Poverty Still a Major Cause for Concern in Morocco

To solve the issue of poverty, policymakers in Morocco need to go back to the drawing board.

Poverty eradication is one of the greatest challenges of our time. Eliminating relative and extreme poverty is an essential requirement for the sustainable growth of any nation as well as to ensure basic human rights to all.

Like many developing countries, Morocco faces the challenge of maintaining a modest standard of living for its citizens. But the lower middle-income country in North Africa has a long way to go.

In 2005, Morocco announced a project called the National Human Development Initiative Support Project (INDH). Over a five-year period, and for a budget of $1 billion, the aim was to improve the living conditions of citizens, reduce poverty in urban and rural areas, assist the most vulnerable groups in society and support families in difficult economic situations.

What was the result?

According to the World Bank, Morocco has made substantial progress in reducing poverty over recent decades. In 2007, 8.9% of its population was considered poor, compared to 16.3% in 1998. But the picture is far from rosy. As of 2014, the poverty rate in Morocco fell to 4.2%, but “nearly 19% of the rural population are still living in poverty or are vulnerable.” And while 3.1% of the population lives on $1.90 a day, as many as 15.5% live on $3.10.

Morocco has 4 million people living below the poverty, as per the Borgen Project. So, the fact that 3 million of these reside in rural areas is telling of the geographical divide.

Despite this, there are underlying factors that have played a role in falling poverty rates, including remittances from Moroccans living abroad, the deceleration of population growth, macroeconomic stability and the role of nonprofit organizations. While these efforts have aided the country in its gains, Morocco’s experience has three limitations.

First, illiteracy in rural areas remains very high among both the older and younger generations. As per UNESCO, the national adult literacy rate rose by just 10% between 1994 and 2004—from 42% to 52%—meaning that nearly half the population was classified as illiterate at the turn of the century. As of 2015, adult literacy in Morocco stands at 72%. While this is a vast improvement over just 11 years, much more needs to be done if the country is to lift people out of poverty.

Second, the gap between the rich and the poor has not been reduced. The Gini Index measures a nation’s economic inequality—zero represents absolute equality while the value of 100 shows absolute inequality. Between 1990 and 2006, the Gini Index for Morocco increased from 39.2 to 40.7. While inequality is a global phenomenon that is a seeing a shrinking middle class in places like the United States, this clearly shows the persistence of high inequality in Morocco.

Third, economic growth in Morocco remains fragile and volatile, mostly in the agricultural sector, which accounts for 19% of gross domestic product (GDP) and nearly 40% of jobs. Today, this sector is still dependent on weather conditions, and only 18% of total land is arable. This shows a breakdown between policymakers and pragmatism.