Morocco

MOROCCO

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS MOROCCANS
DEPENDENCIES
BIBLIOGRAPHY

Kingdom of Morocco

Al-Mamlakah al-Maghribiyah

CAPITAL: Rabat

FLAG: The national flag consists of a green five-pointed star at the center of a red field.

ANTHEM: The Hymne Chérifien is a twentieth-century composition without words.

MONETARY UNIT: The dirham (dh) is a paper currency of 100 Moroccan centimes. There are coins of 1, 5, 10, and 20 Moroccan centimes and ½, 1, and 5 dirhams, and notes of 5, 10, 50, 100, and 200 dirhams. dh1 = $0.11390 (or $1 = dh8.78) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard.

HOLIDAYS: New Year's Day, 1 January; Anniversary of the King's Accession, 3 March; Labor Day, 1 May; National Day, 14 August; Anniversary of the Green March, 6 November; Independence Day, 18 November. Movable religious holidays include 'Id al-Fitr, 'Id al-Adha', 1st of Muharram (Muslim New Year), and Milad an-Nabi.

TIME: GMT.

LOCATION, SIZE, AND EXTENT

Situated at the northwestern corner of Africa, with its northern- most point only 29 km (18 mi) south of Gibraltar, Morocco claims a total area of 446,550 sq km (172,414 sq mi), of which the Western Sahara comprises 252,120 sq km (97,344 sq mi). The Western Sahara is claimed and administered by Morocco, but as of 2006, sovereignty remained unresolved. Comparatively, the area occupied by Morocco is slightly larger than the state of California. Morocco extends 1,809 km (1,124 mi) ne–sw and 525 km (326 mi) se–nw. Morocco proper is bordered on the n by the Mediterranean Sea and the two Spanish enclaves of Ceuta and Melilla, on the e and se by Algeria, on the s by Western Sahara, and on the w by the Atlantic Ocean, with a total land boundary length of 2,018 km (1,254 mi) and a coastline of 1,835 km (1,140 mi).

Morocco's capital city, Rabat, is located on the Atlantic coast.

TOPOGRAPHY

Morocco proper is divided into three natural regions: (1) the fertile northern coastal plain along the Mediterranean, which also contains Er Rif, mountains varying in elevation up to about 2,400 m (8,000 ft); (2) the rich plateaus and lowlands lying between the three parallel ranges of the rugged Atlas Mountains, which extend from the Atlantic coast in the southwest to Algeria and the Mediterranean in the northeast; and (3) the semiarid area in southern and eastern Morocco, which merges into the Sahara Desert. The Atlas Mountains, with an average elevation of 3,350 m (11,000 ft), contain some of the highest peaks of North Africa, including Mt. Toubkal (4,165 m/13,665 ft), the highest of all. South of the Atlas are the Anti-Atlas Mountains, with volcanic Mt. Siroua (3,300 m/10,800 ft). The Western Sahara is rocky, sandy, and sparsely populated, unsuited for agriculture but rich in phosphate deposits.

Morocco has the most extensive river system in North Africa. Moroccan rivers generally flow south or westward to the Atlantic or southeastward toward the Sahara; the Moulouya (Muluya), an exception, flows 560 km (348 mi) northeast from the Atlas to the Mediterranean. Principal rivers with outlets in the Atlantic are the Oumer, Rebia, Sebou (Sebu), Bou Regreg, Tensift, Draa, and Sous (Sus). The Ziz (Zis) and Rheris are the main rivers flowing southward into the Sahara.

CLIMATE

The rugged mountain ranges and the Atlantic Ocean moderate the tropical heat of Morocco. Temperatures in Casablanca range from an average minimum of 7°c (45°f) to a maximum of 17°c (63°f) in January and from a minimum of 18°c (64°f) to a maximum of 26°c (79°f) in July. Temperature variations are relatively small along the Atlantic coast, while the interior is characterized by extreme variations. The eastern slopes of the Atlas Mountains, which divert the moisture-laden Atlantic winds, have a rigorous pre-Saharan climate, while the western slopes are relatively cool and well watered. The rainy seasons are from October to November and from April to May. Maximum annual rainfall (75–100 cm/30–40 in) occurs in the northwest. Other parts of the country receive much less; half of all arable land receives no more than 35 cm (14 in) a year.

FLORA AND FAUNA

Extensive stands of cork oak exist in the Atlantic coastal region, while rich evergreen oak, cedar, and pine forests are found on the slopes of the Atlas. In the steppe region, shrubs, jujube trees, and the mastic abound, and along the wadis there are poplars, willows, and tamarisks. The olive tree is widely distributed, but the oil-yielding argan tree, unique to Morocco, grows only in the Sous Valley. The desert is void of vegetation except for occasional oases. Although the lion has disappeared, panthers, jackals, foxes, and gazelles are numerous. The surrounding waters abound in sardines, anchovies, and tuna. As of 2002, there were at least 105 species of mammals, 206 species of birds, and over 3,600 species of plants throughout the country.

ENVIRONMENT

Livestock overgrazing, clearing of forests for fuel, and poor soil conservation practices have led to soil erosion and desertification. Pollution of Morocco's water and land resources is due to the dumping of industrial wastes into the ocean, the country's inland water sources, and the soil. Water supplies have also been contaminated by the dumping of raw sewage and coastal waters have been polluted by oil. The nation has about 29 cu km of renewable water resources. Ninety-two percent of the annual water withdrawal is used in farming and 3% for industrial activity. About 99% of the nation's cities have improved water sources, but only 56% of rural dwellers have the same access. Morocco's cities have produced about 2.4 million tons of solid waste per year. The nation's environment is further challenged by pesticides, insect infestation, and accidental oil spills. The Ministry of Housing Development and Environment considers environmental impact as an integral part of its development strategy.

Destruction of wildlife has occurred on a large scale, despite strict laws regulating hunting and fishing. Moreover, the drainage of coastal marshlands to irrigate cultivated land has significantly reduced the numbers of crested coots, purple herons, and marbled and white-headed ducks. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), the number of threatened species included 12 types of mammals, 13 species of birds, 2 types of reptiles, 2 species of amphibians, 11 species of fish, 8 species of invertebrates, and 2 species of plants. Endangered species in Morocco include the Barbary hyena, Barbary leopard, waldrapp, Spanish imperial eagle, Mediterranean monk seal, and Cuvier's gazelle. The Bubal hartebeest is extinct. The Sahara oryx is extinct in the wild.

POPULATION

The population of Morocco in 2005 was estimated by the United Nations (UN) at 30,704,000, which placed it at number 37 in population among the 193 nations of the world. In 2005, approximately 5% of the population was over 65 years of age, with another 30% of the population under 15 years of age. There were 99 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–2010 was expected to be 1.6%, reflecting the decline in fertility rate to 3.3 births per woman. The projected population for the year 2025 was 38,762,000. The population density was 69 per sq km (178 per sq mi); however, the population density is highest in the plains and coastal areas of northwestern Morocco. Most of the population lives in the fertile plains or near the Mediterranean coast.

The UN estimated that 57% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 2.56%. The capital city, Rabat, had a population of 1,759,000 in that year. Other major cities and their estimated populations are Fès (Fez), 1,032,000; Oujda, 962,000; Marrakech, 951,000; Kénitra, 905,000; Tétouan, 856,000; Safi, 845,000; Meknès, 750,000; and Tangier, 669,685.

MIGRATION

The Moroccan government encourages emigration because of the benefit to the balance of payments of remittances from Moroccans living and working abroad. Remittances in 2003 amounted to $3.2 billion. In the first half of the 1990s, about 585,000 Moroccans lived in France, nearly 142,000 in Belgium, some 67,500 in Germany, almost 157,000 in the Netherlands, and 50,000 in Spain. There is some seasonal migration within Morocco as workers move into cities and towns after planting and harvesting are finished. Over 200,000 people migrate permanently to the cities each year; the urban share of the total population increased from 29% to 48% between 1960 and 1994.

Spain has two enclaves on the Moroccan coast, Melilla and Ceuta, that are ringed by fences to keep Moroccans and other Africans out. In August 2004, several hundred Africans attempting to migrate to Europe broke through the fence at Melilla. According to Migration News, there are an estimated 10,000 sub-Saharan migrants in Morocco waiting to cross into the enclaves.

The war in Western Sahara has been a cause of significant migration, both of settlers from Morocco proper and of refugees to Algeria, (165,000 of the latter at the end of 1992). In late 1997 and early 1998, the United Nations High Commissioner for Refugees (UNHCR) established a presence in the Western Sahara Territory. In 1999 talks were underway with local authorities to plan for the repatriation of Saharawi refugees, mostly settled in four refugee camps in Tindouf. Repatriation was tentatively scheduled to begin in 2000. The number of migrants in Morocco in 2000 was 26,000. By the end of 2004 there were 2,302 persons of concern to UNHCR in Morocco: 2,121 refugees, 4 stateless persons, and 177 asylum seekers. In 2004, 267 Moroccans applied for asylum in Germany. In 2005, the net migration rate was an estimated 0.92 migrants per 1,000 population. The government views the migration levels as satisfactory.

ETHNIC GROUPS

Arab-Berbers constitute 99.1% of the total population. Berbers, who comprise an estimated 60% of the population, are concentrated largely in the northern regions of the Rif, the middle plains of the Atlas, and the Sous Valley. Arabs are distributed principally along the Atlantic coastal plain and in the cities. The Berbers and Arabs are closely intermingled and bilingualism is common. Formerly the Jewish community played a significant role in the economic life of the country, but its numbers decreased from about 227,000 in 1948 to an estimated 10,000 in 1989. Jews make up only about 0.2% of the population. Other groups made up the remaining 0.7%, including French, Spanish, Italian, and Algerian nationals living in Morocco.

LANGUAGES

Although classical Arabic is the written and official language, Maghribi Arabic, a dialect peculiar to Morocco, is widely spoken; it can hardly be understood by Arabs of the Middle East. Berber dialects, principally Rifi, Tamazight, and Tashilhit, are spoken in more remote mountainous areas by about one-third of the populace. However, in an effort to preserve their cultural and linguistic heritage, the Berbers have successfully campaigned for government support of Berber language education. Berber has been taught at some primary schools and the government has promised to include Berber classes in all public schools by the 2008–09 school year. French is often used as the language of business, government, and diplomacy. Spanish is also spoken.

RELIGIONS

More than 99% of Moroccans are Sunni Muslims. The activity of other sects (chiefly Sufi) has diminished since independence. Most of the country's practicing Christians are part of the foreign community, with a majority of them affiliated with the Roman Catholic church. Rabat and Casablanca have small Protestant communities. There are only about 5,000 Jews in the country, also mostly in the Casablanca and Rabat urban areas. There are small numbers of Baha'is and Hindus.

Islam was officially declared the state religion in 1961, but full religious freedom is theoretically accorded to Christians and Jews. Under the leadership of King Mohammed VI (since 1999), the government has generally encouraged and promoted tolerance and respect among religions. For instance, in 1998 the government created a department for the study of comparative religions at the University of Rabat. However, the government does place several restrictions on religious activities and participation. It is illegal to attempt to convert any Muslim to another faith or to distribute non-Muslim Arabic-language literature, such as Bibles, and traditional Islamic law requires punishment for Muslims who convert.

