FOM Newsletter October 2002
Morocco Week in Review October 12 2002 

Moroccan Elections, Successful Step towards Democracy (Former US Ambassador to Morocco)
Morocco's Trade Deficit Cut by 16.3%
MOROCCO: LEADING ARAB NATION IN WOMEN'S POLITICAL REPRESENTATION
Government Searches For R&D Potential in Morocco
Unstable Rain Falls Make Prediction in Agriculture Difficult.
Late Rains Save Morocco's Agriculture Output
Moroccan tourism returns up 13 percent in 2002
Moroccan citrus production to reach 1.29 million tons in 2H 2002
Moroccan tourism to get 34 million euro investment boost
Morocco a Country of Religious Freedom, Interfaith Dialog, US State Department Report
Morocco third ranking African country in scientific research
Grand Desert Festival to Celebrate Moroccan Sahara Music
The King's Tough Decision: Integrating the Islamists into the Coalition Government or Forcing them into Opposition
BMCE Bank to Launch a Cinematography Fund
Morocco's cell phone market post record high turnover
Rabat public records to be computerized

Moroccan Elections, Successful Step towards Democracy (Former US Ambassador to Morocco)

WASHINGTON, Oct. 04 - With the legislative elections held last week Morocco has made a "very historic and successful step on the road to becoming one of the most democratized countries in the Arab world," says Edward Gabriel, former US ambassador to Morocco. H.M. King Mohammed VI "is determined to take his people down a path of multiculturalism and economic reforms that squarely align Morocco's values with our own," adds Gabriel in a story published on Thursday by the Washington Times.  The diplomat recalled that more than half of the Moroccan population actually voted in last week's legislative poll. 52 percent of the voting-age population cast ballot, said Gabriel, noting that turnout was only 36.4 percent in America's last midterm elections. While several of its neighboring nations discourage the education of women, Muslim-Arab Morocco set aside 30 seats in its lower house expressly for women, he said, adding that the move ensures women a meaningful policy-making voice.

For Gabriel, the results of the poll translate real partisan and policy differences in governing stability.  The vote is hard and tangible evidence of H.M. King Mohammed VI's commitment and ability to deliver reforms that give all Moroccan citizens a voice in its affairs and a stake in its economy, he said. "Always our longest ally - the first country to recognize the United States and to sign a bilateral treaty with us-Morocco is now one of our strongest in the Arab world," he said, adding "taking a moment to acknowledge this step forwards is well in order." Gabriel was US ambassador to Morocco from 1997 to 2001. He is currently senior fellow at the Center for Strategic and International Studies in Washington.

RABAT, Oct.08- Morocco's trade deficit was valued at 25.31 billion DH (US$ 2.3 billion) by end August 2002, which is a 16.3% decrease, compared to 30.24 billion DH (US$ 2.7 billion) recorded in the same period of last year. The exchange office ascribes the trade deficit alleviation to a 18.3% progression of exports and a stability of imports (0.7%). Exports went up from a value of 52.48 billion DH (US$ 4.77 billion) in January-August 2001 to 56.84 billion DH (US$ 5.16 billion) in the same period of 2002, while imports were maintained at 82.16 billion DH (US$ 7.46 billion).

MOROCCO: LEADING ARAB NATION IN WOMEN'S POLITICAL REPRESENTATION

RABAT, Oct. 4 WAM, 2002 (QNA via COMTEX) -- The election of 35 women to the House of Representatives (lower chamber of parliament) places Morocco on top of other Arab countries in terms of female political representation, Moroccan news agency, MAP, reported. "For the first time, the percentage of women in Moroccan 325-member House of Representatives stands at 11%, compared to 0.6% in the previous legislation. This improves Moroccan ranking as regards women representatives at the Arab world and also at international level," MAP said in a comment about the recently concluded parliamentary elections.

Morocco is followed by Syria which has 25 women out of 250 MPs, Tunisia which counts 16 women in parliament out of 175 MPs and Egypt whose parliament includes 11 women. The 11% rate reached in Morocco is quite close to European and American ones (15% in Europe and 16% in America). A total of 35 women were elected to the House of Representatives, following the legislative elections held last Friday. Out of this number, 5 women won in "local lists" (men and women lists) and the remaining 30 seats went to women in national lists (exclusively for women).

