Regulating the Moroccan informal sector, which accounts for over 30% of the Kingdom’s GDP, “is difficult,” said Abdellatif Jouahri, head of Morocco’s central bank, emphasizing education’s role in lessening the informal’s grasp on the Moroccan economy.
In a symposium organized by the International Monetary Fund (IMF) and Mohammed V University in Agdal, Rabat, Jouahri stated that it is difficult to fight the informal sector, stressing that it will remain present regardless of approved public policies aiming to increase formal employment indicators.
In his speech to a large student audience, Jouahri stressed that “confronting the phenomenon of the informal sector begins with ensuring high-quality education and providing social protection for all,” stressing that “a citizen who receives a good education finds employment in the formal structured sector.”
The Wali of Bank Al-Maghrib also spoke about the importance of human capital and its valorization, saying: “Some countries were at Morocco’s level back in the sixties, and are among the twenty most powerful economies in the world today, they have achieved this thanks to the education system, such as South Korea.”
Jouahri believes that it is necessary to ensure a fair distribution of wealth and achieve inclusive economic growth for all.
“In Morocco, we see the rich getting richer and the poor getting poorer, and many citizens wonder why we should pay taxes in exchange for ineffective public policies whose results are evident in education, health, and infrastructure.”
According to the official, “the credibility of public policies in Morocco and of the people tasked with governance and the implementation of public policies is at stake.”
He added, “If these people are credible and reliable, people will fulfill their obligations and contribute to the country’s efforts, and this is the coexistence that is achieved through the synthesis of public life.”
The Wali of Bank Al-Maghrib noted that practitioners in the formal sector are turning to the informal sector due to the unbalanced tax rates.
He stressed that reducing unemployment rates and combating the informal sector requires public policies in the long term, based on the collection and analysis of data and statistics related to tried systems.
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