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N. S. and S. B., two Moroccan citizens who currently [May 2004] live in California, has completed a study of their home country government's economic policies as compared to the MIEPA list of policies as outlined above. The study on Morocco is shown below. The ratings herein are based on the following rating scale:
5.0 Perfect Facilitation of Wealth Creation
4.0 Midway between Perfect and Neutral
3.0 Neutral Effect on Wealth Creation
2.0 Midway between Neutral and Obstructionist
1.0 Perfectly Obstructionist to Wealth Creation
[Rating scale copyright Mike P. McKeever, 1996. Used herein with permission]
To read a disclaimer about the analysis in this file, scroll to the bottom of the file.
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Comparison of Morocco's economic policies to MIEPA criteria as prepared
by two native students of Morocco studying in the US in
May of 2004.
The first study shown is the study prepared by student S.B. The second study shown is prepared by student N.S. To read the second study, scroll down this page until reaching the second report.
RATING SUMMARY: FIRST STUDY BY S.B. POLICY NUMBER RAW SCORE ADJUSTED SCORE POSSIBLE PERCENTAGE 1 3.0 9.0 15.0 60% 2 2.5 7.5 15.0 50 3 2.0 6.0 15.0 40 4 3.8 11.4 15.0 76 5 4.0 12.0 15.0 80 6 3.5 10.5 15.0 70 7 3.5 10.5 15.0 70 8 2.0 6.0 15.0 40 9 2.5 7.5 15.0 50 10 5.0 15.0 15.0 100 11 4.0 12.0 15.0 80 12 2.0 4.0 10.0 40 13 4.0 8.0 10.0 80 14 4.0 8.0 10.0 80 15 3.0 6.0 10.0 60 16 2.0 4.0 10.0 40 17 3.5 7.0 10.0 70 18 3.5 7.0 10.0 70 19 3.0 6.0 10.0 60 20 4.5 9.0 10.0 90 21 4.0 8.0 10.0 80 22 3.0 6.0 10.0 60 23 3.0 6.0 10.0 60 24 3.0 6.0 10.0 60 25 3.0 6.0 10.0 60 26 3.5 7.0 10.0 70 27 3.0 6.0 10.0 60 28 4.0 8.0 10.0 80 29 2.5 2.5 5.0 50 30 3.5 3.5 5.0 70 31 5.0 5.0 5.0 100 32 3.5 3.5 5.0 70 33 3.5 3.5 5.0 70 34 2.0 2.0 5.0 40 TOTAL 111.8 239.4 375.0 63.8% ===== ====== ===== =====
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1. Freedom from internal control: 3.0
The Constitution provides for freedom of movement; however, the Government restricted this right in certain areas. The Gendarmerie maintained checkpoints throughout the country, at which drivers' licenses and vehicle registrations were examined for validity. In the Moroccan-administered Western Sahara, authorities restricted movement in areas regarded as militarily sensitive.
The Ministry of Interior restricted freedom to travel outside the country in certain circumstances. In addition, all civil servants and military personnel must obtain written permission from their ministries to leave the country. The OMDH and AMDH compiled lists of individuals who reportedly were denied passports or who had passports but were denied permission to travel. The OMDH contended that the Government, in resorting to arbitrary administrative delays, continued to harass former political prisoners who sought to resume normal lives.
2. Freedom of speech: 2.5
The Constitution provides for freedom of expression; however, the law permits prison sentences and financial penalties for journalists and publishers who violate its restrictions on defamation, libel and discussion regarding three topics: The Monarchy; territorial integrity; and Islam. The Press Code lists threats to "public order" as one of the criteria for the censor to consider. Within these limits, newspapers and weeklies were published across the political spectrum and were sometimes critical of government policies.
Government control of the media generally was exercised through directives and "guidance" from the Ministry of Interior. Publications that were judged offensive could be confiscated or indefinitely suspended. The Government may censor newspapers directly by ordering them not to report on specific items or events. The Government registered and licensed domestic newspapers and journals and could use the licensing process to prevent the publication of materials that exceeded its threshold of tolerable dissent. The Ministry of Interior could control foreign publications by removing "banned" publications from circulation.
3. Effective, fair police force: 2.0
There is two kind of police force in Morocco. Regular police in the urban area and (la gendarmerie) in rural area they both work effitiently by solving many crimes despite the very low crime-rate in the country . But unfortunatly bribery can be a way to avoid minor violation such as moving-violation.
4. Currency: 3.8
The basic unit of money in Morocco is Dirham; equal to 100 centimes
(5/10/04) U.S. Dollar / Moroccan Dirham 0.1090 0.1098 Moroccan Dirham / U.S. Dollar 9.1752 9.1091
The Moroccan dirham is the latest currency to join the Export-Import Bank of the United States (Ex-Im Bank) foreign currency guarantee program
5. Commercial banks: 4.0
There is no clear-cut distinction between commercial and merchant banks. By and large, all commercial banks provide commercial and saving services, with merchant banking as an accessory service. The four largest commercial banks are: Credit Populair du Maroc (or Banque Populaire), Banque Commerciale du Maroc, Banque Marocaine du Commerce Exterieur and Wafabank. Moroccan banks offer a broad range of regular banking services, including depository services and trade and credit services. Several banks now offer electronic banking services for corporate clients and a wide array of consumer banking facilities such as credit cards, ATMs and telephone banking services. Most banks are linked to the SWIFT global payment system, enabling them to quickly execute foreign currency and convertible MDh transactions to non-residents, including transactions involving the repatriation of earnings of foreign companies. Moroccan banks, however, are still not in the position of offering a complete spectrum of modern services in terms of foreign exchange, money and capital markets and corporate finance activities. In order to ameliorate this situation, the Moroccan monetary authorities are working on regulatory changes which would promote additional modernization of the industry
6. Communication system: 3.5
Communications: Telephones: main lines in use: 1.391 million (1998); mobile cellular: 116,645 (1998). Radio broadcast stations: AM 27, FM 25, shortwave 6 (1998). Radios: 6.64 million (1997). Television broadcast stations: 35 (plus 66 repeaters) (1995). Televisions: 3.1 million (1997). Internet Service Providers (ISPs): 8 (2000). Internet users: 400,000 (2002).