The ministry of higher education has just launched an investigation to discover the potential of research and development (R&D) in Morocco. The government is looking at ways to boost the profile of R&D in computing, IT, and biotechnology.   The investigation is led by a team of 30 specialists from the Paris, France-based Institut de Recherche et de Développement (IRD) who will work in Morocco for 2 months. The European Union is financing this investigation.

Morocco's 2001-02 agricultural campaign was characterized by a volatile pattern of rainfall and irregular water availability. The 2001-02 farm season was characterized by three distinct periods. The first period during the end of the year 2001 and as of December 10, 2001,  saw diminishing rain falls with cumulative rainfalls not even exceeding 56 millimeters, or just about half of the normal historical drops. As a result of this drought, the cereal campaign was delayed so as to avoid a complete waste.

The second period stretching from December 27, 2001 to February 2002, the drought further strengthened with complete lack of rain for more than 50 days. As a result, experts noticed an important slowdown of vegetation growth in most agricultural regions. But during the third phase, between March and April 2002, the amount of rain caught up and helped redress the situation.

The agricultural campaign of 2001-2002 was saved at the 11th hour by the rains that fell during the months of March and April. The rains helped offset the impact of water deficit that characterized Morocco's water reserves in the past months.

Moroccan tourism returns up 13 percent in 2002

Oct 9, 2002 (Al-Bawaba via COMTEX) -- Morocco recorded a 12.7 percent increase in tourism returns during the first eight months of 2002, reaching $145 billion compared with average returns recorded over the past five years, reported the nation's Custom's Bureau. The country's hard currency reserves also increased by 12.8 percent from January to August reaching $9.74 billion, compared to $8.64 billion in 2001. Expatriate remittances increased by 57 percent during the same period to $2.33 billion compared to average remittances recorded over the past five years.

In a bid to attract 10 million tourists annually to Morocco by 2010, the government recently launched a media campaign geared toward local and foreign companies, promoting a new initiative for the construction of six new seaside resorts along the Mediterranean and the Atlantic coasts. Tenders are to be issued in the near future. - (menareport.com) By Mena Report Reporters

Oct 9, 2002 (Al-Bawaba via COMTEX) -- Moroccan citrus production is forecasted to reach 1.29 million tons during the next export season beginning in November, compared to a 1.14 million ton harvest from the previous season, reported the Association of Moroccan Citrus Fruit Producers (ASPAM).  The association attributes the predicted increase to favorably weather, mainly this year's mild summer and last year's rainfalls. ASPAM also forecasts a 21 percent export growth, with shipments reaching 520,000 tons. Morocco exported 430,000 tons of citrus fruit in the first half of 2002, of which clementines accounted for 28 percent of the total. These figures translate into 10 percent export increase compared to the same period last year. ASPAM states it will seek new markets in Russia and Canada. -(menareport.com)

A joint Moroccan-Kuwaiti development group is to invest 338 million dirhams (33.8 million euros) to renovate several hotels in the north African country, officials said here Wednesday. The cash injection by the Groupe Maroco-Koweitien de Developpement will finance the construction of a hotel in the northern city of Casablanca, 100 kilometers (60 miles) south of the capital Rabat, and the renovation of several hotels in popular tourist destinations including Marrakesh and Safi in the south, and Rabat. Morocco's Finance Minister Fathalah Oualalou signed an investment agreement with Oualid Al Faizal Al Fahd, president of the development group, on Tuesday. In February 2001, a Saudi Arabian group agreed to invest around 100 million euros in building four luxury hotels in the Moroccan holiday resort of Agadir.

Morocco a Country of Religious Freedom, Interfaith Dialog, US State Department Report

WASHINGTON, Oct.09 - "Although Islam is (Morocco's) official state religion, Jewish and Christian communities openly practice their faiths," US State Department's Bureau of democracy, human rights and labor said in its International Religious Freedom Report, released on October 7. "There was no change in the status of respect for religious freedom in Morocco. Since 1999 when King Mohammed VI was enthroned, he has continued to uphold a tradition of respect for interfaith dialog", the Bureau of Democracy, Human Rights, and Labor said, recalling that the memorial ceremony held in the Cathedral of Rabat in memory of the victims of the 9/11 was held upon the sovereign's instructions. "The generally amicable relationship among religions in society contributed to religious freedom."

