Globalization In Morocco

Globalisation is transforming the face of the global economy in many places around the world such as India, Japan, as well as Morocco … etc. But what roles does globalisation involve exactly in Morocco? The first section defines what globalisation is, noting, first, that it is not a recent phenomenon, with waves of globalisation dating back to the 1800s and, second, that it is about much more than the location of production in low wage economies. The second section discusses the various drivers of the current wave of globalisation. We identify three relatively recent developments in particular the adoption of more open economic policies, increasing technological innovation, and the emergence of developing, low-wage economies on the world stage as the central to the current wave of globalisation.

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Having discussed the driving forces behind the current wave of globalisation, we go on to note that these developments have facilitated greater cross-border trade in goods and services, foreign direct investment, and migration. Unlike previous episodes of globalisation, the latest wave is also very closely associated with the development of globally-distributed production systems.

In fact, Globalisation can be defined as “the network of connections of organisations and people across national, geographic and cultural borders and boundaries”

Globalisation is nothing new as ancient trade routes such as the ‘Silk road’ spanning several countries, have existed since the advent of mankind. In Europe, the first extensive trade network was established by the Romans via trade with other regions especially in the Mediterranean Sea. Other trade networks such as the Hansa or the British Commonwealth are more examples of trade routes in history. However globalisation even in past eras has not just been seen as a tool for economic activity but also caused events such as the discovery of America. This shows that globalisation cannot be seen as a new process even though the speed of globalisation has increased phenomenally in the last decades. we can see that globalisation is a network of organisations across nations therefore accentuating the importance of international relations. It has often been seen as a purely economic aspect however, globalisation also comprises cultural, political and ideological relations. Although globalisation is often used to explain the development of under developed countries, the effects of this concept are not always as positive as may seem.

“Thus, many of the levers of economic power seemed to be out of reach, because Morocco had become so integrated into global economy, basically at a conference in Barcelona the European Union agreed with governments from the southern shore of the Mediterranean to set up bilateral industrial free trade areas between the Union and Individual countries. This was to develop by 2015, into a Mediterranean free trade area. However, the agreement also specifically excluded agricultural produce and strictly limited migration. In fact, they started stopping Moroccans from trying to enter Europe illegally, despite intensive Spanish and Moroccan Naval patrols of the strait of Gibraltar.”

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“Bechir Znagie,”the Voyage Perilous”, Index on Censorship 3 (1994): 19-20.”

From the economic side, Morocco has made and still making the wrong choice when it is about accepting to step into globalization. In fact, the country agreed on opening its borders gradually until the complete disappearance of taxes. In one point of view, one can say that it will encourage investments in our economy, but what kind of investments will it be? Certainly it would not be about a high technology. As a consequence, these incoming investments which will mainly use cheap manpower can end with the complete destruction of Morocco’s internal development. Moroccan companies are not ready yet to face international competition, since they are still stuck in primary industries and are hardly moving towards services. This shows the dangers of an evolution that is not emerging internally but is just imposed by the most powerful part in the negotiations. Morocco still has difficulties on the Industries to move towards services. This shows the dangers of an evolution that is not emerging internally but is just imposed by the most powerful part in the negotiations.

There is the use of cheap labour in Morocco that will still make us stuck with the third world development and will affect of course the social innovation in a negative way. We can’t ignore that globalization has some advantages concerning the creation of jobs in Morocco especially to young people “this will completely decrease their will to build a developed society with its own global companies and its high technological production”.

Morocco will in fact be benefiting from globalization; however, it will also suffer from the hidden sides of this concept. Economy is just one side of globalization. In fact, globalization concerns economical, social and cultural aspects, and Morocco is far from benefiting from all these aspects.

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Morocco-Globalization 2010

There are some advantages that globalization offer to third developing countries such as morocco, basically the liquidity of capital increases and then the developed countries can invest in developing ones as well the environment protection increases, the free trade between countries increases as well as the interdependence of the nation-states, it provides also a propagation of democratic ideals, the goods and people are transported with more easiness and speed and even the possibility between the countries decrease, in fact, the cultural barriers reduce and the global village dream becomes more realistic.

