Virtual Magazine of Morocco on the Web
Morocco Week in Review 
August 18, 2007

MCC grants $697.5m to fight poverty in Morocco .
12/08/2007

The Millennium Challenge Corporation's Board of Directors approved $697.5m, the greatest amount ever granted by the US development fund, to fight poverty in Morocco, MAP reported on Saturday (August 11th). The overall goal of the funds is to help fight poverty by stimulating economic growth through increased productivity and job creation. According to MAP, the grant is expected to directly benefit 600,000 Moroccan families and raise Morocco's GNP by about $118 million annually. The Corporation has allotted $300.9 million for arboriculture projects, $116.17 million to upgrade small-scale fishing activities and $111.87 million for a project called "Artisans and the Medina of Fes", which targets the handicrafts and tourism sectors. The Corporation has also designated $46.2m to improve financial services and $33.85m to support SMEs that ensure employment for young graduates. $88.5 million has been earmarked to monitor the programmes.
http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/newsbriefs/general/2007/08/12/newsbrief-04
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Cost of living index drops 0.2% in July 2007.
Rabat, Aug. 17

The index of the cost of living of July 2007 has shown a decrease of 0.2% compared to the previous month, according to figures released on Friday by the Haut Commissariat au Plan (HCP). The planning commissioner ascribes this result to the decrease in the index of food products (- 0.5%), and the stagnation in non-food products. HCP said the cities where this rise was the most significant are Oujda, east (0.6%), Tetuan, north (0.5%), and Rabat (0.4%) while the lowest increases were documented in Agadir, south (-0.1%) and Fez, center (-1.7%).

It also noted a 2.1% increase in this index in the first seven months of 2007 compared to the same period of 2006.
According to the same source, the housing sector gained 0.4% during the five first months of 2007 while other non-food products such as "transport and communications" dropped 1.5%.
http://www.map.ma/eng/sections/imp_social/cost_of_living_index9573/view
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Over 2.5 million tourists visited Morocco in 2007 1H.
Rabat, Aug. 14

Around 2,85 million tourists visited Morocco in the first half of 2007, that is a 9% rise compared with the same period of last year, revealed figures of the Department of Tourism. The French topped the list with about 1.1 million tourists, followed by the Spanish (594,000), the British (208,000), the Belgian (129,000), the German (124.000), and the Italians (121,000). The number of Arab tourists who visited Morocco during the period under review grew by 7% as against the same period a year before, with 116,000 tourists.

According to the same source, tourist nights in classified hotels posted an 8 % increase, reaching 8,35 million nights. The Department noted that Marrakech remains atop the list of highly visited tourist destinations with +11%, followed by Casablanca (+10%), Meknes (center) with 9%, Fez (center) and Rabat with +8%, and Agadir (+4%).

Morocco has developed an ambitious strategy, dubbed "Vision 2010", aimed at attracting 10 million tourists by 2010. This strategy provides for creating 160,000 beds, thus bringing the national capacity to 230,000 beds. It also aims to create some 600,000 new jobs. http://www.map.ma/eng/sections/economy/over_2.5_million_tou/view
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Japan grants Morocco over USD 430k to fund local sustainable development projects.
Rabat, Aug. 15

The Japanese government has granted a financial assistance amounting to some USD 430,500 to five Moroccan associations operating in the field of local sustainable development, eastern and central Morocco. The donation is part of the Japanese non-reimbursable assistance program granted to local micro-projects contributing to human security.

Speaking during the signing ceremony, Japan's ambassador to Morocco, Mrs. Haruko Hirose, underlined that through this financial aid, the Japanese government supports ambitious programs, including National Initiative for Human Development (INDH), launched in the North African country in 2005 to reduce poverty, social exclusion and vulnerability. She also asserted that rural development constitutes, more than ever, a requisite for national development.

The Japanese diplomat said the tangible actions to be undertaken in different zones of intervention will contribute to improving living conditions in the rural areas, particularly through supplying drinking water and access to roads.

