| Morocco : Integrity Scorecard Report > Sub-Category: Business Licensing and Regulation | ||
| Indicators | Score | |
| 70 | Are business licenses available to all citizens? | 38 |
| 71 | Are there transparent business regulatory requirements for basic health, environmental, and safety standards? | 100 |
| 72 | Does government effectively enforce basic health, environmental, and safety standards on businesses? | 25 |
Indicator and sub-Indicator Details
| 70 | Are business licenses available to all citizens? | |||||||
| 70a: In law, anyone may apply for a business license. | ||||||||
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Comments: Several activities require permits or permissions that are granted conditionally. But other activities require permits, which are issued only to the privileged. These are lucrative because of the profits that can be made and because of the location of the approval or authorization. In the latter case, people who are wealthier advance at the expense of those who do not use bribes for an "administrative paper". This is known in Morocco as "Economie de Rente" (Allowance economy). The items it covers includes natural sand, the right to have a taxi in urban or interurban areas, transportation amenities, quotas purchasing rationed items, offshore and other fishing rights, to name a few. References: FALSE GRIEVANCES SUBJECT TO SOUVRAIN: Details of the case Youssef Chmirou La Gazette du Maroc No. 554 - 08 December 2007 Azeddine Akesbi Endemic corruption in Morocco stands in the Economie de rente (allowance economy) In the AMSE Symposium: DEFIANCE, CORRUPTION, ANNUITIES: THE DILEMMAS OF DEVELOPMENT IN MOROCCO Rabat on 6 - 7 June 2008 Investigation. The lords of the Sahara Tel Quel No 161 [ LINK ] Transparency news No. 3 August 2008.
Peer Review Comments: It is very difficult, for example, to have a license for selling alcohol. The administrative mechanism is not based on clear procedures and transparency. This is what may explain the spread of bribery. The interaction between law, religion and economy creates some black areas.
Peer Review Comments: Anyone can apply, but not everyone gets the license for regulated activities, such as mining, fishing and transportation.
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| 70b: In law, a complaint mechanism exists if a business license request is denied. | ||||||||
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Comments: When a business doesn't receive a license, the business can challenge the law. Whatever the reason for the rejection, there is action possible before the administrative courts. However, those who receive approvals are more often depending on bribes or promises of cronyism with the government. So, there are no appeals related to this growing issue. References: FALSE GRIEVANCES SUBJECT TO SOUVRAIN: Details of the case Youssef Chmirou La Gazette du Maroc No. 554 - 08 December 2007 Azeddine Akesbi Endemic corruption in Morocco stands in the Economie de rente (allowance economy) In the AMSE Symposium: DEFIANCE, CORRUPTION, ANNUITIES: THE DILEMMAS OF DEVELOPMENT IN MOROCCO Rabat on 6 - 7 June 2008 Investigation. The lords of the Sahara Tel Quel No 161 [ LINK ] Transparency news No. 3 August 2008.
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| 70c: In practice, citizens can obtain any necessary business license (i.e. for a small import business) within a reasonable time period. | ||||||||
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Comments: The period may be long depending on the type of license from the authority concerned and even depeding on the particular officials involved. The system of permits is not standarized. References: FALSE GRIEVANCES SUBJECT TO SOUVRAIN: Details of the case Youssef Chmirou La Gazette du Maroc No. 554 - 08 December 2007 Azeddine Akesbi Endemic corruption in Morocco stands in the Economie de rente (allowance economy) In the AMSE Symposium: DEFIANCE, CORRUPTION, ANNUITIES: THE DILEMMAS OF DEVELOPMENT IN MOROCCO Rabat on 6 - 7 June 2008 Investigation. The lords of the Sahara Tel Quel No 161 [ LINK ] Transparency news No. 3 August 2008 World Bank: Study on land in Morocco
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| 70d: In practice, citizens can obtain any necessary business license (i.e. for a small import business) at a reasonable cost. | ||||||||
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Comments: The cost is related to the duration. It is, therefore, a high cost because a term may be long depending on the type of license from the authority concerned and even officials involved. A World Bank study found a shorter period in the city of Kenitra (36 km away from Rabat) versus an abnormally high wait time in the capital. In general, the cost is considered high by investors because it requires a lot of paperwork and several small fees accompany the paperwork. This is not including taxes and notary fees. References: FALSE GRIEVANCES SUBJECT TO SOUVRAIN: Details of the case Youssef Chmirou La Gazette du Maroc No. 554 - 08 December 2007 Azeddine Akesbi Endemic corruption in Morocco stands in the Economie de rente (allowance economy) In the AMSE Symposium: DEFIANCE, CORRUPTION, ANNUITIES: THE DILEMMAS OF DEVELOPMENT IN MOROCCO Rabat on 6 - 7 June 2008 Investigation. The lords of the Sahara Tel Quel No 161 [ LINK ] Transparency news No. 3 August 2008 World Bank: Study on land in Morocco
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| 71 | Are there transparent business regulatory requirements for basic health, environmental, and safety standards? | |||||||
| 71a: In law, basic business regulatory requirements for meeting public health standards are transparent and publicly available. | ||||||||
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Comments: There is myriad of laws. Recently, a project for the creation of a center for food safety has been validated and introduced into the legal process of adoption. References: Dahir No. 1-88-179 (22 rebia I 1414) promulgating the Law No. 17-88 on the duration of validity on canned and assimilated and beverages for human consumption or animal Dahir No. 1-59-380 of 26 rebia II in 1379 (29 October 1959) on combating crimes against the health of the nation. Dahir 3 chaoual 1332 (25 August 1914) regulating institutions unhealthy, dangerous or obnoxious.
