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FOM Newsletter April 2003
Morocco Week in Review 
April 12 2003

No SARS Case Detected in Morocco, Moroccan Minister
Consumers in Morocco to Pay Higher Drug Prices
February Inflation Up 0.6%
Morocco-US-Trade: U.S. - Morocco Begin Trade Talks Amid Tension in the Gulf and at Home - Agriculture Tops the Agenda
Morocco only Islamic state upholding Commander of the Faithful institution
Casablanca hosts 8th conference of man-made weather changes
For Moroccan press, the world is at threshold of new colonial era

Some 160 surgeries on facial malformations performed in southern city
French Weekly "Point de Vue": King Mohammed is builder of tomorrow's Morocco
Mecca Cola to be produced in Morocco: Producers of soda with a message due to inaugurate bottling plant worth 8.4 million euros in Casablanca.
The Moroccan Government Between Public and US Pressure
HOW ARE MAGHREB AIRLINES COPING WITH THE GLOBAL TRAVEL CRISIS: Royal Air Maroc Foresees More Troubles Ahead
Telecom Company Reports Strong Growth in Subscribers and Revenues
Eco-Print to Print Le Monde in Morocco.
Iraq Crisis and Impact on North African Economies.
Moroccan media reforms outlined
Reform of the human rights consultative council meant to reinforce its independence
Some 40,000 persons take train daily in Morocco, executive
Spain welcomes Moroccan-French document to 55 meeting

No SARS Case Detected in Morocco, Moroccan Minister

RABAT, Apr.07 - Moroccan health minister, Mohamed Cheikh Biadillah, said here on Monday, no SARS pneumonia case was detected in Morocco. "Morocco is still not affected by this ailment," said the minister. So far, nearly 2.800 persons are suspected or infected by the disease, whose origin is still unknown and which is mainly spread in China (1.268 cases, 53 dead) and Hong Kong (883 cases, 23 dead).

http://www.map.co.ma/mapeng/eng.htm 

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Consumers in Morocco to Pay Higher Drug Prices

The prices of most pharmaceutical products in Morocco are scheduled to increase by 2%, the first increase since 1997. Although the increase appears minimal, it is a substantial one for the average Moroccan consumer as the bulk of the country's population does not have any institutional health care or insurance coverage. The increase concerns domestically-made drugs, which account for about 80% of consumed medicines. A final approval from a ministerial commission is expected in the next days. The move has been welcomed by pharmaceutical companies, which have been pressing for price increases since 1997. Although prices did not rise over the past five years, drug companies still benefited from a value-add tax elimination during the 1999-2000 fiscal year on three drug classes. They are drugs used for the treatment of asthma, diabetes, and cardiovascular diseases, thus improving their financial performance substantially. Drug pricing has been a sensitive issue in Morocco, where the government's position has been to avoid allowing market forces influence pricing. However, most drug companies involved in Morocco have been lobbying for the elimination of price control. In spite of its pro-price liberalization position and its complaints about the current system, the industry closed one of its best years. In 2002, total private sector wholesale revenues, excluding sales of infant medicines and direct sales to hospitals, neared DH 4.5 billion. Sales were up 10% year on year, even though overall per capita consumption stagnated at DH 232 per year. The pharmaceutical sector in Morocco comprises of 26 production units employing 6,500 workers. The sector is indirectly responsible for some 30,000 jobs. Investments made in the pharmaceutical sector have been growing briskly, from DH 25 million in 1985 to DH 100 million in 1990. They reached DH 300 million between 1998 and 2002. Some 80% of the locally produced drugs are sold in the domestic market, 10% to the Moroccan public sector, and another 10% to the export market, including an estimated DH 73 million to the neighboring markets in the Maghreb.

http://www.north-africa.com/one.htm 

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February Inflation Up 0.6%

Inflation in Morocco rose by 0.6% sequentially during the month of February according to the state's statistics bureau. This slight increase was the result of growing food prices, which rose 1.1% during the month of February. The prices of non-food items remained stable, growing at only 0.1%.  