Japan has, earlier this month, granted Morocco a USD 6.3Mn donation to fund an anti-flood project, including public works engines, funding the construction of small and medium-size dams and carrying out various projects in order to consolidate Morocco’s anti-flood program. http://www.map.ma/eng/sections/social/japan_grants_morocco7063/view
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Average annual economy growth since 2000 stood at 4.9%, central bank.
Rabat, Aug. 15

The Moroccan economy registered an average annual growth of 4.9% since 2000, and was less sensitive to the fluctuations of the agricultural added value, and has documented along this period continuous positive rates, while its volatility has appreciably decreased. These facts were included in the 2006 annual report of Morocco’s central bank (Bank Al Maghrib), which recalled that the GDP has grown 8% at constant prices, reflecting a 21%-progres of the agricultural added value. The document, which was presented to King Mohammed VI two weeks ago, forwards that the job market witnessed a substantial improvement giving way for a fall in the unemployment rate from 11.1% to 9.7%.

The active population aged 15 and above increased by 1.5% to reach 11 million, where non degree-holders comprise 52%, said the report. It added that the economic growth registered in 2006 (+8%) allowed for creating 300,000 jobs, including 90% in cities, while the agricultural sector lost 49,000 mainly because of a poor crop year. As to the employment rate, it jumped to 45.9% up from 46.3% in 2005, according to the document, which notes that the unemployed active population has shrunk 141,000 to reach 864,000. http://www.map.ma/eng/sections/imp_economy/average_annual_econo/view
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IMF describes as "remarkable" economic progress in Morocco.
Washington, Aug. 10

The International Monetary Fund on Thursday described as "remarkable" the economic progress achieved by Morocco in the past years, stressing the growth of GDP, the strength of the financial sector and the recent improvement in the tax system. "GDP growth has moved onto a higher trajectory, inflation has been contained, foreign direct investment has increased, and poverty and unemployment have been reduced significantly," noted the Executive board of the International Monetary Fund upon concluding their the Article IV consultation with Morocco on the assessment its economic and financial situation.

"Macroeconomic conditions remain strong while average growth has reached 5.4 percent per year since 2001,that is 3.4 percentage points higher than in the 1990s," the IMF said in a press release. "This reflects the ongoing diversification of the non-agricultural sector, and its increased resilience to shocks and as a result, real per-capita income is on the rise and the unemployment rate has started to decline."

According to the IMF, bad crop years still impact the overall economic performance, as evidenced by the growth deceleration in 2007. The fiscal deficit reached 2.1 percent of GDP in 2006, and is expected to remain below 3 percent in the medium term. The international institution commended the authorities for the recent improvement in the fiscal position, which has played a key role in boosting the private sector confidence.

The IMF executive directors considered that reducing the public sector wage bill, reforming the oil and food subsidy system, and accelerating tax reform will be key to bring the government debt-to-GDP ratio. Increased foreign direct investment have boosted reserves, to reach US $21Bn at end-May 2007, significantly higher than the stock of public external debt, underlined the IMF
http://www.map.ma/eng/sections/economy/imf_describes_as_re/view
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Meknès quarantined for fire blight in 2007-2008 agricultural season.
Meknès, Aug. 16

The central city of Meknès (140 km east of Rabat) has been declared "a quarantined zone" for the 2007-2008 agricultural season following the appearance of fire blight cases in several farms in the region. According to the local agriculture department, six spots were discovered in certain orchards in the rural communes of Ain Orma, Dar Oum Soltane and Ait Oualal in the Meknes region. Moving of affected orchards within the region and outside the affected region has been prohibited, the same source added.

The fire blight bacteria is a contagious disease affecting apples and pears and some other members of the family Rosaceae. It is a serious concern to producers of apples and pears. Under ideal conditions, it can destroy an entire apple or pear orchard in a single growing season. The disease, whose causal pathogen is called "Erwinia amylovora", is believed to be indigenous to North America, from where it spread to the rest of the world. Honeybees and other, birds, rain and wind can transmit the bacterium to susceptible tissue.

The term "fire blight" describes the appearance of the disease, which can make affected areas appear blackened, shrunken and cracked, as though scorched by fire. Primary infections are established in open blossoms and tender new shoots and leaves in the spring when blossoms are open.