7. Transportation: 3.5
Railways: total: 1,907 km standard gauge: 1,907 km 1.435-m gauge (1,003 km electrified; 540 km double track)
Highways: total: 57,847 km paved: 30,254 km (including 327 km of expressways) unpaved: 27,593 km (1998 est.)
Pipelines: crude oil 362 km; petroleum products 491 km (abandoned); natural gas 241 km
Ports and harbors: Agadir, El Jadida, Casablanca, El Jorf Lasfar, Kenitra, Mohammedia, Nador, Rabat, Safi, Tangier; also Spanish-controlled Ceuta and Melilla
Airports: 70 (1999 est.)
Morocco has a pretty good transportation system that can get you anywhere in the country.
8. Education: 2.0
The Moroccan government's keen interest in education is reflected in the amount of investments alloted to that sector. 26.3% of the general budget is earmarked for education .the educational system has undergone several reforms meant to reduce regional differences and ensure the dissemination of education. In 1963, education became compulsory for Moroccan boys and girls aged 7 and 13.
9. Social mobility: 2.5
In Morocco today, around 20% of a population of 30 million live in poverty,10% are in sheer misery and 30 per cent (mostly the young and the elderly) are classified as vulnerable. Around 56 per cent of the population are illiterate and only 18 per cent of women can read and write.
Unemployment is around 20% and job creation cannot keep up with the increasing number of job seekers. The educational system, which has been turning out more and more unemployed graduates, is ailing and in need of a major overhaul. Income disparities have worsened in recent years and the gap between the higher and the lower incomes is immense. Disparities between rural and urban incomes and living standards are critical. Among the rura1 population, 63% have no water, 87% are without electricity, 93% have no access to health services and 65% are illiterate.
10. Freedom from outside control: 5.0
Moroccan citizen are subject to obey the national law, but could never be arrested by a foreign task force unless the approval of the moroccan government.(since Morocco belongs to many organization like interpol)
11. Foreign currency transactions: 4.0
All transactions have to be made in Moroccan Dirham. The Moroccan government has made the Moroccan Dirham (MDh) convertible for an increasing number of transactions over the last few years. As of February 1993, the MDh was made convertible for all current transactions and for some capital transactions, notably, capital repatriation by foreign investors. Foreign exchange is routinely available through commercial banks for such transactions upon presentation of documents. The Central Bank sets the exchanrate for the MDh against a basket of currencies of its principal trading partners. The rate against the basket has been steady since a 9% devaluation in May 1990, with changes in the rate of individual currencies reflecting changes in cross-rates. In a further move, the Ministry of Finance recently decided that private enterprises are allowed to access international financial markets directly.International financial transactions are subject to the control of the Moroccan Exchange Office, which retains the authority to act in a balance of payments or liquidity crisis.
12. Border control: 2.0
Because of its important location-Morocco lies directly across the Strait of Gibraltar from Spain. It borders Algeria to the east and southeast, Western Sahara to the south, the Atlantic Ocean to the west, and the Mediterranean Sea to the north. It is the only African country with coastal exposure to both the Atlantic Ocean and the Mediterranean Sea. With the Western hemisphere- faces major problems such illegal immigration and drug smuggling.
13. Cultural, language homogeneity: 4.0
The official language is Arabic but French is the dominant business language in central and southern Morocco and something you can get along with about anywhere. Spanish is often spoken in the north. English is fairly widely spoken. The Berber languages, once dominant throughout Morocco, have declined in importance, and in the early 1990s about 25% of the people used Berber as their first language. In the rural areas there is complete cultural homogeneity, exept in the biggest cities where diversity can be found.
14. Political effectiveness: 4.0
Since the government is promoting privatization. The govenment is trying to avoid any responsability of companies failure.The government is also helping big investors in differents way such as tax break in order to establish a steady economic growth.
15. Institutional stability: 3.0
Morocco has emerged as an oasis of peace and stability in the region. His Majesty King Hassan II has kept his country on a steady course of development in the face of turbulent regional policies and maintained the democratization process in the country. Parliamentary elections were held in1993, setting the stage for a more representative form of government. the opposition parties play an increasingly active part in Morocco's politics. Morocco established liaison offices in both Israel and Gaza and participates actively in the ongoing peace process in the Middle East.
16. Honest government: 2.0
The second half of the 1990s witnessed a surge of interest in corruption, which is defined here as the abuse of public office for private gain. Pervasive, systemic corruption has now been identified as a major impediment to sustainable development. It is increasingly recognized, in particular, that countries engaged in a transition to democracy and market economics will be unable to consolidate and build on the gains they have already made unless they also show themselves capable of containing the corruption that undermines public trust and confidence in the new institutions, deters foreign investors, and thwarts private-sector expansion. The Moroccan government took the necessary measure,to fight corruption and called for devising a strategy to fight it that botches development efforts in Morocco.
17. Common law: 3.5
There are six components to the Moroccan judicial system. The majority of legal matters fall within the jurisdiction of Regional Tribunals, which decide cases of personal property damages. Such judgments, excluding minor offenses punishable by a small fine, may be appealed to the Court of Appeals. The Court of Appeals also has a separate civil and criminal division. Despite previous announcements, the new Commerce Law, passed on May 18, 1996, did not establish special commercial courts. Courts of First Instance adjudicate crimes punishable by up to five years imprisonment and civil, personal status, or commercial cases. Monetary judgments of small amounts are not subject to appeal.
