MOROCCAN CRONYISM: FACTS, MECHANISMS AND IMPACT Mohammed Said Saadi Working Paper 1063 November 2016 Send correspondence to: Mohammed Said Saadi L’Institut Supérieur de Commerce et d’Administration des Entreprises
[email protected] First published in 2016 by The Economic Research Forum (ERF) 21 Al-Sad Al-Aaly Street Dokki, Giza Egypt www.erf.org.eg Copyright © The Economic Research Forum, 2016 All rights reserved. No part of this publication may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without permission in writing from the publisher. The findings, interpretations and conclusions expressed in this publication are entirely those of the author(s) and should not be attributed to the Economic Research Forum, members of its Board of Trustees, or its donors. Abstract The purpose of this paper is to shed some light on Moroccan cronyism by studying its manifestation and impact in the manufacturing sector. More specifically, it attempts to find out whether the lopsided and cronyistic business-government relations have a positive or negative influence on competition and economic growth. The paper shows that political connectedness has always been part and parcel of a large patronage network that has helped the political power, the makhzen, to strengthen its control on Moroccan society and to prevent any countervailing power from taking root, especially in the economic sphere. JEL Classification: L5, L1, D7 Keywords: Cronyism; Manufacturing Sector; Business-Government Relations; Morocco ﻣﻠﺨﺺ اﻟﻐﺮض ﻣﻦ ھﺬه اﻟﻮرﻗﺔ ھﻮ إﻟﻘﺎء ﺑﻌﺾ اﻟﻀﻮء ﻋﻠﻰ اﻟﻤﺤﺴﻮﺑﯿﺔ اﻟﻤﻐﺮﺑﯿﺔ ﻣﻦ ﺧﻼل دراﺳﺔ ﻣﻈﮭﺮ وﺗﺄﺛﯿﺮھﺎ ﻓﻲ ﻗﻄﺎع اﻟﺼﻨﺎﻋﺎت اﻟﺘﺤﻮﯾﻠﯿﺔ.