TRANSPORTATION

The road network in 2002 extended 57,694 km (35,886 mi), of which 32,551 km (20,247 mi) were paved, including 481 km (299) of expressways. There were 1,360,000 passenger cars and 400,000 commercial vehicles in use in 2003.

The railroad system is administered by the National Railroad Office and consists of 1,907 km (1,185 mi) of standard-gauge railways, about 1,003 km (623 mi) of which are electrified. Diesel-operated trains are used on the remainder. The main lines run from Marrakech to Casablanca, Rabat, and Sidi Kacem and then branch north to Tangier and east to Meknès, Fès, and Oujda (on the Algerian border).

Casablanca is by far the most important port; second-largest in Africa, it accounted for 40% of goods loaded and unloaded. Tangier is the principal passenger and tourist port; Mohammedia handles most oil imports and can accommodate 100,000-ton tankers. There are also regional ports at Safi, Agadir, and Nador, as well as 10 minor ports. The Moroccan Navigation Co. (Compagnie Marocaine de Navigation-COMANAV), the largest shipping company, is 96% government owned. The country's merchant marine consisted of 41vessels of 1,000 GRT or more totaling 236 131 GRT as of 2005.

Morocco has eight international airports, at Casablanca, Rabat, Tangier, Marrakech, Agadir, Fès, Oujda, and Al-Hoceima. In all there were an estimated 63 airports in 2004. As of 2005, a total of 25 had paved runways, and there was one heliport. The government-controlled Royal Air Maroc was founded in 1953 and operates flights to the United States, Latin America, Europe, Africa, and the Middle East; the airline also provides domestic service through a subsidiary, Royal Air Inter. In 2003, about 2.565 million passengers were carried on scheduled domestic and international airline flights.

HISTORY

The Berbers, the earliest known inhabitants of Morocco, suffered successive waves of invaders in ancient times: the Phoenicians, Carthaginians, Romans (1st century bc), Vandals (5th century ad), and finally the Byzantines (6th century). In 682, when the Arabs swept through North Africa, Okba (Uqba ibn-Nefi) conquered Morocco. Under successive Moorish dynasties, beginning with Idris I (Idris bin Abdallah) in 788, the Berber tribes were united and the Islamic faith and Arabic language adopted. The Idrisid dynasty, an offshoot of the Umayyad dynasty, with its capital at Fès (founded in 800), lasted until 974, when it was overthrown by the Berbers. Rising in the Sahara in the early 11th century, the powerful Muslim sect of the Almoravids extended its conquests over North Africa and ultimately into Spain. Abdallah bin Yasin, its chief, was proclaimed ruler over Morocco in 1055. In 1147, the Almohad sect (Al-Muwahhidun), led by Abd al-Mumin bin Ali, conquered the Almoravids and ruled Morocco until 1269, when the Marinid (Beni Marin) dynasty came to power.

In the 16th century, the Saudi dynasty, the new monarchical line, began. Ahmad al-Mansur (called Ad-Dahabi, "the Golden"), the greatest of the Saudi kings, ruled from 1578 to 1603 and inaugurated the golden age of Moroccan history. He protected Morocco from Turkish invasion, strengthened the country's defenses, reorganized the army, and adorned his magnificent capital at Marrakech with the vast booty captured in Timbuktu (1591). The decadence of the last Saudi kings brought Morocco under the control of the Filali dynasty, of mixed Arab and Berber descent, which continued to modern times.

Trade with France and other European countries became increasingly important in the 18th and 19th centuries, and when the French in 1844 defeated the combined Moroccan and Algerian forces at Isly, France became the ascendant power. Spain, under an agreement with France, invaded and occupied northern Morocco in 1860. There followed some 45 years of trade rivalry among the European nations in Morocco. The Act of Algeciras, signed on 7 April 1906 by representatives of the United States, Germany, the United Kingdom, France, and Spain (among others), established the principle of commercial equality in Morocco and provided for a joint Spanish-French police force in Moroccan ports.

On 30 March 1912, after France had ceded some 260,000 sq km (100,000 sq mi) of the French Congo to Germany, the French imposed a protectorate in Morocco under Marshal Louis Lyautey. The Moroccans, led by Abd al-Karim, a guerrilla leader, fought for independence in the Rif War (1921–26) but were defeated by the combined French and Spanish forces, although sporadic fighting continued in Morocco until 1934.

A nationalist movement first took shape around the Plan of Reforms (1934) submitted to the French government by a group of young Moroccans. In 1934, the National Action Bloc was formed, and Alal al-Fasi became the uncontested nationalist leader. In December 1943, the Bloc was revived as the Istiqlal (Independence) Party, which during and after World War II pressed for independence and reforms. It received support from the Sultan, Sidi Mohammed bin Yusuf, later King Mohammed V, who became the symbol of the independence struggle. He was exiled in late 1953, and two years of terrorism ensued. After lengthy negotiations, the Franco-Moroccan agreement of 2 March 1956 granted independence, and Mohammed V became king of Morocco. Incorporated into the new nation was Tangier, once British territory, which had come under the rule of a consortium of powers in 1906 and since 1923 had been the center of an international zone.

After the death of Mohammed V on 26 February 1961, his son was crowned King Hassan II and became head of government. Hassan II increased his political power throughout the 1960s. In 1962, a constitutional monarchy was established, with the king retaining extensive powers. In June 1965, after student riots and other disorders, Hassan II declared a state of emergency and assumed all legislative and executive powers. A revised constitution promulgated in 1970 and approved by popular referendum gave the king broad personal power but reestablished parliament and ended the state of emergency. An attempted coup d'etat by right-wing army officers in July 1971 forced the king to accept, at least in principle, the need for a more broadly based government. A third constitution, approved by referendum on 1 March 1972, transferred many of the king's executive and legislative powers to a parliament which was to have two-thirds of its members directly elected. However, a second coup attempt in August 1972 caused the king to renew the emergency decrees.

In 1975, after Spain announced its intention of withdrawing from sparsely populated but phosphate-rich Spanish Sahara (now the Western Sahara), the king pressed Morocco's claim to most of the territory. Following the government's well-organized "Green March" of about 350,000 Moroccans into the territory in November, Spain ceded the northern two-thirds of the region to Morocco and the southern third to Mauritania. However, Algeria refused to recognize the annexation and supported the claim to the territory by guerrillas of the Popular Front for the Liberation of Saguia al- Hamra and Río de Oro, better known as Polisario. The movement, based in the Algerian border town of Tindouf, proclaimed Western Sahara as the Saharan Arab Democratic Republic (SADR). In 1979, Mauritania renounced its claim to the southern part of the territory, which Morocco then occupied and annexed. By the early 1980s, Morocco had moved up to 100,000 soldiers into Western Sahara in a costly effort to put down the Polisario revolt. The army built a wall of earth and sand around the productive northwestern coastal region, containing about 20% of the total area, the towns of El Aaiún and Samara, and phosphate mines; later, three-quarters of the Western Sahara was enclosed. In the meantime, Polisario received not only military support, mainly from Algeria and Libya, but also diplomatic support from some 50 countries and from the OAU, which in 1982 seated a delegation from the SADR, provoking a walkout by Morocco and more than a dozen other members. In 1984, Morocco resigned from the OAU when it seated the SADR at its annual summit meeting. Earlier, in 1981, the king's agreement under African pressure for a referendum in the territory provoked strong criticism from Morocco's Socialist Party.

In 1988, UN Secretary General Perez de Cuellar persuaded Moroccan and Polisario representatives to accept a peace plan that included a cease-fire (effective in September 1991) and a referendum for the territory on independence or integration with Morocco. The vote was scheduled for 1992 but has been blocked by disagreement by the two sides on details, especially over voter eligibility. The UN force sent to mediate the struggle, MINUSRO (UN Mission for the referendum in Western Sahara) has been struggling to hold the referendum. In 1997, UN Secretary General Kofi Annan sent former US Secretary of State James Baker to the region in hopes of ending the intransigence. Throughout the stalemate, the Moroccan government has repeatedly been accused of human rights violations in the Western Sahara.

Serious street riots, protesting against an imminent price hike for basic foodstuffs (subsequently canceled), ensued in June 1984 as the IMF demanded austerity measures in return for new credits. Between 1984 and 1994 King Hassan's government maintained close relations regionally and with Saudi Arabia and the other Gulf states and was the first Arab nation to condemn the Iraqi invasion of Kuwait. A 1984 treaty with Libya calling for a federation of the two countries was abrogated following the Libyan denunciation of the king for officially receiving Israeli Prime Minister Shimon Peres in July 1986. Israeli Prime Minister Rabin made a public visit in 1993 as the king continued to play a moderate role in the search for an Arab-Israel settlement, mediating the 1994 Israeli treaty with Jordan. In 1989, after a border agreement restored relations with Algeria, Morocco promoted the formation of the Arab Maghreb Union of the states of North Africa.

In 1993, after pro-government parties won most local elections the previous year, parliamentary elections were held. The two largest opposition parties, the Istiqlal and USFP, won over 40% of the vote, but center-right parties of the ruling coalition gained a slim majority in the vote's second stage amid charges of election fraud. When the opposition refused to join in a new coalition, a cabinet of technocrats and independents was approved by the king under Prime Minister Mohamed Karim Lamrani, who promised to accelerate the privatization of state-owned enterprises.

Meanwhile, the country's political opposition grew quite vocal in their discontent, prompting government reprisals. The country's most famous Islamist politician, Abdelsalam Yassine, was imprisoned, and Istiqlal joined forces with an Islamist organization to form a substantial opposition party. In response, King Hassan proposed in 1996 to make all of parliament directly elected—previously, one-third of the deputies were appointed, giving the king power to undermine any opposition majority. The king also proposed the creation of a second chamber of advisers—a move seen by opposition parties as simply replacing one rubber stamp chamber with another. Still, the proposals were put to a vote on 13 September and approved by, officially, 99% of the population.

Elections for the new chambers were scheduled for 1997. In the months leading up to the elections, opposition skepticism waned as the government made repeated assurances that voting would be fair and the results would be respected. In June 1997 elections for 24,523 municipal council and commune seats were held and judged to be fair. The Bloc democratique won 31.7% of the seats, but control remained for the Entente nationale with 30.3% and the RNI, 26.4%.

Following the local elections, legislation in 1997 set up the new bicameral parliament approved in the 1996 constitutional referendum. The Chamber of Representatives would consist of 325 members directly elected for five-year terms. The Chamber of Advisors would be made up of 270 members selected by indirect election: 162 would represent local authorities, 81 trade chambers, and 27 employees' associations. In the same 1996 referendum 16 new regional councils, with members chosen for six-year terms by indirect election through an electoral college representing professions and local governments, had been established, and elections for these took place in October 1997.

The Chamber of Representatives elections took place on 14 November 1997. Fifty-eight percent of the voters participated. The Bloc democratique won 34.3% of the vote, the Entente nationale 24.8%, and the center-right parties 27.3%. In a direct appeal to young voters on the part of most of the parties, 43% of the new chamber was made up of members under 45 years of age. Indirect elections for the Chamber of Advisors were held on 5 December 1997. The right and center-right parties predominated, as was expected, winning 166 of the 270 seats. The new two-house parliament met for the first time in January 1998.

