Economic essay n°1

Faycal BENJELLOUN
100322314

Adress : 172, Bickenhall street
London
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Topic : why the cost of food increased in Morocco ?

Table of contents :

1/ An increase of cost of food because of the world general inflation.

2/ An increase of cost of food because of a bad national agriculture.

3/ A bad distribution of food which leads to increase the cost of food.

4/ For who the increasing cost of food is profitable.

In this essay, i will explain why the cost of food increased in Morocco during these last decades. First of all i will give the factors of increase of the cost of food in Morocco. Then, i will tell for who this increase is profitable.

1/ After the world economic crisis of 2008/09, the whole world knew a general inflation, it means a general increase of all prices. Morocco was not very affected by this inflation, but the fact is that Morocco imports more than 50% of his food from developed countries wich were very affected by the crisis, like for example Morocco imports all his wheat from United states wich were very affected by the crisis, so consequently the cost of wheat increased in Morocco as well. Also, the food market in Morocco is controlled and subsidised by the government. The actual policy of the government about the importations (including food ) is to protect their local producers, so, the aim of this policy is to discourage importations of goods by taxing all the imported goods . Consequently private food companies are not very interested by the moroccan food market.
Here are the taxes of importations of food products in Morocco in 1995 : Products | | Tax (%)(1995) | | | | Cereal and flour | Common wheat | 190 | | Durum wheat | 224 | | Common wheat flour | 182,5 | Sugar | Raw and refined sugar | 211 | Oleaginous plant and by-products | Oleaginous | 146,5/192.5 | | Not sophisticated vegetable oil | 283,5 | | sophisticated