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FOM Newsletter December 2001
Morocco Week in Review
  December 29,  2001

UNESCO names Moroccan city Essaouira world heritage.
Moroccan Dams Filled Up to 43.3% of Capacity.
Morocco floods kill 15.
S&P revises Morocco outlook from stable to negative.
Morocco records 3.9 percent growth rate.
FAO/WHO first world forum on food safety in Marrakesh in January.
Belated rains improve Moroccan cereal crop outlook
Moroccans consume 300 million liters of pop annually.
Two million apartments to be built in Morocco.
Study Pinpoints Textile Sector Weaknesses, Industry Calls for Bailout.
Maghreban colloquy on population calls for breaking isolation of rural world.
Morocco to adopt e-morocco strategy.
Some 70 percent of subsidies to oil go to diesel-oil used in agriculture.
Morocco allocates 200 million dh to tourism promotion.
Software piracy costs Morocco $6.0-mln a year -MAP
Morocco moves to institute unemployment insurance in Morocco.
Casablanca hosts international video festival in March.
Morocco's energy sector liberalization scheme delayed.
Morocco's education sector employs 250,000 persons.

UNESCO names Moroccan city Essaouira world heritage.

Culture, 12/15/2001

The Paris-based United Nations Educational, Cultural and Scientific Organization has named the Moroccan Atlantic city of Essaouira part of the world heritage list. Royal advisor and chairman of the Essaouira-Mogador local association, Andre Azoulay, said this is a historical decision, fruit of unrelenting and resolved efforts by those who never doubted Essaouira was able to highlight its historic assets and use them for economic, social and cultural development of the city. New sites announced at UNESCO's annual meeting in Helsinki are, Brazil's Chapada dos Veadeiros and Emas national parks and Fernando de Noronha and Atoll das Rocas reserves, Britain's Dorset and East Devon coastlines and Cuba's Alejandro de Humboldt National Park.Russia's Central Sikhote-Alin, Switzerland's Jungfrau-Aletsch-Bietschhorn and Israel's Masada National Park also were named World Heritage nature sites. New cultural heritage sites, including Samarkand in Uzbekistan, the historic centers of Vienna in Austria and Goias in Brazil and the Falun mining area in Sweden also were added to the Paris-based U.N. group's list. UNESCO's World Heritage Committee is responsible for implementing the 1972 U.N. Convention on the protection of cultural and natural sites around the world. To its World Heritage List in Danger, it added the rice terraces of the Philippine cordilleras and the ancient holy city of Abu Mena in Egypt, bringing the total to 31 sites worldwide. In addition, it extended three natural sites: the Galapagos islands of Ecuador, the volcanoes of Kamchatka and Kluchevskoy Nature Park in Russia, and the Lake Turkana national parks in Kenya.

http://www.geocities.com/CapitolHill/Lobby/3385/News.html

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Moroccan Dams Filled Up to 43.3% of Capacity.

RABAT, Dec.27- Water reserves stored in Moroccan dams reached 43.3% of the dams capacity, compared to 35.1% in the same period of last year, says the equipment ministry. Recent rains in Morocco have brought to 100% the filling rate in some dams. http://www.map.co.ma/mapeng/home_dep/newsd20.htm

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Morocco floods kill 15.

Thursday, December 27, 2001 By BBC

Flash floods triggered by torrential rain have killed 15 people and left hundreds homeless in Morocco over the past week. The rains hit last weekend and flood waters have yet to subside in parts of the Settat and Essaouria regions. The first deaths occurred on Monday, when six people were drowned when their taxi was swept away in Settat by the overflowing Boumoussa river, 150km south of the capital Rabat. Officials told the Associated Press news agency that an 11-year-old boy and two others were also killed in separate incidents in Settat. According to AP, a further six people died around the Atlantic tourist destination of Essaouria. The floods have caused damage estimated at $1.75m and hundreds of families are homeless. Reuters news agency reported that the industrial city of Mohamedia, 70km south of Rabat, had been cut off when the Oued El Maleh river burst its banks. Residents of shanty-towns there were inundated and tents were erected for those who had lost their homes. But the Moroccan press has strongly criticized the authorities for not having done enough to prevent severe flooding. But Morocco's official MAP news agency said railway services had resumed between Casablance and Khouribga.

http://www.kbc.co.ke/story.asp?id=9293&categoryid=2

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S&P revises Morocco outlook from stable to negative.

