The challenges and issues of local finances for sustainable urban development in Morocco

Abstract

Today, the problem of cities local finances and their governance, is at the heart of major national debates and reforms, as well as major concerns in all countries where decentralization continues and aims to strengthen the autonomy and competences of local administrations. The mobilization of local fiscal potential is a fundamental condition for promoting sustainable urban development. Despite the efforts made, local Moroccan finance, like most developing countries, does not escape an absolute reality: The scarcity of the resource. The weakness of local resources in Morocco is more related to the real low level of local tax deduction than to the economic poverty of local authorities. Many sectors of the economy have very little or no tax, while property taxes does not contribute enough to local economic activity. This article uses the case of Morocco to analyze the challenges and failures of local finances in general, and of local taxation in particular. We also discuss the tools to promote the financing of cities to promote sustainable urban development in Morocco.