"The teaching of Islam in public schools benefits from discretionary funding in the Moroccan Government's annual education budget. The annual budget also provides funds for religious instruction to the parallel system of Jewish public schools, the report goes, adding that the Government has funded several efforts to study the cultural, artistic, literary, and scientific heritage of Jewish citizens."

"In 1998 the Government created a chair for the study of comparative religions including the study of Latin and Hebrew at the University of Rabat." "In 2000, the King declared that 100 mosques throughout the country would be used as teaching centers to fight illiteracy. In the first (and pilot) year of the announced program, 10,000 citizens between the ages of 15 and 45 were to receive literacy courses on Islam, civic education, and hygiene. The King designated 200 unemployed university graduates to administer the literacy courses during the program's pilot stages, which began in September 2000," the bureau said.

The report recalls how King Mohammed VI met with prominent Jewish figures and with leaders of the Conference of Presidents of the Major American Jewish Organizations during his April 2002 visit to the United States. The King's party included several Moroccan Jews, notably Royal Advisor Andre Azoulay, Serge Berdugo, Secretary General of Morocco's Jewish Communities, and Robert Assaraf, President of the World Union of Moroccan Judaism, the State Department's bureau went on. The document said "Each May the Government organizes the annual "Fez Festival of Sacred Music," which includes musicians from many religions. In the past, the Government has organized numerous symposiums among local and international clergy, priests, rabbis, imams, and other spiritual leaders to examine ways to reduce religious intolerance and to promote interfaith dialog." "Each year during the Islamic holy month of Ramadan, the King hosts colloquiums of Islamic religious scholars that, among other issues, examine ways to promote tolerance and mutual respect within Islam and between Islam and other religions."

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Morocco third ranking African country in scientific research

Morocco is the third African country in terms of scientific research after South Africa and Egypt, Moroccan state secretary of scientific research, Omar Fassi, said.  Some 14,000 Moroccans work in all branches of scientific research, the official said at the opening Tuesday of a meeting under the theme "innovation, an engine of competitiveness of SMEs-SMIs," part of the "innovation week" to wind up October 12. Omar Fassi cited Morocco's thousand scientific research works, comparing them to the 400 of several years ago. Authorities should encourage Small and Medium Enterprises and Industries SMEs and SMIs to keep abreast with technologic evolution in order to boost their competitiveness, Fassi said. The financial resources earmarked for research currently stands at 0.7% of Morocco's GDP, in comparison with 0.3% in 1997. The meeting discussed the actions of the department of trade and industry, and will feature expos?s on the Spanish, French, Tunisian and Moroccan experiences in innovation and SMEs-SMIs development. The meeting is part of the partnership binding Morocco's office of industrial development (ODI), Tunisia's Agency for industry promotion (API), the French agency of research valorization (ANVAR) and Spain's center for technologic and industrial development (CDTI). The meeting offers participants an opportunity to probe means to give a new impetus to Euro-Mediterranean regional partnership to meet the needs of the countries of the southern shore of the

CASABLANCA, Oct. 10 - The Grand Desert Festival, to be held Next December in Morocco, will celebrate the music of the Moroccan Sahara, a heritage still untapped and unknown especially to tourists. The Morocco-US Organization, which sponsors the event, says this is the first festival that celebrates the music and culture of the Sahara. The event is meant to be a contribution to the promotion of the region whose potentials are still untapped, particularly in tourism realms, says Akim El Anbassi, President of the Morocco-US Organization. This year's edition, held under the generic theme of "Rhythms of the Dunes", will be an opportunity for troupes of Sahrawi, Gnawa and Amazigh music to perform before the public. Troupes from Brazil, Austria, Mauritania, Mali and Niger will join the feast to give an international color to the festival, blending African, European and Latin American cultures. The festival will start from the famed square of Jamaa Lafna, classified by UNESCO as a universal cultural heritage, before moving around desert fortresses in the Moroccan southern localities of Zagora and Mhamid El Ghizlane.  Organizers said they expect 4000 visitors during festival days. The Morocco-US Organization is a non-lucrative association, based in the USA. It seeks to promote understanding between the Moroccan and American peoples through cultural and artistic exchanges.

