Migration in Morocco: History, Current Trends and Future ... - MGSoG

2007c). It is essential to take into consideration the fact that many studies on this subject
are criticized for being non-representative or biased, which consequently makes them
difficult to generalize. As a result there are diverse points of views on the effect of
remittances on development in Morocco.
Some studies suggest that there is not a large-scale return on remittance
investments, and remittances may cause increased levels of intra-community inequality
(Collyer, 2004; De Haas, 2009). Some researchers also focus on the inadequate
infrastructure and absence of public services, especially in rural areas, which lower the
propensity to invest or encourage investment in relatively low-risk sectors such as
housing and retail trade (De Haas, 2007c). As a result it is argued that development is not
a consequence of migration but rather a prerequisite for investment in the home country
(De Haas, 2009).
Contrary to this pessimistic approach, there is also a lot of research pointing at the
fundamentally positive effects of remittances in the origin country. From a
macroeconomic perspective, the magnitude of remittances in Morocco has guaranteed
that remittances have contributed to economic stability in the country (Sasin, 2008).
Thanks to remittances trade deficits are compensated at least to a certain extent, and
national savings are improved (World Bank, 2006). From a microeconomic approach as
well the stable character of the high levels of remittance inflows plays a positive role in
the lives of Moroccans. Remittances lead to an improvement in the living standards of
recipient households, investment in housing, agriculture, private investments, and
education (De Haas, 2007b). It should also be mentioned that although remittances can be
spent only on consumption, because money is fungible, remittances enable the use of
other income resources for different purposes.
Remittances not only affect the lives of the migrant families but also those of non-
migrant families that benefit from the job opportunities and higher income in the regions
(Herrera, Dudwick & Murrugarra, 2009). Furthermore, through remittances migrant
families capitalize on economic activities in urban centers located inside or nearby
migrant-sending regions called “migration belts”. Household relocation and urban
business investments consequently lead to urbanization in Morocco, higher consumption,
and wage increases. According to the World Bank report on poverty (2008), many
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