FOM Newsletter October 2001
Morocco Week in Review
 October 6,  2001

Last September attacks against the United States will hurt economic growth in developing countries, condemning as many as 10 million more people to live in poverty next year while hampering the fight against childhood diseases and malnutrition, the World Bank said Monday. In a preliminary economic assessment of the 11 September attacks, the Bank estimated that developing country growth would fall from 5.5 per cent in 2000 to 2.9 per cent in 2001 as a result of slowdowns in the US, Japan and Europe. An additional 20,000 to 40,000 children under five years of age could die from the economic consequences of the attack as poverty worsens. "We estimate that tens of thousands more children will die worldwide and some 10 million more people are likely to be living below the poverty line of $1 a day because of the terrorist attacks," Says World Bank President James D. Wolfensohn. Already, there are signs that higher costs and reduced economic activity are putting a damper on global trade, according to the World Bank. Insurance and security costs and delays at customs clearance are among the main factors pushing up the costs of trade.  Tourism has been hit exceptionally hard. The Bank estimated that 65 per cent of holiday trips booked for the Caribbean have been cancelled and warned that the Middle East is also likely to suffer a sharp decline in tourism revenues. 

World Bank Chief Economist Nicholas Stern stressed that all countries must be vigilant to ensure a global rebound. He called for swift and bold policy responses because of the heightened level of risk to the global economy. "Maintaining world trade is more important than ever, especially in the face of an economic slowdown which is often accompanied by pressures for increased protectionism," he said. The Bank pledged to "do its part," noting that its managers and staff - many of whom are stationed in developing countries - have been in contact with high-level officials to assure them of the Bank's continued commitment to deliver on previously agreed programs, and to offer help in minimizing adverse impacts from the heightened uncertainty, risk, and volatility in the current global economic environment.

US ambassador in Morocco, Margaret Tutwiler, said on Tuesday Morocco has shown will to fight terrorism, like it has in the past brought its support. In an interview with the Moroccan TV channel, the US diplomat underscored that Morocco had already in the past brought its support (to the fight against terrorism) and it will remain faithful to this stand, because any country who believes in human rights principles has shown resolve to fight terrorism and contribute to dismantling its networks. Asked on the incidence of last September's events on Moroccan-American relations, she answered that what lends more importance to these links is the fact that the Moroccan king, government and people were among the first Arab countries to condemn the attacks and express sincere sympathy and solidarity with the families of victims. She also recalled Morocco's history, rich in tolerance principles that she also finds out in all aspects of life in Morocco. Regarding the future of the Middle East peace process, the US ambassador insisted that the US administration remains committed to peace in the Middle East, as much now as ever before.  President Bush and Secretary Powell, as well as our Ambassador and Consul General on the ground, are fully engaged in getting the parties to end the violence and return to the negotiating table as soon as possible. We have repeatedly said that there can be no military solution to this conflict, she went on. Tutwiler also described as isolated incidents attacks that targeted Arabs and Muslims in the USA and added that US president Bush, followed by the Attorney General and leaders of both houses of Congress have spoken up against any bigotry or harassment, and called for tolerance and recognition of the role of Arab and Muslim Americans in building our country. She also recalled that George W. Bush visited the Islamic Center in Washington last September 15 where he told the American people that Islam is about peace. To a question on reasons for the US "revenge" against a poor country like Afghanistan, she insisted that the US administration is not seeking revenge but justice.

    Rabat hosts conference on biotechnology and genetic engineering end of October.

