Identifying Key Opportunities for Policy and Investment: Institutions, Infrastructure, and Interventions

Abstract

Examines specific policy areas where reforms can help harness the external benefits of urbanization in Morocco, including (1) institutions for land, decentralized service provision, and finance; (2) infrastructure (spatial connectivity); and (3) interventions (spatial targeting). Morocco needs to clarify land rights and management systems to facilitate investment and help city planning in order to deal with fragmented urban expansion. Strengthening decentralized institutions to improve service provision can help build local capacity to manage urbanization, increase the municipal financial capacity, and improve the return on taxes administered by the government on behalf of the municipalities, as well as leverage increased net saving and creditworthiness for increased and sustainable borrowing. Investing in smart urban mass transport to lower urban congestion costs and link people to jobs remains a key challenge, as does strengthening logistics management to reduce regional market fragmentation. And labor market interventions to increase opportunities for young women and men remains critical for economic growth.