Morocco Employability and Land Compact - Constraints Analysis

MCC’s evidence-based approach to its investments begins with a mutual understanding of a country’s main growth challenges. During the first phase of the compact or threshold program development process, MCC and the selected partner country, jointly conduct a constraints-to-growth analysis (CA). This analysis identifies the constraints to private investment and entrepreneurship that are most binding to economic growth in the country. The results of this analysis enable the country, together with MCC, to select activities most likely to contribute to sustainable, poverty-reducing growth.

The Constraints Analysis Report for the second Morocco Compact highlights the following binding constraints to economic growth:

1. Education quality;
2. Land policy and implementation (with qualitatively different issues for rural areas and industrial land); and 
3. Governance, notably labor market regulations, taxes, and the commercial judiciary system