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MOROCCO
>> Regional Overview >> Morocco Overview 
Introduction
The most significant change in Morocco is the ascension of King Mohamed VI to the throne in July 1999. This event has eliminated a long-standing uncertainty related to King Hassan's succession, and the potential unrest that could have had a profound impact on the U.S. national interests in the region. Moreover, recent changes in key ministries and other actions have sent clear signals of King Mohammed's commitment to transparency, democracy, economic development, and the rule of law. The new government, which already had the trust of the population, received a renewed mandate from the King to advance its policies on human rights, health care, education and social development. This evolution reinforces Morocco's efforts to emerge as a more stable, democratic, and prosperous partner for the United States in this important, yet troubled region. However, the fragile nature of this experiment in democracy cannot be over emphasized. The need for strong and continued U.S. support for the renewed Government's efforts has never been greater. Thus, USAID's resources are targeted at promoting four out of six U.S. national interests listed by the Mission Performance Plan: open markets, broad-based economic growth, population and democracy, as well as five of USAID's seven FY 2001 Performance Goals: Achieve Broad-Based Economic Growth, Protect the Environment, Stabilize World Population and Protect Human Health, Build Human Capacity, and Build Sustainable Development (through community-based and democracy-building activities).The Development Challenge
Morocco is a country of contrasts and dualistic development. Debilitating urban and rural poverty coexist alongside modern urban centers. Morocco's per capita income was estimated at $1,280 in 1998, classifying it as a lower-middle-income country. Yet, Morocco's social statistics are those of a much poorer, less-developed country:
- Five women a day die from pregnancy-related causes;
- About 19% of the 28 million population live below the poverty line;
- About 67% have a per capita income lower than the average;
- Economic growth has averaged only 2.5% during the past decade; while the urban labor force is growing at over 5% annually;
- Unemployment exceeds 20% (1999) and is 30% among new university graduates.
- Almost half the adult population is illiterate (48.3%), with 83% female illiteracy in rural areas.
- Outstanding debt ($19.6 billion in 1998) represents about 56% of the GDP, requiring about 25% of export earnings for debt servicing; and
- A population growing at 1.8% continues to increase pressure on the over burdened social and economic systems.
The level of these statistics is driven down by the extreme disparity between the urban and rural areas of Morocco for access to adequate water, sanitation, housing, education, economic growth opportunities, and social services. Given the fact that nearly half of Morocco's population lives in the under-served rural areas, an overarching development challenge is assuring equitable distribution of economic opportunities, access to basic social services, and participation into the decision-making process to all regions of the country. Morocco faces four key challenges in the coming decade: 1) jobs scarcity; 2) increasing water scarcity; 3) a growing population; and 4) unacceptably low access to basic education.
In cooperation with its development partners, Morocco has achieved significant progress in opening markets to agricultural exports, facilitating the expansion of small- and medium-size enterprises, and creating a policy and administrative environment increasingly conducive to increased private investment. Yet, progress has not been sufficient to put the country on a sustainable path of high growth necessary to meet an increased demand for jobs and social services. More importantly, Morocco's economy has yet to evolve away from its dependence on rainfall and agriculture. This past year's drought and subsequent weak 1.3% growth rate demonstrate this continued problem.
Clearly, water has a primal position in Morocco's future, long-term development, both in terms of availability and quality. Due to the economy's dependence on agricultural exports, Morocco uses 90% of its captured freshwater resources to produce only 67% of its irrigated agriculture. Further, poor quality water affects the health and social welfare of millions of Moroccans due to water-borne diseases that limit productivity, economic efficiency, and educational opportunities. Accordingly, the Government of Morocco (GOM) embarked on an ambitious program to increase the supply of water by building dams. However, this policy of water supply augmentation is reaching its limits, as increasing population and rising demand from the agricultural and industrial sectors put increasing pressure on available resources. In addition, industrial and urban pollution of water bodies, and rapid rates of soil erosion in certain parts of the country are further diminishing the availability of water resources, at an alarming rate. The World Bank estimates that, if trends continue, Morocco will become a water deficit country by the year 2020.
To respond to this threat, the Moroccan Government has developed a national strategy for environmental protection and sustainable development that emphasizes managing water demand better and preventing the further degradation of existing water resources. Working in close partnership with the Government, USAID's program is demonstrating impressive results. For example, the annual water savings in the irrigated perimeter of Tadla, where USAID has introduced laser leveling and other water conservation measures, is about 200 million cubic meters - enough water to supply the annual needs of a city the size of Fez. This success is serving as a model for Government and donor replication of USAID-tested technologies in other areas of Morocco.
Morocco now has 28 million people, of whom 35% are under 15 years of age. The coming of age of this population will not only lead to increased population pressure within the next ten years, but also create tremendous demands for employment and services in the short term. With USAID's assistance, Morocco has achieved outstanding results in reducing fertility and mortality of children under five and its system for providing reproductive health care now serves as a model for other countries. Nonetheless, two major problems remain which pose significant challenges for Morocco to sustain its successes and achieve self-sufficiency. Specifically, rural Morocco lags at least ten years behind the rest of the country in every health indicator, and important health care financing issues have not been resolved. While progressively reducing its financial support, USAID is helping the Ministry of Health to consolidate the gains achieved and to develop innovative solutions to outstanding problems.
USAID has had notable success with its policy reform efforts at the national and provincial levels of Governments. This success, in turn, has helped USAID's rural model schools--focused on girl's education--to become examples for other donors to emulate. In spite of these success, Morocco's statistics for school attendance and retention and literacy indicate that the country still is a long way from achieving the levels expected of a low middle income country. The great disparity between urban and rural areas, noted previously, produces this low result. Morocco's rural communities suffer from the lack of income and infrastructure to attract and keep teachers, especially women. Recognizing this problem, King Mohammed VI has pronounced his commitment to improving the situation of rural women and girls.
Other Donors
Donor assistance to Morocco totals about $1 billion per year. An estimated 70% of donor assistance--in the form of loans, loan guarantees, and commercial credit--finances infrastructure development. The largest multilateral donor programs in Morocco are those of the World Bank, the European Union and the African Development Bank. Regarding bilateral donors, U.S. grant assistance ranked fourth in 1997 (9 %), behind Japan (56%), Germany (15 %) and France (13%). Although this ranking has likely slipped in 1998 and 1999, USAID continues to play a far more significant role than its program size would indicate. For example, USAID is perceived as the leading donor in microenterprise development, family planning and water resources management.
Country Background Information Resources CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: November 17, 2000 |
