Virtual Magazine of Morocco on the Web
Morocco Week in Review 
September 11 2004

Morocco to launch programme to fight child begging
Casablanca, Sep 08

Morocco will launch a national plan on the eradication of child begging, to start first in the Moroccan largest city of Casablanca before being implemented in other regions of the country.

Moroccan minister of social development, Abderrahim Harouchi said Tuesday in Casablanca the plan, which will associate several partners and organisations, aims at preventing children from being used by adults and at assisting begger children aged 8 to 12.

At the signing of a partnership convention on the management of the charity organisation "Dar El Kheir", the minister said his department and the city of Casablanca will cooperate to cope with the situation of begger children.

Harouchi said 15 pc of children below 7 are not relatives of the adults who use them in begging, while 70 pc of begger childern aged 8 to 12 are not happy with their situation. A third of the latter do not make ends meet by begging, the minister noted.
Dar El Kheir Center will play an important role in carrying out the programme and will host the children taken away from begging as well as set files to examine their social, health and psychological condition.
http://www.map.co.ma/mapeng/news/economy/eco-transfer.htm 
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Illiteracy in Morocco requires involvement of all
(release) Rabat, Sep 08

Illiteracy in Morocco requires the involvement of all to cope with and eventually eradicate the phenomenon to enable the country take up existing challenges, the department in charge of literacy and non formal education said.

A press release of the department said, on the occasion of the international literacy day, civil society associations and organisations are an essential partner in fighting illetracy.

Integrated strategy in this area aims at developing professional skills of these associations to effectively fight the phenomenon and carry out their programmes, the communiqué said.

The associations have also to work for the creation of important national and regional networks to help enhance expertise sharing and support the efforts exerted by the civil society, the communiqué said.
A National survey of 1998 shows that 48 pc of Moroccans aged over 10 are illiterate, including 61.9 pc among women. This phenomenon is more spread in rural areas with 67 pc illiterate people against 33 pc in urban areas.
http://www.map.co.ma/mapeng/home_dep/h_depmay1980.htm 
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Some 97% of U-6 pupils schooled in 2004-05, minister
RABAT, Sep.09

The rate of children below 6 schooled for the 2004-05 academic year stood at 97%, announced on Thursday minister of national education, Habib El Malki.

The number of newly enrolled pupils in primary and secondary schools reached 638,000, including 43 pc of girls, said the minister in a presentation at a meeting of the governement council.

At a press briefing held at the end of the meeting, Communication Minister and Government Spokesman, Nabil Benabdellah said El Malki raised in his presentation a series of measures to ensure success to the current school year, both in schools and universities.

El Malki said the governement strategy aims at developing education and training through the generalisation of primary schooling and the increase of enrolment and schooling rates both in private and public schools.

He added that the government is striving to ensure schooling for children in remote areas of the rural world, as well as children who need special care, children of nomadic people and children of Moroccan nationals living abroad.
 http://www.map.co.ma/mapeng/news/general/gen_012.htm  
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Means to help Moroccan and American companies take advantage of the FTA considered in Rabat
Morocco-USA, Economics, 9/6/2004

Means to promote the Moroccan-American free trade agreement and help enterprises of the two countries make the utmost of the agreement were reviewed Friday in Rabat by Moroccan industry and trade minister, Salah Mezouar, and American assistant undersecretary to trade, Mrs Holly Vineyard.

Mezouar told the press the two parties in the agreement, signed last June 15, have incepted a move to publicise the agreement provisions among American and Moroccan companies so as to spread a better knowledge of the realities of the two markets.

The Moroccan minister stressed the need to provide guidance and information to small and medium enterprises, especially Moroccan ones to enable them to know the opportunities offered by the American market. He said a working plan has been set up to initiate contacts with American industries.

Mrs. Vineyard underscored the opportunities offered by the free trade agreement for the enterprises of the two countries, recalling the agreement will be enforced as of next January http://www.arabicnews.com/ansub/Daily/Day/040906/2004090627.html 
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Moroccan Premier receives a group of American businessmen
Rabat, Sep 09

Moroccan Prime minister, Driss Jettou, received here Wednesday a delegation of American businessmen, led by Charles G. Boyd, CEO of "Business Executives for National Security" (BENS).