The decisions of all courts and tribunals may be reviewed by the Supreme Court. There is also the High Court of Justice that has jurisdiction over criminal and felonious matters allegedly committed by government officials. In addition, there are specialized Labor Tribunals which settle disputes by means of conciliation.
The accuracy of the judicial system works the same throughout the country.
18. Central bank: 3.5
Shortly,after the independence of Morocco in 1956, the foundations of the national banking system were then implemented. the « Banque du Maroc » (Bank of Morocco) was established in 1959 to replace the « Banque d’Etat du Maroc » and to ensure the functions of a Central Bank. It was created as a state-owned institution with legal personality and financial autonomy, entrusted with the privilege of issuing banknotes and coins, and the mission of safeguarding the stability of the currency as well as preserving the soundness of the banking system. On March 1987, the denomination of « Banque du Maroc » was replaced by « Bank Al-Maghrib ».
19. Domestic budget management: 3.0
Morocco, like many other countries, treats its public land and real estate holdings as public goods, rather than productive assets capable of producing a mix of significant returns and social benefits if properly managed. Land and real estate typically represent 25 to 50% of public entities’ assets. The replacement cost of the buildings of the ministries of health, education and higher education alone amount to over 9% of GDP.
20. Government debt: 4.5
Through a foreign exchange rate anchor and well-managed monetary policy, Morocco has held inflation rates to industrial country levels over the past decade. Inflation in 2000 and 2001 were below 2.5%. Despite criticism among exporters that the dirham has become badly overvalued, the current account deficit remains modest. Foreign exchange reserves are strong, with more than $7 billion in reserves, the equivalent of 11 months of imports at the end of 2001. The combination of strong foreign exchange reserves and active external debt management gives Morocco ample capacity to service its debt. Current external debt stands at about $13.9 billion or about 30% of GDP.
21. Private property: 4.0
In Morocco there is a complex system to acquire property, which prevent all kind of forgery. In order to obtain a title of property a moroccan citizen has to provide many documents prooving his ownership to the property.
22. Economic statistics: 3.0
Since the number of internet users are still very low , Moroccan citizen rely on a large diverse newspaper as a source of economic statistics.
23. Protection of public health and safety: 3.0
Health services are fairly well developed in Morocco’s cities, but health conditions in rural areas remain poor. The government provides for social security benefits. The country had on average 1 physician for every 2,174 inhabitants and 1 hospital bed for every 1,020 inhabitants in 1997.
24. High wages policies: 3.0
There are no legislated wage controls in Morocco other than the minimum wage. Therefore, wages and salaries can be freely contracted between employees and employers. Apart from agreed pay increases, an indexing system enables the government to raise by decree all wages and salaries effectively paid when the Central Commission for Prices and Wages records an increase of aleast 5% in the cost of living. Wages, whatever the method of remuneration (time rates, piece rates or job rates) must be paid at least twice a month, at a maximum of sixteen days' interval. Salaries must be paid at least once a month.
25. Environmental Protection: 3.0
Morocco faces various environmental problems, including several arising from natural hazards. The main difficulties arise from Morocco's dependency on water and the economy's vulnerability to climatic change. Morocco is now defined as a "water-stressed" country. Per capita supplies and water quality are declining, rural areas are poorly served with water, and there are substantial losses in both irrigation (which currently accounts for 85 percent of water use) and drinking water systems in urban areas. In addition, the country suffers from oil pollution of its coastal waters. In attempting to solve these difficulties, Morocco has made some progress toward defining a national environmental action plan, but overall institutional awareness and coordination are weak. Morocco is, however, a party to various international agreements regarding environmental protection issues such as biodiversity, climate change, endangered species, marine dumping, marine life conservation, nuclear test ban, ozone layer protection, protection of world cultural and natural heritage and the protection of the wetlands. It has also signed agreements for the establishment of a General Fisheries Council for the Mediterranean and of a Commission for Controlling the Desert Locust in the Near East. In addition, Morocco has signed but not ratified further agreements on desertification, environmental modification and the law of the sea. Some exemption from taxes and other duties have been made available for persons and entities promoting or implementing environmental protection.
26. Strong Army: 3.5
Moroccan Army known as Royal Armed Forces (includes Army, Navy, Air Force), Gendarmerie, Auxiliary Forces .
The Moroccan Army has 125,000 troops, including about 75,000 conscripts. It is organized into two Commands, a Northern Zone and a Southern Zone. Reserves are estimated at 150,000; in terms of effectives this figure may be too high. Some of the battalions listed as independent may be part of the brigades. The number of artillery pieces given by the Jaffee Center is much too high relative to the number of artillery units. Half the artillery total consists of 120mm mortars, we assume the Moroccan Army follows usual practice and classifies them as artillery rather than as infantry support weapons.
Military expenditures - dollar figure: $1.361 billion (FY97/98)
Military expenditures - percent of GDP: 3.8% (FY97/98)
27. Foreign Trade Impact: 3.0
Morocco total eports in 2002 was $7.5 billion and total imports was $10.4 billion which give a total of $17.9 billion divided by the annual GDP for the same year ($121.8billion). That means that foreign trade has an impact of 15% over the total GDP of 2002.
