Spectacular Drone Footage of Casablanca, Morocco, Under Total Confinement 2MTV
Jean R. AbiNader
April 15, 2020
Jean R. AbiNader, Moroccan American Center
There is no understating the impact of the pandemic globally and in Africa, which has yet to feel its full impact. Death rates are rising, countries are adopting increasingly restrictive measure, health systems are straining, and more and more people are displaced in both the formal and informal economies. Having only recently survived the Ebola virus, Africans are once under the threat of increased isolation, poverty, and a lower standard of living.
The situation is dire. Reporting in his April 11 weekly column “WSJ Pro Emerging & Growth Markets,” Dan Keeler points out that nearly half of the world’s nations, more than 90 countries, have asked about IMF bailouts while at least 60 are seeking aid from the World Bank. Kristalina Georgieva, the managing director of the IMF, said that three months ago, the IMF was expecting per capita incomes to grow in 160 of the IMF’s 189 member countries, but now said the IMF expects per capita income to shrink in 170 countries.
Given this tragedy-in-the-making scenario, there are many lessons to be learned from Morocco’s handling of the coronavirus so far. Much of its success can be attributed to the leadership of King Mohammed VI who early on took actions to mobilize the government and citizens to take on the challenge of protecting their country. While its duration and toll are far from concluded, there is a great deal to be said for the sense of national purpose that has emerged in the country, probably the most since the Casablanca bombings in 2003.
The efforts underway don’t favor urban versus rural areas, professionals or blue-collar workers, the poor or the middle class. Policies focus on encouraging all ages and regions to take measures that will give the country the tools and hope to survive. Without a proven vaccine to immunize millions of people, there is much to be done. Like other countries, Moroccan engineers, health professionals, and technicians have already developed ventilators manufactured from locally available components. Its many textile factories are producing masks and gowns for health workers and communities, without depending on others. What is in short supply are hospitals and personnel who lack test kits, research facilities, country-wide data collection, and an adequate number of nurses and public health workers. The World Bank and the EU have stepped up their support by providing supplies and funds to support small and medium-sized enterprises while the government in rolling out funding for companies to maintain wages and benefits for their employees.
Field hospitals have been set up, clinics in towns and remote areas are gradually being staffed and resourced, medical supplies purchased internationally, and the local pharmaceutical industry is contributing its part by speeding up the manufacturing of important medications.
As early as March 12, the Kingdom was observing protocols for physical contact, with the King notably not shaking hands with visitors. Having a King in charge may have added urgency to collaboration among government agencies which are demonstrating a degree of accountability that is not always the case. International and domestic flights are blocked, borders closed, mosques, schools, and non-essential jobs shuttered, and attention focused on strengthening social safety needs particularly for the poor, marginalized, and rural areas. Where possible, distance learning is being implemented and teleworking emphasized. The government is also making efforts to protect consumers by monitoring supplies and prices of basic commodities, enforced by the security services.
The King initiated the national strategy by creating a special fund of $1.5 billion to support the economy. An additional $2 billion was raised from companies and citizens anxious to contribute to the campaign. While this is just the beginning, the country has also drawn on a $3 billion line of credit with the IMF to protect its capacity to meet the country’s needs both for imports and to stabilize the banking sector. While there is no projecting when markets for Moroccan products will restart or if agriculture will rebound after another disastrous season, hedging now against a longer term downturn is just plain smart planning.
The country’s clear and consistent messaging to the people cannot be overlooked as a factor in the country’s resilience. The King is clearly engaged, government actors are stepping up to challenges, efficiencies such as extending digital access in government operations are moving ahead quickly, and communities are showing their commitment by embracing restrictions, cooperating in the delivery of services to the elderly and infirm, and rekindling relationships despite social distancing protocols.
It is intriguing to think how this will be seen in hindsight from 2030. For now, Moroccans can stand tall with their King and be energized by the sense of cooperation and support that is evident to date.
