short slide presentation on the importance of human capital for productivity and more advanced manufacturing and innovation in GVCs integration.

1. Enhancing Morocco’s GVCs backward
participation through higher human
capital.
Education as the key to development and growth.
Trading for Development in the Age of Global Value Chains - WDR 2020 final project

2. Morocco’s participation in GVCs
By providing a favorable investment climate and Special
Economic Zones(SZE), the country has successfully attracted
FDI aimed at the development of these sectors. Morocco’s
backward participation in GVCs has especially benefited from
various FDI which enhanced the levels of domestic value
added(VA) to exports.
Morocco has successfully integrated global value chains
through different manufacturing industries. Among these
industries the automotive and textile sectors have been
leading Morocco’s participation in the global chains of
production.
Source : WTO - trade in Value Added and Global Value Chains

3. Human capital as enhancer of GVCs participation
Human capital plays a pivotal role in the
development process of a country. Upgrading to
higher levels manufacturing requires a great
capacity for innovation which can be sustained
only through higher levels of education.
In an ever-changing technological environment,
human capital is more than ever necessary to
absorb and adopt new technologies and
innovations. Trade in GVCs, in particular, has been
drastically impacted by technological changes and
productivity improvements.
In fact, according to the latest innovation indexes, the most
productive countries also happen to be the most innovative
ones. As human capital increases, impactful results from R&D
and innovation capabilities also increase. Which in turn has a
positive impact on the overall productivity and value added to
exports.

4. Morocco’s human capital index
Although Morocco has successfully integrated global
chains of production, transitioning to more advanced
levels of manufacturing and services will more likely
represent a serious challenge due to the country’s
low-to-average levels of human capital.
The latest results of the human capital index show that the country is
lagging behind in terms of pre-school education and school
attainments. Morocco’s overall score is only 0,50 which suggests that
a child undergoing complete education is only 50% productive. As a
result the country’s score is lower than the regional(MENA) average.
Ineffective education programs coupled with
inefficient allocation of resources for schooling
have further exacerbated the productive capacity
of moroccan youth.

5. A starting point to address Morocco’s
lagging human capital resides in enhancing
the national education programs. Better
productivity and innovation are fueled
principally by a higher quality education,
therefore tackling education inefficiencies is
primordial.
Integrating technological formation since early
ages is more likely to familiarize younger
generations with fourth industrial revolution
technologies. As technological disruptions
continuously reshape the world’s development
trends, flexibility will be central in re-adapting
to new technologies.
Reforming education often requires
tremendous efforts and resources
mobilization, however the longterm results
are more likely to benefit the growth and
development of the country. Therefore
better education policy design is essential
and mandatory for upgrading Morocco’s
regional and continental competitiveness.
Better education policies for a better tomorrow
Building research and formation centers
aimed at developing key technical and
managerial skills to deepen the country’s
GVCs integration.

6. Inequality in education levels and distribution remain
serious barriers to the proper development of human
capital, not only in Morocco but, for many other
developing and under-developed countries. The long-
term consequences can be detracting for the economy
and overall social wellbeing in these countries.
Gains from trade liberalization and GVCs participation
have effectively contributed to the development and
poverty alleviation of many developing countries.
Nevertheless, most developing countries remain limited in
their manufacturing industries and moving to more
advanced manufacturing is often very demanding.
Deepening the integration in the global value chains
requires many systemic and structural reforms that
developing countries fail to address properly.
Many challenges to overcome….
In a globalized word , the challenges are not only domestic
but also international. Cooperation at regional and
international levels is fundamental in tackling several
challenges such as tax evasion, climate change, consumers
protection etc..

7. Sources
https://databank.worldbank.org/data/download/hci/HCI_1pager_MAR.pdf?cid=GGH_e_hcpexternal_en_ext
http://pubdocs.worldbank.org/en/907071571420642349/HCP-MiddleEast-Plan-Oct19.pdf
https://www.wto.org/english/res_e/statis_e/miwi_e/MA_e.pdf
https://www.worldbank.org/en/publication/human-capital/brief/human-capital-project-key-reports
https://www.statista.com/chart/19312/most-innovative-economies-in-the-world/
https://images.indianexpress.com/2019/02/slums-2100.jpg
https://educationindevelopingcountries.files.wordpress.com/2012/10/education-6.jpg
Ashraf Eid (2012) Higher education R&D and productivity growth: an empirical study on high-income OECD
countries, Education Economics, 20:1, 53-68, DOI: 10.1080/09645291003726855
Börje Johansson, Hans Lööf & Maxim Savin (2015) European
R&D efficiency, Economics of Innovation and New Technology, 24:1-2, 140-158
Gehl Sampath, P., Vallejo, B. Trade, Global Value Chains and Upgrading: What, When and How?. Eur J Dev Res 30, 481–504
(2018). https://doi.org/10.1057/s41287-018-0148-1
https://www.oecd.org/mena/economies/morocco/Morocco-Global-Value-Chains-TiVA.pdf
Thank You