Rabat will play host October 22-25 to the Eleventh Conference on Biotechnology and Genetic Engineering for Development in the Islamic World. The conference will discuss contemporary concepts in biotechnology, define areas of importance in research and development, develop innovative proposals for future activities in this area, and assess the status of genetic engineering research in the Islamic World. The conference will also formulate an Islamic scientific stand on biotechnology and genetic engineering off-shoot issues, define a role for governments in terms of priorities, and, establish paradigms that define the impact of biotechnology developments on environment and agriculture. Over 100 Scientists will be attending the event, which is organized by the Islamic Academy of Science (IAS), an International, non-political, non-governmental institution which works to enhance utilization of science and technology for the general development of Islamic countries and humanity at large. The OPEC Fund for International Development will extend a grant of US$35,000 to help finance the conference. The event is co-sponsored by the Academy of Morocco, the Islamic Development Bank and the Rabat-Based Islamic Educational, scientific and cultural Organization (ISESCO).

The 6th international conference on carpets was held last week in Marrakesh with the participation of some 300 experts and specialized journalists. Participants underscored the artistic and aesthetic values of the Moroccan rug and efforts to preserve its authenticity and secure its durability. Held under the high patronage of King Mohammed VI, the conference was co-sponsored by the International Conference on Oriental Carpets (ICOC) and the Moroccan government. The conference attended by experts from Germany, Saudi Arabia, Austria, Canada, Spain, the USA, France, Iran, Italy, Switzerland, Tunisia and Turkey is the second of the kind hosted by Morocco. The first was held in Marrakesh also in 1995. In 2000, Morocco produced 224,111 units of rugs, against 235,555 in 1999 and 260,207 in 1996. Exports were worth 189.5 million DH en 2000, compared to 201.8 million DH a year before and 239.5 million in 1996. Germany was in 2001 the largest outlet for Moroccan carpets with 103.99 million DH-worth of imports, followed by the USA 26.36 million DH and the Netherlands 18.4 million DH. The International conference on Oriental Carpets says on its website the Moroccan venue offers participants the chance to discover the cultural context of Moroccan carpets and flatweaves, while enjoying the country's charm and the Maghreb hospitality. The itinerary is based on the tried-and-tested tourist route to the royal Moroccan cities and provides a unique opportunity to immerse in the country and its art as guests of honor. In addition to the conference tself and a lecture program, the non-profit association also held a carpet exhibition dubbed "Wild Beauty" displaying the most prestigious private collections of Moroccan rural carpets in Europe, in addition to three other exhibitions on rural textile.

Moroccos' King Mohammed VI received inn Marrakesh Friday noon delegates of handicraft creators and handicraft trades who presented to the sovereign "the Oath of the Craftsman" and a copy of the white book on handicraft.  Director of the royal office, Mohamed Rochdi Chraibi, and minister of social economy, small and medium sized enterprises who is in charge of the government's affairs, Ahmed Lahlimi, attended the audience. Moroccan craftsmen had taken an oath last September at the end of a national seminar on a white book on handicraft and trades, pledging to improve the quality of handicraft items and to endeavor so that their trade holds the rank it deserves in the country's economic development process. The craftsmen also pledged to convey their art to mounting generations to perpetuate Morocco's centuries-old handicraft, to abide by a code of ethics in the exercise of their trade, to preserve the authenticity of Moroccan handicraft, that they described as a culture and civilization legacy, while encouraging innovation and creativity to meet the needs and tastes of consumers. The handicraft sector has contributed 19% to Morocco's Gross Domestic Product in 1999 and employs around 2 million persons, which stands for 20% of the country's active population. According to figures released at the national seminar, the value of exports stood in 1999 at 610 million Dirhams (about US$ 52.5 million) accounting for 6.5% of total exports of goods.

An expert from the United Nations Educational, Scientific and Cultural Organizationis on a mission to the Atlantic Ocean city of El Jadida to assess the city's candidacy to be part of the UNESCO world legacy list. Nuno Santos Pincheiro held a round table with Moroccan experts who briefed him on historical and architectural monuments in the city. Formerly called Mazagan, El Jadida, a Portuguese city dating back to the early 16th century, boasts several architectural and historical riches, including Citerna, a remarkable piece of the Gothic-manuelin style, bastions and outstanding walls. The city also bears testimony to five centuries of cultural melting between the three revealed religions. Surrounded by imposing ramparts, witnesses of a defensive-styled architecture of the 16th century, Mazagan emerges as a reminiscence of a shared history between Morocco and Portugal. The first citadel was built between 1513 and 1514 and it bears an inscription over the main gate testifying that construction of the city ramparts was completed in 1542. In 1769, following a siege ordered by Sultan Sidi Mohammed Ben Abdellah, the Portuguese evacuated the city and in 1820, a Jewish community was authorized to settle there.