On 4 February 1998 King Hassan appointed Abd ar-Rahman el-Youssoufi, leader of the USFP, as prime minister. This was a groundbreaking event, as it was the first time an opposition member had been appointed prime minister. The Youssoufi government attempted to tackle corruption and promote transparency of government. Though results were, on the whole, disappointing, King Hassan praised the government in March 1999.

On 23 July 1999 King Hassan died of a heart attack. He was succeeded by his eldest son, as Mohammed VI. One of his first important moves was to dismiss King Hassan's longtime interior minister and advisor, Driss Basri. Basri had been considered the real power behind King Hassan, so this move gave a clear indication that Mohammed VI planned to reign in control of his government. Upon assuming the throne, he pledged his commitment to constitutional monarchy, political pluralism and economic liberalism. Mohammed VI claimed he would address problems of poverty, corruption, and Morocco's human rights record, and would engage in job creation. His supporters are reformers and the young, but he is opposed by many Islamic conservatives.

Like most Islamic countries of the world, Morocco's government feels under threat from an internal Islamist movement, which itself is divided. The various groups have moved to fill the perceived void in social services: blood banks and medical clinics, food pantries, homeless shelters, and schools. Parliamentary elections were held on 27 September 2002, and the Islamist Justice and Development Party (PJD) trebled its seats, coming in third with 42 of 325 parliamentary seats; however, it was denied any ministerial posts in the governing coalition formed by the Socialist Union of Forces for Progress (which took 50 seats) and the nationalist Istiqlal Party (which won 48 seats). The PJD would like to see Islamic law applied nationwide, including a ban on alcohol and a provision to have women wear veils. Morocco's largest and most vocal Islamist organization, Justice and Charity, works outside of the electoral process. Justice and Charity formally rejects the king and the Moroccan constitution, and thus is prevented from participating in organized politics as a party. Justice and Charity's leader instructed his followers to boycott the elections entirely. The group is gaining in popularity; estimates place its membership from between 50,000 and 500,000, and it is especially popular among those under age 30.

Moroccan authorities began a crackdown against Islamist groups, including the Salafist Combatants, who committed crimes in the country. Mosques and bookshops were closed, and detentions and arrests of Islamists increased. Critics of the government's actions stated that the crackdown failed to address problems such as poverty and ignorance, which cause radicalism. In June 2002, three Saudis and seven Moroccan nationals, including three women, were arrested and accused of being part of an al-Qaeda plot to plan terrorist acts in Morocco and against Western ships crossing the Strait of Gibraltar.

On 11 July 2002, Moroccan frontier guards planted the national flag on the uninhabited island of Perejil (Leila in Arabic), claimed by Spain. Spain landed troops to "recapture" the island, which Morocco claimed was equivalent to an act of war. The eviction of the Moroccan soldiers took place without any casualties. The United States helped to negotiate a deal to remove all forces from the island. The incident was one of a series of disputes between Spain and Morocco over a number of issues, including fishing rights, illegal immigration by Moroccans to Spain, the Spanish occupation of Ceuta and Melilla on the northern coast of Morocco, and the status of Western Sahara. Full diplomatic ties were reestablished between Spain and Morocco in January 2003. In 2005, King Juan Carlos of Spain made a state visit to Morocco.

In May 2003, Morocco's largest city, Casablanca, experienced a suicide terrorist attack which left 45 people dead and more than 100 people injured. The bombings were a simultaneous attack on a hotel, two Jewish owned restaurants, and a Jewish cemetery. By August of that same year four men were sentenced to death, two were suicide bombers who survived, and 83 others were imprisoned as fear increased that Islamic extremism was spreading. An organization alleged to have ties to al-Qaeda, the Moroccan Islamic Combat Group, was suspected of the Casablanca terrorist attack.

This group was also suspected in the 11 March 2004 Madrid train bombing, leading to the pursuit and arrest of Moroccan suspects in Spain and throughout Europe.

Natural disaster struck in February 2004 as a 5.1 earthquake struck northern Morocco, killing over 600 people.

In 2003, King Mohammed VI announced an initiative aimed at modernizing Moroccan society by granting new rights to women. He also celebrated the birth of his first son and heir, named Hassan after his grandfather, by ordering the release of over 9,000 convicts and reducing the jail sentences of more than 38,000 inmates. By 2004 parliament passed legislation on women's rights. The king also continued to maintain close ties with other Arab nations, as did his father. In 2003, Saudi Crown Prince Abdullah visited Morocco for talks about Iraq and the Palestinian territories. Mohammed VI further pursued his human rights agenda in 2004 by pardoning 33 prisoners, establishing a "truth commission," the Equity and Reconciliation Commission, headed by a former political prisoner. In hearings, about 200 people gave public testimony about past human rights abuses in Morocco.

After US designation of Morocco as a major non-NATO ally in 2004, Morocco's parliament approved a free trade agreement with the United States in 2005 that was scheduled to go into effect later that year. However, in mid-2005 a protectionist movement sprang up in Morocco as 22 civil-society groups formed a national coalition fighting against the free trade agreement with the United States. In August 2005, an 18-year-old Moroccan was arrested for the creation of the Zotob computer worm. Across the United States, the Zotob worm hindered computer operations of more than 100 companies as it acted on a flaw in the Windows 2000 operating system.

Regarding Western Sahara, efforts were undertaken in the late 1990s to register voters eligible for a referendum to be held in the region. Morocco stated that approximately 200,000 people were eligible as voters, while Polisario stated only 70,000 people were natives of the territory. In November 2001, King Mohammed VI declared the UN's plan to hold the referendum on Western Sahara "null." Negotiations between the two parties had taken place in 2000 and 2001 under the guidance of former US Secretary of State and current UN envoy to Western Sahara, James Baker, and a "Framework Agreement" was drawn up which would make Western Sahara an autonomous part of Morocco for a five-year period, after which a referendum would be held to determine if the region would become independent. Another option would allow for the division of the territory, with one part going to Morocco and the rest becoming an independent Western Saharan state. In January 2003, Polisario rejected a new proposal for the territory put forward by Baker, which did not guarantee enough autonomy for the group to relinquish its demand for a referendum on independence. However, by July they accepted a peace plan that Morocco still opposed. In September of that year the rebels released 243 Moroccan prisoners. In 2004, when South Africa formally recognized the Polisario, Morocco responded by recalling its ambassador from Pretoria. In a continuing effort to clear the way for a peace settlement in the Western Sahara, the Polisario released their last (404) Moroccan prisoners in August 2005.

GOVERNMENT

The Moroccan crown is hereditary and is passed on to the oldest male descendant in direct line or to the closest collateral male relative. The king, claiming descent from the Prophet Mohammad, is commander of the faithful and the symbol of national unity. He makes all civil and military appointments and signs and ratifies treaties. He can dismiss the parliament (if in session) and bypass elected institutions by submitting a referendum to the people on any major issue or whenever parliament rejects a bill he favors. He presides over the cabinet, and if the integrity of the national territory is threatened or events liable to jeopardize the functioning of Morocco's national institutions occur, he may declare a state of emergency.

The constitution of 1992 was amended by referendum in 1996. The national legislature became bicameral with the lower house elected directly and the upper house consisting of two-thirds of its members elected and one-third appointed by the king. The Chamber of Representatives consists of 325 members directly elected for five-year terms. The Chamber of Advisors consists of 270 members selected by indirect election: 162 represent local authorities, 81 trade chambers, and 27 employees' associations. In an effort to include the opinions of young people, the voting age was lowered from 20 to 18 in 2002. Suffrage is universal.

POLITICAL PARTIES

Morocco has a well-developed multiparty system with varying numbers of officially recognized parties and remarkably stable and long-lived leadership.

The largest traditional party is the Istiqlal (Independence) Party, whose leader after its formation in 1943 was Alal al-Fasi. The Istiqlal, once a firm supporter of the throne, now follows a reformist program and backs the king on specific measures only; it had no representation in the government from 1963 to 1977.

The National Union of Popular Forces (Union Nationale des Forces Populaires—UNFP) was formed in September 1959, following a split in the ranks of the Istiqlal in January of that year. At that time, the UNFP was a coalition of left-wing ex-Istiqlalis, trade unionists, resistance fighters, and dissident members of minor political parties and drew support from the modern cities (Casablanca) and the Sous River Valley. Among its leaders were Mehdi bin Barka; Muhammad al-Basri, a leader of the Liberation Army in 1953–55; Abderrahim Bouabid; and Mahjub bin Sadiq, head of the Moroccan Labor Union (Union Marocaine du Travail—UMT). The party was handicapped by factionalism and further weakened by the political neutrality of the UMT after 1963, by the kidnapping and disappearance of Bin Barka in France in 1965, and by other apparent instances of government repression, including the imprisonment of Bin Sadiq in 1967.

In 1970, the UNFP and Istiqlal, having lost some popular support, formed the National Front to boycott the elections. The Front was dissolved in 1972, by which time the split between the political and trade union wings of the UNFP had become open, and in 1973 many UNFP leaders were arrested and tried for sedition in connection with civil disorders and guerrilla activities. The UNFP formally split into two parties in 1974, the more radical trade union wing calling itself the UNFP and the political wing forming the Socialist Union of Popular Forces (Union Socialiste des Forces Populaires—USFP).

The program of the Moroccan Communist Party has often been close to that of the UNFP. From 1969 to 1974, the Communist Party was banned, but since then it has appeared under various names. Two communist parties contested the 1997 elections, the Party of Renewal and Progress (PRP) and the Organization of Action for Democracy and the People (OADP), with the PRP obtaining nine seats in the lower house and seven in the upper house, while the OADP obtained four in the lower house and none in the upper house. The USFP, Istiqlal, PRP, and OADP formed the Democratic Block.

The National Entente block was made up of three parties: the conservative Popular Movement (MP), the conservative National Democratic Party (PND), and the centrist Constitutional Union.

The Center block was made up of the National Rally of Independents (RNI), the Democratic and Social Movement (MDS), and the National Popular Movement (MNP).

In addition, there are various other parties of liberal, socialist, or Islamist orientation, the latter represented by the moderate Constitutional and Democratic Popular Movement (MPCD), which changed its name at the end of 1998 to the Party of Justice and Development (PJD).

King Hassan II sometimes worked through the party system and sometimes ignored it. In 1963, royalist forces united into the Front for the Defense of Constitutional Institutions. A leading party in the Front was the Popular Movement (Mouvement Populaire—MP), the party of Berber mountaineers. Governments formed by Hassan II have consisted of MP members, followers of royalist front parties, and independents and technocrats loyal to the king. Following 1993 elections, which saw Istiqlal and the USFP winning a majority of the elected seats, the king used his power to appoint friendly deputies to the seats he controls. Opposition parties protested by refusing to participate in the government. In 1996, the king submitted for referendum revisions to the constitution allowing for direct election for all members of parliament, a move greeted with initial suspicion but ultimately heralded as democratic as the 1997 elections for the newly comprised body approached. The various parties formed into Blocks, as listed above, though maintaining separate candidate lists. The results showed 15 parties gaining seats in the lower house and 13 obtaining seats in the upper house.