28 Protection of foreign currency earning enterprises: 4.0
The Moroccan government has made the Moroccan Dirham (MDh) convertible for an increasing number of transactions over the last few years. As of February 1993, the MDh was made convertible for all current transactions and for some capital transactions, notably, capital repatriation by foreign investors. Foreign exchange is routinely available through commercial banks for such transactions upon presentation of documents. The Central Bank sets the exchanrate for the MDh against a basket of currencies of its principal trading partners. The rate against the basket has been steady since a 9 percent devaluation in May 1990, with changes in the rate of individual currencies reflecting changes in cross-rates. In a further move, the Ministry of Finance recently decided that private enterprises are allowed to access international financial markets directly.
29: Management of foreign currency budget: 2.5
GDP: $121.8 billion
EXPORTS: $7.5 billion f.o.b. (2002 est.)
IMPORTS: $10.4 billion f.o.b. (2002 est.)
EXPORTS-IMPORTS= ( $-2.9billion)
Morocco is spending more in importing than in exporting.
30 Layers of collective action: 3.5
Morocco is a constitutional and democratic monarchy. The King is the Supreme Representative of the Nation and the Symbol of the unity thereof. He is the guarantor of the perpetuation and the continuity of the State. As Defender of the Faith, He ensures the respect for the Constitution. He is the Protector of the rights and liberties of the citizens, social groups and organisations.The Government is composed of the Prime Minister and Ministers. The Government is answerable to the King and the Parliament. The Administrative power in the Kingdom is organised on two layers: local communities and local assemblies.
31.Pro-Business Climate: rating 5.0
Morocco is a very attractive location for investors. The climate for private investment in Morocco is excellent. Just eight miles from Europe, Morocco's strategic location offers investors a real window of opportunity to establish export platforms to the European Community, U.S. East Coast, Africa, and the Middle East. Morocco's political climate is stable. The transportation system is being expanded rapidly. The govenment of Morocco has instituted major reforms and liberalization measures aimed at improving foreign trade and encouraging export oriented investment opportunities. An important fact for investors to note is that Morocco's foreign investment laws are liberal.
32. Government enterprises: 3.5
Morocco approaches the 21st century in a stronger position than most countries in the Middle East and North Africa. Since 1983 the government began a comprehensive program of reforms.In the last decade Morocco began privitazing. Because Privatization fits well into Morocco's overall liberal environment and continues the State's long term withdrawal from economic activities. It is entirely a home-grown policy that was set in motion by King Hassan II. The sales process is open and transparent, carried out by a tripartite organizational structure made up of a Minister, a Commission of high government officials, and a price setting Board. the standard sales mechanisms are employed. Showing good sense, authorities opted for openness and transparency by favoring stock market listings or tenders, which together have accounted for 75% of revenue. Worker shares, rights of first refusal and trade sales account for the rest. Procedural changes to speed up the privitization process are also planned. while the results for the first half of 1996 have already been striking, the planned additions to the list and the streamlined procedures clearly show that the best is yet to come.
33.International Security Agreements: rating 3.5
Because of its important participation in different organization Morocco has a world wide opening for business.here is some of the organization that Morocco belongs to:
ABEDA, ACCT (associate), AfDB, AFESD, AL, AMF, AMU, CCC, EBRD, ECA, FAO, G-77, GATT, IAEA, IBRD, ICAO, ICC, ICFTU, IDA, IDB, IFAD, IFC, IIB, ILO, IMF, IMO, INTELSAT, INTERPOL, IOC, ISO, ITU, LORCS, OAS (observer), NAM, OIC, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UPU, WHO, WIPO, WMO, WTO.
Sources: http://rabat.usembassy.gov http://www.mincom.gov.ma/english/generalities/economy/economy.
34 Protection of domestic enterprises from government mandated costs: 2.0
Morocco's economy is based primarily in agriculture and tourism.Morocco boasts the largest phosphate reserves in the world, a diverse agricultural (including fishing) sector, a large tourist industry, a growing manufacturing sector (especially clothing), and considerable inflows of funds from Moroccans working abroad. Most of Morocco's trade is with Europe, France alone accounts for about a quarter of Morocco's imports and a third of its exports. Morocco is a member of the WTO.The Moroccan government has pursued an economic reform program since the early 1980s. It has restrained government spending, revised the tax system, reformed the banking system, pursued appropriate monetary policies, eased import restrictions, lowered tariffs, launched a privatization program and liberalized the foreign exchange regime. These reforms have helped restore macroeconomic equilibria: the current account deficit, fiscal deficit and inflation rates are well below their early 1980s levels. Economic growth has been modest, with wide year-to-year fluctuations due largely to variations in rainfall.
The reform program continues to move forward although slowly and unevenly. An anti-corruption campaign in early 1996 considerably slowed customs clearances, and put a damper on some economic activity. The privatization program has progressed slower than expected, but trading privatized companies has given a huge boost to the Casablanca stock exchange. The Moroccan government has embraced private financing, construction and operation of some highways, a new Atlantic Ocean port for Tangier and other large infrastructure projects, including a $1.5 billion electric power project awarded to a joint venture between an American and a European firm.GDP growth topped twelve percent in 1996 following heavy rains that nourished a record harvest. Erratic rains in 1997 led to a 25 percent drop in agriculture GDP. The economy as a whole is expected to contract by 2.5 percent in 1997. Foreign exchange reserves have bounced back after falling during the 1994-1995 drought. The government has recently announced an easing of exchange controls for Moroccan tourists. Morocco's chronic merchandise trade deficit narrowed slightly in 1996. This trend has continued into 1997. Receipts from remittances, tourism and foreign investment recovered in 1996, and have increased sharply in 1997, led by a significant increase in foreign investment.
SECOND STUDY OF MOROCCO BY STUDENT N.S.