Morocco took all measures to prevent Fire blight from spreading, Ministry.
Rabat, Aug. 17

Morocco has taken all necessary preventive measures to limit the spread of fire blight bacteria, such as uprooting and destroying infected trees, said a press release by the Agriculture ministry on Friday. According to the same source, "the fire blight bacteria situation, which appeared in the region of Meknes (140 km east of Rabat) is calm and doesn’t represent any risk of spreading during the summer season." On Thursday, the region was declared "a quarantined zone" for the 2007-2008 agricultural season following the appearance of fire blight cases in several farms in the region. These spots were discovered in certain orchards in the rural communes of Ain Orma, Dar Oum Soltane and Ait Oualal.

The fire blight bacteria is a contagious disease affecting apples and pears and some other members of the family Rosaceae. It is a serious concern to producers of apples and pears. Under ideal conditions, it can destroy an entire apple or pear orchard in a single growing season. The disease, whose causal pathogen is called "Erwinia amylovora", is believed to be indigenous to North America, from where it spread to the rest of the world. Honeybees and other, birds, rain and wind can transmit the bacterium to susceptible tissue.

The term "fire blight" describes the appearance of the disease, which can make affected areas appear blackened, shrunken and cracked, as though scorched by fire. Primary infections are established in open blossoms and tender new shoots and leaves in the spring when blossoms are open.
http://www.map.ma/eng/sections/box5/morocco_took_all_mea/view
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Man who attempted to blow himself up center identified.
Meknes (center), Aug. 14

The would-be suicide bomber who attempted to blow himself up on Monday morning near a bus carrying tourists has been identified, announced a police official. Hicham Dokkali, an engineer, who was in a state of panic, detonated a small-size gas cylinder containing hand-made materials. The 30-year-old employee had no extremist precedents, the same source added on Monday. The official said this "individual act" is a desperate attempt by terrorist individuals before the state of alert of the security services which have tightened security measures to face up to terrorism.

The young man, who was heading towards the bus in a densely populated neighborhood, could not attain his goal thanks to the vigilance of the driver. He lost his arm following the blast and was carried to the hospital in a serious condition. The incident left no victims or material losses. Security services have opened an investigation and are currently looking for two other individuals who were seen talking to the man prior to the incident.

Security services have recently carried out large campaigns against the extremist groups in various cities, including Meknès, especially after July 6 when Morocco raised its level of alert to the “maximum”, on the basis of "reliable intelligence" according to which Morocco would be the target of a "serious terrorist threat."

Last spring, Casablanca, the country’s economic capital, was rocked by a wave of terrorist attacks on March 11, April 10 and 14, when six terrorists blew themselves up while another was shot dead by the police before detonating his belt. A policeman was also killed and 45 people were injured, including two seriously, during these attacks. The threats also revive the fears Morocco had experienced four years ago, when 12 suicide-bombers blew themselves up in Casablanca on May 16, 2003, killing 45 people, including the suicide bombers. http://www.map.ma/eng/sections/general/man_who_attempted_to/view
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Morocco works against the clock to generate new jobs.
Sunday, 12 August, 2007 CASABLANCA:

Building labourers and crane operators are in strong demand in Casablanca and Marrakech, and municipal workers are working overtime on new flowerbeds in Tangiers, as Morocco enjoys an acceleration of investment that has revitalised its economy over the last three years.
A new container port down the Mediterranean coast from Tangiers opened on schedule on July 23 and now serves as a transfer point for Asian imports into Europe. The enterprise zones around it, a coastal highway and new tourist hotels and villas are just some of the most visible signs of the pickup in both public- and private-sector investment.

Reforms since the late 1990s have created a more open economy and “hundreds of thousands of jobs,” Andre Azoulay, one of King Mohamed’s five official counselors, told Dow Jones Newswires. As though to highlight its improved ratings on international credit markets, the country in June successfully launched a 10-year Eurobond issue, despite bond market turbulence.