Jettou highlighted at the meeting the longstanding Moroccan-American relations, recalling the Status of major non-NATO ally granted by the US to Morocco last June.

He said the two-day visit of the American delegation is an opportunity for its members to meet both political and economic officials and better get acquainted with the potentials of the country.

The ratification of the free trade agreement by the American Congress and its signing by President George W. Bush are to enhance the trade relations between the two countries, said Jettou.

The Prime minister highlighted at the meeing Moroccan authorities endeavor to consolidate the rule of law, freedoms and equality between men and women, as well as develop economic and social insfrastructure.

Jettou added that Morocco is a haven of peace, stability and moderation, underlining the efforts exerted to fight terror and cooperate with other countries to eradicate the plague.

On the internationa level, he said the resolution of conflicts in the world, including in the Middle East, will contribute to fight and eradicate terrorism.
http://www.map.co.ma/mapeng/home_dep/h_torture.htm 
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EC to co-fund environmental projects in Morocco
BRUSSELS, Sep. 09

The European Commission (EC) approved Thursday the co-funding of two environmental projects in Berrechid and Marrakesh (both towns south of Rabat) with a contribution of over 700,000 Euro part of sustainable development program in the Mediterranean and the Baltic sea, dubbed "LIFE".

EC will contribute 325,000 Euro to the project of Berrechid that "aims to promote the transformation of the Berrechid site into an organised industrial park. The park will serve as a pilot model to demonstrate how an integrated management system can be developed, and to enhance the environmental awareness of industries."

Meanwhile, 412.000 Euro will go for a project that aims to "outline an Environmental Management System in compliance with EMAS (Eco-management and Audit Scheme) and adapted to the administrative structures of the city council of Marrakesh 'Conseil de la ville de Marrakech'."

The project will also inform City Council staff about the characteristics of EMAS regulation and training, assess environmental aspects of the City Council activities and assist in the implementation of a system in compliance with ISO 14001 standards.

This aid is part of an EU co-funding of 20 environmental projects that would contribute to improving the environment and achieving sustainable development in the Mediterranean and Baltic regions.

"The environment does not respect borders, so it is important that we help our neighbours improve their environmental situation and reach the path of sustainable development", said Environment Commissioner Margot Wallstr?m.
The aid is part of LIFE program that was established in 1992. LIFE is EU's financial instrument supporting environmental and nature conservation projects throughout the EU, in candidate countries and in some neighbouring regions.

Amongst the objectives of LIFE is to help establish capacity and administrative structures, and to assist in the development of environmental policies and action programmes in third countries bordering on the Mediterranean and the Baltic Sea.
http://www.map.co.ma/mapeng/news/economy/h_deplocusts.htm 
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More new enterprises launched between 2003 and 2004, World Bank
WASHINGTON, Sep.09

The number of enterprises and businesses launched in Morocco in 2004 increased by 21% against 2003 due to simplified investment procedures, said the World Bank and ins International Finance Corporation (IFC) in a report titled "Doing Business in 2005: Removing Obstacles to Growth".

According to the document that was made public here Wednesday, "Between 2003 and 2004, Morocco witnessed a jump of 21 percent in new business registrations after simplifying its entry procedures.

"Algeria, Morocco, and Yemen also reduced the number of days necessary to start a business," the same source goes.

The WB also lists Morocco among the 58 countries that reformed business regulation or strengthened the protection of property rights in the last year, of which only seven were in the Middle East.
"Morocco, Jordan, Morocco, Egypt, Saudi Arabia, Yemen, and Syria "had highest minimum capital requirement for starting a business."

According to the report, "businesses in poor countries face larger regulatory burdens than those in rich countries. Poor countries impose higher costs on businesses to fire a worker, enforce contracts, or file for registration; they impose more delays in going through insolvency procedures, registering property, and starting a business; and they afford fewer protections in terms of legal rights for borrowers and lenders, contract enforcement, and disclosure requirements. In administrative costs alone, there is a threefold difference between poor and rich nations.

The number of administrative procedures and the delays associated with them are twice as high in poor countries.