RATING SUMMARY: SECOND STUDY BY N.S. POLICY NUMBER RAW SCORE ADJUSTED SCORE POSSIBLE PERCENTAGE 1 4.0 12.0 15.0 80% 2 3.5 10.5 15.0 70 3 2.5 7.5 15.0 50 4 2.5 7.5 15.0 50 5 3.0 9.0 15.0 60 6 2.5 7.5 15.0 50 7 2.0 6.0 15.0 40 8 3.5 10.5 15.0 70 9 1.5 4.5 15.0 30 10 4.0 12.0 15.0 80 11 4.0 12.0 15.0 80 12 2.5 5.0 10.0 50 13 2.0 4.0 10.0 40 14 4.0 8.0 10.0 80 15 3.5 7.5 10.0 75 16 3.0 6.0 10.0 60 17 2.5 5.0 10.0 50 18 4.0 8.0 10.0 80 19 3.5 7.0 10.0 70 20 2.0 4.0 10.0 40 21 1.5 3.0 10.0 30 22 2.0 4.0 10.0 40 23 3.5 7.0 10.0 70 24 2.0 4.0 10.0 40 25 3.5 7.0 10.0 70 26 2.0 4.0 10.0 40 27 4.0 8.0 10.0 80 28 3.5 7.0 10.0 70 29 3.5 3.5 5.0 70 30 2.5 2.5 5.0 50 31 3.5 3.5 5.0 70 32 2.5 2.5 5.0 50 33 3.0 3.0 5.0 60 34 2.5 2.5 5.0 50 TOTAL 99.5 215.0 375.0 57.3% ===== ====== ===== =====
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1. Freedom from internal control: 4.0
The moroccan people are all originated from nomads.
Any body can move from a city to onether one looking
for bigger opportunity without any restrictions.
People are moving constantly to bigger cities looking
for better life specialy moving to Casablanca which is
the biggest city in the country and the heart of the
2. Freedom of speech: 3.5
Morocco is one of the third world countries where
people live in harmony and peaceful climate. Although the
level of poverty is very high, they seem to not
complain much. People talk in politics in public
without fear, also they can say what ever they feel
like saying, for example in protests and
3. Effective, fair police force: 2.5
The police force in morocco has a big role in keeping
the peace in the country. It has a large affect on
the population, people know that if they don't obey
the law, they are going to be in deep trouble with the
police. Also moroccan people are very wild people with
a lot of energy.Basicly the police interfers at any
problem. So far the police force is doing a very good
job in controling the population despite the fact that
there is some bribery, but in general it's doing the
4. Private property: 2.5
In Morocco, anybody can own anything any time he
would like. Basicly if the person has money, he can
buy purchase and sell anything that he owns. These
action are going to be legal under a regulated system.
Every purchased will be recognized by legal documents
that prove the ownership of the owner.
5. Commercial banks: 3.0
There is no clear-cut distinction between commercial
and merchant banks. By and large, all commercial banks
provide commercial and saving services, with merchant
banking as an accessory service. The four largest
commercial banks are: Credit Populair du Maroc (or
Banque Populaire), Banque Commerciale du Maroc, Banque
Marocaine du Commerce Exterieur and Wafabank.Moroccan
banks offer a broad range of regular banking services,
including depository services and trade and credit
services. Several banks now offer electronic banking
services for corporate clients and a wide array of
consumer banking facilities such as credit cards, ATMs
and telephone banking services. Most banks are linked
to the SWIFT global payment system, enabling them to
quickly execute foreign currency and convertible MDh
transactions to non-residents, including transactions
involving the repatriation of earnings of foreign
companies. Moroccan banks, however, are still not in
the position of offering a complete spectrum of modern
services in terms of foreign exchange, money and
capital markets and corporate finance activities. In
order to ameliorate this situation, the Moroccan
monetary authorities are working on regulatory changes
which would promote additional modernization of the
6. Communication systems: 2.5
Telephones - main lines in use: 1.391 million (1998)
Telephones - mobile cellular: 116,645 (1998).
Telephone system: general assessment: modern system
with all important capabilities; however density is
low with only 4.6 main lines available for each 100
Radio broadcast stations: AM 27, FM 25, shortwave 6
Television broadcast stations: 35 (plus 66 repeaters)
(1995Internet users: 120,000 (1999)
7. Transportation: 2.0
Railways: total: 1,907 km; standard gauge: 1,907 km; 1.435-m gauge (1,003 km
electrified; 540 km double track)
Highways: total: 57,847 km; paved: 30,254 km (including 327 km of expressways); unpaved: 27,593 km (1998)
Ports and harbors: Agadir, El Jadida, Casablanca, El
Jorf Lasfar, Kenitra, Mohammedia, Nador, Rabat, Safi,
Tangier; also Spanish-controlled Ceuta and Melilla
Airports: 69 (2000 est.)
Heliports: 1 (2000 est.)
In Morocco's mountain, desert, and seaside
communities, young teacher colleges are training
young people to become primary school teachers. The
colleges operate with minimal resources and
traditional instruction methods, and the students
listen to lectures designed to prepare them for their
own classrooms. The ones that in Moroccan education
recognize that the knowledge, skills, and capabilities
needed for success in this new world and are different
from those of the old. education is moving toward a
new approach that combines the best of the old with
the most promising of the new.\
9. Social Mobility: 1.5
In Morocco today, around 20 per cent of a population
of 30 million live in poverty, 10 per cent are living
in misery and 30 per cent (mostly the young and the
elderly) are classified as vulnerable. about 56 per
cent of the population are illiterate and only 18 per
cent of women can read and write.Unemployment is about
20 per cent and job creation cannot keep up with the
increasing number of job seekers. The educational
system, which has been creating more and more
unemployed graduates, is sufering and in need of a
major overhaul (54 per cent of young boys and 74 per
cent of young girls do not attend school). Income
disparities have worsened in recent years and the gap
between the higher and the lower incomes is very wide.