Globalization has effects that make the percentage of immigration increases between the countries which makes it an opportunity for people in need to work in order to earn money and in general they come back to their own countries and do investments, so the cross culture contacts grow and the cultural diffusion takes place, otherwise, the global environmental problems like cross boundary pollution over fishing on oceans make climate changes that are solved by discussions. The global common market has a freedom of exchange of goods and capital and this leads to an increase in the desire to use foreign ideas and products, and to adopt new practices and technologies to be part of world culture and a decrease in the subsidies for local businesses. This are some effects adopted between the countries due to globalization.

Moreover, to explain more the advantages of globalization in the developing world including Morocco, a research has been done by Abhay Burande saying that “It is claimed that globalization increases the economic prosperity and opportunity in the developing world. The civil liberties are enhanced and there is a more efficient use of resources. All the countries involved in the free trade are at a profit. As a result, there are lower prices, more employment and a better standard of life in these developing nations. It is feared that some developing regions progress at the expense of other developed regions. However, such doubts are futile as globalization is a positive-sum chance in which the skills and technologies enable to increase the living standards throughout the world. Liberals look at globalization as an efficient tool to eliminate penury and allow the poor people a firm foothold in the global economy. In two decades from 1981 to 2001, the number of people surviving on $1 or less per day decreased from 1.5 billion to 1.1 billion. Simultaneously, the world population also increased. Thus, the percentage of such people decreased from 40% to 20% in such developing countries”.

Otherwise, there is also the process through movement people. Globalization represents an important shift in the amount of the world output being and as well it is based on some dimensions such as internationalization, restructuring of the product process and ideological dimension. In Fact Morocco has been as well instructed through those dimensions which the rapid integration of the economies was involved and as well as the movement of capital and migration of people.

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They are basically some disadvantages and weaknesses concerning Morocco’s globalization, several questions about the consumption are asked like why corruption is business weakness nit business strength; the answer is pretty simple as corruption impedes almost all positive characteristics of country’s economy.

However, Morocco’s biggest business disadvantage is the damage ways in which it conduct business, as long as Morocco continuous its cycles of corruption it will not have a significant impact on Globalization and as a result globalization is becoming the key to a nation’s economic survival.

Moreover, some manufacturing in Morocco grew, but other industries however stagnated, specifically in electric power and cement production. Food output decreased as a reduction in labor input , agriculture in Morocco lacked specification and the lack of technology in the agriculture industry implied little division of labor, which was necessary for economies of scale, but after new technologies were implied to agriculture, laborers sufficient training to use the new technology, and thus proved useless .

Critics however claim that globalization increases inequality, despite growth. In addition , globalization would lead to increased wages paid to working children, thus increasing child labor. However, empirical evidence suggests otherwise. Evidence strongly shows that growing countries actually have reduced poverty levels. Furthermore, rising domestic rice prices as a result of market integration would also increases household income. Families would then substitute this income towards income that would have been brought in by the children and child labor is thus reduced.

This current wave of globalization has been driven by policies that have opened economies domestically and internationally. In the years since the Second World War, and especially during the past two decades, many governments have adopted free-market economic systems, vastly increasing their own productive potential and creating myriad new opportunities for international trade and investment. Governments also have negotiated dramatic reductions in barriers to commerce and have established international agreements to promote trade in goods, services, and investment. Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and marketing arrangements with foreign partners. A defining feature of globalization, therefore, is an international industrial and financial business structure.

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Silicon Valley, 2010

Conclusion:

Morocco has met many opportunities through globalization in many factors including the economic, social, cultural, environmental… Etc. As globalization is the key aspect for the world economic development such Morocco has made benefit in increasing disparity within and between nations, also threatens employment and living standards and thwarts social progress. It has made the whales larger and the minnows stronger. Morocco knew how to use globalization and therefore make best use of it, which out country has made development and progress and has bought wonderful opportunities and benefits, including the increasing interaction, or integration, of national economic systems through the growth in international trade, investment and capital flows. It is the raise in consecutiveness and a procedure where geographical distance becomes less important in the establishment.