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2 2/6 Section A Read the source material carefully before answering Question 1. Source Material: Morocco's blue economy Morocco fact file 2017 GDP $109 billion Contribution of fishing industry to GDP 2% Population 35.74 million Continent Africa The World Bank defines a 'blue economy' as an economy which uses ocean resources sustainably for economic growth and creates employment to improve the livelihoods of its people. Making full use of the blue economy may reduce the level of poverty among fishermen. Many fishermen globally still live in poverty due to low wages and seasonal and structural unemployment. Morocco is the leading supplier of fish in Africa. Despite the length of the Moroccan coastline, the fishing industry currently makes a very small contribution to Morocco's GDP. The government, therefore, wants to further increase the size of the fishing industry. Policy measures, such as subsidies to fishermen, could help Moroccan fishermen increase productivity and reduce competition from abroad. The United Nations' Food and Agricultural Organisation (FAO) forecasts that Moroccan fisheries' output could rise to nearly 2 million tonnes of fish per year by 2030. The global demand for fish is also on a steep upward trend as more people see the benefits of eating fish rather than meat. Such increases could help reduce the deficit on Morocco's current account of its balance of payments. Increased dependence on the primary sector may not improve living standards in Morocco because some other countries who have done the same have had disappointing outcomes. Fig. 1.1 shows the GDP per head ($) and percentage (%) contribution of the primary sector to GDP of selected countries. 60 000 Australia 50 000 Germany 40 000 30 000 20 000 Bulgaria Malaysia 10 000 Morocco India Pakistan 0 0% 5% 10% 15% 20% 25% % Contribution of primary sector to GDP Fig. 1.1 GDP per head ($) and % contribution of primary sector to GDP of selected countries Environmentalists worry that there is no proper regulation of fishing in Morocco. If overfishing occurs, fish stocks would be reduced for future generations. However, if fish stocks are maintained, the economy can continue its high economic growth rate. At a time when African countries are reducing trade protection, a sustainable fishing industry could be very positive for Morocco's future. GDP per head ($) South Korea 3 Answer all parts of Question 1. Refer to the source material in your answers. 1 (a) Calculate, in $s, the contribution of the fishing industry to Morocco's GDP in 2017. [1] (b) Identify two macroeconomic aims, other than balance of payments stability, that the Moroccan government could achieve through the blue economy. [2] (c) Explain why an increase in the global demand for fish could reduce a deficit in Morocco's current account of its balance of payment. [2] (d) Explain two causes of poverty amongst fishermen. [4] (e) Analyse whether GDP per head always increases when the percentage (%) contribution of the primary sector increases. [4] (f) Analyse how regulation of fishing could ensure economic growth is sustained for future generations. [5]