Disparities between rural and urban incomes and living
standards are critical. Among the rura1 population, 63
per cent have no water, 87 per cent are without
electricity, 93 per cent have no access to health
services and 65 per cent are illiterate. The health
system, which receives only one per cent of the GDP is
deteriorating and corruption has become an
10: Freedom from outside control: 4.0
Morocco is part of The International Criminal Police
Organization - Interpol (ICPO-Interpol) was created to
assist international criminal police cooperation.
Interpol, once merely the organization's telegraphic
address, was officially incorporated into the
organization's new name adopted in1956, prior to which
it was known as the International Criminal Police
11. Foreign currency transactions: 4.0
The Moroccan government has made the Moroccan Dirham
(MDh) convertible for an increasing number of
transactions over the last few years. As of February
1993, the MDh was made convertible for all
transactions and for some capital transactions.
Foreign exchange is routinely available through
commercial banks for such transactions upon
presentation of documents. The Central Bank sets the
exchan rate for the MDh against a basket of currencies
of its principal trading partners. The rate against
the basket has been steady since a 9 percent
devaluation in May 1990, with changes in the rate of
individual currencies reflecting changes in
cross-rates. In a further move, the Ministry of
Finance recently decided that private enterprises are
allowed to access international financial markets
directly. International financial transactions are subject to
the control of the Moroccan Exchange Office, which
retains the authority to act in a balance of payments
or liquidity crisis. The liberalization of the exchange control has removed
all barriers for international trade transactions,
foreign investments, income transfer, foreign
technical assistance and tourism.
12:. Border control: 2.5
The location of Morocco is one of the most strategic
in the world, it has played an essential role in the
of the area linking Europeto Africa and Arab world.
7.5 miles away from Europe made that region very
active legally and illegally. Illigale imigration to
Europe is very big, also it's a big attraction to
smuglers to smugle all kind of product into or out of
the country or to the continent. There are great
efforts done by the moroccon government to control the
area because it affect the economy and give a bad
image of the country.
13. Currency: 2.0
The Moroccan 5 Dirham coins was 1987 (the design also
included the Mohammedan Era date 1407, that AH year
ended on the 25th August 1987). It is believed that
these Moroccan coins were made in Morocco on blanks
produced in Italy. The Moroccan mint, known as Dar
As-Sikkah, was opened in the capital Rabat, on the
5th March 1987 by the late King Hassan II. A new
series of circulation coins was issued by Morocco with
that date (1987/1407), unsurprisingly coinciding with
the time of the opening of the mint.
14: Cultural, language homogeneity: 4.0
There are four kinds of people in Morocco: Arabs, chlouh,
amazigh and riafa. The majority are muslims(99%),jewish(0.5%) and christians(0.5%).The Arabs have come to morocco about 1500 years ago and
the other are considered to be native berers. The
berer population which is the majority(60%) have their
own dilects, and of course the arabs speak arabic. Yet
still the majority of the ppulation speack and
communicat with arabic that considered the national
language. Speaking arabic has made the population
live together for centuries in remarqueble harmony.
All over Morocco, The culture stays the same, even the
food is the same.
15:Political effectiveness: 3.5
Over two million Moroccans live outside of Morocco.
Annually, these migrants contribute four to five
billion guilders to the Moroccan economy. For this
reason, the Moroccan government wants to have some
supevision over these migrants. To exercise this
control, intimidat measures have been taken in the
past in order to isolate migrants. Migrants were not
allowed to take part in political and trade union
activities. however in the nineties these measures
were no longer suitable to the Moroccan government.
the Moroccan government is trying to tie Moroccan
migrants to their native country by increasing
public relations activities. Furthermore, successful
Moroccans who live in Europe are now back to the
Moroccan institutions and satarted participating in
political decision-making, social intercourse and
economic transactions in Europe is no longer seen as a
danger to the Moroccan nation; it is rather considered
an advantage. The way in which the Moroccan government
dealt with Moroccan migrants has caused a lot of
conflicts amongst the migrants and has counteracted
their integration in European countries
16. Institutional Stability: 3.0
The Moroccan government is trying very hard to make
most fundamental istitutional system in the country as
efficient as possible, but this effort will need more
than the will it need a lot of money. In the major
cities, the people has access to all the institution
they need. In every major city, there are hospitals,
schools, courts, clinics, county hall, recreation
areas... Yet the major proleme rest in the country
side, the villages have practicly almost no government
institution exept for maby a polece and fire station.
All the country side areas are linked somehow to the
closest main city even if it could be 500 miles away.
17. Honest Government: 2.5
In Morocco as in any other underdeveloped, the
gvernment is not as controled as it shouled. Any
person can get him self out from any situation, or get
any get any transaction done the fastest way possible. It all depends about how much money that person has, or how many powerful people he knows. One of
the biggest problems the government has is bribery. In
Morocco any body who has money can have the ultimate
rest about any action conserning government work, the
things that usually would take months to be done for
regular people will take hours for rich people. Yet
the highest authorities in the government are trying
very hard to controle this probleme. Olso with the new
king, things are getting better and bettter each day,
and at this rate the prolems will controled fairly
Source : personal
18. Common laws: 4.0
The Moroccan Constitution provides for a monarchy
with a Parliament and an independent judiciary.
