The World Bank report entitled “The Middle-Income Trap” has warned of the challenges facing more than 100 middle-income economies, including Morocco, in their quest to achieve high-income status.
The report, a comprehensive roadmap, proposes clear strategies to overcome the economic impasse.
The countries include Bangladesh, Brazil, China, India, Indonesia, Mexico, South Africa, Turkey and Vietnam. All of these countries aim to make the progress that South Korea, Chile, and Poland have made in half a century- being half the time it took the latter three countries.
To achieve this goal, the World Bank recommends an evolutionary strategy based on investment, technology infusion and innovation, an approach it calls the “3i.” As Indermit Gill, Chief Economist of the World Bank Group, points out: “The battle for global economic prosperity will be fought primarily in middle-income countries.”
According to the report, Morocco must first focus on the “2i” approach, which combines investment and foreign know-how. By achieving upper-middle-income status, Morocco could then move to the “3i” strategy, which integrates innovation.
The document stresses the importance of balancing the economic forces of creation, maintenance and destruction. Disciplining current leaders, rewarding merit, and capitalising on crises are essential to transform outdated policies and institutions.
Specific recommendations for Morocco include improving the investment climate, integrating into competitive global markets, disseminating technology, and rewarding high value-added enterprises. It also emphasises investment in human capital, equal opportunity, and consideration of environmental costs.
On a cautionary note, the report reminds us that while the road ahead is arduous, significant progress is still possible in the current global economic climate. Somik V. Lall, director of the report, concludes: “Countries that avoid the necessary reforms will miss out on the benefits of sustainable growth.”
MN/ac/sf/lb/as/APA