"The top 20 economies in terms of ease of doing business are New Zealand, United States, Singapore, Hong Kong/China, Australia, Norway, United Kingdom, Canada, Sweden, Japan, Switzerland, Denmark, Netherlands, Finland, Ireland, Belgium, Lithuania, Slovakia, Botswana, and Thailand," the document goes.

The Doing Business project is the product of more than 3,000 local experts, business consultants, lawyers, accountants, government officials - and academics, who provide support and review.
http://www.map.co.ma/mapeng/home_dep/h_depservants.htm 
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No upsurge in rabies cases in Morocco (ministry)
RABAT, Sep.10

No upsurge in rabies cases was recorded, either in persons or animals, as compared to the average registered in five last years, the anti-rabies committee said, on the basis of the available epidemiological data.

According to an official statement of the Ministry of Agriculture, Rural Development and Fisheries, the committee affirms that the national anti-rabies program, set up in 2001, proceeds in accordance with the previously established scheme.

The committee, the statement goes, decided to reinforce and speed up the implementation of the program through short-term actions meant to intensify control and treatment of stray dogs, and carry out free vaccination of pet dogs.

Short-term action also includes fostering awareness, through information campaigns targeting technicians, professionals and general public, as well as reinforcement of medical control at the borders.

To guarantee the success of this strategy, citizens have to massively take part in the free vaccination campaigns to be launched in October.

Recently, a small dog that was brought to France illegally from Morocco caused a rabies alert in the southern French region.
http://www.map.co.ma/mapeng/eng.htm 
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4th World Water Congress in September 19 to 24 in Marrakech
Casablanca, Sep 04

The 4th World Water Congress will be held September 19 through 24 in the Moroccan Southern of Marrakech to hear presentations on water issues to be delivered by some of the 3000 experts attending the gathering.

The Congress, sponsored by the Internatioal Water Association (IWA), also features 500 technical workshops, seminars, conferences and roundtables,as well as exhibts, which will be held on the fringes of the plenary meeting.

The topics to be discussed include the exploitation of drinking and used water, integrated management of water ressources, management of draining basins and the new systems of water supply.

The 4th World Water Congress will build on the success of its predecessors held in Paris in 2000, Berlin in 2001, and Melbourne 2002 continue to take the lead in water management, the IWA web site said.

Over 3,000 people are expected to participate in the Congress and exhibition over five days. Leading researchers and practitioners will present the latest innovations in water management to Congress.

The Congress themes cover most areas of the global water industry and there is a desire to create a programme which is relevant to both the developed and developing regions of the world.

The programme includes 400 platform presentations, 150 short platform presentations and 400 posters. These sessions will be supplemented by over 20 workshops and other fringe activities.
http://www.map.co.ma/mapeng/news/general/gen_0119.htm 
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Morocco's edible oil production up by 120 percent growth
Sep 7, 2004 (Al-Bawaba via COMTEX)

Morocco's edible oil production for the 2003-2004 season amounted to 1 million tons, say a 120 percent growth compared to the previous season and 98 percent compared to the average production of the past five years, a press release of the agriculture ministry said.
Edible oil production included 100,000 tons of olive oil, 120,000 tons of edible oil, both increasing by 120 percent and 50 percent, respectively.
The significant growth in edible oil output is due to good weather conditions in the main oil growing zones, mainly in the Haouz, Tadla, Taza regions and to a lesser extent in Taounate, Chefchaouen and the east of the country.
Edible oil farming areas stood at 580,000 hectares in 2003-2004 compared to 570,000 hectares the previous year, MAP reported. (menareport.com) By Mena Report Reporters
(C) 2004 Albawaba.com, All rights reserved.
http://www.zawya.com/Story.cfm?id=251w4983&section=Countries&page=Morocco&channel=All%20Morocco%20News&objectid=22403786-8F1A-11D4-867000D0B74A0D7C 
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80 Years On...Spanish Gas Attacks on Morocco Under Spot
By Al-Amin Andalusi, IOL correspondent TANGIER, September 8 (IslamOnline.net)

