CSMD_Report_EN.partie 3
CSMD_Report_EN.partie 3
LEVERS OF
CHANGE
The structural transformations advocated by the NDM require substantial technical, human
and financial capacities, particularly in the seed stage. The Commission considers it necessary
to focus on five important levers for launching the model and supporting its implementation:
(i) digital technology as a lever for rapid transformation; (ii) a competent and efficient
administrative machinery; (iii) securing the resources needed to finance transformative
projects; (iv) the contribution of Moroccans of the World (Marocains du Monde- MDM) their
knowledge, networks and expertise; and (v) the mobilization of cooperative relationships with
the Kingdom’s external partners, based on a win-win approach.
1. Digital Technology
Digital technology is a real lever for change and development. It should be given
special attention at the highest level of the State as a driving force for structural and
high-impact transformations.
Mobile payments are also an additional opportunity for the economic and social inclusion of
vulnerable populations, the majority of whom are unbanked, as they facilitate commercial
transactions and services.
Five main challenges must be met to ensure that the full potential of digital
technologies is mobilized in the country’s development projects:
• Upgrading fixed and mobile broadband and very high-speed digital infrastructures
and extending them to the whole territory, ensuring a right of access for all
citizens. It is necessary and urgent to launch a broadband coverage operation of the
entire territory, including in white areas, to reduce the digital divide revealed by the
Covid-19 crisis, and provide nationwide access to a quality broadband connection and
sufficient speed for uses that have become essential, such as distance learning. The
broadband connection of all public facilities throughout the country, such as hospitals
and schools, must be guaranteed and reliable, including in rural areas. In order to reduce
the cost of digital investments for the community, and to accelerate their deployment,
it is also recommended to promote the sharing of infrastructures between operators,
including the fiber optic networks owned by state-owned enterprises. Finally, it is also
recommended to increase the degree of competition in the fixed and mobile broadband
market, under the effective control of the ANRT, potentially through the entry of
new infrastructure operators or Internet service providers. Such a remedial action in
terms of broadband connection infrastructure should be supported by the Universal
Telecommunications Service Development Fund (Fonds de développement du service
universel des télécommunications - (FDSUT).
• Develop digital platforms for all citizen and business services, as well as
participation platforms at central and territorial levels. There is an urgent need to
accelerate the digitalization of the administration through a single digital platform,
enabling each citizen to access all the administrative services needed in their daily lives.
The digitalization of State and administrative services has recently made significant
headway, with the adoption of laws for administrative simplification. The digitalization
of the administration is well underway, and must be accelerated, in particular with the
adoption and immediate implementation of laws on digital administration, administrative
simplification and cybersecurity, not forgetting the digitalization of the administration of
justice and its services to citizens.
• Complete the legal framework to secure the digital trust of users and the digital
sovereignty of the Kingdom. This includes speeding up the drafting of laws and
implementing decrees on cybersecurity, intellectual property, and the management
of personal data, as well as providing the institutional framework for the full legal
recognition of digital interactions and the legal value of digital documents, through
the electronic signature and the unique digital citizen identifier, in compliance with
safeguards for the protection of personal data.
The other essential lever for initiating and leading change is the administrative
machinery, which will be the bearer and linchpin of the implementation of a significant
part of the projects, in collaboration with the other stakeholders, and whose capacity
to drive these projects at both the central and territorial levels is a prerequisite for the
success of the new model.
In order to achieve greater efficiency, the administrative machinery must remain non-
partisan and its prerogatives must be clearly delineated, separating the strategic level from
the public policy level, which falls within the political field, the regulatory level from the
permanent administration, and the operational level of implementation and monitoring from
public or private players operating in the territory. This calls for a competent, accountable,
performance and results-oriented administration; a transparent administration that is
accountable for its actions and its ability to take initiatives and drive change.
More specifically, the regular renewal of senior national and local public officials
is a challenge requiring priority consideration through mechanisms to enhance their
attractiveness, identify and select a pool of skilled talent, develop leadership skills to enable
them to take initiatives to solve complex problems without fear of sanctions, and promote
experience in the territories.
Improving the performance of the administration will also require the simplification
and streamlining of internal management procedures to focus on cross-functional
missions and goals, to hold authorizing officers accountable and to encourage the emergence Table of
of the territories as a place of convergence for public action. Content
capacities, often of high quality and enabling them to carry out large-scale, complex projects.
This may require capacity building in terms of change management at the executive level to
ensure the mobilization of energies and skills.