Twenty-six political parties participated in the 27 September 2002 elections for the Chamber of Representatives. The USFP took 50 seats; Istiqlal won 48; the Justice and Development Party (PJD) won 42; the National Rally of Independents won 41 seats; the Popular Movement took 27; the National Popular Movement took 18; the Constitutional Union won 16; and 15 other parties were represented. Women were guaranteed 10% of the seats. Two new political parties were recognized by the government for the 2002 elections—the Moroccan Liberal Party (PLM) and the Alliance of Liberties (ADL), which aimed to involve the youth and women in political action. The ADL won four seats in the Chamber of Representatives. The Islamist Justice and Development Party trebled the number of its seats in parliament, coming in third behind the USFP and Istiqlal. Justice and Charity, said to be the largest Islamist group, remains banned.

In the 2002 elections, parties were organized in the following blocks: the left-wing block, comprised of the USFP; the Party for Progress and Socialism (PPS), formerly the Communist Party; the Leftist Unified Socialist Party (PGSU), formerly the OADP; and the Socialist Democratic Party. The center-right block is comprised of the Istiqlal Party and the PJD. The Berberist block includes the Popular Movement (MP); the National Popular Movement (MNP); and the Social Democratic Movement (MDS). The conservative block consisted of the National Rally of Independents (RNI) and the Constitutional Union (UC). Driss Jettou was named prime minister. In the 2003 local and district elections, more than 30% of the 23,000 seats were won by the conservative Istiqlal Party and the left-wing USFP. The mainstream Islamist PJD party won less than 3% of the vote.

LOCAL GOVERNMENT

Local administration still follows many French and Spanish procedural patterns, but final authority rests with the king through the Ministry of the Interior. Morocco proper has 39 provinces and 8 urban prefectures (including 2 at Rabat-Salé and 5 at Casablanca). Each province and prefecture has a governor appointed by the king. The provinces and prefectures select councils or assemblies, which hold public sessions in the spring and fall. The assemblies are largely restricted to social and economic questions.

The provinces are divided into administrative areas, called cercles, each headed by a superqaid (caidat). Each cercle is subdivided into rural and urban communes, each headed by a qaid or a pasha, respectively, and assisted by a council. Councilors are elected for six-year terms, and each council is composed of 9 to 51 members, depending on the size of the commune. The council president, chosen by secret ballot, presents the budget and applies the decisions of the council. Real power, however, is exercised by the qaid or pasha. The communes are supervised by the Ministry of the Interior, which retains final decision-making authority. As of 2002, there were 1,544 communes in Morocco; 247 are urban and 1,297 are rural. In the 2003 local elections two polling systems dependent on the number of inhabitants were instituted. In communes with less than 25,000 inhabitants, councilors were elected based on a one-round relative majority; in communes exceeding 25,000 inhabitants, proportional representation was used.

JUDICIAL SYSTEM

Morocco has a dual legal system consisting of secular courts based on French legal tradition, and courts based on Jewish and Islamic traditions.

The secular system includes communal and district courts, courts of first instance, appellate courts, and a Supreme Court. The Supreme Court is divided into five chambers: criminal, correctional (civil) appeals, social, administrative, and constitutional. The Special Court of Justice may try officials on charges raised by a two-thirds majority of the full Majlis. There is also a military court for cases involving military personnel and occasionally matters pertaining to state security. The Supreme Council of the Judiciary regulates the judiciary and is presided over by the king. Judges are appointed on the advice of the council. Judges in the secular system are university-trained lawyers. Since 1965 only Moroccans may be appointed as judges, and Arabic is the official language of the courts.

There are 27 Sadad courts, which are courts of first instance for Muslim and Jewish personal law. Criminal and civil cases are heard, and cases with penalties exceeding a certain monetary amount may be appealed to regional courts. The Sadad courts are divided into four sections: Shariah; rabbinical; civil, commercial, and administrative sections; and criminal.

ARMED FORCES

Total Moroccan active military strength in 2005 was 200,800 personnel with reserves numbering 150,000. The Army had 180,000 personnel, the Navy 7,800 (including 1,500 Marines), and the Air Force 13,500 active personnel. The Army was equipped with 540 main battle tanks, of which 200 were in storage, 116 light tanks, 384 reconnaissance vehicles, 70 armored infantry fighting vehicles, 765 armored personnel carriers and 2,892 artillery pieces. The Navy's major vessels included three frigates and 27 patrol/coastal ships and boats. The Air Force had 89 combat capable aircraft, including 66 fighters. The service also operated 19 assault helicopters. Paramilitary forces totaled 50,000 personnel, which included a 20,000 member gendarmerie force. The Polisario Front opposition forces were estimated between 3,000–6,000. Moroccan troops were stationed in five countries on peacekeeping missions. The 2005 defense budget totaled $2.07 billion.

INTERNATIONAL COOPERATION

Morocco became a member of the United Nations on 12 November 1956 and participates in ECA and several nonregional specialized agencies, such as the FAO, ILO, IAEA, the World Bank, IMO, UNSECO, UNHCR, UNIDO, and the WHO. The nation is a member of the African Development Bank, the Arab Bank for Economic Development in Africa, the Arab Fund for Economic and Social Development, the Arab Maghreb Union, the European Bank for Reconstruction and Development, the Organization of the Islamic Conference (OIC), G-77, the Community of Sahel and Saharan States (CENSAD), and the Arab League. Morocco is an observer in the OAS and a partner in the OSCE.

In recent decades, Morocco has pursued a policy of nonalignment and has sought and received aid from the United States, Western Europe, and the former USSR. Relations with Algeria and Libya have been tense, especially since Morocco's takeover of the Western Sahara. In 1988, UN Secretary General Perez de Cuellar negotiated with Morocco and Polisario (a group seeking sovereignty for the Western Sahara as the Saharan Arab Democratic Republic) to accept a cease-fire and to hold a referendum for the territory to determine whether it will be independent of integrate with Morocco. Although the vote was scheduled for 1992, it has been blocked by disagreements over voter eligibility, and sovereignty was unresolved as of 2005. The United Nations Mission for the Referendum in Western Sahara (MINURSO, est. 1991) is supported by 24 countries. In 1989, Morocco restored relations with Algeria; it maintains relations with Saudi Arabia and the other Gulf states and condemned the Iraqi invasion of Kuwait.

In environmental cooperation, Morocco is part of the Basel Convention, Conventions on Biological Diversity and Whaling, Ramsar, CITES, the London Convention, the Kyoto Protocol, the Montréal Protocol, MARPOL, the Nuclear Test Ban Treaty, and the UN Conventions on Climate Change and Desertification.

ECONOMY

The major resources of the Moroccan economy are agriculture, phosphates, and tourism. Sales of fish and seafood are important as well. Industry and mining contribute over one-third of the annual GDP. Morocco is the world's third-largest producer of phosphates (after the United States and China), and the price fluctuations of phosphates on the international market greatly influence Morocco's economy. Tourism and workers' remittances have played a critical role since independence. The production of textiles and clothing is part of a growing manufacturing sector that accounted for approximately 34% of total exports in 2002, employing 40% of the industrial workforce. The government wishes to increase textile and clothing exports from $1.27 billion in 2001 to $3.29 billion in 2010. Following the expiration of the world multifiber agreement in 2005, however, the textile and apparel sector was expected to contract.

The high cost of imports, especially of petroleum imports, is a major problem. Another chronic problem is unreliable rainfall, which produces drought or sudden floods; in 1995, the country's worst drought in 30 years forced Morocco to import grain and adversely affected the economy. Another drought occurred in 1997, and one in 1999–2000. Reduced incomes due to drought caused GDP to fall by 7.6% in 1995, by 2.3% in 1997, and by 1.5% in 1999. During the years between drought, good rains brought bumper crops to market. Good rainfall in 2001 led to a 5% GDP growth rate. Morocco suffers both from high unemployment and a large external debt estimated at around $15.6 billion in 2005.

Morocco suffers from poverty, urban overcrowding, inadequate housing infrastructure, and illiteracy, which reaches 83% for women in rural areas. The unemployment rate was estimated at 10.4% at the end of 2004, but that figure masks higher rates in urban areas (18%) and among college graduates (24%). The inflation rate stood at 1.4% in 2004 and was forecast to reach 1.9% in 2005, due to higher food and fuel prices. The real GDP growth rate in 2005 was estimated at 1.8%, down from 3.7% in 2004 and 5.2% in 2003. This fall in the growth rate was largely due to a slowdown in the agricultural sector, which employs 43% of the population.

Morocco and the United States in 2004 negotiated a free trade agreement that immediately eliminated tariffs on 95% of bilateral trade, with the remaining tariffs to be eliminated over the next nine years. Morocco also has a free trade agreement with the EU. The country is pursuing privatization of state-owned enterprises, including in the energy, water, and telecommunications sectors. Between 1993 and 2005, 66 Moroccan state-owned enterprises were fully or partially privatized, including the tobacco distribution company Régie des Tabacs, Banque Centrale Populaire, and 35% of Maroc Telecom to Vivendi.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Morocco's gross domestic product (GDP) was estimated at $139.5 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $4,300. The annual growth rate of GDP was estimated at 1.8%. The average inflation rate in 2005 was 2.1%. It was estimated that agriculture accounted for 21.7% of GDP, industry 35.7%, and services 42.6%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $3.614 billion or about $120 per capita and accounted for approximately 8.3% of GDP. Foreign aid receipts amounted to $523 million or about $17 per capita and accounted for approximately 1.2% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Morocco totaled $28.60 billion or about $950 per capita based on a GDP of $43.7 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 2.9%. In 2001 it was estimated that approximately 33% of household consumption was spent on food, 16% on fuel, 5% on health care, and 15% on education. It was estimated that in 1999 about 19.0% of the population had incomes below the poverty line.

LABOR

Morocco's workforce was estimated in 2005 at 11.19 million. In 2003, an estimated 40% were in the agricultural sector, 45% in services, and the remaining 15% in industry. The unemployment rate was estimated at 10.5% in 2005.

Although the law provides for the right to form unions, the government interferes with the labor movement. Morocco's 17 trade unions are organized within three federations, and represent about half a million of the country's estimated nine million workers. Employees have the right to strike after engaging in arbitration. Work stoppages do occur, but security forces sometimes break up striking workers. Collective bargaining is utilized on a limited basis.

The 48-hour workweek is established by law, and overtime pay rates apply to all work in excess of 48 hours. At least one day of rest must be granted per week. In 2002, the minimum wage was $162 per month for industry and commerce and about $8 per day in agriculture. The minimum wage is not effectively enforced in the informal sector, and even the government pays less in the lowest civil service grades. There is also legislation covering health, sanitation, and safety standards for a small number of workers.

AGRICULTURE

Some 9,376,000 hectares (23,168,000 acres), or 21% of the total land area, is arable (excluding Western Sahara). About 43% of arable land is devoted to cereals, 7% to plantation crops (olives, almonds, citrus, grapes, dates), 3% to pulses, 2% to forage, 2% to vegetables, 2% to industrial crops (sugar beets, sugarcane, cotton) and oilseeds, and 42% was fallow. The bulk of the indigenous population carries out traditional subsistence farming on plots of less than five hectares (12 acres). A temperate climate and sufficient precipitation are especially conducive to agricultural development in the northwest. In 2003, agriculture (together with forestry and fishing) accounted for 17% of GDP.