On the international level, the King has issued a call to his fellow heads of state to develop a continent-wide framework to help vulnerable African countries facing critical challenges in combatting the pandemic. After a video meeting with Alassane Ouattara, president of Côte d’Ivoire, and Macky Sall, president of Senegal, he discussed sharing best practices and lessons being learned to lessen the impact of the virus. WHO experts fear that the pandemic will spread rapidly through sub-Saharan Africa since conditions there limit the effectiveness of social distancing and hygiene practices that slow the spread of the virus. The King also discussed cooperation on providing needed equipment to distressed areas and poorly resourced facilities. It no small way, he is showing leadership and presence that may be a critical factor in Morocco’s ability to weather the pandemic.
American School of Marrakech
Ambassador Edward M. Gabriel (ret.)
March 26, 2020
This month I stepped down as Co-Chairman of the American Schools of Marrakech (ASM) and Tangier (AST), after having co-chaired for the past 10 years with my colleague Larry Kardon during a time of significant change and progress. We took over the reins from the well-known American icon, Joe McPhillips, following his death in 2007. Joe came to Tangier in 1962 to work at the first American school, AST, and went on to inaugurate another school under our corporate umbrella in Marrakech in 1995.
The schools we inherited were a tribute to Joe’s charismatic personality, and were driven by his sheer commitment to bringing the best of American education to Morocco. This year we were proud to add The American School of Benguerir (ASB), in conjunction with the University of Mohammed VI Polytech (UM6P).
During the past decade the schools have reached a superior level of excellence, as shown by the acceptances of our graduates to the highest rated universities in Europe and the US. This is mainly due to the headmasters who were recruited to operate the schools, Sarah Putnam at AST and Jean Brugniau at ASM. The United States has acknowledged this excellence by awarding various government grants for which the schools competed against worldwide competition. Private donors and parents are now stepping up to modernize the schools’ facilities as well, with several partnerships to be announced in the coming year.
In the past six years both schools have achieved US accreditation, with ASM beginning the process of awarding the International Baccalaureate (IB) diploma and AST offering an Advanced Placement (AP) degree. We have also been successful in attracting the first American university in Morocco to be located on the campus in Tangier – New England University – which provides added opportunities and new facilities for the benefit of our students and community.
Perhaps most importantly, during the past decade we witnessed the signing of the first US-Moroccan protocol on schools, legally recognizing the American schools of Morocco and their unique American curriculum. This will allow a foundation for advancing American education and supporting US expatriates who look for top-notch American educational opportunity for their children in Morocco.
As we look ahead to the next decade, we are strengthening our governance structures and board of trustees, recently announcing the appointment of our new Co-Chair, Madison Cox, who will join with Larry Kardon in the oversight of the three American schools. Madison is a world renowned landscape designer, and importantly, President of the Majorelle Gardens and head of Yves Saint Laurent (YSL) properties in Morocco, including the YSL museum.
While no one will be able to fill the void left by Joe McPhillips, we believe the tradition he started nearly sixty years ago – to bring the US and Morocco closer together by offering American educational opportunities for its young citizens and the children of American expatriates – is strong and growing. AST and ASM have added much to this vision and with the addition of ASB, we have much more to look forward to in bringing our two countries closer together.
Third day of demonstrations in front of the Tunisian National Constituent Assembly – March 12, 2011 Photo: Amine GHRABI
Jean R. AbiNader
March 27, 2020
Jean R. AbiNader, Moroccan American Center
Although it is the birthplace of the Arab Spring and has been called the only country to create a democracy as a result of that disruption, Tunisia still faces very tough challenges in implementing economic and political reforms that will put the country on a sustainable strategy for national development. After nine years, the country still lacks a cohesive political leadership, an economy that functions as an engine of growth and job opportunities, and a strong government bureaucracy that provides essential social, health, education, and welfare services.
The bottom line is that without addressing key issues that sparked the demonstrations and continued unrest, including corruption, a lackluster economy, inequity between the coast and the interior and south of the country, youth leaving the country due to a scarcity of jobs, and poor governance, Tunisia’s hard-won freedoms may be threatened by the emergence of a more authoritarian leadership that promises to fulfill the promises of the revolution.