The sky was pouring sulfur-similar liquids, the people went blind and frail, the cattle perished and vast swathes of farmlands became wastelands. This was the scene in northern Morocco in early 1920s.
Mohammad Farji is at 100 of age but has vivid memories and flashbacks about the chemical attacks by the invading Spanish troops into northern Morocco in early 1930s.
He recalled how the Spanish troops attacked the countryside with internationally-banned weapons, devastating his small farmland and thousands acres of fertile lands.
Several Moroccan NGOs have been for years calling on the Spanish government to admit such crimes and at least offer an apology not to mention paying reparations for many Moroccans who were afflicted with cancer.
"Northern Morocco was subject to attacks with chemical weapons and many residents of the area are suffering from cancer due to the Spanish attacks,"
Chairman of the Association of the Victims of the Countryside's Poisonous Gases Ilias Al-Amari told IslamOnline.net Wednesday, September 8.
According official estimates, he added, some 60% of the Moroccan cancer patients are concentrated in the North.
Amari said the latest scientific studies in Britain showed that the Spanish chemical attacks were behind the spread of cancer among the Moroccan citizens in the area.
"Short time ago, there was no clear link between the spread of cancer in northern Morocco and the Spanish attacks, but they mystery was now made clear thanks to scientific studies conducted in Britain," Amari added.
Reparations
Amari demanded the Spanish government to admit its crimes in northern Morocco and compensate the families of the victims.
"We tell Spain that you have launched gas attacks at that time when there was a law banning this deadly weapon. Now we want the Spanish government to plead guilty," he said.
"Then, residents of the area will have the right to demand reparations."
He continued: "Ironically enough, the Spanish committed the crime immediately after they signed the 1952 Geneva Convention, which regard as war crimes the use of poisonous gases.
"We have documents proving that Spain used such poisonous gases starting from 1925 and intensely used them in 1926-27 to retaliate for their defeat by the Moroccan resistance at the time."
He paid tribute to resistance hero Mohammad Bin Abdul Kareem Al-Khatabi, who had called on the International Committee of the Red Cross to immediately intervene and protect his fellow citizens from a Spanish genocide.
Amari, meanwhile, criticized the Moroccan government for its "sepulchral silence" over the issue.
British historian and professor Sebastian Balfour had published a book in which he revealed the brutality of the Spanish chemical attacks on northern Morocco, urging the Spanish government to admit its killings of thousands of Moroccans in the area.
Also in 1990, two German researchers published a book in which they disclosed secrets of the Spanish practices in the northern Morocco.
According to observers, Spain is reluctant to admit its crimes against the Moroccan people as it would give a pretext to thousands of Moroccans to ask the Spanish government for millions of dollars.
They said such a Spanish apology would also allow the Moroccans hailing from Andalusia to ask for a Spanish apology for brutal practices against their ancestors between the 13thcentury and the 17th century.
http://www.islam-online.net/English/News/2004-09/08/article07.shtml 
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HM King Mohammed VI inaugurates educational centers in Meknes
MEKNES (east of Rabat), Sep. 09 (MAP)

HM King Mohammed VI inaugurated, here Thursday, 'Sidi Baba' Vocational Training Center and a socio-educational center for blind people.

Sidi Baba center, that required a budget of 12 million Dhs (USD 1.3 million), will train unschooled youth and young graduates to help them seek jobs. The Center will train 150 youths every year in computer science, sewing and automobile mechanics.

HM the king gave on this occasion micro-loans to young graduates of vocational training institutions.

The creation of this center is part of projects launched by the sovereign on the occasion of solidarity campaigns, initiated by Mohammed V Solidarity Foundation.

The sovereign also inaugurated a socio-educational center for blind persons, that was financed by Mohammed V Solidarity Foundation, and required a budget of 7.5 million Dhs (USD 833,000).
http://www.map.co.ma/mapeng/home_dep/h_depfoundation.htm 
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Arab free trade zone: exports to be custom duty-free as of 2005, Minister
CAIRO, Sep.08

Exchanges within the Arab free trade zone will be completely exonerated from customs duties as of 2005, said Moroccan Minister of finance and privatisation, Fathallah Oulaalou.

Created in 1997, the zone makes 90% of total Arab exchanges, especially that it is progressively lifting customs duties (80% by last January).