http://www.north-africa.com/one.htm 

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Morocco-US-Trade: U.S. - Morocco Begin Trade Talks Amid Tension in the Gulf and at Home - Agriculture Tops the Agenda

Moroccan and American trade negotiators decided to start their talks in a neutral venue, Switzerland. The timing of the negotiations could not have been worse. This latest round started when the U.S. and British military were bombing Baghdad and as anti-American sentiment in Morocco began to rise substantially. In spite of Morocco's insistence to postpone the talks, the United States insisted on sticking to the schedule so as to show that the war it is waging in Iraq is not against Muslims and Arabs but against the person of Saddam Hussein. But discontent in the Moroccan population is so high that negotiators could risk to meet in Rabat. Instead they met abroad. The new round of talks began on March 25, 2003 in Geneva and both delegations agreed to follow the initially agreed upon schedule and agenda. The negotiations focused on a variety of key topics. They were market access, textiles, agriculture, customs, government contracts, the services sector, intellectual property, environment, and social and legal questions. In addition to these topics, there were issues of discussions that were not part of the negotiation agenda, such as issues of coordination, information and communications. These topics were aimed at establishing a framework for communicating with Moroccan and American economic entities and businesses so as to prepare them for the opening of a free-trade zone, but also to obtain their feedback on issues concerning them.

While the business community in Morocco had hoped to play a leading role in the talks, it was the government and the public administration that took the lead instead. The lead negotiators were public officials, while the business leaders took a back-seat position, handling "back-office" work to insure that their voices were heard in the process in an effort to shape the agenda from the Moroccan side. The goal was to insure that the lead negotiators were fully aware of the limits of the concessions Moroccan companies were willing to offer. From the Moroccan perspective, the most important topic remains the agricultural sector. The stakes in the Moroccan farming business are very important given it involves up to seven million people. The worry in Rabat is that required modernization of the agricultural sector in Morocco would have major labor and social impact in the rural world, with a rather disruptive effect before a positive outcome is felt. If uncontrolled, the changes in the rural world could lead to mass migrations toward urban centers, adding more pressure to cities. So the way Morocco negotiates with the United States is very important. Morocco will have to walk a fine line so as to introduce much needed modernization, in spite of expected disruptions on the short and medium terms, and keep both its farmers and its traditional trading partners in line with its goals. The agricultural sector has thus far failed to create wealth but has instead perpetuated poverty and many see a free trade zone with the U.S. will have a lasting effect on this sector.  

In addition, as Morocco creates stronger links with the United States, it cannot afford to upset the European Union and more precisely France, the champion of Euro farming. The EU and France are Morocco's biggest trading partners and aid donors and are certainly likely to remain so. However, the current talks with the US must not lead to the same outcome than that of the Morocco-EU partnership agreement. The expected positive impact on Moroccan farming of the EU agreement never materialized and the agricultural sector in Morocco continues to consume vast resources that can be more productive in industry and services. Furthermore, both Morocco and the EU continue to maintain the same level of protectionism on their agricultural sector as before the partnership deal was signed.

http://www.north-africa.com/one.htm 

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Morocco only Islamic state upholding Commander of the Faithful institution

(official)

Religion, 4/4/2003

Seen from a political point of view, Morocco is the only Islamic state upholding the Commander of the Faithful (Amir Al Mouminine) institution, embodied by King Mohammed VI, "who belongs to the family of the Prophet Sidna Mohamed's descendents," said Morocco's minister of Waqf and Islamic Affairs, Ahmed Taoufiq. Talking at the first World Congress of Spanish-speaking Muslims, held in Seville on Thursday, the Moroccan official stressed that the Amir Al Mouminine institution consists in preserving the doctrinal unity inspired from the sharia (Islamic law) and the Malekite Rite (in reference to Imam Malek) in terms of jurisprudence. Morocco has also opted for multiparty system and democracy as means of expression bringing out the will of the people, said the minister, recalling in this respect the presence in the Parliament of a moderate Islamic party and the rejection of violence by Moroccan Islamist movements.  