Ultimate authority rests with the King. He presides
over the Council of Ministers; appoints the Prime
Minster following legislative elections; appoints all
members of the government taking into account the
Prime Minister's recommendations; and may, at his
discretion, terminate the tenure of any minister,
dissolve the Parliament, call for new elections, or
rule by decree. The King is the head of the military
and the country's religious leader. Since the
constitutional reform of 1996, the bicameral
legislature consists of a lower chamber, the Chamber
of Representatives, which is directly elected and an
upper chamber, the Chamber of Counselors, whose
members are indirectly elected through various
regional, local, and professional councils. The
councils' members themselves are elected directly. The
Parliament's powers, though limited, were expanded
under the 1992 and 1996 constitutional revisions and
include budgetary matters, approving bills,
questioning ministers, and establishing ad hoc
commissions of inquiry to investigate the government's
actions. The lower chamber of Parliament may dissolve
the government through a vote of no confidence.
19. Central bank: 3.5
Bank Al Maghribe is a commercial bank, based in Rabat.
The main functions of the bank include: carrying out
the privilege of currency issue in the Kingdom,
safeguarding currency stability and its
convertibility, developing the money market,
management of public exchange reserves and more.
Source : personal
20: Domestic Budget Management: 2.0
"WASHINGTON, June 5, 2003-
With the aim of improving public asset management systems in Morocco, the World Bank today approved a loan for $45 million to support
public expenditure rationalization and efficiency,
notably in the public education and health sectors.
The Asset Management Loan will generate efficiency
gains and medium/long-term savings and improve the
maintenance of properties. The preparation of this
loan has also served to promote policy dialogue,
partnership and ownership that are essential not only
for the implementation of this operation but also for
the long-term reforms needed on overall budget and
financial management in Morocco.Morocco, like many
other countries, treats its public land and real
estate holdings as public goods, rather than
productive assets capable of producing a mix of
significant returns and social benefits if properly
managed. Land and real estate typically represent 25
to 50 percent of public entities? assets. The
replacement cost of the buildings of the ministries of
health, education and higher education alone amount to
over 9 percent of GDP.The potential savings from
improved management of this land and real asset
portfolio are significant and could generate
substantial economic and efficiency gains. The loan
program will help Morocco achieve these gains by
promoting the development of a national asset
management policy and buildings management systems.The
proposed loan program promotes three key objectives of
the Country Assistance Strategy (CAS) for Morocco:
expenditure rationalization, long-term fiscal
sustainability, and improved service delivery in the
21: Government Debt: 1.5
The Moroccan government will spare no effort to
alleviate the burden of external and internal debt .In
order to achieve the objective of reducing its
external and internal debt, Morocco has to increase
its exports and attract more investments. Morocco,
whose external debt is estimated at $25 billion, is
trying to alleviate the problem through having its
debt swapped into investments, especially with France,
Spain and Italy . the 1999-2003 five-year development
plan will define the objectives of the social and
economic development of Morocco . The plan will seek
to reform administration and justice, consolidate
decentralization, deal with joblessness and enable
Morocco to take up the challenges of international
competition, the minister said.
22: Economic statistics: 2.0
Morocco faces the problems typical of developing
countries - restraining government spending, reducing
constraints on private activity and foreign trade, and
achieving sustainable economic growth. Following
structural adjustment programs supported by the IMF,
World Bank, and the Paris Club, the dirham is now
fully convertible for current account transactions,
and reforms of the financial sector have been
implemented. Droughts depressed activity in the key
agricultural sector and contributed to a stagnant
economy in 1999 and 2000. During that time, however,
Morocco reported large foreign exchange inflows from
the sale of a mobile telephone license and partial
privatization of the state-owned telecommunications
company. Favorable rainfall in 2001 led to a growth of
6.5%. Good harvest conditions continued to support GDP
growth in 2002. Formidable long-term challenges
include: servicing the external debt; modernizing the
industrial sector; preparing the economy for freer
trade with the EU and US; and improving education and
attracting foreign investment to boost living
standards and job prospects for Morocco's youth.
23. Protection of Public Health and Safty: 3.5
The profesional sector in Morocco requires that all
the workers will have health insurance.This program
makes the every working personal easy access to a
hostpital, but the problem that the moroccans suffer
from a big unemployment rate. That is way the moroccan
government takes all the aid necessary.The first aid
provider to Morocco is the US . With USAID support,
the national FP/MCH program has achieved impressive
results. The total fertility rate was reduced from 7
children per woman in 1962 to the current 3.1. The
infant mortality rate decreased from 91 deaths per
1,000 live births in 1980 to 37 deaths per 1,000 in
1997. Activities support improved program management
at the local level and an increased role for the
private sector in reproductive and child health. By
providing tools to work on outstanding issues in the
health sector, USAID Morocco addresses needs in rural
areas and provides alternatives to free government
reproductive and child health services. In addition,
USAID continues to provide technical assistance to the
MOH for selected systems previously developed with
24. High wage policies: 2.0
In Morocco there is a big different in the wages
among the wokers . there are three kind of employments
in the country; employee of the states, employees in
the privat sector, or self employed . Being self
employed the wages are kind simple ,more money the
person makes, more money he'll earn . The privat
sector wages are usualy more than the ones in states,
the worker will make more money in the privat sector
because the companies are richer, but to get hired in
this sector you need to know somebidy.Working in the
state provid less money ,but you don't risk to lose
the job . The lowest wage is about $160 a month, and
the highest wage is about $44000 a month . As we can
see the gap between the two wage is hugh.
25 : Environmental protection: 3.5
The Moroccan government is trying to protect the
environment and the ecosystem. These efforts are shown
by the agreement that the country is having with
intenational eniromental protection groops.In fact
Morocco and the Belgian region of Brussels signed in
Rabat on Monday an agreement for cooperation in
environment protection.The agreement, initialed by
visiting minister of foreign trade and environment of
the Belgian region Didier Gosuin, covers three
priority fields: administrative management and staff
training, environment-related laws, and training,
education, information and awareness.The parties
pledge to facilitate and encourage the exchange of
information, expertise, and training on environment
preservation issues and increase contacts between
private sector representatives.
