The Makhzen Crisis: When Bankruptcy Becomes the Defining Label

BY: Dr. Hana Saada

Algiers, Algeria | January 12th, 2025 — In Morocco, a nation caught in the grip of pervasive corruption and systemic mismanagement, the Makhzen regime’s failure to address critical issues has led to severe socio-economic consequences. The widespread entrenchment of bribery, coupled with an alarming rise in unemployment, business bankruptcies, and human rights violations, points to a country at the precipice of institutional collapse. At the center of this crisis, the government’s lack of meaningful reform and its focus on superficial projects rather than substantive change has left Moroccan citizens to bear the brunt of the state’s failure.

The Moroccan Association for Human Rights (AMDH) has voiced its grave concern over the deeply ingrained culture of bribery that has seeped into various levels of government, crippling public institutions and eroding the very foundations of social justice. As the Makhzen government continues to ignore urgent issues, citizens’ rights are being trampled, and the economy is on the brink of implosion.

According to AMDH, corruption is no longer a mere transgression of the law; it has become a pervasive societal cancer that perpetuates injustice and undermines national progress. “Bribery is a destructive force that weakens the public sector, drains essential resources, and fosters a culture of impunity,” the organization declared in a statement. The prevalence of this corruption is not only hindering the nation’s development but also deepening the suffering of Morocco’s vulnerable populations who are denied access to basic services. Furthermore, the inefficiency and lack of accountability in the public administration system have created a climate of mistrust between the people and the state.

Recent reports from both national and international watchdogs underscore the critical need for action. The latest National Integrity Commission report highlights the scale of corruption, revealing that it siphons off between 4 to 6 percent of Morocco’s Gross Domestic Product (GDP), which equates to an annual loss of approximately 50 billion dirhams, or nearly 5 billion euros. This financial drain underscores the gravity of the situation and the extent to which corruption stifles economic potential and hinders sustainable growth.

Moreover, the unemployment crisis has reached new heights. In 2024, the unemployment rate surged to a historic 21.3%, an alarming statistic that signals a deeply dysfunctional labor market. The Confederation of Small and Medium Enterprises in Morocco (CGEM) reports that over 40,000 businesses closed their doors in the same year, exacerbating the strain on the economy and pushing countless citizens further into poverty.

The economic devastation resulting from these closures, coupled with the cumulative impact of the COVID-19 pandemic, has left small and medium-sized enterprises (SMEs) vulnerable to overwhelming debt. Without immediate intervention, industry leaders warn that the country faces the risk of further mass bankruptcies, which will only deepen the already severe economic crisis. According to CGEM President, Abdullah Farkhi, “Without decisive action to support SMEs, we risk seeing a dramatic rise in the number of companies forced into bankruptcy, which will further destabilize Morocco’s economic and social fabric.”

Simultaneously, Morocco’s failure to protect its citizens from the ravages of economic inequality and environmental disasters continues to fuel social unrest. The Moroccan Human Rights Association (AMDH) has condemned the government’s treatment of activists, journalists, and citizens who dare to speak out against the regime’s policies. The suppression of free speech and the ongoing persecution of protesters and dissenters—often under the guise of anti-terrorism laws—has amplified the nation’s social instability. The recent unjust sentencing of activists advocating for Palestinian rights serves as a stark reminder of the government’s harsh crackdown on political dissent.

Furthermore, the relentless rise in the cost of living is placing increasing pressure on families, especially those in lower-income brackets. According to AMDH, “The rising prices of essential goods have left many Moroccan households struggling to make ends meet, with the government doing little to alleviate the burden.”

The situation is exacerbated by the growing disparity between the rich and the poor, and the ongoing land expropriation crises that disproportionately affect rural communities. Landowners, particularly in agricultural areas, have reported being unfairly dispossessed of their land, a violation of their basic property rights that often occurs without fair compensation. This practice has forced many rural families into displacement and exacerbated poverty in already marginalized communities.

The lack of meaningful reforms or effective governance, combined with systemic corruption and the ongoing economic struggles, paints a grim picture for the future of Morocco. As the Makhzen regime continues to prioritize political survival over the welfare of its citizens, the country faces the very real possibility of institutional collapse. This growing sense of disillusionment and distrust among the populace is only further compounded by the government’s failure to address the root causes of these crises.

In light of these escalating challenges, civil society organizations are calling for urgent reforms aimed at promoting transparency, accountability, and social justice. The need for a transparent anti-corruption framework, effective protection for whistleblowers, and a robust legal system that ensures that those in power are held accountable for their actions has never been more urgent. As one Moroccan analyst stated, “If the current trajectory continues, the Makhzen risks becoming a byword for failure, incompetence, and widespread inequity.”

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