In Morocco nowadays there's a debate on modernity without renouncing to religious and traditional values, said the Moroccan official, who also recalled another no less important debate concerning the works of the Royal Commission in charge of reforming the personal status (Moudwana), including women's condition. This congress that has brought together about two hundred experts from fourteen countries is taking place at "a historic moment" for it will contribute to the creation of a network of relations based on "the lofty values preached by Islam and the other revealed religions," he went on. "There is no doubt that you aspire to this positive image inspired by the Islamic precepts including the practice of justice, the respect of liberties and openness on the world," added the minister, noting that despite snags and obstacles "Muslims need to be convincing through solid arguments and lofty ethics." Taoufiq held several talks, in the fringes of this congress, with several Muslim delegations from Spain and South America. Spanish-speaking Muslim community in the world accounts for about 12 million worshipers, while the Moroccan expatriates living is Spain represents 85 per cent of the whole Muslim community in Spain.

http://www.arabicnews.com/ansub/Daily/Day/030404/2003040402.html 

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Casablanca hosts 8th conference of man-made weather changes

Science, 4/8/2003

Casablanca is hosting this April 7-11 the 8th conference of the world meteorology organization on artificial modifications of weather. Over 150 experts, representing 40 countries, are taking part in the conference, the first in an Arab-African country. The forum will highlight Morocco's efforts to consolidate technical and scientific capabilities in weather forecasts and its experience in inducing weather changes. Morocco conducted in Burkina Faso between 1999 and 2002, a rain-inducing operation called "Al-Ghait" that was first applied in Morocco in 1999.

http://www.arabicnews.com/ansub/Daily/Day/030408/2003040825.html 

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For Moroccan press, the world is at threshold of new colonial era

Politics, 4/7/2003

Several Moroccan dailies agreed this Monday that events unfolding in Iraq show that the world is at the threshold of a new colonial era that risks to plunge the entire globe into mayhem. For "Al Bayane," a new colonial era, "much more dangerous for the future of peoples and for the world peace is starting in the beginning of the 21st century that was hoped to be the century of right and peaceful existence." The daily warns that "humanity is facing manifestations of the colonial phenomena, threatening the world stability and seriously undermining its development." In the same vein, "Liberation" comments that unless American military solutions are immediately stopped, there are risks of protracted tragedies for all peoples, including the American people. "we are standing helpless as we are witnesses to an operation to exterminate the Iraqi people and occupy its national territory, prior to other war schemes overtly scheduled and announced by the American administration to exterminate and occupy other peoples in the Middle East." "Al Bayane" further calls the Arab states, which is at the front of the confrontation with the colonial imperialism to face the new peril, especially at the political level, in order to raise awareness of Arab masses on the need to mobilize to defend their independence. Meanwhile, "Attajdid" daily notes that unlike the American people, the American administration is obsessed by its warlike attitude. But, the paper adds, the war against Iraq risks to bounce back when Americans, and particularly, the soldiers, realize that they are not dying for the homeland but for the sake of corporate circles.

http://www.arabicnews.com/ansub/Daily/Day/030407/2003040727.html 

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Some 160 surgeries on facial malformations performed in southern city

Health, 4/7/2003

Some 160 children suffering from various facial malformations were treated in the Moroccan southern city of Laayoune part of the Operation Smile, held March 27 through April 04. Operation Smile is a private, non-profit seeking volunteer medical services organization providing reconstructive surgery and related health care to children and young adults in developing countries and the United States. Operation Smile, headquartered in Norfolk, Virginia, was founded in 1982 by Dr. William P. Magee Jr., a plastic surgeon, and his wife, Kathleen S. Magee, a nurse and clinical social worker. It was launched with its first mission to the Philippines in 1982. Operation Smile currently supports missions to 20 developing countries.

http://www.arabicnews.com/ansub/Daily/Day/030407/2003040729.html 

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French Weekly "Point de Vue": King Mohammed is builder of tomorrow's Morocco