26: Strong Army: 2.0
The moroccan army is devided to different branches,
these branches are: the royal army, royal navy, the
royal air force,royal gendaarmerie, and auxilary
forces. These department takes about 4.2% of the GDP
of the country (about $1.1 billion)the troops are
estimated 125 000 personal . The army is staget in
two major areas in the north and in the south (western
27.Foreign trade impact: 4.0
The population of Morocco is about 31 million, and
the size of the country is 446,550 sq km exluding the
land in the western sahara(about 250,000sq km) which
morocco is still debating as part of the moroccan
lands . The strategic location of Morocco gives it an
important roll in the economy in the area . Morocco
faces the same problemes as any developing-restaining
govrnment spending, reducing constraints on private
activities and foreing trade, and achieving
sustainable economic . The GDP is $121.8 billion, the
growth is 4.6 % . The GDP is composed by agriculture
15 % , industry 33 % and 52 % of services. The imprts
are $10.4 billion, and the exports are $7.5 billion .
Therefore athe amount of imprts is greater than the
exports one which put the business situation in very
28 .Protection of foreign currency earning enterprises: 3.5
Due to the initial success in privatization and the
strength that new offerings gave Casablanca bourse,
Morocco was the recipient of FDI to Africa. Morocco
offers a various investment incentives such as total
exemtion from corprate taxes, VAT taxes, and import
duties.Also there are some incentives to encourage
foreign companies to comply with enviromental laws, or
instal enviromental protection equipment. Foreign
investment are allowed in all aspect of the privat
sector.Ownership of real estat by foreign investors is
permited as well . Recently, two major spanish
telephon companies had invested about 3 million
dollars .Coca cola has expended there investment with
a 90 million . Also in the past morocco has believed
to hav a insignicant 1.8 million barrels of oil . Then
a US producer made the discovery of up to 100 barrels
of oil wich will make the investment in the country
more attraction from the foreign investors .
Source : www.arabdatanet.com/country/profiles
29. Management of Foreign currency budget: 3.5
The moroccan business climat is very stable, also
moroccan produce a variety of product . Also the
international business relations that morocco is
establishing is mainly with the europien union .The
moroccan export consist of clothing, fish, inorganic
chemicals, transitors, crude minerals, fertilizers(including phosphates),commidities:protoleum products, fruits,
and vegetebles.Exports provide morocco with 7.5million
dollars.As for the imports which are protoleum, textil
fabric,telecommunicartion equipment, wheat, gas and
electricity,transistors, plastic. Imports cost morocco
10.4million dollars . The export partners are france,
spain, uk, germany, italy and usa .The import partners
are france, spain, italy, germany, usa, uk and saudi
30. Layers of Collective Action: 2.5
Chief of state: King MOHAMED VI (since 23 July 1999)
Head of government: Prime Minister Driss JETTOU (since
9 October 2002)
cabinet: Council of Ministers appointed by the monarch
Elections: none; the monarch is hereditary; prime
minister appointed by the monarch following
legislative elections. Bicameral Parliament consists
of an upper house or Chamber of Counselors (270 seats;
members elected indirectly by local councils,
professional organizations, and labor syndicates for
nine-year terms; one-third of the members are renewed
every three years) and a lower house or Chamber of
Representatives (325 seats; members elected by popular
vote for five-year terms)
31: Pro-business climate: 3.5
Morocco is very attractive location for invesors. The
climat for privat investorment in the country is
exellent. The strategic location offers investors a
real window opportunity to creat a platform exprts to
the European countries, africa, and the midle east.
The moroccan plitical climat is very stable.The
Moroccan government has instituted major reforms and
liberalization measures aimed at improving foreign
trade and encouraging exoprt. An improving fact for
investors to note is that Morocco's foreign investment
laws are liberal
32: Government Enterprises: 2.5
Morocco approaches the 21 century in a stronger
position than most third world countries. Since 1983
the covernment began a very serious reforming program,
and in the last fourteen years Morocco has started a
movement of privatization. This movement will fit in
Morocco's liberal invirenment and will countinue the
countriues withrawal from economic activities. This
policy was set with last king HASSAN II. In addition,
other efforts were done to improe the brusness
relation with other country espacialy the ones wth
strrong economy like the U.S.Morocco has been working
closely with the U.S. to promote better business
opportunities. On April 2, 2002 the leaders of the
two countries negotiated a free trade agreement. This
FTA would generate U.S. exports. In addition Morocco
implemented an association with the European Union
which provided preferential tariff for Moroccan
industrial exports. This included the liberation of
telecommunication, as well as creating a better
tourism system. The country has also adopted a strong
economic program, launched an initiative design to
streamline investment procedures, and eliminate
barriers to foreign and domestic investments.
33: International Security Agreements: 3.0
Morocco has a peaceful society. Islam, Christianity,
and Judaism co-exist harmoniously. Their individual
rights are guarenteed by the constiution. Their crime
rate is one of the lowest in the world. In 1995
Morocco signed a treaty with the U.S. prohibiting
weapons of mass destruction. Morocco is also very
involved in the war against terrorism, this creates a
low risk environment concerning business security.
34: Protection of Domestic Enterprises from Government Mandated Costs: 2.5
From the first day of Morocco's initial website it
recognized the profound effect that information
technology has had and will continue to have upon the
world. As a result the government has made many
efforts to improve the business climate in relation to
telecommunications. For example the prepartation of a
regulatory framework of E-commerce, domains, and
encryption. As well as particpation in ITU's
Electronic Commerce for Developing Countries.
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