The 43-year-old King Mohamed and his advisers believe they can position the North African kingdom to take full advantage of its closeness to Europe, just 14km away across the Mediterranean. “The momentum for change is structural and long-term. The changes we have experienced over the last 10 years and the last five years are taking place in a controlled, gradual way. And they are not cosmetic,” Azoulay said.
In May 2003, this far west coast of the Muslim world was jolted into the post-9/11 world when a handful of mainly unemployed young men from a Casablanca shantytown blew themselves up, killing 33 other people.

The authorities responded by arresting hundreds of young men in poorer neighbourhoods across the country. Joblessness, poverty, and semi-literacy were providing fertile ground for extremism, the authorities acknowledged. In 2003 more than one in three Moroccan 15- to 24-year-olds was unemployed, according to official figures. Then in 2004 Spanish investigators named six Moroccans as implicated in the Madrid train bombing.
The following year a report commissioned by the royal palace echoed many of the recommendations of multilateral institutions. It contained muted self-criticism in highlighting how state monopolies had previously inhibited the development of the local private sector, leaving the country without an innovative middle class.

The private sector needed easier access to credit and a better trained workforce if it was to compete in the global economy, the report said.
The World Bank warned in June 2005 that if “new jobs do not materialise during the coming decade, poverty and exclusion are likely to spark unmanageable social tensions.” But the bank added that there was now “a greater sense of urgency, and this has generated political will” to implement reforms.

The message the authorities now want to transmit is that Morocco is open for business. Pockets of extreme deprivation are being targeted by a palace-led “human development” initiative – as frequently shown in the news bulletins on state-controlled television. The authorities have also set up one-stop investment offices to combat the red tape and lack of transparency that discouraged smaller investors.

Net foreign direct investment last year surged to $2.5bn, from around $100mn to $200mn annually in 2000 to 2002, according to the World Bank.
Rises in the oil price, usually a negative factor, have instead translated into increased inward investment. Morocco has been among the economies in the region benefiting from an inflow of petrodollars recycled from the Arabian Gulf, a World Bank report in April said. Such Gulf investment has flowed into real-estate and infrastructure developments, agroindustry and the country’s small bourse. The picturesque estuary on the outskirts of the capital, Rabat, for example, is the site of a $2bn tourist development by Sama Dubai, the real-estate arm of the state-owned Dubai Holding, along with Morocco’s state-controlled CDG investment fund. King Mohamed enjoys cordial relations with the Gulf rulers, but Gulf investment has also been encouraged by tax breaks and the availability of cheap, formerly state-held land. Gulf investors “are looking for secure investments giving a good, return, with partners ready to accommodate their expectations,” said Azoulay, formerly a senior executive with France’s BNP Paribas.

By early 2006, the official unemployment rate had fallen below 10% for the first time in 35 years-although some analysts believe real unemployment is much higher, leaving many young people still dreaming of emigration to Europe. Morocco’s economy grew by an impressive 8.1% in 2006 – although that in part reflects a rebound in farm output following the previous year’s poor harvest. The International Monetary Fund projects nonagricultural gross domestic product to grow by more than 5% for the next five years. However, for 2007, overall GDP growth is seen at just 2.5%, absorbing a 28% contraction in agricultural GDP after inadequate rains.

There is a new sense of engagement, said royal counselor Abdelaziz Meziane Belfikh. “Morocco now has the self-confidence to launch such a large project as the Tanger-Med port,” he said. At a total cost of around $2.6bn and partly funded from privatisation proceeds, the port and enterprise-zone development is a significant project for a country whose nominal GDP is around $74bn. The port itself is 90% owned by APM Terminals, a unit of AP Moeller-Maersk .

To generate additional jobs, the planners are looking to tourism and other service industries, and also to agroindustry and intermediate manufacturing. Rapid hotel building means the country might well hit its target of 10mn tourists a year by 2010. Morocco opened its skies to European budget airlines Ryanair and easyJet last year, when a record 6.6mn people visited, up from 5.85mn in 2005. Tourist numbers have more than doubled since 1997. Almost 190 call centers serving mainly French companies employ 17,500 Moroccans, up from just 5,500 people three years ago, according to the telecom regulator.

