Between 2001 and 2008, Morocco enjoyed the benefits of sound economic management and reforms. Its growth rate doubled from the 1990s to an average of 5.1%, while per capita income also doubled to $2,850 in 2008. The country’s fiscal position also improved, with the government running surpluses averaging 0.3 % of gross domestic product (GDP) in 2007 and 2008.

However, many social indicators still lag behind those of comparable countries, particularly in the areas of poverty, equity, health and education.  The low performance of public services delivery and weak governance has contributed to the disparity between economic growth and improvements in social indicators. Public administration in Morocco has been characterized by a lack of vision on budgeting; excessive centralization; and poor civil service management, including a high-cost wage bill.

Approach

Since 2002, the government has implemented a comprehensive Public Administration Reform Support Program (PARP).  Public administration reform is viewed as a core component of improving governance and is central to reforms aimed at improving economic performance and building capacity to achieve sustained growth. 

PARP’s goal is to provide Morocco with a modern and gradually decentralized administration that can contribute to the country’s competitiveness and sustainable development.  Objectives are to improve government efficiency in budget and human resources management; consolidate and control the public payroll; and improve service delivery and simplify public procedures through e-government (since 2007).

Results

Under a reform program supported by IBRD funds and technical support, Morocco’s administrative tradition is evolving from an emphasis on legal compliance to a focus on performance.  The IBRD loan and accompanying analysis have led to development of a comprehensive medium-term framework for economic policy and institutional reform.

Reforms contributed to the improvement of budget management parameters, particularly related to execution rates of economic and social investment projects, which increased from 64% in 2002 to more than 73.5% in 2008.

The PARP strategy also entailed streamlining of the civil service, and improvement of service delivery in the social sectors.  In 2008, 89% of recruited civil servants (not counting security and military) joined the education or health sectors.  The budget allocation for civil service training has increased by 60% since 2002.

The combined effect of these measures translated into declining wage bill, which, in 2008 edged down to 10.2% of GDP compared to 10.7% the previous year.  In 2009, it stayed at the same level as in 2008, despite wage increases for low-income civil servants as part of the government’s fiscal stimulus package.

The e-government agenda is also taking hold; about 90 projects have adopted this strategy to improve public sector efficiency and transparency.

Toward the Future

A fourth Public Administration Reform loan for Morocco is currently awaiting Bank Board approval. It will support the next PARP phase and reinforce donor harmonization with the European Union and African Development Bank.

A new Bank Country Partnership Strategy (2010-2013) for Morocco includes improved service delivery to citizens as one of its pillars. Joint discussions with the Moroccan government to develop the new program are tentatively planned for spring 2010.