Morocco has leveraged Tangier’s proximity to Europe and sustained supplier development to become a regional manufacturing hub. Since the 1990s it has built capabilities meeting European standards and developed over 250 automotive suppliers with 60-65% local content, targeting 80%. Industrial acceleration zones require firms to export 70% of output and are being replicated for the battery value chain.USE CASE 9: GEOPOLITICAL LANDSCAPE Morocco’s strategic localization to compete globally Execution, not policy formulation, is now the true differentiator of national competitiveness. High- performing economies share a trait in that they treat governance itself as a design challenge. Based on global best practices and insights from public-private consultations, high-performing nations share three institutional capabilities that anchor that design. –Central coordination bodies – From fragmented mandates to systemic alignment Industrial transformation spans ministries, mandates and regions. Governments need high-level, cross-functional coordination entities, such as Panama’s Logistics Cabinet, that unify national priorities, integrate readiness factors and arbitrate trade-offs across infrastructure, energy, skills and technology. These entities act as the “control towers” of policy to resolve inter-ministerial conflict, synchronize incentives and ensure that national ambitions translate into executable projects across all levels of government. Importantly, they must also enable bottom-up experimentation by provinces and cities, creating a feedback loop between central strategy and local innovation. –Public-private engagement forums – From consultation to co-creation To align private investment with public goals, governments should institutionalize formal mechanisms for structured collaboration. Sector councils, executive roundtables and ecosystem-specific clusters turn dialogue into design. They surface market signals in real time, identify bottlenecks and co-create targeted interventions to link industrial incentives directly to business needs. These forums build mutual accountability and trust, shorten feedback cycles and transform policy-making from episodic negotiation to continuous partnership. –Policy performance monitoring unit – From monitoring to continuous improvement A dynamic “policy-performance unit” closes the loop between ambition and results. Beyond tracking indicators, it diagnoses why interventions succeed or fail, quantifies the return on policy investment and activates mid- course corrections. Using AI-enabled analytics and cross-departmental data, it treats regulation as a living system that is continuously tested, refined and redeployed. By institutionalizing this learning mechanism, governments embed agility within bureaucracy itself. Together, these three capabilities form the institutional foundation for national readiness and governance that learns, adapts and leads at the same speed as industry.3.2 Institutional considerations for policy execution Global Value Chains Outlook 2026: Orchestrating Corporate and National Agility 29