Agriculture, accounting for only around 13% of GDP, still provides employment – or often underemployment – for 40% of the population. It is a weak point in the country’s development blueprint, despite recent moves to lease out formerly state-owned land. For example, plans to push for more of the European citrus market have lagged, with the US Department of Agriculture saying last year that production was barely keeping pace with increased demand at home and abroad, and Morocco is now a net importer of citrus juices.

On the political level, the watchword is gradualism. The public is being urged to turn out and vote in the September 7 general election. But no one is in any doubt that any agenda for change on the part of the elected government must have approval from the top – that is, from the king and his advisors. – Dow Jones Newswires.
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=166344&version=1&template_id=48&parent_id=28
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Not Everyone Has the Right to Cure. By Abderrahim El Ouali
CASABLANCA, Aug 13 (IPS) - Despite an annual health budget of half a billion euros, large numbers of people in this nation of 30 million still have no access to essential medical care.

Reform of the public health system began in 1995, with changes introduced that were intended to be in line with international standards. But some of the changes were, quite literally, in name only. The hospitals division came to be known as the hospitals directorate, and the medicines division came since then to be called the medical directorate. But there is still a shortage of both hospitals and medicine. According to the ministry of health Morocco has 42 general hospitals and 11 specialised ones. The country has a population of 32 million, which means there is on average one general hospital for 760,000 persons. And there is just one specialised hospital on average for three million people.

"Now it is no more conceivable that the hospitable infrastructure should remain so retarded," Abdellah Daghi, member of the watchdog Democratic Federation for Health (DFH) told IPS. "Public health has an annual income of more than 500 million euros from just the Obligatory Health Insurance (OHI)."

Improving human resources would encourage health personnel to get more involved in the reform process, experts say. "For years now we have been drawing attention to the bad conditions in which public healthcare personnel work," Abdellatif Saddar, general secretary of another independent group, the Democratic Watchdog for Health (DWH) told IPS. "A serious effort is needed on the part of the ministry of health towards the personnel by way of salaries and continuous training. We need to develop an acceptable level of performance quality."

The OHI in force since January this year covers six million people, half of which are wage earners in the private sector. The number includes 700,000 civil servants besides other groups across the country. The system provides medical cover for 40 heavy serious conditions such as cancer, AIDS and diabetes.

In all 8.5 million people are meant to be covered by another healthcare system RAMED (Régime d'Aide Médicale aux Economiquement Démunis). The system was conceived to provide health cover for the poor, but it has not been applied yet. By law, RAMED is to be financed mainly by the government and municipalities. It will cover "persons who do not benefit from any obligatory healthcare system and who do not have sufficient (financial) resources" to cover medical expenses."RAMED evokes a big problem concerning the participation of municipalities and other elected boards in it," Daghi said. "This might lead to electoral populism, and there are no guarantees that all poor people would effectively benefit from it."

But whatever the cover, hospital services are themselves inadequate. "The ophthalmology service in Mohamed V hospital in Casablanca works without the necessary means to measure ocular tension, and this can be very dangerous for patients who receive surgery," Daghi said. Medical personnel who complain usually get nowhere. "We sent letters to the minister of health and regional director in Casablanca but we had no answers," Daghi said.

A letter sent by the FDH to the ministry of health on May 3 this year says two apparatuses to measure ocular tension had disappeared from the Mohamed V hospital in Casablanca. "The same day an inspection committee was sent by the ministry to the hospital," Daghi said. But nobody knows the results of the inspection. "The only answer we had is that one of our members was threatened in a phone call."