Speaking Wednesday at the opening of the 74th meeting of the Arabe League's economic and social council, Oulaalou surveyed the council's action during its previous session, which was chaired by Morocco, praising the significant achievement made in the executive program of the Arab free trade zone.

The council under Morocco's chairmanship, he said, made it possible to boost Arab economic action and set new quotas for countries' contribution to the Arab League's budget. These results, he added, will give fresh impetus to the inter-Arab economic integration.

For his part, Arab League secretary General, Amr Moussa, said restructuring the economic and social council was launched in accordance with resolutions of the latest Arab Summit on development of the Arab Organization and its secretariat general.

This 74th session of the council, attended by Arab finance ministers, is examining a series of issues related to the Arab free trade zone, currently mustering 17 countries.
http://www.map.co.ma/mapeng/news/economy/eco_003.htm 
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Saidia tourist resort to be ready in 2006,
FADESA RABAT, Sep.08

The Saidia (northeast) tourist resort, one of Morocco's major tourism projects meant to attract 10 million overseas tourists per annum by 2010, will be over in 2006, said Manuel Jove Capellan, the head of FADESA, the Spanish group in charge of the project.

Other major resorts are Mazagan (El Jadida province, West), Mogador (Essaouira, Southwest), Lixus (Larache, North), Taghazout (near Agadir) and Plage Blanche (near Tangiers, North). They will cost 45 billion Dirhams (around $5 billion) and increase Morocco's hosting capacity by 120,000 beds.

During a meeting here with Moroccan prime minister, Driss Jettou, Capellan said the 71,000m² resort will have a 30,000 bed capacity and will have a marina and golf courses.

During the meeting, Jettou and Capellan surveyed the Saidia project and Moroccan-Spanish cooperation relations in general.
http://www.map.co.ma/mapeng/news/economy/soc-Chad.htm 
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Moroccan nationals transfers home increased 3.7 percent
Morocco, Economics, 9/7/2004

Money transfers sent home by Moroccan nationals living abroad amounted to 21.11 billion dhs, about US$ 2.11 billion, during the first seven months of 2004, according to figures released by the Moroccan "Office des Changes." The amount represents a 3.7 percent increase compared to the same period of last year, the bulletin of the "Office des change" said.

The remittances were sent through bank transfers which stood at 13.39 billion dhs, a 4.4 percent increase and postal office services 2.58 billion dhs, 13.4 percent increase, added the bulletin noting bank notes transfer went down by 2.3 percent.
http://www.arabicnews.com/ansub/Daily/Day/040907/2004090721.html 
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Premier highlights 'alarming' figures of road accidents
Morocco, Local, 9/9/2004

Moroccan prime minister, Driss Jettou, highlighted the alarming figures of road accidents involving public transport, and announced a package of measures to curb the phenomenon, which in 2003 alone, killed 3,878 people and seriously injured 35,000 others.

Speaking at a the opening of a meeting of the inter-ministerial council on road safety (CISR), the minister voiced concern over the increasing numbers of road accidents in Morocco, saying they have "even hit beyond borders," in an allusion to the coach accident that killed 11 of the 50 Moroccan passengers it was carrying from Brussels to Morocco last June.

Two months later, another serious accident, described as the worst, occurred near the town of Imintanout, on a mountainous road, when a commuter bus traveling from the tourist city of Agadir to Marrakech tried to overtake another vehicle and rammed into a heavy truck and then into the first vehicle, killing 29 and injuring 30, including 18 seriously.

Jettou said the sharp rise in these figures show the dire need to take urgent and efficient measures to stop the bleeding and improve public transport conditions.

He urged officials for more vigilance and intransigence in control operations and sanctions to punish irresponsible behavior of some drivers.

The meeting Monday of the CISR, under Jettou's chairmanship, made several decisions, including more rigorous periodic technical inspections of public transport vehicles, medical checkups for their drivers.

Concerning inter-urban taxis, a commission of the interior ministry, the equipment and transport ministry, police and county police will be charged of elaborating an action plan to upgrade the sector before end of November 2004.

Another commission of the same departments will draft, before end of September 2004, an action plan on the enhancement of public transport stations, and one for the upgrade of rural transport before end of 2004.