Politics, 4/4/2003

"King Mohammed VI's vision of a democratic Morocco, modern and open on the world has now become reality," wrote on Wednesday French weekly magazine "Point de Vue," in an illustrated special report on the sovereign's tour in the Kingdom's eastern region (March 10-18). "Four years after his accession to the throne, King Mohammed VI has launched in Morocco's eastern part a vast construction program," said the weekly, noting that the sovereign "intends to make his country move forward in strides by initiating a genuine economy-boosting plan, worth up to 2 billion Euros." Citing the new international airport in Nador, the speedway linking Fez to Oujda, the project of a vast industrial area in Berkane, and the opening of a new resort in Saidia, the magazine stressed that "never has Morocco witnessed such a dash and will to modernize." "Point de Vue" went on to say that this ambitious program is targeting one of the most under-equipped Moroccan regions, bordering Algeria. In Oujda, "the sovereign's call for a united Morocco, developed, democratic (..) and more capable of meeting all challenges didn't fall to a deaf ear," said the weekly, adding the King's visit was met with popular fervor in this city, founded in the 10th century. "(..) The sovereign, has chosen to alleviate the sufferings of his most destitute subjects, through the Mohammed V solidarity Foundation V, by announcing the creation of hospitals, training centers and children shelters," adds "Point de Vue." The weekly concluded that King Mohammed VI "builder of tomorrow's Morocco, wants to break off with the social gap."

http://www.arabicnews.com/ansub/Daily/Day/030404/2003040416.html 

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Mecca Cola to be produced in Morocco: Producers of soda with a message due to inaugurate bottling plant worth 8.4 million euros in Casablanca.

RABAT - The producers of Mecca Cola, the fizzy drink with a message on every bottle to "drink committed" to the Muslim cause, were due to inaugurate a bottling plant in Morocco Tuesday, the press said. The Mecca Cola Beverage Company factory in the northern city of Casablanca cost 90 million dirhams (8.4 million euros) and was expected to be fully operational in June, L'Economiste newspaper reported. One hundred people will be employed at the factory, producing the cola with a cause which has, since its launch in France in November last year by French-Tunisian businessman Tawfik Mathlouthi sold some three million bottles, said the paper. Mecca Cola says it donates 10 percent of profits to Palestinian children and to European charities. Every bottle of the drink, launched to rival US-produced world leader in the fizzy beverages' sector, Coca-Cola, carries the message: "Don't Drink Stupid, Drink Committed." "The product is a vehicle for ideas and tastes of militancy, and that gives the concept its strength," Mecca Cola's Moroccan general manager Omar El Alami told L'Economiste. Attajdid newspaper put the cola's success down to the "rejection" by the Muslim community in Europe of the hegemony of global soda companies which, the paper said, back "Zionism and American belligerence against Iraq."

http://www.middle-east-online.com/english/business/?id=5059 

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The Moroccan Government Between Public and US Pressure

The Moroccan government is in a tough spot. As Moroccan negotiators begin a new round of talks with their US counterparts on a free-trade zone, the Moroccan public is growing impatient over the events that are unfolding in Iraq. Public opinion in Morocco has been critical toward the government and the monarchy for their perceived passive position in the "condemnation of the Anglo-American operations in Iraq." The position of the monarchy and the executive branch has been made even more difficult in light of the very vocal position of the French president, Jacques Chirac, which is largely endorsed by the Moroccan public as its own position as well. While Chirac is often praised by the general public for his stance on the issue, in spite that is "neither a Muslim nor an Arab," there are various positions in Morocco, based on the various social categories as regard to the stance of the Moroccan government. For example most professionals and corporate executives understand the position of the government and say a comparison with France's position is not logical since France's global strength in the geopolitical sphere cannot be compared with that of Morocco." This group of the population clearly understands that Morocco's influence in international affairs cannot match France's ability to influence global issues, and siding against the United States could be damaging for the country's long standing relations with the US. 

However, in spite of the understanding of the government's position, there is a consensus among all social groups in Morocco that the "Anglo-American intervention in Iraq lacks legitimacy without the consent of the United Nations and constitutes a major crack in the global political system and international law." Meanwhile, the leadership of the mainstream political parties, including the opposition Islamist PJD, has also remained prudent and silent. While the partisan press has sided with public opinion, the King's "call for calm" forced the political establishment to avoid making public statements.  The Moroccan government has indeed limited capacity to oppose the United States in any way, even if privately and in some official comments for public consumption there is discomfort in the way the US and Britain have tackled the Iraqi ssue. Furthermore, Morocco needs the US and any vocal opposition would be counterproductive.  

