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Morocco is a country that is under autocratic monarchy and it has been ruled by kings since independence which was attained in 1956. In fact, the 1972 constitutional amendment put this country under a constitutional monarchy where the king is both the head of state and government (Daadaoui, 2008).
The king has the power to appoint the cabinet and all ministers including the prime minister heading the cabinet, military heads and enjoys religious acrimony. Hence, the royal operates as the state Islamic divine leader.
Morocco government also consists of a bicameral parliament comprising of two chambers. The upper house is a Counselors Chamber consisting of 270-seat members elected for a 9-year term through indirect votes majorly ensuing from the Electoral College.
The Representatives Chamber is what makes the lower house and it consists of three hundred and twenty five seat members voted by general suffrage. Nevertheless, the Moroccan bicameral parliament is hugely powerless (Howe, 2005).
With respect to management, Morocco is subdivided into fifteen counties directed by senates chosen by the monarch. The head of government is the prime minister. The monarch appoints the 31-member Council of Ministers in most cases outside the confines of political parties and is under the prime minister.
The hereditary monarch in Morocco has colossal executive powers whereby the dismissal and dissolution of the government is at their own will (Daadaoui, 2008). The king heads the second cabinet consisting of retired army chiefs, politicians and business leaders. This second cabinet is the focal point of Moroccan government and its activities run parallel to normal government operations (Daadaoui, 2008).
Doing business in morocco
Being a constitutional monarchy, doing business in Morocco is quite challenging. For instance, to enter into Moroccan market, entrepreneurs must understand the bureaucratic route or get help from the king or head of state. One unique feature about Morocco that makes doing business easier is that it is a constitutional monarchy.
Hence, it does not suffer from problems associated with absolute monarchies, one party state and religious theocracy found in other Muslim countries (Howe, 2005). Moreover, Morocco has enjoyed political stability since her independence which is a pre-requisite for doing business.
The Moroccan monarch enjoys full constitutional authority over all arms of government. The monarch can dismiss and dissolve government at any time. This power is a huge asset in doing business in the kingdom. Entrepreneurs must only understand those government programs particularly concerned with economic growth (Howe, 2005).
The implementation of economic programs serves as launching pads into the market where business services might be used to execute such programs. Howe (2005) asserts that recently, businesses and financial spheres are enthusiastically welcomed in Morocco and the king sees it as the only opportunity to fast track economic growth and development.
Having good relations with the ministers and governors serves as another good opportunity to enter Moroccan markets. Governors who are the heads of urban prefectures, counties and provinces are the king’s appointees and have the powers to appoint the junior officials (Daadaoui, 2008).
Good relation with king’s appointees is seen as having positive attitude towards the king. This by extension implies having business ideas which is in accordance with the goals the king opts to achieve. Therefore, such relations have the trickle effect which helps individuals to do business in Morocco.
The Moroccan political system is embodied with strength in that in all levels of government, there are popularly elected bodies. This kind of political system has enabled the stability of the government and is essential in attracting foreign trade into the country.
If commodities of a particular company get popular support, then the company is in the right track to have permission of doing business in Morocco (Howe, 2005). Most corporations attracted in carrying out businesses in Morocco are obliged to commence at the lowermost end and gradually incline to the top.
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Besides, the government of Morocco as part of its political function encourages better actions that are seen to be in line with the goals of the government. At the same time, it discourages activities that are deemed harmful to the government and the people of Morocco.
Thus, businesses that are conversant with the government policies and goals would find the potentiality of Moroccan market (Howe, 2005). Presently, the Moroccan administration targets to create job prospects via stimulating foreign investments in business segments namely vacation industry, fishing as well as service industries.
Further, the government is trying to improve the foreign investment environment through the modernization of all laws and regulations (Howe, 2005). The Moroccan political system similarly craves for international business community to invest in the country to help boost the economic growth.
Though it might sound unethical to work closely with the government authorities, this is considered the most probable way of entering the Moroccan market. Factors such as culture and religious beliefs must also be taken into consideration for commodities to be accepted by the wider population.
Most importantly is the religious belief system. Like any other Muslim country, Islamic practices must be observed in order to survive even with the authorities (Howe, 2005). Though the Moroccan government is highly regulated, tight businesses can still thrive provided entrepreneurs understand the political, economic and cultural dynamics.
Daadaoui, M. (2008). Rituals of power and the Islamist challenge: Maintaining the Makhzen in Morocco. Oklahoma, U.S: University of Oklahoma.
Howe, M. (2005). Morocco: The Islamist awakening and other challenges. New York, NY: Oxford University Press, Inc.