Finally, the administration must place greater emphasis on the quality of service to
citizens and businesses by speeding up the process of simplifying administrative procedures,
fully digitalizing them, and providing citizens with access to public data to regularly assess the
quality of services and to have means of appeal in the event of disputes or misuse.
The NDM requires the mobilization of substantial financial resources for its launch
and implementation and calls for a suitable financing strategy. According to preliminary
assessments, it is estimated that the reforms and projects proposed in the NDM will require
additional public financing estimated at about 4% of GDP annually in the seed phase (2022-
2025) and about 10% of GDP at cruising speed by 2030. Some development objectives, in
particular those associated with human capital and inclusion (education; higher education;
health; social protection; youth), will indeed require significant recurrent public spending
following their generalization. Other projects at the heart of the model, such as the five
selected challenges, the structural reforms that underpin them (water, energy, transport
and logistics, digital technology, etc.), the productive transformation of the economy, and
the development of territorial ecosystems (regional projects, support funds, research and
training clusters, etc.), will need to be launched as early as 2022 to foster value creation and
quality jobs.
The NDM financing strategy specifically focuses on its seed phase, driven by the
State and aimed at providing the conditions for the private sector to take over. It is
based on the assumption that a successful launch will generate a positive dynamic that
will enable the NDM to partially fund itself by contributing to an increase in resources.
The dynamics of transformation and reform will have a positive impact on the capacity to
mobilize public resources: Because of their transformational scope, the NDM’s main areas
of focus would favor the transition to a new level of annual GDP growth that could reach
an average of 6% from 2025 and 7% from 2030. The positive economic momentum that
would be achieved through an appropriate sequencing of reforms and projects, starting with
the most structuring and those with the greatest economic impact, would contribute to a
recovery in tax revenues, which would ultimately help reduce the State’s financing needs
and restore, in the end, the sustainability of public finances. The expected return on the
NDM therefore justifies a proactive financing strategy, which approaches these additional
expenditures as investments in the future with a medium to long-term perspective, which
takes into account the dynamic effect potentially generated by the NDM towards a virtuous
circle of growth, and which ensures the allocation of the resources required to launch the
structural projects of the new model and to open a new phase of growth.
This strategy is based on five structuring levers, calling on public and private financing,
which aim at initiating the major NDM projects, and that must be activated concurrently :
• A budgetary policy aligned with the NDM’s objectives, including the necessary
reallocations for financing its transformation projects. This includes prioritizing
the allocation of resources to human capital, redirecting compensation charges to
integrated social protection mechanisms and the Single Social Registry, and rationalizing
transfers to state-owned enterprises and institutions and increasing their dividends by
reforming them and improving their performance. More generally, strategic expenditure
review and medium-term budget programming would help ensure better allocation of
resources in keeping with the objectives.
highly leveraged instruments for private productive investment, such as those provided
for under the Mohammed VI Fund. It also calls for a strong mobilization of State-owned
enterprises and institutions, particularly those operating in strategic sectors, acting as
economic driving forces and boosting territorial ecosystems, in line with the NDM’s
recommendations relating to the State’s shareholder policy and the reform of certain
key sectors (energy, water, digital technology, logistics, etc.).
COMMERCIAL
STATE Consistency of the
SECTOR
funding strategy with
NDM priorities for
sequencing
Launching of the Better economic
major NDM projects : outlook (positive
Optimization Public debt anticipation of
Human Capital; Economic
of expenses
transformation; Territorial investors, attraction of
Ecosystems FDIs, etc.)
Mobilization of
tax capacity
NECESSARY
PREREQUISITES
Table of
Broadening of Diversification Skills and International Enhanced
Content
the tax base and resilience of execution standard control competitiveness
the financial capabilities systems and
system attractiveness
LEVERS OF CHANGE
The NDM emphasizes the prominent role of the Moroccans of the World (Marocains du
Monde -MDM), who represent a strength and a valuable asset in the country’s development
process. In this regard, the Commission reiterates the importance of the implementation of
the constitutional provisions for a better representation of our diaspora, particularly through
the strengthening of the Council for The Moroccan Community Abroad (Conseil de la
Communauté Marocaine à l’Etranger – CCME). It also calls for emphasis to be placed on the
implementation of renewed policies adapted to the needs and expectations of this important
segment of the Moroccan population and to the defense of its interests with the countries of
residence.