Rabat counts on the support the Bush administration to push for a free-trade agreement with the US. Officials in Morocco would like to duplicate the improvements recorded by the Jordanian economy following the establishment of the first free-trade zone between the US and an Arab country. In Jordan, the trade deal, although recently established, has had a positive impact on employment, a trend Morocco would like to see happening. The new round of talks between the two coincided with the Bush administration's appointment of US ambassador to Rabat, Ms. Tutwiler to run the Bush administration's campaign to improve the US global image, in particular in the Arab and Muslim world. Morocco will likely play some role in this effort and so it feels its neutrality is required. Although Moroccan officials hoped to keep a certain distance from the US while the Iraqi crisis unfolds, pressure has been mounting to go on with business as usual. Morocco proposed to delay the negotiations scheduled to begin in Rabat on March 24, 2003, the American embassy in Rabat opposed the delay and the talks have begun in a neutral venue in Switzerland.  

http://www.north-africa.com/one.htm 

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HOW ARE MAGHREB AIRLINES COPING WITH THE GLOBAL TRAVEL CRISIS: Royal Air Maroc Foresees More Troubles Ahead

The Moroccan state airline Royal Air Maroc (RAM) is once again warning about the ongoing troubles it is facing. The company's management says a repeat of the 1990 Gulf war could have a devastating impact on the airline. Indeed, during the first Gulf war, lack of business forced the airline to ground two thirds of its fleet. Up to now, Royal Air Maroc has maintained a fairly intense level of activity in most key tourism markets. With a 32 aircraft fleet, composed essentially of Boeing planes, RAM links Morocco to Northern and Southern Europe, the Middle East, North America, West Africa with Senegal, Mauritania, Côte d'Ivoire, Gabon, Mali, Guinée, and Niger, the Maghreb and Egypt. It also serves Jeddah and Riyadh in Saudi Arabia, as well as Abu Dhabi and Dubai. On average, RAM transports some 3 million passengers per year. Often blaming the global geopolitical problems, RAM is facing dwindling business like most airlines. Cancellations are the sources of the current problems facing RAM. The France destination, which contributes for over 40% of the company's revenue, has been in decline in the past couple of months, at a negative rate of 11.3%. This decline happened as the airline was already facing structural problems. Data on traffic as of March confirms a contraction of activity. Traffic fell by 27% compared to the same period in 2001, since 2002 is considered an unusual year and therefore it cannot be used as a comparison point. Traffic on international routes was 19.3% below its 2001 level with the Morocco-Middle East corridor recording the worst performance with a 52% decline of activity, followed by Europe with a 32.7% contraction during the second half of March 2003. The domestic business is also showing tremendous weakness as traffic contracted by 48% during that period. This current trend, if sustained, is very dangerous for the future of the company's financial position. Although chartered flight activities suffered the most following the September 11, 2001 terrorist attacks in the United States, this ongoing crisis is affecting regular flight instead, with a significant decrease in bookings. This is leading the company to forecast continued decrease of sales in the few weeks ahead at double-digit rates across all of its key markets.  

COST REDUCTION EFFORTS As the company suffers from increased fuel prices and insurance payment on one hand and declining sales on the other, it has begun to make adjustments in an effort to decrease operating costs. The first savings measures initiated by the company includes the reduction of overall operating expanses such as employee travel and the elimination of jobs considered non important. On the payroll side, the company decided to freeze a wage increase that it announced some time ago and is currently pushing for more voluntary retirements. This measure concerns employees who are nearing retirements by a few years. The incentives offered to those willing to go on early retirement include a one month wage for each year worked at RAM and other benefits. These measures concern some 5.4% of the total workforce of 5,500. Although these measures have allowed the comany to survive the immediate post-September 11 downturn, it is not clear whether they will be enough to weather the current and ultimately more devastating storm hitting the airline industry worldwide. To prepare for the worst to come, RAM began slashing its offerings with routes like Dubai, Abu Dhabi and Dhahran in Saudi Arabia. These routes were considered to be among the less performing ones for Royal Air Maroc, which maintained three weekly services. But the company soon discovered that the war in Iraq had a direct impact on its European operations since they account for about 60% of its business. The most affected routes are those of Germany, France, Belgium and Italy, which are RAM's four biggest markets, generating the bulk of charter flights to Southern Morocco.  