December 12, 2001

The international rating agency Standard & Poor's (S&P) has revised its outlook on the Kingdom of Morocco to negative from stable, reflecting the country's weakened fiscal stance and the pressures that high fiscal deficits are likely to exert on price and exchange rate stability. The central government deficit reached nine percent of Gross Domestic Product (GDP) in 2001, and it is expected to fall to six percent of GDP next year, although this target may be missed if growth is less than expected, S&P noted. The debt burden, equivalent to 78 percent of GDP, has remained fairly stable in 2001. Interest expenses remain at more than 20 percent of revenues. Non agricultural growth remains between three-four percent per year, S&P's asserted, although growth prospects for 2002 could be dented if the economic slowdown in Europe and heightened security concerns subdue developments in the tourism industry. Morocco's external debt has been declining steadily over recent years and was expected to continue to improve gradually. However, severe drought, rising unemployment and budget deficit have steered the Moroccan economy off course, pushing international financial houses to lower their credit rankings for the North African state. Moody's has also recently awarded Morocco a B-1 ranking, a stable-minus rating. Treasury Minister Fathullah Oualalou recently asserted however that the national economy managed to evade a slowdown thanks to high privatization revenues, which offset the excessive expenditures allocated to overcoming the drought effects and protecting local consumers from rising oil prices, reported Al-Quds Al-Arabi . The government received income of 23.3 billion Moroccan dirhams ($2.034 billion) from the partial privatization of Maroc Telecom in February 2001, giving the Treasury considerable flexibility in its debt management. As privatization opportunities are exhausted, however, S&P's forecasts fiscal adjustment difficulties ahead. - (menareport.com)

http://www.Menareport.com/story/TheNews.php3?action=story&sid=193784&lang=e&dir=mena

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Morocco records 3.9 percent growth rate.

December 12, 2001

The Moroccan economy recorded an annual growth rate of 3.9 percent in the past four years, stated Treasury Minister Fathullah Oualalou.The minister added that the national economy managed to evade negative growth rates in spite of prevailing drought conditions. Privatization revenues offset the excessive funds diverted to programs aimed at overcoming the drought effects and protecting local consumers from rising oil prices, reported Al-Quds Al-Arabi . - (menareport.com)

http://www.Menareport.com/story/TheNews.php3?action=story&sid=193730&lang=e&dir=mena

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FAO/WHO first world forum on food safety in Marrakesh in January.

Local, 12/25/2001

The Food and Agriculture Organization (FAO) and the World Health Organization (WHO) organize next January 28-30 in Marrakesh a world forum on food safety, the two organizations said in a press release here. The forum, the first of the kind, will be attended by officials in charge of regulating the safety of foodstuffs. The forum, which is meant to encourage public consultations on the basis of scientific data and to consolidate food safety, especially in developing countries, will discuss issues having an impact on public health, and the international trade of foodstuffs. The forum will be attended by delegates of several international organizations and ministries of agriculture and health of the member countries of the FAO and the WHO. Delegates of ngos, food producers, food industries, tradesmen and retailers' associations, and consumers' associations will also attend the forum.

http://www.arabicnews.com/ansub/Daily/Day/011225/2001122527.html

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Belated rains improve Moroccan cereal crop outlook

By Souhail Karam

RABAT, Dec 25 (Reuters) - Belated rain in December has brightened Moroccan farmers' hopes of a better cereals harvest than last year, but experts said farmers had to catch up on the area of land sowed with cereals. Rainfall has been good throughout the country since December 9. Up to December 15 an area of 1.9 million hectares had been planted with cereals, down from 3.2 million hectares a year ago, a senior agriculture ministry official said. "The positive weather conditions that we are witnessing now can lead farmers to sow more areas at an average of 1.0 million hectares per week up to January 10," he told Reuters. The official said the cereals-sowed areas could rise to six million hectares (14.83 million acres) by January 10. "This year's scenario reminds us of the year when rain started pouring from December and we had then a very wet spring which led us to a record harvest," he said in reference to the 10 million tonnes of cereals harvested in the 1995/1996 campaign. "More than half the cereals seeds available on the market have not been sold yet and if we get generous rainfalls in the coming two months...history could repeat itself," said the official, who declined to be named. But a leading private miller doubted that Morocco would reach the record figure of 1995/1996 "even if it continues to rain until April". "Recent rainfalls bode well for our cereals farmers but the harvest will not go beyond 6.5 million tonnes in the best possible conditions," he said.

BETTER FORECAST

The government predicts what it calls a normal cereals harvest of around six million tonnes in the 2001-02 season, which runs from September. The cereals harvest in the 2000-01 season was 4.5 million tonnes, up from 1.8 million tonnes in 1999/2000 season. Drought hit Morocco last year but not as severely as in the previous two seasons. Agriculture contributes 20 percent of the country's Gross Domestic Product and employs around half its 10-million workforce. Ahmed Laaboudi, head of the independent think tank Conjunctue Moroccan Centre (CMC) said his centre revised down the growth forecast for primary production in 2002 after the rains failed at the start of the campaign. "We went down from 19 to 10 percent growth for the primary sector which led to a drop in our GDP growth forecast from 6.1 to 3.6 percent," he said. "We will revise up or down our new forecast once we see how wet March and April. Rain in the these two months are crucial for the plants growth," Laaboudi added.

