Decentralised partnerships as a local economic development tool: Evidence from Morocco

Decentralised cooperation between subnational governments is increasingly promoted as an instrument of local economic development, yet structurally similar partnerships often produce sharply divergent economic outcomes. This study asks why. It develops the Conditional Institutional Mediation (CIM) framework, which proposes that partnership inputs translate into local economic gains only when three institutional mechanisms are in place: absorptive capacity, stakeholder inclusivity and evaluation practices. The framework is examined through a qualitative comparative case study of two Moroccan regions, Souss-Massa and Drâa-Tafilalet, drawing on 18 semi-structured interviews with elected officials, technical staff, ministerial representatives and international partners, triangulated against 38 policy documents and statistical reports. The findings show that where regional planning was aligned with partnership objectives, technical teams remained stable and cooperatives took part in governance, partnerships stabilised agro-industrial value chains and extended benefits to rural areas; where these mechanisms were weak, comparable resources remained blocked or were captured by urban elites. The study recommends pre-commitment institutional audits, minimum thresholds for non-state representation and a shift from financial to economic impact evaluation. It concludes that the effectiveness of decentralised partnerships depends less on the volume of resources mobilised than on the quality of the institutions mediating them.