In order to further mobilize the skills of Moroccans of the World for the nation’s
development, it is recommended to implement incentive-based approaches to attract
Moroccans of the World with highly skilled profiles operating in cutting-edge sectors
such as ICT, biotechnology or renewable energy. The creation of a database of Moroccans
of the World accessible to private and public Moroccan institutions will be advisable in this
regard. The Commission considers it essential to mobilize Moroccans of the World for
the development of scientific research, R&D and innovation activities, given the expertise
acquired by the diaspora in this area. Achieving this objective is contingent on a number of
prerequisites, including structuring the scientific research ecosystem and indexing it to the
country’s strategic priorities, through clearly defined national programs with transparent
modes of governance and regular monitoring and evaluation.
The importance of the Moroccan Jewish community around the world should be emphasized.
That community remains attached to its country of origin and is extremely sensitive to the
action undertaken by Morocco to preserve its remembrance sites (cemeteries, synagogues,
museums ...) and promote its intangible heritage. The Constitution’s recognition of the
Hebrew component as one of the constitutive cultural elements of the Nation, together with
the country’s international policy of openness and balance, create a dynamic that allows for
greater contribution by this community to Morocco’s development and to promoting the
values of peace, tolerance and dialogue.
The NDM enshrines Morocco’s irreversible choice to open up to its regional and
international environment, and its ongoing commitment to defend multilateral causes
and respond to global challenges. As such, it contributes to Morocco’s outreach stemming
from the specificity of the Kingdom of Morocco and its constants, including respect for its
sovereignty and territorial integrity.
Union and the Euro-Mediterranean neighboring countries and Morocco as a key player in
the Euro-African relationship. It also calls for pursuing the strategy of diversifying alliances
and partnerships with other regions of the world to make it a driving force for expanding its
external markets and strengthening its attractiveness for FDIs. These alliances constitute an
additional milestone to consolidate Morocco’s position as a regional hub, between Europe
and Africa, between East and West.
The bets for the future identified in the NDM : i) Become a digital nation, where digital
technologies are fully mobilized based on their transformational and economic potential;
ii) Become a regional hub for higher education, research and innovation; iii) Become the
regional champion of low-carbon energy; iv) Acquire the status of Regional Financial Center
of reference ; v) Make the «Made in Morocco» label a hallmark of quality, competitiveness
and sustainability, which is a substantial lever for deepening our international partnerships,
strategic positioning of Morocco at the regional and international level and consolidation of
the place and role played by Morocco internationally.
Priority will be given to Africa first, a continent of the future, where the dense network
of cooperation agreements linking Morocco to other countries on its continent and
the potential of the AfCFTA opens up promising prospects for cooperation. In line
with the African strategy initiated by His Majesty King Mohammed VI, the NDM’s bets
for the future could be a catalyst for deepening partnership and co-development ties with
Africa at the bilateral, regional and continental levels. Such an approach is likely to foster a
renewed relationship with Africa, a win-win relationship that mobilizes complementarities,
boosts economic specialization profiles and helps build regional value chains in high-potential
sectors (agribusiness, textiles, automotive industry, tourism, higher education, innovation,
cultural industry and sustainable development and the pharmaceutical industry).
Given that they correspond to areas of common interest and have the potential to be
mutually beneficial, the NDM bets for the future can also be a catalyst for deepening
and diversifying Morocco’s privileged partnership with the European Union. It is, in
this case, (1) the competitive and green energy bet for the future whereby Morocco has
assets to contribute to the EU’s Green Deal, which plans to import 40 GW of renewable
energy by 2050; (2) the knowledge bet for the future, through enhanced cooperation in the
field of higher education and scientific research; (3) the digital bet for the future around a
data Schengen (data security, cloud), mobile payment ...); (4) the regional financial center
bet for the future whereby Morocco can establish itself as a continental platform offering
opportunities for European portfolio investors seeking profitable investment; (5) the “Made in
Morocco” bet for the future, whereby Morocco can be an attractive destination for European
companies seeking to relocate their activities near major growth markets.
The strengthening of the Atlantic dimension of the Kingdom’s foreign policy should
be pursued through the deepening of partnership ties with the United States of
America, harnessing the full potential of the Free Trade Agreement (FTA) and the
many trade and investment opportunities it offers. The recent recognition by the United
States of America of Morocco’s sovereignty over the Sahara and the announcement of the
opening of a U.S. consulate in Dakhla, herald a dynamic of special bilateral cooperation
but also oriented towards the rest of the African continent. The agreements signed with the
U.S. International Development Finance Corporation open up new avenues for promoting
dynamic, innovative economic cooperation in many strategic areas. This requires peace and
stability in the Euro-Mediterranean region and in Africa as a whole. Moreover, closer ties with
Canada and Latin American countries could help shore up Morocco’s Atlantic dimension
and open up new opportunities for those countries’ respective economies.
