to advance
into the new world up to a point, though it is held back from entering the world as a more
prosperous economy due to debts and an agriculturally based economy.
To combat this, Morocco confirms three solutions, the first of which being to start
building from the base up, with micro financing. Individuals are the cornerstone of society. A
society cannot build very high if a great percentage of its people lie uneducated and
impoverished. By transforming poverty stricken families into working-class citizens, more is
done than merely moving someone into a better environment. These individuals will strengthen
society, rather than burden it. Thus, the positive impact of well-placed micro-financing to people
who otherwise would not have been able to get a lone has the possibility of exponentially
improving a poor nation, one life at a time. In this way, a sustainable economy can be created,
which is the only hope of achieving a long-term solution for reducing debt.
Secondly, Morocco desires strategic country partnerships to be created. While this
sounds ominously similar to the “partnerships” of the early colonial period, which was really the
wealthy leeching off of the weakened, countries bonding together for mutual growth is a key step
toward achieving a peaceful and prosperous globe. In this, countries could offer sustainable
technology to African nations. This strategy will be detrimental, however, if the trade
agreements do not include sustainable advantages for African states. This means that countries
need to be able to continue to use the traded technology. Examples of this may include enabling
African countries to exploit renewable hydroelectric resources. This is one viable option to
energizing the economy to increase revenues and thus decreasing debt.
Thirdly, countries must be held accountable. Without this transparency, all effort to
increase revenues, rejuvenate the economy, and introduce a nation to the modern world will be in
vain. If governments mishandle and misuse resources for their personal gain, they are stealing
from their people and condemning their nation to the same or worse economic prospects in the
future. Many countries, including Zambia and Zimbabwe, have the potential for great revenues,
but their people have suffered under government mismanagement of funds. One way this is
possible is through the ECA, where arranged meetings would offer diplomats to discuss financial
strategies, condemn corrupt governments, or put pressures on corrupt rulers. Granted, this is a
hard objective to achieve, but it is necessary. To address this issue from several vantage points,
thus increasing the possibility for transparency, smaller regional groups be created for the same
purpose. For these reasons transparency is necessary, and through these means it can be
accomplished.
Lastly, odious debt should be cancelled. The cancellation of these debts will allow
revenues to go toward revitalizing the economy rather than paying interest. This is a most
necessary recourse, as odious debts are not being the current governments’ doing. They take any
money away from the country rather than lending it sustainable aid. This is a pretty
straightforward plan of action encouraged by the United Nations and global member states
towards debt reduction.
In some African countries that a substantial economy, such as Morocco, these measures
will greatly aid if not eliminate the situation. In the poorest countries, however, greater aid,
partnership, transparency, and cooperation will be necessary for a hope of recovery. While
gifted with resources, countries cannot progress until their government shape up and the legacy
of past harsh rulers still decides the fate of many impoverished lives today. Thus, while it is
impossible to address all the issues that may come out of plagued, warring African nations,
Morocco trusts these solutions to greatly progress the economies of Africa to reduce debt. With
hope in the ability of ECA and individual nations, cooperation can lead to triumph over the
obstacles hurled at African nations in the modern age.