Government: Moroccan government is formed of a constitutional monarchy, under King Mohammed Vl and has a Parliament and an independent judiciary. The King is not only ultimately responsible for the appointment of Parliament and its ministers, he is also the military and the religious leader.
In November 2002, King Mohammed VI named a government headed by former Interior Minister Driss Jettou. This is make up of a coalition of ministers from most major parties. The Jettou government is focusing on a socioeconomic programme, increasing housing and improving education.
Since Moroccan independence in 1956 and the King’s accession to the throne in 1999, the progressive nature of government policies are helping to make Morocco stand out as a land of promise. Huge investment in the country’s infrastructure has caused opportunity and much growth in the tourist industry, making Morocco seem a highly desirable option for today’s investor.
The Principal Government Officials:
Head of State King Mohammed VI Prime Minister Driss Jettou Minister of Foreign Affairs Mohammed Benaissa Ambassador to the United States Aziz Mekouar Ambassador to the United Nations Mohammed Bennouna
Economy Facts
GDP (2005): $52.70 billion
GDP growth rate: 1.8% (est. 2005)
Natural resources: Phosphates, manganese, lead, silver, copper.
Agriculture (16% of GDP): Products--wheat, barley, citrus fruits, vegetables, olives, livestock, and fishing.
Industry (32% of GDP): Types--phosphate mining, manufacturing and handicrafts, construction, public works, energy.
Trade (2004): Exports--$9.78 billion: food, beverages, and tobacco 15.3%, semi-processed goods 27.3%, consumer goods 37.2%. Major markets--EU 75.4%, India 3.4%, U.S. 2.9%, Brazil 2.1%.
Imports--$17.5 billion: food, beverages, and tobacco 8.7%, energy and lubricants 16.4%, capital goods 22.6%, semi-processed goods 23.3%, consumer goods 22.6%. Major suppliers--EU 59.1%, Saudi Arabia 5.0%, U.S. 4.1%.
Morocco can be described as a stable economy enjoying steady growth. The Jettou government continues to encourage reform, liberalization, and modernization to stimulate growth and employment.
With the aid of the International Monetary Fund (IMF) and an economic reform programme, Morocco has managed to restrict government spending. It has also revised the tax and banking systems and pursued some valuable monetary policies.
Today, employment remains mainly within the volatile agricultural sector, but over the long term Morocco will have to move its economy away from agriculture and develop a more stable economic basis for its growth. One area is in the growing tourism market, where significant amounts of employment are being created in the construction and service sectors.
Reforms have been made in the financial sectors and privatization has increased sales of mobile communications (GSM) licenses. Oil and gas exploration has been liberalized and public services are on the increase in the major cities.
Morocco has held inflation rates to industrial country averages over the past decade due to a foreign exchange rate anchor and well-managed monetary policy. Inflation in 2005 was at 2.5%. The country maintains a current account surplus and foreign exchange reserves are strong, amounting to around $15 billion.
In 2005 the Moroccan Government secured a Free Trade Agreement (FTA) with the USA and King Mohammed signed the agreement in June 2005. The U.S.-Morocco FTA is the second in the Arab world and the first to be made in Africa. It immediately eliminated tariffs on 95% of US trade in consumer and industrial products. Further FTA reforms and liberalization are currently underway.
Main Industries
Agriculture: Agriculture plays a leading role in the Moroccan economy, generating between 10 and 15 percent of GDP (depending on the harvest), and employing about 40 percent of the workforce (including fishing & forest). Morocco exports fruits and vegetables, and imports cereals. Main products are wheat, barley, citrus fruits, vegetables, olives and livestock. Many long-term projects are underway, including irrigation schemes, the development of new farming techniques, and financial incentives to farmers.
Fishing: Fisheries are important to Morocco, employing over 100,000 people in fishing, canning, and packing, and accounting for approx. 17 % of foreign commercial revenue, The sale of licenses to foreign fishing fleets is also an important source of revenue. Future investment in fisheries will be concentrated onshore in value-added functions prior to export.
Mining: Morocco boasts the largest phosphate reserves in the world. In fact Morocco's phosphate reserves are estimated at 110 billion tons, which represents three quarters of known world reserves. The export of phosphate and its derivatives account for over a quarter of Moroccan export
Industry: The sector accounts for about 36% per annum. The main industry is the processing of phosphates into phosphoric acid and fertilizers, followed by oil refining, cement, food processing, textiles, paper and timber, metals, rubber, plastics, and vehicle assembly. Labout-intensive industries, such as Morocco's clothing industry and electronics assembly have grown in the last decade, due to its competitive labour costs and free access to nearby European markets.
Currency
Facts:
The unit of currency is the Moroccan Dirham (MAD), which is divided into 100 centimes. 1 MAD is equivalent to approx. GBP 0.06 (EUR 0.09)
Cash point machines are available in the larger towns.
Currency can be exchanged at banks or official bureaux de change.
Closed Currency, ie. the Dirham cannot be obtained or exchanged outside Morocco. Don't worry if you have a couple of hundred Dirhams in your pocket as you go through customs. The worst that can happen is that they will be confiscated. Note that the currencies accepted at tax-free shops at airports are euros, US dollars and credit cards.
Major credit cards are accepted in the larger shops, hotels and restaurants.
Travellers cheques can sometimes be used in tourist areas.
The Dirham is convertible for all currencies. Foreign exchange is routinely available through commercial banks upon presentation of documents.
The Central Bank sets the exchange rate for the Dirham against a number of currencies relating to its principal trading partners. This rate has been steady since 1990, with changes in the rates of individual currencies reflecting changes in cross rates. Moroccan companies may also borrow abroad without prior government permission
Foreign Relations
Morocco is a moderate Arab state which maintains close relations with Europe and the United States. It is a member of the UN, contributing consistently to UN peacekeeping efforts on the continent.
Morocco is active in Maghreb, Arab, and African affairs. It supports peace for the Middle East, encouraging Israeli-Palestinian negotiations and urging moderation on both sides. In 1986, the then King Hassan II took the daring step of inviting the Israeli Prime Minister Peres for talks, becoming only the second Arab leader in history to host an Israeli leader.
Morocco has supported efforts to stabilize Iraq, following the downfall of Saddam Hussein. Morocco was the first Arab state to condemn Iraq’s invasion of Kuwait and sent troops to help defend Saudi Arabia. Morocco maintains close relations with Saudi Arabia and the Persian Gulf states, and they have provided Morocco with substantial financial assistance.
The major issue in Morocco's foreign relations is its claim to Western Sahara. As a result of Algeria's continued support for the Polisario Front in the dispute over Western Sahara, relations between Morocco and Algeria have remained strained over the past decades, although sporadic contact is maintained between the two countries.
Written by
Tina Andlaw
www.sunseekerhomes.com