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| 71b: In law, basic business regulatory requirements for meeting public environmental standards are transparent and publicly available. | ||||||||
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Comments: There is a myriad of laws dealing with the environment. References: Dahir No. 1 - 03 - 59 of 10 Rebii I in 1424 (12 May 2003) promulgating the Law No. 11-03 relating to the protection and enhancement of the environment. Dahir No. 1-03-60 of 10 Rabii I in 1424 (12 May 2003) promulgating the Law No. 12-03 on the impact on the environment. Dahir No. 1-95-154 of 18 I Rabii 1416 (16 August 1995) promulgating the Law No. 10-95 on water
Peer Review Comments: There are several laws for protecting the environment, but those laws are not well translated into practice. In general, it is a question of consciousness. For example, the environment is considered a minor concern.
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| 71c: In law, basic business regulatory requirements for meeting public safety standards are transparent and publicly available. | ||||||||
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Comments: In all major cities there is a one-stop shop for entrepreneurs. The sites of these centers provide all information. Similarly, the ministries of trade, finance, agriculture, and the portal of Morocco deliver information. References: Regional Investment Center [ LINK ] [ LINK ] Law No. 15-95 forming the Commercial Code
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| 72 | Does government effectively enforce basic health, environmental, and safety standards on businesses? | |||||||
| 72a: In practice, business inspections by government officials to ensure public health standards are being met are carried out in a uniform and even-handed manner. | ||||||||
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Comments: Government efforts are not visible. However, publicly there is no tolerance if there was a case of food poisoning involving the public or at hospitals, schools or hotels. Pollution of water by industries is intolerable, especially in view of studies on the pollution level of some rivers as Sebou. The quality of meat is not controlled in cities like Casablanca or Rabat, because of the involvement of mafia and levels of corruption in the industry. References: Hydraulic Basin of Sebou [ LINK ] Fire. Trap fire in Casablanca in the weekly news paper: Tel Quel No. 321 (25-04-2008-02-05-2008) [ LINK ]
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| 72b: In practice, business inspections by government officials to ensure public environmental standards are being met are carried out in a uniform and even-handed manner. | ||||||||
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Comments: Government efforts are not visible. However, publicly there is no tolerance if there was a case of food poisoning involving the public or at hospitals, schools or hotels. Pollution of water by industries is intolerable, especially in view of studies on the pollution level of some rivers as Sebou. The quality of meat is not controlled in cities like Casablanca or Rabat, because of the involvement of mafia and levels of corruption in the industry. References: Hydraulic Basin of Sebou [ LINK ] Fire. Trap fire in Casablanca in the weekly news paper: Tel Quel No. 321 (25-04-2008-02-05-2008) htpp://www.telquel-online.com/322/couverture_322.shtml
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| 72c: In practice, business inspections by government officials to ensure public safety standards are being met are carried out in a uniform and even-handed manner. | ||||||||
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Comments: Government efforts are not visible. However, publicly there is no tolerance if there was a case of food poisoning involving the public or at hospitals, schools or hotels. Pollution of water by industries is intolerable, especially in view of studies on the pollution level of some rivers as Sebou. The quality of meat is not controlled in cities like Casablanca or Rabat, because of the involvement of mafia and levels of corruption in the industry. There has been an increase this year cases of gross negligence resulting in deaths and serious injuries involving goverment and local governments. Several accidents were recorded this year: building collapses, fires in factories, poisoning by gas leaks in workshops. These cases have proved before the courts that there is a failure of the system of controls, permissions and licenses, and the weakness of local governance. References: Hydraulic Basin of Sebou [ LINK ] Fire. Trap fire in Casablanca in the weekly news paper: Tel Quel No. 321 (25-04-2008-02-05-2008) [ LINK ]
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