Regarding the political space, the most pressing problem is how to build a cohesive culture out of a fractious electoral system that has no bar for qualifying parties or lists. As a result, the current Parliament, which had already rejected one proposed cabinet, is made up of 31 different parties or electoral lists. Even the largest parties, Ennahda and Qalb Tounes, received only 24 and 18 percent of seats, respectively. The rejection of the first proposed cabinet caused three months of delay until PM Elyes Fakhfakh succeeded in gaining approval, but only after President Qaïs Sa‘id threatened new elections if the new cabinet was not supported.
An article posted by the Carnegie Endowment Middle East noted four areas that must be addressed for promoting economic growth and stability in the long term: education, macroeconomic stability, infrastructural improvements, and fighting corruption. The COVID-19 pandemic has only exacerbated the economy’s fragility since tourism, Tunisia’s top revenue producer, and trade with Europe are on hold as borders are closed and airlines are shut down. In the past, Tunisia could count on Tunisian expatriates’ repatriations, but this is rapidly dwindling as the Gulf and EU economies where most Tunisians work are shut down, severely limited, or victims of the drastic fall in oil prices.
Regarding macroeconomic issues, Tunisia’s foreign borrowing has risen from 50% of the GDP in 2010 to 99.4% of GDP in 2018 with gloomy forecasts for 2020 and beyond. In addition, Tunisia is still burdened with obligations of a $2.8bn loan from the IMF, which imposed various austerity measures on the government at a time in which it needs funds to stimulate the economy and reduce government debt.
Al-Monitor reports that public confidence in the country has fallen along with its economic indicators. “Tunisian polling company Sigma Conseil’s recent polls of Jan. 25 showed that 75.5% of Tunisians believe the country was on the wrong path,” the article further noted; which also pointed out “A March 4 paper by the International Crisis Group cautioning the Tunisian government of the urgent need to address the economy and rapidly improve public services if it is to regain public confidence and avoid a descent into populist extremism.”
Internal squabbling within political parties and a government with ministers from parties and lists that often disagree is another challenge in passing badly needed legislation. Most of the tension, Al-Monitor reports, results from perceived failures of previous governments to address the social and economic needs of the country and what is perceived as stagnating leadership. Without several strong partners to provide leadership in Parliament, Tunisia runs the risk of further deterioration, exacerbated by the pandemic.
COVID-19 is already diverting resources from an already fragile public health system as the country scrambles to isolate and diminish the outbreak. Tunisia hesitated at first to close its air and sea links, which allowed for an inflection in the number of cases, leading to the claim that one of the sources of the virus in Italy was said to be a Tunisian returning to Italy. The number of confirmed cases has risen to 173, even with a curfew imposed the week of March 17, and a general lockdown on March 22 limiting travel outside the home to buying necessities. Further cases are to project since reporting mechanisms are not fully reliable and testing has only begun.
Even before the pandemic, The Carnegie Middle East Center indicated, “Much of the public’s frustration with the political class stems from the inability of democratically-elected figures to deliver positive social and economic change to the Tunisian people… Food prices have increased at a rate of 7.3% per year, with vegetable prices increasing by more than 10 percent and milk by more than 9 percent. Additionally, unemployment remains high, particularly among university graduates at 28 percent. Women are disproportionately affected, with 38 percent of female university graduates unemployed.”
The educational sector has become an issue even though Tunisia has always counted on its human resources as a primary asset. The decline in the quality of public education and technical and vocational training schools, and funding for research centers and universities are hindering its continued excellence. The continued marginalization of the interior regions of the country continues to fester as young Tunisians face shrinking opportunities at home and overseas. “Additionally, since the uprising, the country has witnessed an unprecedented brain drain. Ninety-five thousand people have left Tunisia, 84% of who were highly educated. This includes doctors, engineers, computer scientists, and university professors,” according to the Carnegie account.
One potential support mechanism would be expanding the Free Trade Agreement with the EU that would open markets to more Tunisian exports and bring vital technical and scientific assistance to improve trade procedures at customs and other trade agencies. Time is short. Given lingering economic and political issues, the need to address economic stagnation and corruption, and the unforeseen impact of the COVID-19 pandemic, Tunisia and the rest of North Africa face significant challenges. All of the recovery scenarios are complex and will require the same kind of collaboration and commitment that brought the Nobel Prize to Tunisia’s revolution.