As the outlook for 2003 becomes even more severe as the war drags on, the company needs to find ways to remain afloat. This month (April 2003), management is preparing to meet its marketing and sales representatives in Europe for a strategic session aimed at establishing goals and priorities amid what could become the company's most dangerous crisis in its history. This means RAM will likely announce the elimination of services in and out of some European cities, as well as the reduction of frequencies of flights for other destinations. The company will likely announce fare reductions for many routes in an effort to maximize capacity utilization and attract a maximum number of travelers. This will also mean that the company will increase its advertisement budget in selected markets to insure that the price reduction effort is efficiently communicated to potential clients. To succeed in its upcoming marketing campaign, RAM will have to count on the collaboration of European travel agencies, which have been the primary recruiting force for the Moroccan airline. Although the German, Italian, British and French travel agents have already set up their 2003 activity plans, it is unclear whether they have or will drastically alter such programs for the coming summer season and even for the next winter in response to dwindling demand. RAM will need to update its understanding of European travel agencies' plans before it can effectively launch a marketing campaign.

http://www.north-africa.com/one.htm 

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Telecom Company Reports Strong Growth in Subscribers and Revenues

In its latest activity report, Moroccan telecom company Maroc Telecom says its subscriber base for its mobile phone unit grew by 26% in 2002 to nearly 4.6million, accounting for 70% of total market. The company reported a revenue increase of 14%.  

http://www.north-africa.com/one.htm 

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Eco-Print to Print Le Monde in Morocco.

Eco-Print, the printing unit and subsidiary of the Moroccan newspaper L'Economistehas been contracted by the French daily Le Monde to print its Moroccan edition. Although the content will be the same of the Parisian edition, the Moroccan version of the Le Monde will feature a tabloid format. Le Monde will be sold at DH 5 in stead of the usual DH 10. The transmission of content from France to Eco-print will be done via satellite.

http://www.north-africa.com/one.htm 

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Iraq Crisis and Impact on North African Economies.

There is a great deal of uncertainty over the impact of a prolonged war in Iraq but already entire industries are showing signs of major weaknesses. And when President Bush vows that the war will last "however long it takes to win," most analysts warn that the global economic outlook is increasingly grim. In North Africa, the events unfolding thousands of miles away are already impacting many key sectors, although not all the region's economies are affected with the same degree. The economies of the four Maghreb countries, Algeria, Libya, Morocco, and Tunisia, are thus far showing different reactions with two first countries currently enjoying short and medium-term benefits while the others are beginning to suffer from the fallout of the ongoing global geopolitical and economic climate. The structural differences that exist in the various economies of the region have a direct impact on how the ongoing crisis in Iraq is affecting the region. Algeria, which depends nearly entirely on oil and gas exports, is, at the moment taking advantage of the crisis as the price of petroleum products remain high.  While the country's 2003 budget was based on a $19 per barrel of oil, the price of oil was almost doubled that level in the past months. The result of that is that Algeria will likely end the year 2003 with a another major surplus and record amounts of currency reserves in its coffers.  