Abdellatif Saddar said he has been victim of unfair dismissal from his job after the DWH exposed misappropriation of public health funds in Casablanca’s hospitals. A report by the DWH of which IPS has a copy says that public health funds have been misappropriated in some of Casablanca's hospitals. "I have appealed to justice and we will carry on fighting all kinds of scams that hinder progress and improvement of public health services, especially corruption and misappropriation of public health funds and equipment," Saddar added. Several phone calls from IPS to the health regional director in Casablanca and the ministry of health in Rabat remained unanswered. An interview request with managers at the Mohamed V in Casablanca was also refused. (END/2007)
http://www.ipsnews.net/news.asp?idnews=38867
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Moroccan pharmaceutical industry grows increasingly competitive.
By Sarah Touahri 17/08/2007

The pharmaceutical industry in Morocco has grown and improved in recent years. The World Health Organisation has even given it ratings on par with those in Europe. Nevertheless, industry leaders say Morocco needs to increase training and investment to become a truly global competitor. Morocco's pharmaceutical industry has expanded considerably over the past two decades. Workers are pleased with the progress but maintain there is much to be done to sustain its development. According to the Moroccan Pharmaceutical Industry Association (AMIP) the sector's performance and level of expertise are now recognised by the World Health Organisation, which ranks it on par with the industry in Europe.

There were just eight pharmaceutical plants in Morocco in 1965, and today there are 35, whose manufacturing meets international quality standards. These plants have a combined annual turnover of 5 billion dirhams and are valued at over 2 billion dirhams in total. Annual investment totals more than 300 million dirhams and the sector employs as many as 37,000 people. An average of 8-10% of production is exported to European, Arab, Asian and African countries.

AMIP Chairman Omar Tazi said the Moroccan pharmaceutical industry enables the country "to make essential treatments available and to ensure Morocco is self-sufficient in terms of medicines, making it a strategic industrial sector for the country." The arrival of compulsory medical insurance has also had an impact the industry, which reported a 10% increase in sales during the first quarter of 2007. However, the industry has lost some of its domestic market share. Moroccan companies supplied 80-85% of market demand five years ago, and now satisfy just over 70% of national demand for drugs. The remaining 30% is covered by lower-cost imports, primarily from Europe.

Lost market share does not seem to worry experts. Tazi says it is acceptable to import more since demand has risen for sophisticated medicines not produced locally. Like consumers in other countries, Moroccans seek new therapies. This means they need new drugs, most of which are not produced locally since the cost of research and development is so high. According to the AMIP, a study of therapeutic classes has revealed that the overwhelming majority comprise drugs to aid the digestive system and metabolism, drugs to ward off infection and drugs intended for use on the central nervous system. The latter accounts for half of the market.

Meanwhile, industry workers have expressed certain expectations. They hope authorities will provide support and investment to increase the sector's competitiveness on the world stage. Local manufacturers are obliged to improve their equipment and working conditions on an ongoing basis. Tazi said that while the pharmaceutical industry has had no major difficulties in adhering to European standards, the situation regarding US standards is more complicated and will require a significant increase in investment.

Dispensing chemists have called for some reform of the sector. Mohamed Lghaouti Laghdef, Chairman of the Regional Council of the Order of Northern Pharmacists, said the profession should be overhauled by placing much more focus on specialisation within the pharmaceutical field, as the most highly developed countries do. "In Morocco, 77.5% of pharmacists work in dispensaries. The rest work in biology (250 pharmacists) or industry (150 pharmacists). Only 2% of pharmacists work for the state", he said. http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/features/2007/08/17/feature-02
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Morocco offers a splendor of riches. By Sarah Alaoui

Morocco is an African treasure-filled with gorgeous sights, warm people, and tourists who are more than willing to pay the country a second visit.

Casablanca, the namesake to Humphrey Bogart’s film, is the country’s economical capital. Reminiscent of modern-day European cities, Casa — as the locals call it — is lined with skyscrapers, and high-end stores like Cartier, Hermes and Dior can be found on Boulevard Anfa. However, big buildings and designer shopping do not completely dominate over the traditional Moroccan culture that manifests itself in the food, architecture, and overall ambiance of the city.

Derb Ghallef, where many of the locals go to shop, is a bustling flea market where piracy thrives. The best part about going to Moroccan markets is haggling to get your goods for as few dirhams as possible. Nightlife in Casablanca can be found in Ain Diab, a chic boardwalk with Western-style restaurants, rowdy teenagers, and a variety of shows — it can be easy to “lose” your purse here………………….
http://www.smdailyjournal.com/article_preview.php?id=79359
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