Morocco enjoys macroeconomic stability with low inflation, a large reserve of foreign exchange and a diminishing foreign debt. However, although the country has performed well in economic terms over the past few years, it still faces structural problems, including a heavy reliance on agriculture. Morocco is highly accommodating to both foreign and domestic investment, and the government is making continuous efforts to improve the investment climate by, for example, streamlining paperwork in connection with investment. Nonetheless, the country still faces a number of socio-political challenges. One of these is the occurrence of corruption, both petty and grand, in virtually all sectors, including the country's political life. In February and March 2011, thousands of Moroccans took to the streets of Moroccan cities, demanding an end to corruption, reforms to fight the unemployment in the country, better civil rights, and also a reduction in the power of the incumbent King Mohammed VI, according to 2011 articles by Reuters and The National. According to these articles, the demonstrations in Morocco reflect similar protests in other Arab states. 

Positive developments in relation to corruption and investment:

• The problem of corruption in Morocco has been well-publicised, and the country's outspoken media, civil society and successive governments have advocated launching a fight against corruption.
• The legal framework concerning corruption, transparency and integrity seems to be in place, and the regulatory system itself is becoming increasingly transparent.
• In October 2010, Morocco's government unveiled a two-year anti-corruption plan, which includes over 40 new anti-graft measures, such as asset declarations for top state officials, government protection of whistle-blowers, and channels for the public to report graft and extortion by government officials. 

Risks of corruption:

• Prosecutions of corruption cases have been accused of targeting only petty corruption. Also high profile cases and cases where the misdeeds were shown to result from the government's style of governance have been promptly halted in order to avoid political embarrassment.
• Foreign as well as Moroccan entrepreneurs identify corruption as a large obstacle to investment in Morocco and remain sceptical with regard to the effectiveness of the government’s efforts to fight corruption.
• Allegations persist that companies owned by highly influential persons are rarely disciplined by regulatory agencies if they contravene investment regulations, and that regulations shown to jeopardise the entrenched interests of the higher circles of political and economic power are disregarded.