Morocco is essentially self-sufficient in food production. Grain plantings are typically triggered by autumn rainfall and last through mid-January. Irregularity in rainfall necessitates the importation of grains during drought years. As a result of the worst drought in decades, Morocco's cereal crop in 1995 was only one quarter of the average annual amount during the previous 10 years. Pulse, vegetable, and citrus production were also devastated. However, in 1996 Morocco received the highest levels of rainfall in 30 years, leading to record grain production. The principal export crops are citrus fruits and vegetables. The estimated output of principal crops (in thousands of tons) in 2004 was as follows: sugar beets, 4,560; wheat, 5,540; barley, 2,760; sugarcane, 992; tomatoes, 1,201; potatoes, 1,440; oranges, 719; olives, 470; corn, 224; sunflowers, 54; and peanuts, 49.

The government distributed some 500,000 hectares (1,235,500 acres) of farmland formerly owned by European settlers to Moroccan farmers in the late 1960s and the 1970s. To encourage Moroccans to modernize the traditional sector, the Agricultural Investment Code of 1969 required farmers in irrigated areas to meet the minimum standards of efficiency outlined by the government or lose their land. These standards applied to all farms of five hectares (12 acres) or more.

Dams and irrigation projects were begun under French rule and have continued since independence. In traditional areas, irrigation is by springs and wells, diversion of streams, and tunnels from the hills, as well as by modern dams and reservoirs. There are dams and irrigation projects on most of the country's major rivers, including the Sebou River in the northwest, which, along with its tributaries, accounts for some 45% of Morocco's water resources. Continued widespread variation in rainfall continues to produce serious droughts and occasional flash floods. In January 1994, the Kuwaiti Economic Development Fund agreed to lend $60 million to the Moroccan government to help finance an irrigation project in the Haouz and Tassaout region of southern Morocco, which will provide irrigation services for 200,000 small farmers. Morocco had 1.45 million irrigated hectares (3.6 million acres) of agricultural land in 2003.

ANIMAL HUSBANDRY

Livestock raising contributes about one-third of agricultural income. Livestock fares poorly on the overgrazed pasture, and periods of drought reduce growth on an estimated 20.9 million hectares (51.6 million acres) of permanent pastureland as well as the output of fodder crops. In 2005, estimated livestock population was 17 million sheep, 5.3 million goats, and 2.7 million head of cattle. There were an estimated 985,000 donkeys, 525,000 mules, 36,000 camels, 8,000 pigs, and 137 million chickens in 2005. In 2005, production of beef and mutton was estimated at 148,000 tons; and poultry, 280,000 tons. Output of cow's milk was about 1.3 million tons in 2005, along with 230,000 tons of eggs. Even though most of the import licensing system has been abolished, licenses are still required for imported livestock and animal genetic materials, in an effort to protect local production.

FISHING

Fishing, which has been a major industry since the 1930s, is centered in Agadir, Safi, and Tan-Tan. In some years, Morocco is the world's largest producer of the European sardine (Sardina pilchardus). Coastal fishing accounts for about 86% of production; deepsea fishing, 13%; and algae cultivation and aquaculture, 1%.

Landings from coastal waters totaled 885,131 tons in 2003, twenty-fourth in the world and the highest in Africa. Sardines accounted for 659,208 tons (74%) that year. The waters off Western Sahara are particularly rich in seafood. Coastal fishing supplies the Moroccan fish processing industry, which is concentrated in the southern cities of Layoun, Tan Tan, Tarfaya, and Agadir. The canning industry processes mostly sardines and to a lesser extent mackerels and anchovies. Many of the plants use obsolete equipment, and there is currently no government support to develop and introduce new technology to the industry.

The deep-sea catch consists mostly of cephalopods (such as octopus, squid, and cuttlefish), hake, sea bream, sole, and shrimp. Cephalopod deep-sea landings in 2004 included 23,000 tons of octopus, 1,200 tons of squid, and 6,000 tons of cuttlefish. The deepsea cephalopod fishing fleet comprises some 290 active trawlers and accounts for two-thirds of the cephalopod catch. These trawlers can stay out to sea for up to three months. Nearly all deep-sea production is sorted, frozen in vessels, and exported upon arrival; Japan is the major buyer of Moroccan octopus.

Aquacultural production consists mainly of seabass, sea bream, oysters, tuna, and eel, which are produced for export to Europe. The principal aquaculture farms are located in Nador and Hoceima on the Mediterranean Sea, Oulidida on the Atlantic Ocean, and Azrou on an inland lake.

Much of the fish catch is processed into fish meal, fertilizer, and animal fodder. In 2003, $988.6 million of fish products were exported primarily to the EU nations, Japan, and the United States. Deep-sea fishing is expected to become more important, because the EU is committed to reducing its fishing fleet size. Moroccan fish companies are expected to play a larger role in the world cephalopod market in the future. There is concern, however, that overfishing during one year may result in smaller catches in the future.

FORESTRY

Forests cover about 6.8% of the land area and provide subsistence for families engaged in cork gathering, wood cutting, and other forestry occupations. Cork, the principal forest product, is grown on 198,000 hectares (489,000 acres) of state-owned cork oak forests, which amounts to around 9% of the world's cork forest acre-age. Annual production is usually around 15,000 tons, 4% of world production. Other commercial trees are evergreen oak, thuja, argan, and cedar. Esparto grass and vegetable fiber are other important forest products. Artificial plantings of more than 45,000 hectares (111,000 acres) of eucalyptus trees furnish the raw materials for a rapidly expanding cellulose textile industry. Production of roundwood in 2004 was 885,000 cu m (31 million cu ft), with 42% used as fuel wood. Trade in forest products that year amounted to $455 million in imports and $126.4 million in exports.

Reforestation has become a major goal of the government; the 1981–85 development plan proposed to reforest about 25,000 hectares (62,000 acres) annually; actual reforestation was about 13,000 hectares (32,000 acres) per year. Between 1990 and 2000, the area of forests and woodlands remained essentially unchanged.

MINING

Morocco was the third-largest producer of phosphate rock (behind the United States and China), had 88.5 billion tons in proved reserves, and was the largest phosphate exporter. The 2003 output of phosphate rock, including by Western Sahara, was 222.877 million tons (gross weight). All phosphate was produced by the state-owned Office Chérifien des Phosphates, founded in 1920, which was responsible for managing and controlling all aspects of phosphate mining. The combined capacity of the main facilities—at Youssoufia, Benguerir, BouCraa, Sidi Chenan, and Khouribga—was 27 million tons per year.

Morocco also had significant deposits of copper ore and produced 17,539 metric tons in 2003 (gross weight concentrates), down from 17,799 metric tons in 2002. Iron ore production (gross weight) in 2003 was 4,019 metric tons, down from 8,736 metric tons in 2002. Other minerals produced in 2003 included: lead (gross weight concentrate, 54,779 metric tons); barite (356,394 metric tons); rock salt (estimated at 200,000 metric tons); and acid-grade fluorspar (81,255 metric tons, down from 94,911 metric tons in 2002) In addition, Morocco produced antimony, cobalt, gold, mercury, silver, arsenic trioxide, bentonite, hydraulic cement, feldspar, fuller's earth (smectite), gypsum, mica, montmorillonite (ghassoul), phosphoric acid, marine salt, talc and pyrophyllite, and a variety of crude construction materials. Morocco also had the capacity to produce zircon, and had the only anthracite mine in the Mediterranean area—Jerada, in the Oujda region.

Plans called for increased domestic processing of phosphate into phosphoric acid for export. The government owned the subsoil mineral rights for all minerals. Exploration and new discoveries of oil and gas would yield sulfur and ammonia, which were needed for phosphate fertilizers. A four-year plan to upgrade the country's railway network was launched in 2000 to handle increased ridership by tourists and the needs of the phosphate industry. The plan, financed by the European Investment Bank and the Japanese Bank for International Cooperation, would lay an extra track between Meknès and Fès.

ENERGY AND POWER

Morocco has only small deposits of oil and natural gas. However, since many of its sedimentary basins have yet to be explored, those figures could rise.

Morocco, as of 1 January 2005, had proven crude oil and natural gas reserves of 1.6 million barrels, and 43 billion cu ft, respectively. In 2004, oil output totaled an estimated 500 barrels per day. Morocco has two oil refineries, the Samir and Sidi Kacem. The two facilities have a combined refining capacity, as of 1 January 2005, of 155,000 barrels per day. The Samir refinery produces 80% t6o 90% of the country's refined petroleum products. In 2002 there was an extensive fire and flood damage at the Samir refinery. Capacity was quickly restored to 60%, and in 2004 returned to near full-capacity production levels.

Coal imports in 2002 amounted to 5,648,000 million short tons, all of it hard coal.

Electricity production has grown rapidly, from 1.935 billion kWh in 1970 to 16.235 billion kWh in 2002, of which 93.6% was from fossil fuels and 5% came from hydropower, with the remainder from alternative sources. Electric power generating capacity in 2002 came to 4.878 million kW, of which 72% was dedicated to conventional thermal fuels and 26.6% to hydroelectric sources. Alternative sources accounted for the remaining capacity.

INDUSTRY

In 2004, industry accounted for 35.7% of GDP. Leading industrial sectors in 2006 were phosphate rock mining and processing, food processing, leather goods, textiles, and construction. Morocco holds the world's largest phosphate reserves, and is the world's third-largest phosphate producer, after the United States and China.

The manufacturing sector produces light consumer goods, especially foodstuffs, beverages, textiles, matches, and metal and leather products. Heavy industry is largely limited to petroleum refining, chemical fertilizers, automobile and tractor assembly, foundry work, asphalt, and cement. Many of the processed agricultural products and consumer goods are primarily for local consumption, but Morocco exports canned fish and fruit, wine, leather goods, and textiles, as well as such traditional Moroccan handicrafts as carpets and brass, copper, silver, and wood implements.

There are two oil refineries, one at Mohammedia and one at Sidi Kacem, with a total refining capacity of 155,000 barrels per day. There are also several petrochemical plants, a polyvinyl chloride factory, and many phosphate-processing plants. The Mahgreb-EU pipeline has been operating since 1996. There are four plants assembling cars and small utility vehicles: Renault Moroc, Sopriam, Somaca, and Smeia. A number of cement factories are also in operation. The Safi industrial complex, opened in 1965, processes phosphates from Youssoufia, pyrrhotites from Kettara, and ammonia.

Ownership in the manufacturing sector is largely private, but the government owns the phosphate-chemical fertilizer industry and much of the sugar-milling capacity, through either partnership or joint financing. It is also a major participant in the car and truck assembly industry and in tire manufacturing.

SCIENCE AND TECHNOLOGY

Research institutions include the Scientific Institute (founded in 1920), in Rabat, which does fundamental research in the natural sciences, and the Scientific Institute of Maritime Fishing (founded in 1947), in Casablanca, which studies oceanography, marine biology, and topics related to development of the fishing industry. Nine universities and colleges offer degrees in basic and applied sciences. In 1987–97, science and engineering students accounted for 41% of college and university enrollments. In 2002, Morocco's high technology exports totaled $439 million, or 11% of its' manufactured exports.