If the conflict lasts longer than initially planned by Pentagon strategists and the White House, the price of oil is likely to rise again to reach record highs, and that would mean unprecedented revenues for Algeria. The same scenario could be applied for Libya. Even though Libya remains a suspicious nation in the eye of many in the western world, the world economy cannot afford to disregard such important source of oil and gas. Indeed, while Iraq is clearly out of the game at the moment, oil producer Venezuela is facing a tough recovery time following the recent political unrest. Another key oil producer Nigeria, is currently facing its own political turmoil and many oil companies have already pulled their workers out of Nigeria as the crisis there unfolds. All of these events are putting pressure on the global oil market just when Libya began to re-enter the global economy, following talks of a settlement over the Lockerbie issue. But in addition, Libya appears to be the less vulnerable of all Maghreb countries vis-à-vis the short and medium term repercussions of a potential global economic recession. Ironically because of the isolation imposed on it in form of an embargo for so many years, Libya is the only North African nation that has no debt toward international financial institutions. Since it could not borrow money during the embargo era, it is now debt free. Furthermore, it is the only North African country that succeeded in generating a surplus year after year since 1995. Its oil exports generate massive revenues each year, hovering around $21 billion annually. While Algeria and Libya are likely to benefit on the short and medium terms, Morocco and Tunisia are in the toughest position. Their economies are based on sectors that are tightly integrated into the global economy, with agriculture exports and tourism as their primary sources of foreign currency earnings.  

To effectively face the impact of a global recession, Tunisia is currently drafting contingency plans. Tunisia is already suffering from the aftermath of September 11, 2001 terrorist attacks on the United States, which affected the country's most productive sectors like tourism. Tourism receipts are down 13% and inflow from direct foreign investments continue to shrink. Tunisia's budget deficit is likely to remain about 2.6% of GDP. In response, the government of Tunisia is seeking to double its foreign currency revenues from exports to compensate from declining tourism receipts and from reduced exports to Iraq and other Gulf countries. 

In Morocco, various key sectors are facing rough time and economists have begun slashing their forecasts of the various economic sectors to reflect the global economic malaise. Overall GDP growth is expected to reach 4.1% this year, or a 1.7 percentage-point reduction from initial forecast of the "Centre Marocain de Conjoncture" or CMC. The trade deficit will worsen given the increase of the oil import bill, however, agriculture will show improvements, as well as in construction and public work sectors and gross fixed capital formation. With these assumptions, CMC analysts revised downward their growth projections for many key sectors. In the construction and public work sectors, growth was reduced to 4.3% versus the initial projection of 10.5%. The service sector will expand by only 0.8% instead of the initial forecast of 3.5%. Growth of the agriculture sector was lowered by two points to 15.5%. CMC analysts also revised downward their growth forecast for the transport and communications sectors, as well as manufacturing, all of which will have a reducing impact on overall GDP. Although the CMC expects a 3.6% increase of the consumer price index, household consumption is still expected to rise but a mere 0.9%, while gross fixed capital formation will gain 9.7% in stead of an initial forecast of 12%. 

For Mauritania, the war in Iraq and the deteriorating global economic environment will have almost no impact on its domestic economy. Mauritania is one of the poorest countries in the world and therefore escapes from the logic of economics and global inter-dependence. Perhaps the only problem it could face is declining aid, if foreign governments and multilateral donors reduce their aid budget. 

In general, the situation does not bode well for Maghreb countries, although the region's oil producing nations will likely benefit from the situation in the foreseeable future. Beyond, and on the longer term when the crisis in Iraq is resolved, even Algeria and Libya could begin to see signs of difficulties if the global economy does not resume growth. That prospect remains uncertain as America will be tempted to turn to protectionism. Unless the Bush administration's stance on global issues changes drastically.

http://www.north-africa.com/one.htm 

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Moroccan media reforms outlined

Morocco, Politics, 4/9/2003

Moroccan communication minister, Nabil Benabdallah, on Tuesday outlined a Moroccan plan to reform the country's media part of its push for more democracy and progress. The reform program is part of the efforts made to keep pace with the democratic changes Morocco is going through," the minister said. The plan revolved around the reform of the audio-visual media, the promotion of the media enterprise, the reorganisation and development of advertising sector, the promotion of cinema production, the consolidation of the Moroccan copyright office and the upgrading of human resources. The audio-visual media reform seeks to liberalise, regulate and promote the sector through a law, putting an end to state monopole through the creation of a High Audio-visual Authority, the minister said. Benabdallah touched on the situation of the Moroccan news agency, Maghreb Arab Press, noting that the agency is called to continue its development and modernisation program. He stressed the need to endow the agency with financial resources necessary for its development, expand its network of correspondents and bureaux, improve and diversify its product, devise a new scale of salaries and compensations and increase its revenues. The minister stressed the need for the development of a professional press, able to play its role and meet the public's needs. "We aspire to having a professional, independent and responsible press with a view to mobilising and involving the public opinion in the democracy and progress process," he said.