(Rabat newsroom, +212-37 720065 fax +212-37 722499, rabat.newsroom@reuters.com)

http://www.zawya.com/Story.cfm?id=1009273905nL1251207&Section=Countries&page=Morocco

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Moroccans consume 300 million liters of pop annually.

December 12, 2001

Official statistics reveal that Moroccans consume 300 million liters of carbonated beverages annually, while the American giant Coca-Cola Company spends seven million dollars on advertisements in Morocco annually. The Moroccan ONA Group reported that its beverage sales amount to two billion dollars in Moroccan markets and $500 million in European markets, reported Al-Hayat . - (menareport.com)

http://www.Menareport.com/story/TheNews.php3?action=story&sid=193804&lang=e&dir=mena

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Two million apartments to be built in Morocco.

December 13, 2001

Morocco is planning to build 2.2 million new apartments by 2010 in an effort to overcome the country's housing shortage. An official report estimates the project to cost 28.9 billion Moroccan dirhams, most of which will be provided by international financing associations and the King Hassan II Development Fund, reported Al-Hayat . Morocco's housing shortage was estimated at 700,000 residential units located in the suburbs of major cities. More than 639,000 Moroccan families are living in illegal housing. - (menareport.com)

http://www.Menareport.com/story/TheNews.php3?action=story&sid=193896&lang=e&dir=mena

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Study Pinpoints Textile Sector Weaknesses, Industry Calls for Bailout.

Morocco - Industry

A finance ministry study published recently highlights the primary barriers and constraints facing the deeply troubled textile and garment industry in Morocco. The problems listed in the report are considered the root cause of declining competitiveness. The industry hopes this report will lead to a bailout from the government.

http://www.north-africa.com/one.htm

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Maghreban colloquy on population calls for breaking isolation of rural world.

Economics, 12/27/2001

The 10th colloquy on population and rural development in the Maghreb, held in Rabat Dec.24-26, called for breaking the rural world isolation and for raising the living standards of rural populations. Some forty searchers from Algeria, Mauritania, Morocco and Tunisia scrutinized causes that plunge the rural world in under-development and called for a more balanced distribution of wealth between the various regions of a country and between all social layers so that all and everybody benefit from the fruits of growth. They stressed the need to fill in the gaps existing between the urban and rural worlds and to focus efforts on social aspects, to promote women's condition, health care and reproductive health, elaborate a population policy, fight poverty, supply the rural world with electricity, water and other basic infrastructure, and promote schooling and human resources. The colloquy debated several issues related to population and development, rural development-oriented social policies, the crisis in the rural world, its origin and impact and how Maghreban societies (state, ngos, civil society) are dealing with the crisis. Participants also traded experience on moves by their respective countries to promote the rural world.

http://www.arabicnews.com/ansub/Daily/Day/011227/2001122725.html

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Morocco to adopt e-morocco strategy.

Politics, 12/27/2001

Moroccan secretary of state for posts and the new information and telecommunications technologies announced on Tuesday the government will adopt in the first three months of 2002 the E-Morocco strategy. The official explained at a press conference the E-Morocco strategy evolves around launching the construction of a new techno-pole in Bouznika (compound for NITC enterprises), modernizing public services, training of human resources, promoting a new economy in enterprises and developing the legal framework for electronic trade. The strategy targets to train by 2005 a total of 5,000 engineers and technicians specialized in the new information technologies, reach 3 million internet users, reform postal services and liberalize Internet and telecoms. Morocco had announced plans to privatize the posts authority in 2002.

http://www.arabicnews.com/ansub/Daily/Day/011227/2001122718.html

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Some 70 percent of subsidies to oil go to diesel-oil used in agriculture.

Economics, 12/26/2001

Some 70 percent of subsidies to liquefied hydrocarbons, i.e. 2 billion Dirhams (about US $173.91 million) out of 2.8 billion DH, went to diesel-oil used in the agriculture sector, between August 1999 and October 2001, said Tuesday Moroccan minister of industry, trade, energy and mining, Mustapha Mansouri. The official said at the question time at the Chamber of Advisors (upper house of the Moroccan parliament) that following the hike in oil prices and given the important role of diesel-oil in Moroccan economy at large and in agriculture in particular, the state decided to increase subsidies to diesel-oil used in the agriculture sector. Unfortunately the subsidized diesel-oil is not always used for its initial purpose, he noted, adding that officials were currently pondering on tainting the diesel-oil destined to the agriculture sector in a different color. He said that besides the 2.8 billion DH (nearly $243.47 million) used as a subsidy to liquefied hydrocarbons, 2.4 billion DH ($208.69 million) went to subsidize butane gas between August 1999 and October 2001.

http://www.arabicnews.com/ansub/Daily/Day/011226/2001122609.html

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Morocco allocates 200 million dh to tourism promotion.