DOMESTIC TRADE

Consumer-ready products are freely traded by the private sector through companies that distribute them to wholesalers, distributors, or directly to retailers. The government intervenes directly in domestic trade through price subsidies at the retail level for staples such as flour, vegetable oil, and sugar. The government has planned to phase out these subsidies over an extended period in order to avoid social unrest. Support prices, once a major incentive to promoting government-supported crops, have been eliminated.

Casablanca, the chief port, is the commercial center of Morocco. Other principal distribution centers include Safi, Agadir, and Tangier. Wet markets are open-air produce markets common in rural and urban areas. Central markets are found in major cities and contain many small shops selling mainly domestic products. Numerous family-operated grocery outlets are scattered throughout the country and are where food products are typically sold in Morocco. There are also a growing number of supermarkets in major metropolitan areas; over half of them are in Casablanca and Rabat. Retail establishments include department stores in the main cities and shops and specialty stores. Bazaars cater especially to the tourist trade. The first franchise, Pizza Hut, was established in 1992. There are now about 85 franchise firms in the country offering a wide variety of goods and services. Principal advertising media are newspapers, motion picture theaters, radio, television, and posters.

Business hours are generally from 8 or 8:30 am to 6:30 pm, with a two-hour lunch break, but some shops stay open later. Large stores are open from 9 am to 1 pm and from 3 to 7 pm. Souks are open Monday to Sunday from 8:30 am to 1 pm and from 2:30 to 6 pm.

FOREIGN TRADE

As part of the government's trade liberalization process, a widespread antismuggling campaign has sharply reduced the amount of goods illegally entering Morocco. A large amount of hashish illegally exits the country.

The largest export receipts come from the garment sector. Morocco exports a large amount of foodstuffs, including shellfish, fruit and nuts, fish, and vegetables. Other exports include inorganic fertilizers and chemicals. Morocco produces about one-third of the world's crude fertilizers exports.

In 2004, exports were divided up into the following categories: food, beverages, and tobacco, 15.3%; semi-processed goods, 27.3%; and consumer goods, 37.2%. Imports were divided up as

Country	Exports	Imports	Balance
World	8,777.2	14,230.6	-5,453.4
France-Monaco	3,004.7	2,927.2	77.5
Spain	1,566.0	1,764.2	-198.2
United Kingdom	639.3	560.2	79.1
Italy-San Marino-Holy See	452.2	1,013.1	-560.9
Germany	345.3	740.1	-394.8
India	273.3	164.1	109.2
United States	246.0	578.1	-332.1
Netherlands	221.7	338.8	-117.1
Belgium	193.3	278.2	-84.9
Brazil	181.9	268.2	-86.3
(…) data not available or not significant.

follows: food, beverages, and tobacco, 8.7%; energy and lubricants, 16.4%; capital goods, 22.6%; semi-processed goods, 23.3%; consumer goods 22.6%.

Morocco's major markets in 2004 were: the EU (75.4% of all exports), India (3.4%), the United States (2.9%), and Brazil (2.1%). Morocco's major suppliers in 2004 were: the EU (59.1% of all imports), Saudi Arabia (5%), and the United States (4.1%). Of Morocco's EU trading partners, France is the largest, absorbing 33.6% of Morocco's exports and providing 18.2% of its imports. Spain and Italy are Morocco's second- and third-largest EU trading partners.

BALANCE OF PAYMENTS

Remittances from Moroccans working abroad, foreign aid, and a growing tourist industry have helped to offset chronic trade deficits.

Current Account			1,552.0
Balance on goods		-4,345.0
Imports	-13,117.0
Exports	8,771.0
Balance on services		2,617.0
Balance on income		-792.0
Current transfers		4,073.0
Capital Account			-10.0
Financial Account			-3,316.0
Direct investment abroad		-13.0
Direct investment in Morocco		88.0
Portfolio investment assets		…
Portfolio investment liabilities		8.0
Financial derivatives		…
Other investment assets		-869.0
Other investment liabilities		-2,529.0
Net Errors and Omissions			-288.0
Reserves and Related Items			2,062.0
(…) data not available or not significant.

In recent years, Morocco has turned increasingly to foreign borrowing to meet its financial needs.

In 2005, Morocco's exports were valued at $9.472 billion; imports were valued at $18.15 billion. The current-account balance was estimated at -$607.5 million.

BANKING AND SECURITIES

The Bank of Morocco (Bank al-Maghrib), the central bank, has the sole privilege of note issue. It is required to maintain a gold or convertible-currency reserve equal to one-ninth of its note issue. The Ministry of Finance is responsible for the organization of banking and the money market. In February 1996 the central bank gave clearance for banks and finance houses to issue corporate bonds. Consumer credit companies are expected to be the first to take advantage of the new ruling. Other reforms scheduled for 1996 included a secondary market in public debt, an interbank foreign exchange market, and the launch of privatization bonds and global depository receipts (GDRs). As of 1997, only the interbank foreign exchange market had been implemented. Commercial banks were permitted to buy and sell foreign currency at market-determined rates, where previously foreign exchange rates were fixed on a daily basis by the central bank. The dirham was fully convertible in 1999.

Commercial banks must have 51% domestic majority ownership; some foreign banks were Moroccanized in 1975. There were 16 commercial banks in 2002, most of which were partly owned by European banks. The largest private commercial bank is the Banque Commerciale du Maroc (BCM), which is 32% owned by foreign banks, including Banco Central Hispano, Credito Italiano, and Crédit Commercial de France. Another important commercial bank was Wafa Bank, with a 10% share of deposits in 1999. Wafa Bank owned half of a year 2000 banking venture with Senegal to offer services to ECOWAS countries. The three largest banks account for over 60% of banking assets and deposits.

Public sector financial organizations specializing in development finance include the National Bank for Economic Development, Moroccan Bank for Foreign Trade, National Agricultural Credit Bank, and Deposit and Investment Fund. Also instrumental in development finance is the Bureau of Mineral Exploration and Participation, which has participatory interests in the production of all coal, petroleum, lead, and manganese. The National Bank for Economic Development, established in 1959, has been particularly active in financing manufacturing. The Agricultural Credit Bank makes loans to credit organizations, public institutions, and cooperatives. Private individuals borrow from local agricultural credit banks or from the agricultural credit and provident societies.

The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $22.1 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $29.6 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 4.44%. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 4.71%.

The stock exchange (Bourse des Valeurs) at Casablanca, established in 1929, handles mostly European and a few North African issues. The Casablanca stock market underwent a program of reform designed to attract increased interest from overseas and local investors. In 1993 the government approved legislation to turn the bourse into a private company with stock held by brokers, to create new stock-trading bodies and to channel the funds of small savers into share issues and unit trusts. In 1995, France agreed to finance further improvements, modeling the exchange on the Paris bourse and introducing computerization. In 2001, the stock exchange had 55 companies listed and a $9.1 billion capitalization. As of 2004, a total of 52 companies were listed on the Bourse des Valeurs de Casablanca, which had a market capitalization of $25.064 billion.

INSURANCE

In 1995, the government stepped in to rescue the ailing insurance industry after studies uncovered financial difficulties in a number of firms. The authorities stepped in to prevent collapses which could affect related financial services such as savings and investment, as well as the interlinked banking sector. However, in September 1995, the government abandoned its attempts to restructure five state insurance companies and put them into liquidation. The companies, then already in temporary receivership, were Compagnie Atlantique d'assurances et de réassurances, Arabia Insurance Co., Assurances la victoire, Assurances la renaissance, and Réunion marocaine d'assurances et de réassurances (Rémar). Their combined losses are estimated at up to $550 million, mostly accumulated through pay-outs on car insurance, where the high accident rate had not been adequately reflected in premiums. Outstanding policies were transferred to the state finance company, Caisse de dépôt et de gestion (CDG). A new code has since been drawn up for insurance companies establishing reserve requirements similar to those applying to the banking sector. In 2000, the insurance companies AXA-Al Amane and CAA announced a merger that created insurance giant AXA Assurance Maroc. In 2003, the value of all direct insurance premiums written totaled $1.288 billion, of which nonlife premiums accounted for $927 million

Revenue and Grants	102,436	100.0%
Tax revenue	81,118	79.2%
Social contributions	8,962	8.7%
Grants	…	…
Other revenue	12,356	12.1%
Expenditures	112,488	100.0%
General public services	45,563	40.5%
Defense	14,530	12.9%
Public order and safety	7,817	6.9%
Economic affairs	9,070	8.1%
Environmental protection	…	…
Housing and community amenities	505	0.4%
Health	3,627	3.2%
Recreational, culture, and religion	913	0.8%
Education	20,003	17.8%
Social protection	10,460	9.3%
(…) data not available or not significant.

AXA Assurance Maroc was Morocco's top nonlife and life insurer in 2003 with gross written nonlife premiums of $154.6 million, and gross written life insurance premiums of $88.1 million.

PUBLIC FINANCE

The Moroccan government announced plans in 1999/2000 to cut the budget deficit by one-third, in order to encourage investment and job creation. By 1998, only 56 of 114 companies slated for privatization had been sold, and the rest had been withdrawn from sale. The government did not depend on privatization revenues for funds, rather on the ownership of the phosphates industry. Nearly 50% of the state budget was spent on public sector salaries, and 25% on debt servicing in 1999. Some privatization has taken place in recent years, however, including the government's sale of 35% of the state operator Maroc Telecom and the liberalization of rules governing oil and gas exploration.

The US Central Intelligence Agency (CIA) estimated that in 2005 Morocco's central government took in revenues of approximately $12.9 billion and had expenditures of $16.7 billion. Revenues minus expenditures totaled approximately -$3.8 billion. Public debt in 2005 amounted to 72.3% of GDP. Total external debt was $15.6 billion.

The International Monetary Fund (IMF) reported that in 1999, the most recent year for which it had data, central government revenues were dh102,436 million and expenditures were dh112,488 million. The value of revenues in US dollars was us$10,448 million and expenditures us$11,474 million, based on a official exchange rate for 1999 of us$1 = dh9.804 as reported by the IMF. Government outlays by function were as follows: general public services, 40.5%; defense, 12.9%; public order and safety, 6.9%; economic affairs, 8.1%; housing and community amenities, 0.4%; health, 3.2%; recreation, culture, and religion, 0.8%; education, 17.8%; and social protection, 9.3%.

TAXATION

As of 2005, the professional profits and gains tax, at 35% since 1 January 1996 (except for insurance and banking institutions taxed at the previous rate of 39.6%), is the most important tax in Morocco, and can be assessed on either annual turnover or on net annual profits. The minimum tax in 2005 was 0.5% of turnover or 1,500 dirhams (about $162), whichever was greater. Nonresident companies under contractual arrangements can opt for an alternative tax amounting to 8% of their contracts. The capital gains are taxed at 35%. Dividends are subject to 10% withholding which can be used as a tax credit. Branches of foreign companies are subject to the same taxes as Moroccan companies.

All wage earners are liable to a progressive tax on salaries, remunerations, and allowances under the General Income Tax (IGR). There are several types of deductions that can be applied in calculating an individual's taxable base income. There are also social security taxes and supplementary taxes on professional and rental income.

The main indirect tax is Morocco's value-added tax (VAT) with a standard rate of 20%, but with various reduced rates from 7% to 14% for more basic goods and services. As of 1 July 2001 imported barley was exempted from VAT.

