Management of Public Debt in Morocco: Balancing Economic Reform Imperatives and the Limits of Sovereign Decision-Making

Benkhayi, Mohamed El Charif

doi:10.48308/jep.2025.241351.1244

Management of Public Debt in Morocco: Balancing Economic Reform Imperatives and the Limits of Sovereign Decision-Making

Document Type : Original Article

Author

Mohamed El Charif Benkhayi

Professor of Business, University of Oum El Bouaghi, Algeria

10.48308/jep.2025.241351.1244

Abstract

This research paper examines the management of public debt in Morocco, focusing on the balance between economic reform imperatives and the challenges to national sovereignty. The article explores the concept of sovereignty derived from social contract theory, whereby citizens delegate their authority to the government through the constitution to regulate resource allocation and resolve disputes. However, the influence of globalization and international financial institutions, such as the International Monetary Fund and the World Bank, has constrained this sovereignty by imposing fiscal reforms. In the international context, Morocco faces pressures from the European Union to amend its tax policies, exacerbating economic challenges and adversely affecting vulnerable populations. Domestically, the parliament exercises oversight over financial treaties, but its role remains limited compared to the executive branch, which manages debt through the Directorate of Treasury and External Finance, prioritizing financial market stability. Judicial oversight is undertaken by the Court of Accounts, which has noted unprecedented levels of public debt, highlighting transparency challenges. The paper recommends strengthening governance and fostering a national dialogue to delineate responsibilities and ensure the sustainability of public finances while cautioning against the risks of excessive borrowing amid global crises.

Keywords

References

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