Multinational company "DHL" specialized in worldwide express transport of parcels has concluded a partnership agreement with the Moroccan branch of "SOS Children Villages." DHL, present in 227 countries, will offer its connection facilities to SOS children villages which offer orphans and destitute children a home in a family environment. A drawing and writing contest will be held for orphan children living in all SOS villages in 131 countries. An exhibition will then be held in Austria (where the association is based). The contest organizers said they will compile all the drawings, texts and photos of sponsor figures in a book called "DHL world book." DHL will also print the best 10 drawings in postcards and sell them with receipts to go to the association. They are expecting to collect 100,000 Euro for the charity action. In Morocco, the operation will be sponsored by former Olympic champ Nawal El Mutawakil.

    Morocco, France sign arrangement for information technology use in enterprises.

Morocco and France on Monday signed an arrangement setting cooperation conditions in the use by Moroccan enterprises of information technologies.  The two countries pledged to gather conditions for an increased usage of information technologies in Moroccan enterprises, through setting forth a legal framework that encourages enterprises to use this modern technology and a follow-up tool of the evolution, training programs, assistance to professional bodies and encouraging partnership between enterprises and institutions which can bring a support to the initiative. The arrangement was signed by Moroccan industry, trade, energy and mining minister, Mustapha Mansouri, and French secretary of state for industry, Christian Pierret. The French official is visiting Morocco as part of the French "Expo2001" held in Casablanca from October 2 to 6. Some 326 participants, from 13 out of the 18 French regions, are exhibiting their products in Casablanca.

RABAT, Oct 2 (Reuters) - Morocco needs to boost its fast declining exports in the face of the looming global recession in the wake of the September 11 attacks on the United States, analysts said on Tuesday. "This situation has prevailed for too long and the government is doing little to boost local brands' image abroad. The situation is very critical and looks to get worse," a member of the exporters association ASMEX said. Morocco's trade deficit rose 7.6 percent in the first seven months of 2001 to 26.85 billion dirhams ($2.38 billion), the foreign trade regulatory body Office des Changes said.  Imports inched up to 72.0 billion dirhams from 71.4 billion dirhams for the January-July period of last year. The slight rise was on a 0.2 percent decrease in imports total volume. Exports, however, fell 2.7 percent in value to 45.2 billion dirhams and 2.3 percent in volume. An Office des Changes official said Moroccan exports have been declining in value since 1997 while imports have been rising sharply, albeit at a slower pace in recent months. "The cover ratio of exports to imports fell to 62.7 percent at the end of July from 65 percent a year earlier," she said. 

CALL FOR ACTIONS:

