Introduction to the Creation of Local Development Companies (SDL) in Morocco: Between New Public Management and Organic Law 113-14

From a legal standpoint, there are three categories of companies that can be created by local authorities and their groupings:

1. Regional Development Companies (SDR) created by the Regions and their groupings;
2. Development Companies (SD) created by Prefectures or Provinces or their groupings;
3. Local Development Companies (SDL) created by Municipalities or their groupings.

These development companies are public limited companies established for the management of services, facilities, and activities falling within the jurisdiction of the local authority or grouping, excluding the management of private assets belonging to these entities.

The creation of Local Development Companies (SDL) in Morocco represents a key step in modernizing territorial management and strengthening local development. These innovative legal entities were born out of a desire to invigorate the local economy, improve the quality of public services, and respond more effectively to the needs of the territories.

The establishment of SDLs is part of an approach inspired by New Public Management (NPM), which advocates for a more dynamic and efficient approach to public service management. NPM emphasizes efficiency, transparency, and accountability, borrowing practices from the private sector to optimize results in the public sector. By adopting these principles, SDLs aim to catalyze local economic development, integrating modern management methods and promoting greater autonomy in project execution.

Organic Law 113-14, relating to municipalities, provides the legal framework for this reform. It defines the roles and responsibilities of local authorities and establishes the necessary structures for more effective and transparent local governance. In particular, the law allows for the creation of a structure dedicated to local development (an SDL), granting it the means necessary to initiate and manage development projects in a specific area.

Local Development Companies, as tools for implementing public policies at the local level, play a crucial role in promoting economic, social, and cultural projects. They enable more flexible management tailored to local realities, involving both private and public actors around common projects. Thanks to their unique legal status, they can mobilize diverse resources and effectively coordinate local interventions.

In summary, the creation of SDLs in Morocco, influenced by New Public Management and Organic Law 113-14, marks a significant advancement toward more efficient and participatory management of local development. These companies serve as essential levers for promoting local development and improving citizens’ living conditions, while strengthening the proximity between decision-makers and beneficiaries of public policies.