Morocco at the forefront of social reform
The Moroccan government has embarked on a multi-pronged approach to social reform that encompasses all sectors of society, with a special focus on the working class. Recognising the vital role of the health sector in sustaining living standards, the executive launched a project in April 2021 to expand social protection programmes specifically targeting workers in the informal economic sectors.
This ambitious project is being hailed as the largest social reform initiative in Morocco's history. The initial phase focused on including traders, farmers, artisans and independent service providers, and was later expanded to include other groups. Ultimately, the project aims to ensure that all Moroccan citizens have access to social protection programmes.
A significant turning point in the government's social support policy occurred on 29 July 2018, when King Mohammed VI announced the creation of a "Unified Social Registry" during his speech commemorating the 19th anniversary of his ascension to the throne. The registry aims to gradually improve the effectiveness of social programmes, in the short and medium term, by accurately and objectively determining which people deserve social support, through precise criteria and new technologies.
This registry will serve as the main access point for all social programmes, with each resident of Morocco being assigned a digital civil and social identifier through the national population registry.
To facilitate the implementation of the social protection project, Morocco has adopted information systems to identify the social status of citizens based on their unique identification numbers.
The first phase of the project covered some 3 million people: traders, independent service providers, artisans, craft professionals, farmers and their families. As a result, the number of beneficiaries of compulsory health insurance increased to about 9 million citizens, representing about 83% of the target population.
In order to integrate poor and vulnerable families into the new project, the Moroccan government approved on 11 November the sponsorship of the contributions of those affiliated to the current Medical Assistance System (RAMED). RAMED, created in 2002, provides health care to economically disadvantaged families who are not covered by compulsory health insurance.
By extending health coverage to these families, the government aims to ensure that 11 million citizens can access the same services they previously received free of charge in public hospitals.
Morocco's commitment to social reform has won the support of international partners. On 2 March, Morocco and the European Union signed five joint cooperation programmes worth $500 million to boost the country's reform initiatives, including the social protection project.
This Social Protection Agreement aims to improve the quality and efficiency of basic services while establishing a comprehensive social protection system.
In addition, the World Bank approved on 3 December 2020 a USD 400 million programme to support Morocco's social protection system.
However, the country continues to face challenges. Data collected by the government in May revealed that Morocco's unemployment rate rose to 12.9% during the first quarter of 2023, mainly due to the repercussions caused by the Ukrainian crisis and the country's drought.
To cope with the resulting high inflation, the Central Bank of Morocco raised the interest rate by 50 basis points to 3% in March, with the aim of preventing the inflation crisis.
Despite these challenges, Morocco remains committed to socio-economic development. The Planning Commission recently reported an annual inflation rate of 7.8% in April, compared to the same period last year.
With the 2017 official census indicating that 2.8 million people in Morocco were living in poverty, efforts to alleviate their economic situation and strengthen social welfare programmes are crucial.