The permanent committee of road safety will issue monthly figures on road accidents and examine, before end of September 2004, the draft road code to be adopted before end of the year.

Concrete and speedy measures will be studied to enforce the driving license withdrawal in case of serious road offense and apply the breath alcohol test.

As for basic infrastructure, the council decided to launch, in coordination with the interior ministry regional safety measures such the adaptation of road signs.
http://www.arabicnews.com/ansub/Daily/Day/040909/2004090926.html 
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Morocco's new carrier Atlas Blue to be operational October 1st, Minister
Morocco, Business, 9/10/2004

Morocco's new carrier Atlas Blue will be operational as of October 1st, said in Rabat Wednesday equipment and transport Minister, Karim Ghellab.

Atlas Blue, created last May by Royal Air Maroc (RAM) under an agreement previously signed with the government, will service Europe, especially France, on a regular basis, with a 7-aircraft fleet.

The company, which had already started July 26 a pre-launch phase with one airplane, will have 20 pilots, including 5 Moroccans.

The minister was speaking at a meeting with a House of Representatives (parliament lower chamber) committee on decentralization and infrastructures.

The Minister also surveyed the different measures taken by his department in liberalizing air transport, extending the rail network and restructuring of the National Transport Office (ONT).
http://www.arabicnews.com/ansub/Daily/Day/040910/2004091018.html 
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Moroccan Sufi scholars give priority to social, educational and moral aspects of life, Said King Mohammed VI
Marrakech, Sep 10 (MAP)

Moroccan Sufi scholars have been keen on giving priority to social, educational and moral aspects of life. They have sought particularly to teach the holy Quran and spread its precepts through an approach which appeals to the heart of believers and enhances trust in the mercy of the Almighty, King Mohammed VI said.
The sovereign, Commander of the Faithful, in a letter to the first world meeting "Sidi Shiker" of Sufi followers, read by Islamic affairs minister Ahmed Toufiq on Friday in Marrakech, added that Moroccan Sufi scholars have alawys supported legitimate imamat (commendarship), preserved the Malikite rite and the Ashari doctrine.
They also worked to suppress people's hunger for power, instill them more humility and gratitude to the Almighty, rejected all forms of self-centerdness and tyranny, as well as helped educate a number of key figures who harbored no contradiction between universalism and true patriotism.
In the letter to the meeting, held under the aegis of King Mohammed VI, the soverign said Moroccans understand that the essence of Islam consists in purifying the soul, ridding it of selfishness, hatred and extremism.
However, the constant exercise of self restraint is necessary in order to reach the state of spiritual fulfilment commonly known as Sufism.
Sufism has been practised in Morocco by brotherhoods, which were like spiritual center of learning and served Islam well by instilling its values through Zaouias, the soveriegn said adding "my ancestors always had the greatest respect for the custodians of these Zaouias seeking their advice in times of hardship or adversity..."
The Zaouias have also fostered feelings of love and affection for the Prophet's keen, built schools and libraries, reconciled people and brought them closer together, spread the values of solidarity and mutual assistance and stamped out ethic and tribal discrimination by fostering brotherhood, the sovereign said.
Today mankind needs to foster the values of tolerance, solidarity and selflessness and discourage unbridled egoistic propencities, said the sovereign adding that Muslems ought to give new meaning to the ideals which used to determine their moral standards.
The sovereign called on the participants, come from several countries, "to work together in order to fulfil the objectives and ideals you have in common regardless of your different backgrounds and pedagogical approaches for they all lead to the same True faith in which you believe and to which you owe your common perception".
The achievement of these goals hinges on the need for tolerance which today more than any time makes it incumbent to seek to redress people's perception of Islam, first among fellow Muslems, then among believers of other faiths, underscored the sovereign.
King Mohammed VI said that freedom of organisation and entreprise, which is guaranteed by the law, opens vast prospects for creative forces that were previously stiffled because of fear, exclusion or monopoly. Thanks to the equitable democratic measures now in place, nothing can stand in the way of benevolent, caring initiatives or endeavors to achieve man's happiness and improve his conditions.
"The experience you have gained as you sought to achieve the objectives should enable you to give new meaning to the religious, educational and social domains, which must remain above any politicking or cheap manipulations; You should therefore remains committed to the true ideals of Sufism which combine piety, virtue and good conduct, on the one hand, with sincere and selfless action, on the other", the soverign stressed.
King Mohammed VI called on the participants to "cooperate and communicate among yourselves thereby reflecting the spirit of your conference here in the kingdom of Morocco, a country that has always symbolized tolerance between the revealed religions and been firmly committed to moderation.
"Morocco is strongly attached to its authentic values and principles, constantly upholds the ideal of open mindedness and concrod and believes in the virtues of mutual exchange and enrichment among individuals, communities and civilisations", said the sovereign. (MAP) QA http://www.map.co.ma/mapeng/home_dep/h_dep217.htm 
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HM King Mohammed VI inquires in Meknes about health management project
MEKNES, Sep.10

