A number of economies currently face the risk of becoming caught between rapidly-growing low-income countries with abundant and cheap labor, and middle-income countries that are able to innovate quickly. These dynamics could lead to a “moderate growth trap,” characterized by job creation that is insufficient to absorb the expansion of the workforce. The evolving international environment requires a rethinking and reformulation of the growth strategy in order for countries to better position themselves in global value chains and prepare to compete in international markets for goods and services with high-skill-intensive labor and more sophisticated technological inputs.
Two leading scholars from OCP Policy Center in Morocco will present a new publication “Morocco: Growth Strategy for 2025 in an Evolving International Environment” which includes a quantitative model providing a framework that can be generalized to other middle-income countries. The policy issues and related challenges facing Morocco are similar to those of most of the middle-income countries in the MENA region, and elsewhere. The implications in terms of the nature and the scope of interactions with EU economic developments and policies will also be discussed.