Abstract: | This article discusses the economic, social and political implications of privatization in Morocco. On 11 December 1989, the political commitment to privatization was codified into law by a vote in the Moroccan parliament of 78 to 45 with three abstentions. The first enterprise was sold in 1993 and by 1996, 25 companies and 17 hotels had been completely sold or partially divested. The paper maintains, first that the political struggle within the government between different interests both opposed to and advocating privatization has had a significant effect on the pace, success and popular perception of the Moroccan divestment programme; and second, that privatization has done little to empower new groups within the society or reduce the disparity in wealth between various sectors of the population. It is too early to say whether privatization has complemented the larger process of economic liberalization and financial deepening of the economy. Perhaps its greatest contribution has been in invigorating the Moroccan capital markets, although it is still too early to tell if the Casablanca stock exchange is poised to play a vital role in mobilizing and reallocating savings. Notes, ref. |