Morocco's Blue Economy

17 August 2021
Morocco’s blue economy – done by Robert Sandys-Thomas
A. $109B X 2 = $2.18B
100 1
B. Economic growth and full employment

C. Because they are a blue economy and so they use their ocean resources to help
them and their economy and so if the global demand for fish increased this means
people will want more fish and so they will buy more fish. This will lead to an
increase in the exports of fish for Morocco and therefore leading to a reduction in
the deficit in the Morocco’s current account of its balance of payments.
D. Low wages – They are in the primary sector and so the goods they sell have no value
added onto them and so are cheap. Due to this the fishermen wages must be low to
make a profit for the firms, and this therefore puts them into poverty.
Seasonal and structural unemployment – Due to them getting unemployed they will
have no income and they are most likely to have no other skills but catching fish and
so if they have no other skills, they will not be able to find other jobs and so remain
unemployed and therefore going into poverty.
E. In most cases as the GDP per head increases the percentage contribution of the
primary sector to the GDP decreases. For example, Australia’s GDP per head is
around 55000 and its percentage contribution of primary sector to GDP was around
3%. Whilst Pakistan’s GDP per head was around 2000 and its percentage
contribution of the primary sector to its GDP was around 23%. But this is not always
the case, some do not fit this trend, such as Malaysia’s GDP per head being higher
than Bulgaria’s GDP per head but Malaysia’s percentage contribution of the primary
sector to its GDP was also higher. Only on rare occasions do we see as GDP per head
increases so does percentage contribution of the primary sector. The most common
trend is that as GDP per head increase the percentage contribution of the primary
sector to its GDP decreases.
F. Regulation of fishing could ensure economic growth is sustained for the future
generations because if they regulate the fish stocks the economy can continue its
high economic growth rate. Future generations will now have fish stocks to carry on
this high economic growth rate because in the future African countries will reduce
their trade protection and so this ill therefore increase exports and this will therefore
boost economic growth. This will therefore lead to more people being employed in
the fishing industry in the economy and so more people will get out of poverty. This
also means more people will have incomes and so more people will have a higher
disposable income and therefore increasing consumption, and this will therefore
lead to a higher economic growth. With more people having incomes tax revenues
will increase and so more will be spent on health care, education, and infrastructure.
Due to more people spent on these 3 things the living standards will increase and
more people will have more skills and therefore increase the number of people
employed and increase economic growth.
G. Subsidies to fisherman could help the economy because if they subsidize these
fishermen, it will mean their cost of production will decrease and therefore the
products will now become cheaper. This will boost international competition and so
this will increase the exports of the country leading to a balance of payment surplus.
This will benefit the economy because the economy will have more foreign currency
and have a positive impact on economic growth. Due to the government subsidizing
fishermen the people will see it more beneficial to become fishermen and to open
firms to employ fishermen and so this will increase the employment rate in the
economy. Due to this more people will have incomes and higher disposable incomes
therefore leading to an increase in tax revenues which will be spent on education,
health care and infrastructure this will therefore increase the standard of living in
the economy. However, it may not benefit the economy because they will be
opportunity cost of spending that money of subsidizing fishermen instead of
spending it on education, healthcare, and infrastructure. This will also lead to a
greater reliance on the primary sector and as we have seen this will lead to a lower
GDP per head and therefore becoming a less economically developed country. The
country will be moving backwards instead it should be moving away from the
primary sector not towards it.
H. A reduction in trade protection will benefit Morocco because this will increase
exports for Morocco and so this will bring in foreign currency into the country and
improving the country. With this increase in exports the balance of payments will be
a surplus. This will then attract foreign direct investment into the country as they will
be able to see it is beneficial to start up a company in Morocco. This will then boost
the employment rate because more people will be employed, and more firms will
start to go up within the country. As the employment rate goes up more people will
receive, and income and more people will have a higher disposable income, and this
will therefore increase aggregate demand within the country. That means more
products will be bought and so improving companies profit margins and so they will
be able to pay their workers more and this will result in a decrease in poverty. Due to
this tax revenue will increase and so more will be spent of education, healthcare,
and infrastructure and so this will cause living standards to increase and cause a
country to become more developed. However, this may not benefit the country of
Morocco because all the goods produced will be sold to firms overseas and so they
will be no more products for the local people and the companies that come to the
country due to the exports will take their profits overseas and so not benefitting the
country at all but making the situation worse for the country.

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17 August 2021

Morocco’s blue economy – done by Robert Sandys-Thomas

B. Economic growth and full employment

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