HM King Mohammed VI of Morocco visited Friday Mohammed V Hospital in Meknes (east of Rabat), where he inquired about the 572 million DH (around US$ 63.5 million) national project of health financing and management (PECSS).

The project is meant to refurbish hospitals buildings, modernize equipment , apply new hospital management tools, improve the information system and promote human resources.

The project, co-financed at 85% by a loan from the World Bank, was launched in five hospitals in Meknes, Safi and Settat (West) and Agadir and Beni Mellal (South), pending its extension to other regions of the kingdom.

The sovereign was later briefed on a pilot hospital project, which covers real estate, equipment and maintenance aspects of hospitals management.

HM King Mohammed VI had dedicated here Thursday the 'Sidi Baba' Vocational Training Center and a socio-educational center for blind people, costing respectively USD 1.3 million and USD 833,000. He also extended micro-loans to young graduates of vocational training institutions.
http://www.map.co.ma/mapeng/eng.htm 
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Trade Wobbles .
Morocco, September-2 Volume 43. 07.09.2004

The government's commitment to commercial liberalisation is under stress following new figures showing a deterioration in the trade deficit. With import prices soaring and export markets sluggish, the country is now facing a stern economic test.

With results in for the first half of the year, Morocco's trade deficit had reached Dh33.37bn (approximately 3.05bn euros), an increase year-on-year of 34.4% on results from 2003H1. Although exports did grow by 5.2% to reach Dh44bn (4bn euros), they failed to keep pace with the rapid increase in imports - the latter reached Dh77.7bn (7.1bn euros), having grown by around 15.9%, according to figures released by the Ministry of Foreign Trade. As a result of these trends, the import-export ratio deteriorated from 62.9% to 57.1% in the same period.

The strong increase in imports is due to a number of factors. The energy bill obviously had a particularly negative effect. Constituting just under a quarter of total import growth, crude petrol imports almost doubled in price from Dh3.2bn to Dh6.2bn during the period. With benchmark prices reaching record levels in London and New York, Morocco has suffered like other importers around the world.

This has led to increases in petrol and diesel prices over the summer of between 2.9% and 3.5%, with a consequent generalised rise in price, particularly in the transport sector. With winter and Ramadan approaching, the authorities are now also faced with pressure to ensure adequate provisioning of butane - the fuel of choice for Moroccan households. The authorities are ruling out an increase in butane prices (the price of a butane gas bottle would increase by 75% if subsidies were lifted), but professionals are demanding that subsidy arrears, which have been building up since April, be paid soon.

Away from oil and its derivatives, Morocco's trade balance has been affected by the bullish movement of global commodities in both a positive and negative manner. On the downside, Morocco has had to pay notably more for steel imports - the steel import bill rose by 43%, or Dh1bn, a consequence of the strong price rise (with supply unable to keep up with buoyant demand, especially in the US and Chinese markets). The food import bill also rose strongly - by 27.6% according to the government's Office des Changes.
Despite the good harvest in 2003/04, global commodity price increases, especially for cereals and oleaginous products, impacted negatively.