Economics, 12/26/2001

Morocco has allocated 200 million DH (US$ 18 million) to a new strategy to promote the Morocco bound in Arab and European markets, Fathia Bennis, general manager of the Moroccan national tourism office (ONMT), told MAP She explained that the promotion campaign will mainly target three European traditional markets (France, Germany and Britain) and three Arab countries. In the Arab world, she announced that Morocco will hold fairs, mainly a tourism week and a Moroccan fair in Bahrain in January. She went on that these measures were made necessary by the crisis suffered by the sector internationally, although Morocco was relatively spared. Experts predict a return to normal in the near future.

http://www.arabicnews.com/ansub/Daily/Day/011226/2001122602.html

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Software piracy costs Morocco $6.0-mln a year -MAP

Tuesday December 25,

RABAT, Dec 25 (Reuters) - The piracy of business software in Morocco costs the state at least $6.0 million shortfall in earnings a year, the official MAP news agency reported on Tuesday.

Quoting the Casablanca-based Business Software Alliance editors (BSA), MAP said the piracy hampers the development of foreign investment in the software sector in Morocco and harms the image of the country abroad. In a meeting in Casablanca on Tuesday, the BSA's spokesman Samir Bennani urged the Moroccan authorities to take legal actions against piracy and sanction those who violate the law, MAP added. The BSA has recently sent more than 400 letters to software users, including private firms warning them of the risks on violation of copy right rules, MAP said. Only 20 of them responded positively, it added.

©2001 Reuters Limited.

http://money.iwon.com/jsp/nw/nwdt_rt.jsp?cat=USMARKET&src=201&feed=reu&section=news&news_id=reu-l25219921&date=20011225&alias=/alias/money/cm/nw

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Morocco moves to institute unemployment insurance in Morocco.

Economics, 12/24/2001

The administrative board of "La Caisse Nationale de S?curit? Sociale" (CNSS/social security fund) adopted a draft bill providing for instituting an unemployment insurance. Under the bill amending a 1972 Dahir (royal decree), the insured persons will get an allowance in case they lose their job for economic or technical reasons. The allowance, amounting to 70 percent of their latest salary, will be granted for a six-month period. The CNSS administrative board also debated the strategy to promote social coverage. The strategy to run till 2005 seeks to provide social coverage to 2 million insured persons and to institute the compulsory health insurance. The strategy also

provides for the rehabilitation of CNSS polyclinics.

http://www.arabicnews.com/ansub/Daily/Day/011224/2001122429.html

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Casablanca hosts international video festival in March.

Local, 12/27/2001

The 9th international video art festival will be held in Casablanca next March 5 through 10. Artists from France, Germany, Spain, Belgium, Italy, Canada, the United States,Greece, South Korea, Mexico, Lebanon, Syria, and Jordan are expected to participate in the festival. The event features video clips, multi-media exhibitions, sound and image concerts as well as a round table on the art and institution of video making. The festival provides opportunity to young artists to trade experience in matters of video and multi-media and to establish dialogue between cultures.

http://www.arabicnews.com/ansub/Daily/Day/011227/2001122728.html

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Morocco's energy sector liberalization scheme delayed.

December 19, 2001

The Moroccan government has decided to delay the liberalization of the oil and fuel sector until 2004. The plan will enable the Samir Oil Company, owned by the Saudi Coral Oil Group to invest $600 million to renovate the oil refinery in Mahmadiya, Morocco, Al-Hayat reported. The investment is expected to increase the output of the Moroccan oil refinery. The Samir Company has recently commissioned the British Foster Wiler Company to prepare the necessary engineering studies to determine which of their plants should have hydro energy facilities installed. The Mahmadiya oil refinery satisfies 80 percent of Moroccan energy oil consumption.- (menareport.com)

http://www.Menareport.com/story/TheNews.php3?action=story&sid=194472&lang=e&dir=mena

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Morocco's education sector employs 250,000 persons.

December 23, 2001

Official statistics show that the Moroccan education sector employs 250,000 teachers and general employees, reported Al-Hayat. This number of employees is equivalent to one third of the public sector's employees in Morocco. The education budget constitutes 24 percent of the nation's general budget. - (menareport.com)-

http://www.Menareport.com/story/TheNews.php3?action=story&sid=194864&lang=e&dir=mena

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