On September 6, Secretary of state for foreign trade Abdelkrim Benatik said that the government and exporters were drawing up a short-term action plan to boost exports. The plan would be implemented between June and August 2002 but analysts and exporters said Morocco cannot afford to wait that long. But one analyst dismissed the government action plan on Tuesday as "a political playing card". "Is it a coincidence that the promised implementation of this plan would take place a month before the general elections (in October 2002)?" he asked. "A global economic slowdown is around the corner after the attacks...Morocco can't afford to wait 11 months for the plan to be implemented," he said. Among action that could be taken, he said, the government could provide exporters with lower energy costs, reduce their taxes or even devalue the dirham again. It was last devalued by 5 percent last April Badr Benyoussef, financial analyst at Wafabourse brokerage house, said Moroccan exports would not feel "a heavy impact from a possible recession because of their basic nature". "Morocco does not export cars, aircraft, ships or heavy industrial  equipment. Our exports consist mainly of foodstuff goods, clothing andphosphates, goods which should be relatively sheltered from a world economic slowdown," he said. The ASMEX member disagreed. "The issue for us is not the recession but the erosion of our market share abroad which started years before September 11," he said. The Office des Changes said the fall in exports was being seen mainly in seafood, fruits, vegetables and rubber and tyre exports. Clothing and leather exports, which account for more than a third of Morocco's exports by value, rose 3.5 percent to 17.8 billion dirhams, it added. Energy imports rose 3.4 percent to 12.2 billion dirhams and imports of semi-processed goods rose 16 percent to 15.6 billion dirhams. Equipment imports fell 16 percent to 13.3 billiondirhams. The European Union is Morocco's main trade partner accounting for almost two thirds of its foreign trade. ($1=11.289 Moroccan dirhams)

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

    WHO should address pharmaceutical products high prices in developing countries, Moroccan minister. 

Regional-Morocco, Health, 10/3/2001

Moroccan minister of health, Thami Khyari, called the World Health Organization (WHO) to address the problem of pharmaceutical products high prices in developing countries. Khyari who is attending the 48th session of the World Health Organization regional committee for the Eastern Mediterranean -- held in Riyadh, Saudi Arabia, September 30 through October 3- said the topic should be at the focus of the WHO interest. He explained how developing countries find it difficult to access some drugs because of the price and deplored the fact that pharmaceutical companies often stop manufacture cheap drugs. The Moroccan official also deplored the drain of medical staff to richer countries in view of these countries' deficit in medical and para-medical personnel. Khyari equally surveyed the impact of violence on health systems, dwelling on the case of the Palestinian people. The session is discussing the Annual Report of the Regional Director for the year 2000, the Proposed Program Budget (2004-2005) and the report of the Regional Consultative Committee (25th Meeting) It is discussing a set of other documents related to mental health AIDS in the eastern Mediterranean region, a report on tobacco-free initiative, a progress report on eradication of poliomyelitis and a progress report on the role of WHO in emergencies and disasters. The session is also to look into a progress report on flour fortification in the eastern Mediterranean region, review the proposed Program Budget (2004-2005) and designate Member States for the eastern Mediterranean region to the WHO Executive Board. Other topics deal with promotion of healthy lifestyles in the Region, health and medical informatics in the Region, Violence control, and renewed health research for development in the Eastern Mediterranean Region. Delegates of some 20 countries are taking part in the session.

Morocco signed in Abu Dhabi on Saturday two loaning conventions, worth a total of 65 million Special Drawing Rights (SDR) with the Arab Trade Financing Program and the Arab Monetary Fund (1 SDR equals US$ 1.28). The first loan, worth 45 million SDRs, extended by the Arab Monetary Fund will go to promoting and restructuring Morocco's financial and banking sector.

This loan brings the AMF total loans to Morocco since 1978 to US$ 558.08 Million. The second convention is about a credit line of US$ 20 Million opened by the Arab Trade Financing Program to the Kingdom's general treasury to finance various trade deals signed by Morocco with other countries. This is the 28th loan extended by the Program to various Moroccan agencies, for a total amount of US$ 375 million.

The two conventions were initialed by Moroccan minister of economy, finance, privatization and tourism, Fathallah Oualalou, and Jassem El-Menai, executiv director of the Program administrative board and general manager and chairman of the Fund governing board. The Moroccan minister hailed the contribution of the two Arab economic bodies in supporting Arab economic competitiveness and in promoting Arab economic integration, in the perspective of the Arab free trade area. Oualalou who started on Friday his visit to the UAE reviewed with the UAE economy and trade minister means to develop economic and trade cooperation and means to activate bilateral agreements, mainly the free trade area, signed during a recent visit to Morocco by a delegation, headed by the UAE state minister for foreign affairs.