On the positive side, one of the Moroccan export sector's best performers was the phosphate sector. Phosphate and derivatives exports grew by Dh1.2bn, constituting 70.6% of the total export increase. Still a public monopoly under the mandate of the Office Cherifien des Phosphates (OCP), the group's sales rose by 27.1% from Dh5.44bn to Dh7bn, helped in particular by the strong rise in sales of phosphoric acid (an increase of 65.1% to Dh3bn). In this case, Morocco has benefited from being a key exporter of a commodity essential to the production of fertilisers.

In fact, according to the authorities, the most important contributor to import growth was actually capital goods imports, which grew by Dh3.2bn (around 41.6% of the total), and represent around 22% of all imports. This is therefore not necessarily such a bad trend, since it could be evidence of business upgrading (companies renovating or importing new machinery), with all its beneficial implications in term of increased productivity and competitiveness. Given the more downbeat assessment of business sentiment in the latest CGEM poll (see last online briefing), this case should not be overplayed. Nonetheless an increase in capital good imports does usually presage an increase in investment and economic activity.

On the export side, the agriculture sector has performed poorly, despite a good 2003/04 season. This is due essentially to two factors - firstly seafood exports fell by Dh202m in value (and by 12,000 tonnes in volume), led by a collapse in the crustacean, mollusc and shellfish segment (minus
Dh1.1bn) that was only partly corrected by increases in other segments. This is a reflection of the deterioration in Moroccan fisheries, a result of inadequately controlled exploitation of resources.

The second factor was the poor performance of the fresh fruit and vegetables
(FFV) segment. Although a good tomato harvest saw the volume increase by 18%, strong competition from Spain and Egypt saw the value of exports fall by Dh198m (37%).

More generally, exports have suffered because of sluggish demand in Europe, the destination for three quarters of the country's exports.

The widening trade deficit comes at an important stage of Morocco's economic development. With the government's strategy of market liberalisation confirmed by successive free trade agreements - with the European Union, the USA, Turkey and Arab countries as part of the Agadir Agreement - an important aggravation of the trade gap is bound to raise some concern.
Newspaper articles have shone the spotlight on two specific sectors in recent weeks.

With schoolchildren returning to the classroom, the school equipment market was expected to be strong, but local producers have suffered from foreign competition - from both Europe (especially France) and from Asia (especially India and China). With falling tariffs, local producers are at pains to compete with imported products that are of both better quality and increasingly available at a better price.

Meanwhile, for those still unstressed by work, beachwear has been the consumer item of choice. Once again, however, local producers have seen their sales fall drastically. Unable to compete most notably with the Chinese producers, who are able to bring their products to the market unbeatable prices, their export markets have also suffered, in line with the difficulties facing the textile sector in general.

With tariff barriers set to continue falling in line with bi- and multi-lateral commitments, the authorities will probably follow the global trend towards non-quantitative trade restrictions - rules of origin, quality standards and anti-dumping legislation, for example. Already the Ministry of Commerce, Industry, and Upgrading is planning the implementation of "alert prices". These are reference prices for customs officials, to be used to counter under-reporting: for certain goods imported (especially ceramics, biscuits and chocolates), there have been accusations of fraud - that is, the total tariffs paid (calculated as a percentage of the reported value of the imports) have been less than the real value. By introducing "alert prices", customs officials can investigate the import bills of goods whose prices seem to be substantially below those expected.

Minister of Commerce and Industry Salaheddine Mezzouar was reported to have wished that these controls would focus not only on price but also on quality
- especially the impact on security, health, hygiene, and the environment.

It is of course too early to estimate whether these measures can help shore up Moroccan trade defences. In the meantime, two options remain open to the authorities to address the negative trade trend. The first, currency devaluation, is technically the easier. Certain local analysts believe that the local currency is increasingly overvalued, and this is causing harm to Moroccan exporters. Linked closely to the euro, Morocco's currency provides little competitiveness vis-à-vis the US dollar-tied Chinese yuan, for example. At the same time, the social cost of devaluation might be hard to swallow, especially following on from the recent rise in energy prices.

The second option is tackling the informal market, especially for illegally imported goods. If anything, it is these that are causing serious damage to local production, through unfair competition. That is perhaps the more resolutely positive solution, but it is a long-term and difficult task.

Chris de Oliveira
http://www.oxfordbusinessgroup.com/weekly01.asp?id=1022 

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