The King's Tough Decision: Integrating the Islamists into the Coalition Government or Forcing them into Opposition

Morocco was the main focus of attention in the Maghreb these past weeks as Moroccans were called to select their representatives to Parliament. The elections ended with no major glitches and the socialist party that led the outgoing coalition cabinet (USFP), took the lead again by grabbing more than 15% of the 325 seats. But the most remarkable event in these elections was the rise of the Islamists, whose PJD party officially won 42 seats or nearly 13% of the chamber. Although it was predictable, the rise of the Islamist PJD is putting the governing coalition and the monarchy in an interesting dilemma. On one hand one cannot ignore the strengthening of the PJD. Politicians to the left and to the right are scrambling to find ways to partner with the PJD in an effort to set legislative agenda without sacrificing their own ideological positions. After all, the two leading socialist parties, which are in power again, control only 30% of the Chamber. They will need to establish firmer alliances with other parties if they need to get things done or if they wish to counter moves from the traditional right wing movement, which will likely seek to gain momentum in parliament. The dominant socalist party is reluctant to make room in their coalition government for the PJD. Although this move is neccessary, the socialists view it as a risk and and are resisting the change. The socialists are facing difficulties in moving forward with a risk-free strategy. Already key officials of the USFP party have been vocal in claiming their opposition against any PJD involvement into the future cabinet. USFP leaders, such as Driss Lachrag, head of the USFP group in parliament, say there are too many differences that could undermine the work of the executive branch if the PJD were to be included. But such a position is not just coming from the USFP. The PJD itself has also announced that it will not take part in any government led by the USFP. As vice-chairman of PJD Saad Eddine Othmani puts it, "if the USFP were to be appointed to form a government, we will not take part because it would be difficult to explain to our members why we are siding with a party that launched a virulent campaign against us. In this case, we prefer to remain in opposition."

For King Mohammed, the position of the PJD and the USFP could be problematic before appointing a prime minister. If the king re-appoints Youssoufi, it will result in a virtually Islamist free cabinet. It will also mean that the islamists will fall under the opposition category and that will have negative consequences on Morocco's social and economic agendas. By bringing the PJD into the cabinet, the king would limit their opposition but both PJD and USFP are at each other's throats. Either the king will have to convince both to make peace or he will have to be savvy enough to find an alternative solution. Let me know what you think, email me your opinion at daoud@north-africa.com

Arezki Daoud Editor

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Encouraged by Morocco's positive outlook in the movie production business, the Moroccan private bank BMCE is currently working to establish a Cinema fund. The fund will be used to support domestic studios and production site operators to acquire heavy equipment and to run their business. The unavailability of expensive production equipment puts Morocco in a disadvantage and has led to the loss of many lucrative production deals from major international companies. When contracts are won, the cost of production is generally higher than in competing sites abroad, in spite of other competitive advantages such as low cost labor and abundance of natural landscapes. BMCE CEO Othman Benjelloun announced his bank's effort to launch the fund with the goal of reaching $100 million.

The cell phone market in Morocco recorded a 242 percent rise between 1999 and 2001, the Moroccan state secretariat of post, telecommunications and information technologies said. The department described the rise as "a strong evolution," ascribed to the increase to six millions of the number of subscribers up to last June. The pre-paid service share is higher than 92 percent of the global market, the source said. Fixed phone sales recorded a remarkable increase of 64 percent, going up from $ 500 million in 1997 to $ 1 billion in 2001. Despite this jump, the number of fixed phone subscribers stagnated at 1.6 million in 2002. The number of Internet users also recorded an increase of 700 percent between 1999 and 2001, the source said, conceding that this increase remains "insignificant" as the number of Internet users per number of inhabitants did not exceed 1.3 percent in 2001. The number of cybercafes increased from 500 nationwide in 1999 to 2,500 in 2001, which is a 500 percent rise. According to the department, foreign investments in Morocco's telecom sector accounted for more than two thirds of overall investments in the country between 1999 and 2001. Telecom operators' sales tripled in the same period, going up from $ 600 million to $ 1.6 billion, the department added.

The ongoing computerization of the Public Records of the Rabat prefecture is expected to be operational in three months. The project that cost 1.15 million DH (about 115,000 Euros) is the fruit of cooperation between the local authorities of Rabat and the International association of mayors of entirely or partially-French speaking countries which earmarked to the project. The association is contributing 80%. The computerized system will ease procedures and reduce time required to obtain various administrative documents, such as birth and death certificates

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