The health crisis, an opportunity to initiate urgent reforms

The health crisis linked to the new coronavirus pandemic offers the opportunity to initiate urgent reforms on various levels, underlined Abdelaaziz Ait Ali, Senior Economist at the Policy Center for the New South (PCNS). In a podcast published by the PCNS under the title “What assessment of the economic situation of 2020”, Mr. Ait Ali highlighted the launch of the site of the generalization of social coverage, given the precariousness in which the found in large categories of society during this crisis, reports MAP. “Morocco did not have a unified social register that clearly defines the households that can benefit from social assistance programs,” noted the economist, noting that with the difficulty of deploying direct transfers to affected households, the state has decided to make the subject a “national priority”. This project is included in the Finance Act with specific deadlines. The objective being to provide each Moroccan with a cover system capable of preventing the switch to a difficult financial situation in times of crisis, said the economist, noting that “Morocco is aware of the role that must play. State in the post-Covid era ”. The welfare state is currently needed, given the needs expressed by citizens vis-à-vis the latter, he said, calling for “a redefinition of public priorities to give more importance to social sectors ”, Which represents an investment in human capital with possible repercussions on economic activity. In addition, Mr. Ait Ali emphasized the rise of the climate and environmental dimension during this crisis, adding that the Kingdom has adopted a green industrial policy, with the environmental component as a guideline, which testifies, he said, of Morocco’s ambition to become “a green industrial platform at the gates of Europe”. “The pandemic has also led us to accelerate the reform of the exchange rate regime, the authorities have widened the fluctuation bands to further fluidify the economy’s capacity to manage economic shocks,” he noted, noting that ‘we have to think about the next steps in this reform. As for the outlook for 2021, the economist has anticipated growth of around 5%, thanks to the beginnings of a good agricultural year, which will boost the primary sector and related activities, noting that, on the other hand, external balances will be put to the test this year, following the slowdown in tourist activity, a resumption of imports driven by domestic demand and the rise in oil prices.