Jean R. AbiNader
March 17, 2020
Jean R. AbiNader, Moroccan American Center
After the displeasure of the people of northern Morocco was clear in the Hirak demonstrations, King Mohammed VI sacked a number of officials and directed the government to move ahead with long promised development projects in the region. Recently, a number of partnership agreements were signed between the central government authorities and local governments to renovate and develop the cities of Tangier, Chefchaouen, Ouazzane, Ksar El Kebir, and Larache at a cost of some $207 million. Eight ministries signed the convention, including the Ministry of Economy and Finance, the Ministry of Culture, and the Ministry of Tourism. The projects run from 2020-2024.
The initiatives aim to preserve the cultural value of Medinas (old cities), enhance tourism potential, as well as develop the urban areas, according to an article in Morocco World News. The redevelopment of the five cities will include the refurbishment of traditional hotels, restaurants, and the reconstruction of ruins; and involve civil society, local architects, and businesses.
A similar effort has been launched in Fez, A UNESCO World Heritage site, to enhance economic activities, improve living conditions in the medina, and safeguard traditional trades with a budget of $70 million focused on numerous sites in the city. These projects target the restoration and rehabilitation of 1,197 buildings and sites that are part of the historic heritage of the medina, upgrading urban spaces, and improving tourist access to various venues. Efforts include improving facilities for traditional handicrafts and providing support for recruitment and training in traditional crafts.
On the political front, the National Rally of Independents (RNI) political party, a member of the governing coalition, headed by Minister of Agriculture and Fisheries Aziz Akhannouch, has called on all parties to quickly begin discussions on electoral laws and political reforms in advance of upcoming 2021 elections. At the meeting of the party’s leadership, the discussion also focused on the latest developments for the agricultural sector. Unfortunately, the international agricultural festival held each spring has been canceled due to concerns around the coronavirus. However, the country has recently launched a new plan to promote the sector with an emphasis on raising the standard of living of people engaged in agricultural by providing incentives and subsidized loans for improvements and expansion.
The meeting also issued a statement of support for the efforts of Moulay Hafid El-Alamy, the Minister of Industry, Trade, and Green and Digital Economy, who is renegotiating the Free Trade Agreement with Turkey and reviewing others as well to protect Morocco’s interests and competitiveness of its industries.
The banking sector is coming under greater scrutiny by the national authorities since the king asked it to act more proactively in supporting the country’s development through better credit facilities for small business and entrepreneurs. This has led the parliament to devise a review of key sectors in the economy to determine if they are profiting unfairly by their treatment of consumers and clients. Its finance and economic development committee is scheduling meetings with the governor of the central bank, the finance ministers, and industry representatives in April, including the state-owned pension fund manager.
It is generally agreed by multinational agencies and rating firms that Morocco needs to adopt new banking reforms if it is to transform its national economy and better support a diversified and proactive development strategy. For example, the weak agricultural results due to a lack of sufficient water have an outsized impact on the country’s GDP because of the number of people employed in the sector. Scarce rainfalls again and the coronavirus are raising concerns over yet another year of slow growth.
In addition to the king’s admonition, the banking sector has drawn fire because of the prevalence of high profitability with declining credit approvals and lower deposits, rising non-performing loans, and worsening macro-economic conditions. Lawmakers are urging firms to set aside more money for “social and solidarity” projects, and better integrate the self-employed and the informal sector into the economy to “ensure social justice and a balanced distribution of wealth,” according to a preliminary committee report.
Questions will focus on lending margins relative to the central bank’s benchmark rate; fees and commissions; the banks’ contribution to job creation; their commitment to fair competition; as well as their social and corporate responsibility programs. In regards to the pension funds manager, CDG, an investigation by Morocco’s audit court found shortcomings with the state-owned pension fund manager’s investment policy and risk-management processes.
