Privatization and the State in Morocco: Nominal Objectives and Problematic Realities

This article examines the privatization process in Morocco in terms of its historical background, the rationale for its introduction, and the progress made to date. The author demonstrates that the process has neither proceeded at the expected pace nor delivered the anticipated structural changes for two main reasons. On the one hand, the state has used privatization as a means for raising revenues to cover short-term budget deficits instead of reducing long term debts, and on the other the ruling regime has used it as a means of distributing patronage and strengthening its own links with the small but dependent commercial élites.