Publications /
Policy Paper
Global value chains (GVCs) are intended to fragment global production among several countries and companies. In this context, national economies have begun processes of insertion and specialization with both social and green objectives, because multinationals (MNEs) create significant negative externalities. Morocco has chosen to develop an integrated economy in global businesses. This country relies on a long-term political vision and some modern infrastructures. The government provides a subsidy to industrial ecosystems and supervises access to bank credits. Various international institutions recognize the model of integration of the Moroccan economy in the different GVCs as an effective model. However, it is interesting to compare and analyze different types and levels of insertion of activities in GVCs. This paper examines four different cases: phosphate, automotive, textile, and agri-business. A new generation of "Government-multinational firms" contracts has been initiated, as part of the Kingdom's new development model, to strengthen the local economic factories and SMEs and adapt to challenges. This paper focuses on analyzing the main challenges and assessing the primary main challenges and evaluate the GVC potential. We show Morocco’s participation in GVC includes levers such as public governance, value sharing, renewable energy development, investment in human capital, and orientation towards the knowledge-sharing economy and new technologies.