Nortis, the Moroccan subsidiary of Norwegian Telenor, launched its satellite solution for Internet in Morocco. Nortis executives announced on Tuesday at a press conference the solution will offer better reliability, quality and rapidity of data transmission. The new product will be launched in three formulas, "Sliver-Pro" with a 256 KBPS flow, Silver SME (small and medium enterprises) with a 512 KBPS flow and Silver corporate with a 1024 KBPS flow. Corporate executives will use satellite for their communication whether for information search on the web, electronic mail between the company subsidiaries, news or audio and video downloading. Nortis is projecting to launch other internet solutions in the future and is betting on 100 to 300 annual subscribers.  The company executives said the launching of the VSAT in Morocco was for the operator, which is present in 40 countries, an opportunity to supply lasting and performing telecom solutions.

Morocco has devised a national strategy that will help the country integrate the information and knowledge society, the Moroccan secretary of state in charge of posts and telecommunications and information technology said Thursday. The strategy targets five major priorities: new information technologies generalization, rapid deployment of infrastructures, redefinition of state role in telecom, rapid liberalization and competition and the setting in motion of necessary and adequate means, Nasr Hajji told a meeting on information technologies in Casablanca.  According to figures cited by the official, Morocco's subscribers to fixed phone went up from 400,000 in 1990 to 1,425,000 in 2000, while mobile phone users grew from 29,511 in 1995 to 4,200,000 in 2001.  Hajji announced that Morocco's telecom sector will be totally liberalized at the end of 2002, and in 2005 Morocco will join the group of emerging nations. By 2005, Morocco seeks to train 1000 engineers, 2000 telecom BA holders annually and 2000 high technicians, the official said. Part of the strategy, Morocco will exert more efforts to develop telecom parks in several parts of the country, he said.

Morocco's state-owned "ONAREP" (National office of Oil Research and exploration) and US Kerr-McGee oil and gas company on Thursday signed an accord over offshore hydrocarbon research. The 12-month "reconnaissance contract" will cover 110,400 square kms in Boujdour offshore area (southwestern Morocco) The deal was signed by ONAREP general manager, Amina Benkhadra, and Vice-chairman of the US company, David Christian, in the presence of Morocco's minister of industry, trade, energy and mining, Mustapha Mansouri and royal advisor, Andre Azoulay. Kerr-McGee will carry geological and geophysical studies to evaluate the hydrocarbons potential in this area. Kerr-Mc Gee is currently holding with British Enterprise and South African Energy Africa six "research permits'' in Cap Draa offshore, on the Atlantic coast. Morocco's minister of industry, trade, energy and mining said at the signing ceremony the reconnaissance contract will further consolidate cooperation in energy between Morocco and the USA, after the cooperation agreement on the peaceful use of nuclear energy signed by his department two weeks ago and the US energy department and the US-Africa joint action for the development of clean energy technologies. He added nine other oil agreements and 5 reconnaissance contracts had been signed for various Moroccan on-shore and off-shore regions, in addition to 47 research licenses.

RABAT, Oct 4 (Reuters) - Morocco's tourism receipts rose by 39.3 percent to 16.54 billion dirhams ($1.46 billion) in the first seven months of this year from 11.87 billion dirhams a year earlier, state-run Statistics Directorate said on Thursday. Compared to their average amount for the same period in the previous four years, January-July's receipts rose by 80.3 percent, it added in a website report. Morocco received 2.5 million foreign visitors last year and aims for four times that number by 2010. It is investing $5.2 billion in six seaside resorts.

rabat.newsroom@reuters.com)  ($1=11.299 Moroccan dirhams)

The automobile market is not growing. Sales fell 4% in the month of July 2001as 6,184 units were sold against 6,460 a year ago. The most dramatic decline was in the imported used car category which fell 45% year on year. In contrast, sales of light utility verhicles grew 33% in July.

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