CUSTOMS AND DUTIES

The policy of import liberalization that began in 1967, has continued and new commodities have been added to the list of items not subject to quotas. In the 1970 general import program, items not subject to quotas accounted for 75% of the imports. Most goods do not require import licenses. As of 2005, duties were as low as 2.5% and as high as 329% for frozen lamb meat. Import duties on food average 80%, which makes the price of imported consumer foodstuffs unaffordable for the average Moroccan. Value-added taxes are levied at 0–20%. Certain transactions have lower rates of 7% and 14%. Import taxes on machinery and equipment are 2.5% or 10%. Export taxes were discontinued in 1971.

Agreements between Morocco and the European Community (now the European Union) have provided for mutual tariff concessions. Citrus tariffs were cut 80% by the European Community by the mid-1970s; tariffs on canned fruit and vegetables were reduced more than 50%; and fish products, wine, olive oil, and cereals were given special concessions. In return, Morocco reduced its minimum tariffs by 30% and adjusted quotas on imports to Morocco.

The import tariff does not apply within the free zone of the Port of Tangier.

FOREIGN INVESTMENT

Foreign investment declined somewhat during the 1960s and 1970s because of political uncertainty and the government's Moroccanization policy requiring majority Moroccan ownership of foreign banks, trading companies, insurance firms, and small manufacturing plants. Many foreign firms either sold out or closed down before 30 September 1974, the first deadline for compliance with Moroccanization policies. In an effort to attract foreign capital, the government passed a new investment code in August 1973 that offered substantial tax concessions to private investors. To encourage badly needed foreign investment, a revised code introduced in 1982 permitted foreign investors 100% ownership of local companies in certain sectors and unrestricted transfer of capital. The effective repent in 1990 of the Moroccanization law and regulatory changes, including tax breaks and streamlined approval procedures, led to a more than threefold increase in foreign investment inflows in the four years following its enactment.

A new investment code was passed in 1995 that provided income tax breaks for investments in certain regions, crafts and export industries; and import duty reductions; especially during the first five years of operation. It also contained foreign exchange provisions that favored foreign investors.

In 1997, annual foreign direct investment (FDI) inflows reached over $1 billion, but then fell to $333 million in 1998. FDI inflow in 1999 rose to a near-record of almost $850 million mainly accounted for by two large investments: Telefonica of Spain and Telecom Portugal for mobile phones and Coca-Cola for bottling plants at Fès and Marrakech. In 2000, there was a 76% decrease in FDI inflow to Morocco to $201 million, but in 2001 inward FDI was a record $2.66 billion, due primarily to Vivendi Universal's $2.1 billion purchase of a 35% share of Maroc Telecom.

The US-Morocco Free Trade Agreement (FTA), negotiated in 2004, is geared toward encouraging more US investors to take advantage of duty-free access to both the US and European markets. In addition to tariff elimination, the FTA with Morocco includes investment provisions and commitments to increase access to the Moroccan services sector for American firms.

FDI totaled $8.4 billion from 1967–2001. In 2003, FDI inflows amounted to $2.43 billion. Spain was by far the largest foreign private investor in Morocco in 2003 ($1.896 billion), followed by France ($316.9 million), the United States ($53.1 million), and Switzerland ($37.5 million).

ECONOMIC DEVELOPMENT

Government policy stresses expansion and development of the economy, essentially through foreign investment. Morocco decided to abide by the International Monetary Fund's (IMF's) Article VIII, thus beginning the privatization of 112 public entities—mainly manufacturing enterprises, hotels, and financial institutions—slated for divestiture under the 1989 privatization law. Keeping major industries under government control, Morocco proceeded to open up investment only partially, keeping the majority of revenues from the phosphates and mining, banking and securities industries. Between 1993 and 2005, 66 Moroccan state-owned industries were fully or partially privatized, including the tobacco distribution company, Régie des Tabacs, Banque Centrale Populaire, and 35% of Maroc Telecom to Vivendi (an additional 16% was due to be sold in 2005).

Morocco instituted a series of development plans to modernize the economy and increase production during the 1960s. Net investment under the five-year plan for 1960–64 was about $1.3 billion. The plan called for a growth rate of 6.2%, but by 1964 the growth rate had only reached only 3%. A new three-year plan (1965–67) targeted an annual growth rate of 3.7%. The main emphasis of the plan was on the development and modernization of the agricultural sector. The five-year development plan for 1968–72 called for increased agriculture and irrigation. The development of the tourist industry also figured prominently in the plan. The objective was to attain an annual 5% growth rate in gross domestic product (GDP); the real growth rate actually exceeded 6%.

Investment during the 1970s included industry and tourism development. The five-year plan for 1973–77 envisaged a real economic growth of 7.5% annually. Industries singled out for development included chemicals (especially phosphoric acid), phosphate production, paper products, and metal fabrication. Tourist development was also stressed. In 1975, King Hassan II announced a 50% increase in investment targets to allow for the effects of inflation. The 1978–80 plan was one of stabilization and retrenchment, designed to improve Morocco's balance-of-payments position, but the 4% annual growth rate achieved was disappointing.

The ambitious five-year plan for 1981–85, estimated to cost more than $18 billion, aimed at achieving a growth rate of 6.5% annually. The plan's principal priority was to create some 900,000 new jobs and to train managers and workers in modern agricultural and industrial techniques. Other major goals were to increase production in agriculture and fisheries to make the country self-sufficient in food, and to develop energy (by building more hydroelectric installations and by finding more petroleum and other fossil fuels), industry, and tourism to enable Morocco to lessen its dependence on foreign loans. The plan called for significant expansion of irrigated land, for increased public works projects such as hospitals and schools, and for economic decentralization and regional development through the construction of 25 new industrial parks outside the crowded Casablanca-Kénitra coastal area. Proposed infrastructural improvements included the $2-billion rail line from Marrakech to El Aaiún; a new fishing port at Ad-Dakhla, near Argoub in the Western Sahara; and a bridge-tunnel complex across the Strait of Gibraltar to link Morocco directly with Spain. Large industrial projects included phosphoric acid plants, sugar refineries, mines to exploit cobalt, coal, silver, lead, and copper deposits, and oil-shale development.

Outstanding foreign debt commitments and their serving remain a significant obstacle to economic development. The 1992 financing requirements were mostly covered, largely because of grants and bilateral credit. Despite the cancellation by Saudi Arabia of $2.8 billion of debt, the total still exceeded $23 billion. Despite reschedulings through both the Paris Club of official creditors and the London Club of commercial creditors, servicing the debt accounted for 30% of exports of goods and services. The economic plan of 1999–2004 included the creation of jobs, promotion of exports and tourism, resumption of privatization, and infrastructure construction.

External debt stood at around $15.6 billion in 2005, but the country had strong foreign exchange reserves ($16.2 billion) and active external debt management, which was allowing it to service its debts. The government has begun to liberalize the telecommunications sector, as well as the rules for oil and gas exploration. Although Morocco has managed to maintain macroeconomic stability in recent years, the Moroccan monetary authorities must use monetary policy to keep the inflation rate differential between Morocco and the euro zone in check to maintain the competitiveness of Moroccan exports. The 2005 budget deficit was projected to be 4%. The public wage bill accounts for more than half of government expenditures; in part, this reflects the decision to expand the civil service to provide jobs for the well-educated.

SOCIAL DEVELOPMENT

The social security system covers employees and apprentices in industrial and commercial fields and the professions, as well as agriculture and forestry. There is also voluntary coverage for persons leaving covered employment, and voluntary complementary insurance is available. Benefits include maternity allowances, disability pensions, old age pensions, death allowances, and allowances for illness. Employees contributed 3.96% of earnings, and employers contributed 7.93% of payroll. Workers are also entitled to a family allowance for those with children under 12 years of age.

Women comprise about 35% of the work force and are employed mostly in the industrial, service, and teaching sectors. They have the right to vote and run for office, although they are much more likely to be illiterate than men. Women do not have equal status under Islamic family and estate laws. Under these codes, a woman can only marry with the permission of her legal guardian, which is usually her father. Husbands may initiate and obtain a divorce more easily than women, and women inherit less than male heirs. Child labor is common, particularly in the rug making and textile industries. Young girls often work as domestic servants. Employment of children under the age of 12 is prohibited by law. Domestic violence remains a widespread problem. In 2004 progress was made in public awareness of the issue, and national hotlines were set up to assist victims.

Progress was made in reducing human rights abuses by the authorities. The government organized the first human rights conference ever held in the Arab world. Prison conditions remain poor.

HEALTH

Health conditions are relatively poor, but programs of mass education in child and parent hygiene, as well as government-supervised health services in schools and colleges, have helped to raise standards. Campaigns have been conducted against malaria, tuberculosis, venereal diseases, and cancer. However, gastrointestinal infections, malaria, typhoid, trachoma, and tuberculosis remain widespread. The World Health Organizations and UNICEF have cooperated in the government's campaigns against eye disorders and venereal diseases. The health system is comprised of three sectors: a public sector consisting of both the Ministry of Public Health and the Health Services of the Royal Armed Forces, a semi public sector, and a private sector. These together have been responsible for the dramatic reduction in mortality rates. Reform is under way with financing coming from health insurance revenues and the budget of the Public Health Ministry. Total health care expenditure was estimated at 4.4% of GDP.

In 2004, there were an estimated 48 physicians, 100 nurses, eight dentists, and 17 pharmacists per 100,000 people. There were 12 university hospitals, 20 regional hospitals, 45 provincial hospitals, 11 local hospitals, 14 diagnostic centers, and 377 health centers. It was estimated that 82% of the population had access to safe drinking water and 75% had adequate sanitation. Approximately 70% of the population had access to health care services.

Children up to one year of age were vaccinated against tuberculosis, 93%; diphtheria, pertussis, and tetanus, 87%; and polio, 87%. The crude birth rate and overall mortality rate were estimated at, respectively, 23.7 and 5.9 per 1,000 people. About 59% of married women (ages 15 to 49) used contraception. Infant mortality was estimated at 41.62 per 1,000 live births in 2005. The total fertility rate in 2000 was 2.6 children per woman. The under-five mortality rate fell from 215 in 1960 to 54 children per 1,000 live births in 2000. The maternal mortality rate was estimated at 230 per 100,000 live births in 1998. The average estimated life expectancy was 70.66 years in 2005.

The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 15,000 people living with HIV/AIDS in the country.

HOUSING

Since the 1950s, significant numbers of Moroccans (estimated at over four million) have moved from the countryside to the urban centers to escape rural unemployment. Housing and sanitation, consequently, have become urban problems. The government is engaged in a low-cost housing program to reduce the slum areas, called bidonvilles that have formed around the large urban centers, especially Casablanca and Rabat. Since 1995, the government has been working on a program to build 200,000 low-cost housing units. In 2001, a government official reported that about 320,000 families were living in slum areas.

EDUCATION

The general school system includes modern secular public institutions, traditional religious schools, and private schools. Nine years of education are compulsory, but many girls leave school at a younger age than boys and girls are a minority in secondary as well as primary schools. Primary school covers six years of study, followed by three years of continued basic studies (college). Students may then attend a general secondary school (lycée) for three years or a technical school for two or three years. At about seventh or eight grade, some studies may opt for vocational school programs. The language of instruction in primary schools is Arabic during the first two years, and both Arabic and French are used for the next three years. French is partly the language of instruction in secondary schools. The traditional religious schools are attended by only a small fraction of students. The government is committed to a unified public school system but has permitted private schools to continue because of the lack of alternative resources.

