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Morocco
>> Regional Overview >> Morocco Overview
Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997
Last updated: 24
THE DEVELOPMENT CHALLENGE: It is in the United States’ national interest to foster a long-term, strong relationship with this moderate, stable, Arab and Islamic country. Morocco was among the very first Arab countries to publicly condemn the attacks of September 11 and voice its support to the American people. Since then, Morocco, and in particular King Mohammed VI, has continued to support the United States in the war against terrorism. Morocco has proven to be a reliable ally over the years, providing troops for Desert Storm, Bosnia, and Kosovo. And over the years, Morocco has provided important low-key intermediations in efforts to find peace in the Middle East.
Morocco has embarked on a program of political, social, and economic reform unique to the Middle East and North African region. With former King Hassan II’s appointment of a former opposition exile as Prime Minister in 1998, followed by the ascension to the throne of King Mohamed VI in 1999, Morocco’s leaders have clearly signaled their commitment to transparency and democracy, as well as social and economic development. The government has pursued policy choices for more economic liberalization and openness. Decentralization has given new authorities to local officials and civil society has blossomed. Education is a high priority for the King, and a national education charter is in place, which mirrors many of the elements targeted under USAID’s current program; 1999-2009 has been declared by the King as "the education decade." The King and the Government have also pledged open and fair parliamentary elections in September 2002.
At the same time, the country faces formidable development challenges. Poverty is increasing because of the lack of economic opportunities and productive resources: more than 5.3 million Moroccans (19% of the total population) live on less than one dollar per day and another 30% are
at risk. Repetitive droughts further jeopardize Morocco’s economic base and drive impoverished farmers and families to urban slums. They swell the ranks of the unemployed, as urban unemployment passed 20% in 2000. The September 11 events added to Morocco’s woes, as its tourism sector was hard-hit. Even so, Moroccans place high hopes on tourism for their economic future. Morocco’s per capita income in 2000 was estimated at $1,180, which qualifies it as a middle-income country. However, its social indicators are closer to those found in a low-income country. For example, 53% of the population (66% of females) is illiterate, compared to 11% (17% of females) in Jordan, a country similar in terms of per capita income; the gross primary enrollment rate is only 86%; maternal mortality reached 230 per 100,000 live births (vs. 41 in Jordan). Overall, Morocco ranks 124th on the United Nations Development Program's Human Development Index, well behind its North African neighbors and Jordan, which ranked 92nd.
Illiteracy affects over half of the total population and about two-thirds of the women. For every 100,000 live births, 230 mothers die. In 2000, Moroccos UNDP Human Development Index rank was 124 (out of 174) THE USAID PROGRAM: USAID plans to devote $10.313 million in FY 2002 and requests $6.713 million for FY 2003. USAID’s program targets one key economic region of Morocco in order to maximize impact. A two-pronged approach uses demonstration projects to introduce new technologies or approaches, paralleled by policy dialogue at the national and regional levels to encourage sustainability and replication of USAID’s interventions. USAID's two key strategic objectives for which funding is being requested are linked and focus on the two fundamental resource issues for Morocco’s economy: 1) increasing opportunities for domestic and foreign investment, and 2) improving water resources management. Two special objectives address key long-term issues of health and education: 1) promoting sustainable population, health and nutrition programs, and 2) increasing basic education attainment for girls in rural areas. USAID gives particular attention to gender and public-private partnerships to maximize synergies across sectors. USAID does not intend to use FY 2002 funds to carry out new activities. In addition to supporting ongoing activities, FY 2003 funds will be used for a new activity in basic education, to complement the current education program and further support Morocco’s education reform effort.
ONGOING PROGRAMS FOR WHICH NO FY 2002 OR FY 2003 FUNDING IS REQUESTED: None.
OTHER PROGRAM ELEMENTS: The U.S. North African Economic Partnership aims to improve trade and investment within the region and with the United States. The Middle East Democracy Fund supports efforts to improve the capacity and participation of civil society in support of citizens’ rights. In addition, USAID manages local currency generated from the Section 416(b) monetization program. These funds support microcredit programs in rural areas and demonstration projects in the water sector, particularly methods to combat soil and wind erosion. The Regional Urban Development Office for the Near East and North Africa (RUDO/MENA) provides valuable management and technical services to the USAID field office. It currently manages two activities that focus on decentralization and community development. RUDO also provides assistance on urban-related issues. RUDO will further support USAID’s bilateral program by cost-sharing technical staff and technical assistance for two new Development Credit Authority agreements (wastewater treatment systems and slum upgrading); a partnership with the Cities Alliance to develop City Development Strategies; and one regional activity (partnership with the Middle East North Africa Urban Forum).
OTHER DONORS: In 1999, official donor assistance to Morocco totaled about $678 million in loans and grants. The largest multilateral donor programs are those of the World Bank, followed by the European Union and the African Development Bank. Regarding bilateral grant programs, U.S. assistance ranked third (8%) after France (61%), and Germany (20%). USAID and other donor strategies focus primarily on community development; decentralization; small and medium enterprises; and policy reforms to improve the investment environment, the telecommunications sector, and agriculture. Donors work increasingly with local communities and NGOs. France focuses primarily on rural development and potable water, with strong emphasis on participatory community development. German aid has shifted from loans to exclusively grants, mainly in potable water and environmental management. The United Nations Development Program has completely shifted from sectoral initiatives to crosscutting themes integrated into the environmental management, governance, poverty, and social sectors. Gender considerations are emphasized across all activities. The World Bank and African Development Bank loans essentially finance infrastructure and macroeconomic structural reforms.
USAID continues to play a far more significant role than its program size indicates. USAID is perceived as the leading donor in investment climate, microenterprise development, maternal and child healthcare, and water resources management. USAID also partners with other donors and in particular with Moroccan foundations and nongovernmental organizations (NGOs) to create complementary programs. In recent years, two Moroccan social development institutions also became significant supporters of local development programs and USAID was successful in leveraging more than $5 million in additional resources for microcredit and soil erosion prevention.
Program Data Sheets
- 608-005 Increased Opportunities for Domestic and Foreign Investment
- 608-006 Improved Water Resources Management in the Souss-Massa River Basin
- 608-007 Key Interventions Promote Sustainability of Population, Health and Nutrition Programs
- 608-008 Increased Attainment of Basic Education among Girls in Selected Rural Provinces
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
