16th International Conference on Public Finance: The ambition for better financial governance for Morocco and

The 16th International Conference on Public Finance, organized on November 1 and 2 in Rabat by the Ministry of Economy and Finance in partnership with the Association for the International Foundation of Public Finance (FONDAFIP), brought together experts, academics, public decision-makers and international representatives. Focused on the theme “Towards a better restructuring of the public financial governance model in Morocco and ”, this two-day event saw speakers debate the reforms necessary to adapt financial governance systems to modern challenges. It should also be noted that a moving tribute was paid to Marie-Christine Esclassan, a great economist and friend of Morocco, and co-founder of Fondafip, who passed away in March 2023.

Decentralization, deconcentration and coordination

In her inaugural speech, Moroccan Minister of Economy and Finance Nadia Fettah stressed the importance of finding a balance between decentralization, deconcentration and coordination at the national level. She said: “It is imperative to find a balance […] so that budgetary resources are used in a coherent manner and in accordance with national priorities. » Ms. Fettah insisted on the importance of a rigorously planned approach to avoid losses of resources, and recalled the crucial role of Parliament in supervising public finances since the implementation of the Organic Finance Law in 2015 , which improved transparency and parliamentary control.

The minister also highlighted the need for strategic management, capable of responding quickly to unforeseen events, whether health, climatic or economic. She thus underlined that the conference constituted a privileged moment to discuss these fundamental issues, in order to align the long-term vision of public finances with immediate and adaptable action.

Speaking in the same context, Noureddine Bensouda, General Treasurer of the Kingdom of Morocco, addressed the evolution, challenges and avenues for improving the governance of Moroccan public finances. For Mr. Bensouda, public financial decisions, even if they often seem technical, are fundamentally political because they touch the very foundations of society, in particular the social pact which underpins the State. “All decisions in public finance, even though they may seem technical, are eminently political in that they relate to living together,” he said. These decisions must therefore reflect the objectives of social cohesion while responding to economic priorities.

Noureddine Bensouda has identified three major trends in the governance of public finances in Morocco.

First of all, the increase in public spending for better social distribution. Since 2001, public investments in Morocco have increased more than five-fold, from 21.3 billion dirhams to 110.2 billion in 2023. This effort, according to Mr. Bensouda, has made it possible to build basic infrastructure such as hospitals, educational establishments and transport networks. Public sector salaries have also increased to support social cohesion, while helping to reduce unemployment and strengthen household purchasing power.

Then, Mr. Bensouda mentioned the integration and interoperability of information systems. He highlighted Morocco’s efforts to modernize its public finance management and recovery systems since the 1990s. This modernization has made it possible to increase tax revenues and improve the efficiency of public services.

Finally, the budget deficit and sustainability. Despite the progress made, the budget deficit remains a structural challenge, requiring measures for more efficient management of public resources and debt reduction. The General Treasurer of the Kingdom suggests drawing inspiration from public-private partnerships and strengthening integration mechanisms to overcome this challenge.

For Mr. Bensouda, the solution involves coherent and integrated governance, avoiding compartmentalization and promoting the convergence of public policies. “Public policies must be out of silos,” he insisted, stressing that the General Treasury of the Kingdom is actively working on reforms, such as that of public procurement, to integrate economic, social and environmental standards into the processes of ‘purchase.

The transformation of public finances

Michel Bouvier, president of FONDAFIP and professor emeritus at Panthéon-Sorbonne University, addressed the structural challenges affecting public finances in France and Morocco. By tracing the history of public financial systems in recent decades, Bouvier described a profound change that transformed the role of the state, weakening the post-war welfare state model. “This state, once a rebuilder then a developer, is today suffering a financial crisis and a crisis of confidence,” he explained.

Bouvier recalled that the Keynesian model, which had dominated for the 30 years following the Second World War, was called into question by the economic crises of the 1970s and by the emergence of liberal policies driven by figures such as Margaret Thatcher and Ronald Reagan. This transition has favored privatization of public services, market deregulation and increased decentralization, leading to fragmentation of public financial governance.

For Bouvier, the transformations have created an “unfinished” and “heterogeneous” model, whose coherence remains uncertain. It proposes to set up a “partnership institution for the regulation of public finances” to coordinate public financial policies at all levels, and establish multi-year budgetary programming which would integrate all the resources and expenditure of the State and local authorities. and Social Security. This institution could, according to him, guarantee a better allocation of public resources and contribute to strengthening the sovereignty of States.

Perspectives and reforms for sustainable financial governance

This conference was also an opportunity for other speakers to share their vision on the necessary reforms. Ahmed Reda Chami, president of the Economic, Social and Environmental Council (EESC), highlighted the advantages of good public financial governance, stressing that it strengthens attractiveness for investors, improves transparency, and allows for efficient management. more efficient with resources. Mr. Chami called for rigorous management and better allocation of resources towards strategic investments, while integrating public-private partnerships into the budgetary strategy.

Multi-year budgetary programming was also discussed by Aziz Khayati, Director of the Budget, who explained that this approach would make it possible to guarantee the sustainability of public finances, by establishing a balance between budgetary rigor and the capacity to respond to crises. Mr. Khayati proposed establishing a multi-year programming law for the State, public establishments and local authorities, thus ensuring better coordination of budgetary priorities.

The international dimension was highlighted by several speakers. Christophe Lecourtier, French Ambassador to Morocco, stressed the importance of cooperation between tax administrations, particularly within the framework of free trade agreements. He affirmed that this cooperation promotes the creation of an attractive economic environment, while strengthening links between Morocco, France and Europe, thus constituting a “true community rooted in geography, history and demography” .

Karim El Aynaoui, executive president of the Policy Center for the New South, spoke of a “triangle of constraints” that influences economic choices around the world. According to him, financial governance models must evolve to strengthen their resilience to external shocks, and address the interconnected global forces that affect the fiscal policies of nations.

Strengthened budgetary democracy

The conference was also an opportunity to recall the importance of democratic governance of public finances. Lahcen Haddad, Moroccan parliamentarian, called for strengthening parliamentary capacities to guarantee more transparent and accountable management. He proposed investments in the training of parliamentarians, and the establishment of partnerships with academic institutions and international organizations to train them on budgetary issues. Mr. Haddad also called for greater involvement of civil society, to ensure better transparency in the management of public finances and strengthen citizen participation.

Finally, Jean-Pierre Camby, honorary administrator at the French National Assembly, stressed that institutional continuity is an essential condition for budgetary democracy. Michel Bouvard, senior advisor at the Court of Auditors in France, highlighted the importance of clarifying the skills between the State and communities to perpetuate the decentralization model.

The 16th International Conference on Public Finance highlighted the many challenges facing public financial systems in Morocco, France and elsewhere. The discussions revealed a consensus on the urgency of reforms, aimed at better coordinating resources, strengthening transparency and promoting sustainable financial governance. As Michel Bouvier stated, “without solid, efficient public financial governance, [l’État] sees its sovereignty inevitably disappear”, thus underlining the need to reconstruct a financial model adapted to contemporary realities.

Selim Benabdelkhalek

Share this article:

To go further

-

-

PREV Free trade: Ottawa toughens its tone against Mexico
NEXT Princess Lalla Meryem chairs the celebration of the 25th anniversary of the Children’s Parliament