http://www.arabicnews.com/ansub/Daily/Day/030409/2003040927.html 

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Reform of the human rights consultative council meant to reinforce its independence

Morocco, Politics, 4/9/2003

Reforms brought to the Moroccan human rights consultative council (CCDH) are meant to reinforce its independence and diversification in order to promote human rights in Morocco, said the council's chairman, Omar Azziman. This reform is to conform with the 1993 UN resolution concerning national human rights institutions and the promotion of human rights, said Azziman on Monday at a press conference. Azziman, who was appointed to the position last December, recalled that King Mohammed VI had approved the council's propositions in relation with its reorganization, structuring and work methods. These proposals also concern the council's internal regulations, the chairmanship and composition of work groups and of a committee to draft the annual report and the creation of a committee to follow up the situation of Moroccan expatriates. CCDH chairman explained that the internal regulations of the council provide for the creation of five work groups in charge of human rights culture promotion, human rights protection and fighting violations, human rights and society evolution, legislation and public politics study and external relations. Azziman said the council's annual report will reflect human rights conditions in Morocco and allow to follow the annual progress in this field and human rights breaches. Azziman also announced the institution of an annual "Mohammed VI human rights price" to a figure or body that will be handed over by the king on the occasion of the international human rights day. King Mohammed had approved a proposal by CCDH to create two ad-hoc commissions at the Council: one for Moroccan expatriates and one for the Moroccans sequestered in the Polisario camps in Tindouf, south-western Algeria.

http://www.arabicnews.com/ansub/Daily/Day/030409/2003040934.html 

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Some 40,000 persons take train daily in Morocco, executive

Morocco, Economics, 4/11/2003

Some 40,000 persons take the train daily in Morocco and the number reaches 70,000 passengers during summer and religious holidays, said director general of the Moroccan railways office "ONCF," Karim Ghellab. The executive told "L'Economiste" in an interview published Thursday the average occupancy rate of the 136 daily trips does not exceed 50%. To make the supply fit the demand, the office adapts its transport plan to the seasonal aspect of the traffic and reinforces its supply every year, Ghellab said. "Trains were the target of 1,750 stone-throwing acts in 2002, resulting in losses estimated at one million Dirhams (US$ 10,000). He added that train windows will be reinforced with a protecting plastic film, which will cost some 2 million dirhams (US$20,000).

http://www.arabicnews.com/ansub/Daily/Day/030411/2003041124.html 

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Spain welcomes Moroccan-French document to 55 meeting

Morocco-Spain, Politics, 4/11/2003

Spain on Thursday welcomed the content of a joint document presented by Morocco and France to the 5"5 dialogue forum on migration and movement of people. "We share the three axes of reflection proposed by the document," Spanish Foreign Minister, Ana Palacio, told MAP news agency at the end of the 5"5 dialogue forum Thursday in Sainte-Maxime, France. The three axes that the Spanish foreign minister described as excellent relate to the contribution of migration flows to the emergence of a feeling of belonging to a common Euro-Mediterranean space, gradual standardization of legal migrants statutes; free movement of people favoring the dynamism of North-South relations. The Moroccan-French document, adopted by 10 countries member to the 5"5 Dialogue, is meant to be a comprehensive and balanced approach toimmigration, allowing for a better understanding of economic, social and political evolutions in the countries concerned. The 5"5 dialogue forum musters the five Maghreban countries (Algeria, Libya, Mauritania, Morocco and Tunisia) and five north Mediterranean countries (France, Spain, Portugal, Italy and Malta).

http://www.arabicnews.com/ansub/Daily/Day/030411/2003041119.html 

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