Partnerships with emerging players, especially those with whom Morocco has
entered into strategic partnerships, in this case China, India and Russia, must be
consolidated in light of the role that these countries play in the current geopolitical and geo-
economic equilibrium and those that are emerging in the post-crisis Covid world. The recent
actions carried out recently to strengthen Morocco’s relations with China, with the Kingdom’s
endorsement of the Chinese initiative of the new «Silk Road», and the implementation of the
Mohammed VI Tanger Tech city project, are part of this framework and should be further
strengthened to make it a strategic lever for the regional and international positioning of our
country.
In order to harness the full potential of these international partnerships for the Kingdom
of Morocco’s outreach and to strengthen its competitiveness and attractiveness, it is
recommended to adopt an integrated strategy of the «Morocco Label» (Label Maroc), capable
of rallying the efforts and pooling the resources of stakeholders involved in economic and
cultural promotion abroad.
Table of
Content
LEVERS OF CHANGE
With a view to entrenching the new development model as a common frame of reference
for all players and to engage the active civil population in its implementation, it has been
proposed to translate it into a «National Compact for Development». This Compact would
serve as a moment of consensual commitment by development players around a new ambition
for the country and a common frame of reference that guides and directs the action of all the
active civil population in its plurality. The Compact would enable the renewal of the State’s
relations with development stakeholders (political parties, constitutional institutions, private
sector and social partners, territories and third sector). A renewal whose guiding principles
are: accountability, empowerment, subsidiarity, partnership, sustainability and inclusion.
This Compact could be solemnly adopted by all relevant stakeholders and would constitute
a strong moral and political commitment before His Majesty the King and the Nation as a
whole. It would pave the way for a new historical milestone in the country’s development
process, both symbolically and in its strategic vocation and functionality.
Based on the new development model, the content of the Compact could set out the
common ambition, national priorities and objectives, principles of action and the framework
of trust and responsibility, and commitments required from stakeholders to pursue the agreed
course of action and apply the principles. The National Compact for Development would
set the overall framework for coherence and synergy among all stakeholders, defining the
LEVERS OF CHANGE
strategic priorities that govern the allocation of resources and steering change. It would
focus on the fundamental choices for development, a bedrock common to the entire nation,
to make room for the plurality of partisan choices in the roll-out of public policies. The
Compact would also reflect the unique nature of the Moroccan model and its capacity to
spread internationally by creating the conditions for making the country’s major development
choices clear in the medium and long term.
Another function of the Compact would be to provide a framework for steering and
monitoring the implementation of the country’s development vision. In this perspective, the
Compact would include reference to mechanisms for regular monitoring of the progress of
the projects selected. These mechanisms could include, for example, annual reporting by
stakeholders on their actions to achieve the objectives of the Compact, as well as regular
meetings or progress reviews between all stakeholders. These monitoring mechanisms would
also provide citizens with direct information on the progress of the National Compact.
Following the adoption of the National Compact for Development, the CSMD
recommends the establishment, under the authority of His Majesty the King, of a
mechanism to monitor the NDM, to give impetus to strategic projects and to support
change management. By ensuring overall coherence and strategic alignment, driving and
supporting transformational reforms, this mechanism would hold the stakeholders involved
accountable and strengthen overall performance.
This mechanism placed with His Majesty the King could have the following missions:
i) to spread knowledge of the NDM (frame of reference and the National Compact for
Development) and to ensure the widest possible dissemination through all media; ii) to
design and provide methodological instruments to facilitate the coherent and effective
implementation of the NDM to the bodies and authorities concerned; iii) to ensure that the
strategies and reforms proposed for the implementation of the NDM are consistent with the
frame of reference and the National Compact for Development prior to their adoption by
the relevant authorities, through the formulation of opinions and recommendations; iv) to
monitor the implementation of the strategic projects conducted by the relevant authorities
and report to His Majesty the King; v) to support change management by contributing,
on the basis of Royal Instructions, to the development of strategic projects in support of
the relevant authorities and bodies, to the experimentation of innovative projects and to
the development of executive training courses in the field of training/action and change
management in universities and specialized training institutes.