Why the transformation of Global Value Chains is an opportunity for Morocco and Europe
By Hafsa EL BEKRI & Hicham SEBTI*
T
he COVID-19 crisis exposed the fragility of the traditional Glob al Value Chains (GVCs) model characterized by fragmented and globally distributed production processes. This disruption can be explained by structural and cyclical causes. The World Bank’s World Development Report 2020 described a downturn in world trade and GVCs long before COVID-19. Many factors were already fostering a reorganization of GVCs, such as the rise of protectionist movements and ecological concerns, the increase in wage costs
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in emerging countries and the emergence of Industry 4.0 technologies involving significant relocation and reshoring of industrial activities. Given its strategic location at the crossroads of Europe, the Mediterranean and Africa, Morocco has a clear comparative advantage to become one of the top performing countries and leading actor in the main regional industries. Morocco could thus benefit from a GVCs restructuring on a regional basis -- particularly in a Euro-Mediterranean-Africa area – in terms of increasing and diversifying demand, attracting capital and developing capacities for innovation.
Lessons from the Coronavirus pandemic and opportunities for Morocco Besides the current upheaval sweeping the world, the transformation of GVCs requires involved countries to make societal, ecological, and technological transitions. The new avenues that could foreshadow future GVCs policies can be outlined around four broad orientations. Morocco is no exception. First, the COVID-19 crisis might lead to long-lasting structural effects on GVCs with the possibility of reframing industrial strategies through a
