Born to Carlos A. Morales Casco and Anita Carazo Arellano in Granada, Nicaragua,[1] he obtained a degree in Industrial Relations at the American Institute of Higher Business Management (IPADE-Universidad Panamericana, Mexico).

He also co-founded the Central American University (UCA) and its Faculty of Economics and Management, whose board he subsequently joined.

In November 2001 he was elected National Deputy to the Legislative Assembly as a member of the Blue and White Bench, serving for five years as President of the Commission on the Environment and Natural Resources.

During the administration of 1997–2001 he was Personal Adviser with the rank of Minister of the President and Chairman of the National Council for Sustainable Development (CONADES).

After leaving office, Morales Carazo was sworn in as Member of the Central American Parliament (PARLACEN) at a special event at the headquarters of the regional forum in Guatemala.