Jean R. AbiNader
March 16, 2020
Jean R. AbiNader, Moroccan American Center
This past month has seen a burst of new information on the performance of Morocco’s economy, especially the business sector. End-of-year reports are mostly positive despite an uptick in the national debt, non-performing loans, and little change in the employment outlook. Morocco weathered its latest IMF review and received plaudits for its performance and the country’s health services received welcome support from the African Development Bank.
Of more than passing interest is the story that Japan is now the largest private employer in the kingdom. The most recent count shows that there are 71 Japanese companies with close to 40,000 employees in the automotive and solar power industries. Japan is the fifth largest investor in Morocco and its companies base many of their African operations in Morocco. Trade between the two countries is projected to continue expanding in response to new opportunities on the continent.
Morocco has been chosen to host the IMF/World Bank Group October 2021 Annual Meeting in Marrakech. On a recent visit to the country, IMF managing director, Kristalina Georgieva said that Morocco has implemented reforms to achieve inclusive growth, improve governance, and fight corruption, “leading the way in the region and the continent.” She noted positively Morocco’s investments in Africa, its movement towards a more flexible exchange rate, and the country’s commitment to a new development model. Georgieva also said that “Morocco is considered to be one of the few countries in Africa to have 22% of its GDP in the form of income, while most countries suffer from financial difficulties.” This is an important milestone for Morocco as it is the first time the annual meeting will be held in Africa. She pointed out that Morocco was chosen to be a world economic and financial capital for “its history, its culture, and its economic dynamism.”
In 2019, the African Development Bank (AfDB) loaned Morocco $3 billion for some 35 projects, making it the largest recipient in Africa. Projects include the energy sector (31.5%), transportation (19.8%), water and sanitation (15.5%), multi-sectoral and social development operations (12.7%), the private sector (11.2%), and agriculture (9.4%). The most recent loan of $204 million will finance a four-year program to improve health services under social security coverage. Its goal is to achieve 80% coverage in the country by 2023, including hospital construction, upgrading hospital units/clinics in rural areas, and improvements to 31 social service centers. The program will also strengthen medical coverage for self-employed workers and improve their access to quality health services.
On the banking front, Moroccan families are facing stiff challenges in making ends meet. The Central Bank recently reported that the number of unpaid loans in the country had doubled over the past decade, despite steady growth in giving out loans the past five years. While Non-Performing-Loans are only 7.7% of total loans, this represents some $7.3 billion, causing a headache for the banks’ balance sheets. Bank loans have increased 10.9% in the past year to $100 billion, twice the level in 2014 and representing some 88% of GDP.
A very intriguing study was recently released that rates how a country’s legal and regulatory systems enable or discourage illicit financial flows. The Financial Secrecy Index gave Morocco a better ranking in terms of secrecy and transparency that many European and Asian countries. Among the criteria are laws in the country regarding beneficial ownership information transparency (who owns and controls companies), data on who owns real estate, anti-money laundering laws, and mechanism for international cooperation. The top 10 (worst) are the Cayman Islands, US, Switzerland, Hong Kong, Luxembourg, Japan, Netherlands, British Virgin Islands, and the UAE. The ten best (of 133 countries) are
Gambia, Brunei, Trinidad and Tobago, Slovenia, Monserrat, Nauru, St. Lucia, and the Cook Islands. Morocco placed 72, and you can find the details here.
Morocco’s uneven economic performance underscores the challenges Morocco faces as its continues to diversity its economy, builds its skilled workforce, and enables greater performance by the private sector through reforms, promoting entrepreneurship, and strengthening the role of small and medium-sized enterprises.
Two important agreements signed with the College of Europe will help build the capabilities of Moroccan professionals in foreign affairs and European studies. One focuses on promoting cooperation with the College on training related to diplomacy, international law, and international relations involving exchanges of diplomats and students. Also included are exchanges of lecturers and experts in fields related to diplomacy, sharing expertise in training design and implementation, and conferences between the parties to enable Moroccans to acquire more sophisticated and expansive diplomatic training.
The second Memorandum of Understanding focuses on setting up a selection committee for Moroccans applying for the program to award scholarships in politics and governance, law, economics, international and diplomatic relations, and interdisciplinary studies.
