The social and solidarity economy as a pillar of post-pandemic recovery: the case of Morocco
January 14, 2022
Boussedra Bammadi
The current health crisis, which has exposed the vulnerabilities of our societies and economies, has left uncertainties with respect to the economy and business prospects. In Morocco, more than 600,000 jobs were lost between the third quarter of 2019 and the same period of 2020, according to the latest figures published by the High Commission for Planning. This is a trend witnessed in all sectors, exacerbating inequalities and manifestations of fragility.
The social and solidarity economy, which includes businesses and organizations (cooperatives, economic interest groups, associations and institutions) that produce goods, services and knowledge while striving to achieve economic and social goals, must play a leading role in reviving the national economy and combating the severe repercussions of the crisis caused by the Coronavirus (Covid-19).
This crisis reinforces the idea of the need to create a new economic model of solidarity and a new series of innovations that can contribute to social transformations to stimulate the transition towards global sustainable development.
The social and solidarity economy offers significant potential as an integrated business model for young people and women, particularly in rural areas, a driving force for the dissemination of the values of solidarity and social cohesion and a lever for development. Social economy initiatives also support sustainable territorial development and capacity-building, making it possible to organize the informal sector, create new employment opportunities and fight effectively against poverty.[1]
The impact of the COVID-19 crisis
Despite the long history of the social and solidarity economy in Morocco, the economy remains susceptible to economic shocks.
Although the economy began to build momentum thanks to the strategies of the State and the dynamism of local actors, the Covid-19 epidemic negatively affected various drivers of the social and solidarity economy, particularly cooperatives and associations.[2]
In parallel, the epidemic has caused a decline in the supply of and demand for goods and services in the primary sectors of the economy, including tourism, crafts and agriculture. As a result, the components of the social and solidarity economy found themselves severely affected by the sudden cessation of their activities during the quarantine period.
Faced with this situation, Moroccan associations nevertheless tried to be active in the efforts to fight the epidemic, while the cooperatives found themselves in economic distress, which led to great difficulties in ensuring continuity, and consequently loss of purchasing power for members. This has created vulnerability in meeting their needs and those of their families.
Despite this turbulent situation, many organizations have taken initiatives to support cooperatives, especially those active in the field of social and solidarity economy, in order to mitigate the effects of the crisis. This includes measures such as creating electronic platforms to enhance marketing capabilities, and encouraging cooperatives to have visual identities and logos. Another component is the launch of a strong campaign to stimulate domestic and national consumption and encourage the “Made in Morocco” brand,[3] in addition to other initiatives being implemented through the Cooperation Development Office.[4]
The need for strong governance and institutions
In order to ensure the sustainability and strengthening of the various structures of the social and solidarity economy, allowing them to fully play their role in the economic and social development of the Kingdom, a strong institutionalization of the social and solidarity economy and good governance must be put in place, starting with the ratification of a framework law for the social and solidarity economy.
The draft law on the framework for the social and solidarity economy, initially filed in June 2016, remains pending, although would define the scope of the social and solidarity economy and clarify the vision regarding it in its relationship with national development strategies.
In order to contain the repercussions of the crisis and enhance the contribution of the social and solidarity economy, the Ministry has developed a comprehensive recovery plan based on, among other things, supporting production and marketing for the benefit of the social and solidarity economy, digitizing and mobilizing all parties concerned with the enterprise system and supporting actors in this economy.[5]
Ratifying the framework law related to the social and solidarity economy, which aims to highlight and clarify the vision regarding this economy and provide the means and tools for its development, would be an important development. A strong social and solidarity economy, whose founding principles are an integral part of the well-established traditions of Moroccan society (collective and solidarity work), would form a pillar for reviving the national economy after the crisis, through concrete and innovative solutions that it can provide in terms of social cohesion and growth.[6]
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[1] Salwa Tajri, Director of Social Economy Promotion at the Ministry of Tourism, Handicrafts, Air Transport and Social Economy, in an interview with MAP.
[2] Abdallah Souhair, President of the Moroccan Network for Social and Solidarity Economy, in an interview with MAP.
[3] Id.
[4] The Cooperation Development Office is responsible for maintaining a central register of cooperatives, collecting and distributing documents and information related to cooperation, as well as proposing legislative or regulatory reforms that concern the creation and development of cooperatives. It is also entrusted with accompanying cooperatives and their unions in the fields of training, information and legal assistance.
[6] Salwa Tajri, Director of Social Economy Promotion at the Ministry of Tourism, Handicrafts, Air Transport and Social Economy, in an interview with MAP.