In 2001, about 60% of children between the ages of four and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 90% of age-eligible students; 92% for boys and 87% for girls. The same year, secondary school enrollment was about 36% of age-eligible students; 38% for boys and 33% for girls. It is estimated that about 89.6% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 28:1 in 2003; the ratio for secondary school was about 18:1.

Morocco has six universities. Al-Qarawiyin University at Fès, founded in 859, is reputed to be the oldest university in the world; it was reorganized in 1962–63 as an Islamic university, supervised by the Ministry of Education. The first modern Moroccan university, the University of Rabat (now the Muhammad V University), was opened in 1957. Other universities are Muhammad bin Abdallah (founded 1974), in Fès; Hassan II (1975), Casablanca; Cadi Ayyad (1978), Marrakech; and Muhammad I (1978), Oujda. There are about two dozen colleges and conservatories. In 2003, about 11% of the tertiary age population were enrolled in some type of higher education program.

In efforts to combat illiteracy, the king has established learning centers in over 100 mosques where citizens between the ages of 15 and 45 can receive literacy courses on Islam, civic education, and hygiene. The adult literacy rate for 2004 was estimated at about 50.7%, with 63.3% for men and 38.3% for women.

As of 2003, public expenditure on education was estimated at 6.5% of GDP, or 26.4% of total government expenditures.

LIBRARIES AND MUSEUMS

The General Library and Archives (1920) in Rabat is the national library, with holdings of 600,000 volumes. Its notable collection of medieval books and manuscripts, of particular interest to Muslim scholars, contains 1,600 ancient manuscripts of famous Islamic writers, including an important treatise by Averroës and classical treatises on medicine and pharmacy. The Muhammad VI Library of the Al Akhawayn University has a collection of over 65,000 books as well over 450 national and international academic journals, magazines and newspapers. The University Sidi-Mohomed Ben Abdelleh, in Fès, holds 225,000 volumes. There are various European and Colonial institutes through the country holding small collections. Of the 18 public libraries in Morocco, the largest is in Casablanca, with almost 360,000 volumes.

The Division of Museums, Sites, Archaeology, and Historic Monuments of the Ministry of Cultural Affairs administers 11 museums in major cities and at the ancient Roman site of Volubilis, northwest of Meknès. In some cities, such as Fès and Marrakech, small houses of historic and artistic interest have been preserved as museums. The Museum of Moroccan Arts and the Museum of Antiquities are in Tangiers. Also in Tangiers is the Forbes Museum, which holds a collection of lead soldiers that belonged to the American Malcolm Forbes. There are archeological museums in Tétouan, Rabat, and Larache. The National Science Museum and the Postal Museum are in Rabat. There are Ethnographic Museums in Chefchaouen and Tétouan.

MEDIA

The postal, telephone, telegraph, radio, and television services are government operated. Telephone and telegraph services connect most towns, and cable service is available to France, Spain, and Gibraltar. In 2003, there were an estimated 40 mainline telephones for every 1,000 people. The same year, there were approximately 243 mobile phones in use for every 1,000 people.

Radio diffusion Television Marocaine presents programs in Arabic, in Berber dialects, and in English, French, and Spanish. The television service, with studios in Casablanca and Rabat, presents daily programs in Arabic and French. A private television station, 2M International, began broadcasting in French and Arabic in 1989. As of 1999 there were 22 AM and 7 FM radio stations and 26 television stations. In 2003, there were an estimated 243 radios and 167 television sets for every 1,000 people. The same year, there were 19.9 personal computers for every 1,000 people and 33 of every 1,000 people had access to the Internet. There were 17 secure Internet servers in the country in 2004.

The country's main press agency, Maghreb Arab Press, is owned by the government. It published the daily Arabic newspaper, Al-Anba'a (Information ), which had a 2002 circulation of about 15,000. Other leading daily newspapers published in Rabat (as of 2002) include the Arabic-language Al Alam (The Flag, circulation 100,000) and the French-language L'Opinion (60,000). The French-language Le Matin du Sahara (100,000) and Maroc Soir (50,000) are published in Casablanca. Al Ittahid Al Ichtiraki (Socialist Unity, 110,000) is a daily Arabic newspaper also published in Casablanca.

Press freedom is guaranteed by the constitution, and censorship of domestic publications was lifted in 1977, but criticism of Islam, the king, the monarchical system, or Morocco's claim to the Western Sahara is not permitted.

ORGANIZATIONS

The Moroccan Trade, Industry, and Handicrafts Association encourages economic development. Chambers of commerce, industry, and agriculture function in most Moroccan cities. British, French, Spanish, and international chambers of commerce are active in Tangier.

Morocco has several drama societies, music organizations (notably the Association for Andalusian Music), and artists' associations. The multinational Islamic Educational, Scientific, and Cultural Organization is based in Rabat. Professional organizations include societies of doctors, pharmacists, lawyers, and engineers. There are several other associations dedicated to research and education for specific fields of medicine and particular diseases and conditions. Societies have been formed to encourage the study of economics, geography, prehistory, sociology, and statistics. There are associations of primary- and secondary-school teachers, parents, older students, and alumni. The National Center for Planning and Coordination of Scientific and Technical Research was established in 1981.

There are at least two major student political groups: the National Union of Moroccan Students and the General Union of Moroccan Students. There are youth movements affiliated with political parties and religious institutions. Scouting programs are also active in the country. There are sports associations representing a wide variety of pastimes, such as tennis, tae kwon do, squash, yachting, and badminton.

The National Mutual Aid Society, a welfare organization with many subdivisions, is headed by Princess Lalla Aïcha, the king's sister. Volunteer service organizations, such as the Lions Clubs International, are also present. The Red Crescent Society and Caritas are also active.

TOURISM, TRAVEL, AND RECREATION

Morocco's scenic variety and beauty, fascinating medieval cities, and favorable climate contribute to a steadily increasing flow of tourists. Tourism is one of the fastest-growing areas of the Moroccan economy and a valuable foreign exchange earner. Casablanca and Marrakech are favorite tourist destinations. Coastal beach resorts offer excellent swimming and boating facilities. Sports associations are widespread, particularly for football (soccer), swimming, boxing, basketball, and tennis.

Most visitors require passports but not visas for stays of up to three months. There were 4,511,684 tourists in 2003, with expenditure receipts totaling almost $3.4 billion. Hotel rooms numbered 75,284 with 147,632 beds and an occupancy rate of 40%. The average length of stay was six nights.

In 2005, the US Department of State estimated the daily cost of staying in Casablanca at $270; in Marrakech, $252; and in Tangier, $266.

FAMOUS MOROCCANS

Important leaders and rulers include Idris I (Idris bin 'Abdallah, r.788–91), of the Umayyad dynasty, who came to Morocco and was able to consolidate much of the area. His son Idris II (r.791–804) founded Fès, the early capital. Yusuf bin Tashfin (r.1061–1106), a religious reformer, conquered much of Spain and northern Africa. Muhammad bin Tumart (1078?–1130) founded the Almohad sect and developed a democratic form of government. The founder of the Almohad dynasty, 'Abd al-Mumin bin 'Ali (1094?–1163), conquered Morocco and parts of Spain. Yakub al-Mansur (r.1184–99), who controlled all of North Africa west of Egypt, encouraged architecture and scholarship. Ahmad al-Mansur (r.1578–1603) drove all foreign forces out of Morocco, conquered the western Sudan, and established commercial and other contacts with England and Europe. Mawlay Isma'il (r.1672–1727) reunited Morocco and organized a harsh but effective centralized government. A capable and strong ruler famous for his justice was Muhammad bin 'Abdallah (r.1757–90).

Morocco has attracted many great minds, and it has been said that none of the great names in western Arabic philosophy is unconnected with Morocco. Avicenna (Ibn Sina, or Abu 'Ali al-Husayn, 980?–1037), a great Persian physician and philosopher and an author of long-used textbooks on medicine, who was born near Bukhoro (Bukhara), lived for a number of years in Morocco. So did Avenzoar (Ibn Zuhr, or Abu Marwan 'Abd al-Malik bin Abu'l-'Ala' Zuhr, c.1090?–1162), physician and scholar, born in Sevilla, in Spain, and author of important medical treatises. Averroës (Ibn Rushd, or Abu al-Walid Muhammad ibn Ahmad ibn Rushd, 1126–98), greatest Arab philosopher of Spain, was born in Córdoba and lived in Morocco for many years. The doctor and philosopher Abubacer (Abu Bakr Muhammad bin 'Abd al-Malik bin Tufayl, d.1118) was likewise brought to the Moroccan court from Spain.

Among distinguished native-born Moroccans was Ahmad bin 'Ali al-Badawi (c.1200?–76), a Muslim saint who was active principally in Egypt. The great traveler Ibn Battutah (Abu 'Abdallah Muhammad bin Battutah, 1304–68?) visited and wrote about many countries of Africa, Asia, and Europe. The poetry of Muhammad bin Ibrahim (d.1955) is read throughout the Islamic world.

A famous fighter for Moroccan independence was 'Abd al-Karim (Muhammad 'Abd al-Karim al-Khattabi, 1882?–1963), who led a long campaign in the 1920s against French and Spanish forces. King Mohammed V (1909–61) gave up his throne as a gesture for independence, was arrested and exiled by the French, and returned in 1955 to become the first ruler of newly independent Morocco. He was succeeded by his son Hassan II (1929–1999), who continued his father's modernization program and expanded Morocco's territory and mineral resources by annexing Western Sahara. Mohammed VI (b.1963) became king following his father's death in 1999.

DEPENDENCIES

Morocco has no territories or colonies.

BIBLIOGRAPHY

Bowles, Paul. Morocco. New York: H. N. Abrams, 1993.

Cook, Weston F. The Hundred Years War for Morocco: Gunpowder and the Military Revolution in the Early Modern Muslim World. Boulder, Colo.: Westview Press, 1994.

Findlay, A. M. Morocco. Oxford, England: Clio Press, 1995.

Hourani, Albert Habib. A History of the Arab Peoples. Cambridge, Mass.: Belknap Press of Harvard University Press, 2002.

McDougall, James (ed.). Nation, Society and Culture in North Africa. London: Frank Cass Publishers, 2003.

Munson, Henry. Religion and Power in Morocco. New Haven, Conn.: Yale University Press, 1993.

Park, Thomas K and Aomar Boum. Historical Dictionary of Morocco. Lanham, Md.: Scarecrow Press, 2006.

Pazzanita, Anthony G. Historical Dictionary of Western Sahara. Lanham, Md.: Scarecrow Press, 2006.

Pennell, C. R. Morocco Since 1830: A History. New York: New York University Press, 1999.

Wagner, Daniel A. Literacy, Culture, and Development: Becoming Literate in Morocco. Cambridge: Cambridge University Press, 1993.

Zeilig, Leo and David Seddon. A Political and Economic Dictionary of Africa. Philadelphia: Routledge/Taylor and Francis, 2005.