FOM Newsletter July 2003
Morocco Week in Review 
July 26 2003

RABAT, July 25 (Reuters) - King Mohammed of Morocco moved his domestic intelligence chief to head the country's police forces on Friday as part of a law-and-order crackdown following suicide bombings in Casablanca in May. General Hamidou Laanigri's appointment as the powerful national police chief was a sign relaxed policing has been blamed for the failure to detect the bomb plot, apparently organised by radical Islamists, political sources said.  Conservative commentator Mustapha Sehimi said the appointment came in response to "a strong demand from the public for an overhaul of the security apparatus," following the attacks which killed 44 people, including 12 suicide bombers.  More than 700 people nationwide are facing charges either in connection with the Casablanca bombings or with attacks allegedly planned in other cities by an ultra-conservative Islamist current, the Salafist Jihad. Laanigri's move was likely to irk local human rights groups, who questioned his role under the late King Hassan when security services were accused of widespread human rights abuses.

Laanigri, who began his career in the gendarmerie, was appointed to head the General Directorate for the Surveillance of the Territory by King Mohammed soon after he became king in July 1999.  Independent journalist Aboubakr Jamai said his appointment as the director of National Security meant there would be a dangerous concentration of power in the hands of one person.  Ahmed Harari, until now DST chief for Casablanca, replaced Laanigri at the head of the DST, the official MAP news agency said. ((Reporting by Eileen Byrne; Reuters Messaging: eileen.byrne.reuters.com@reuters.net; +212-37 720065))

US Congress Announces Creation of Congressional Morocco Caucus

WASHINGTON, July 23 - The US Congress announced Tuesday the creation of a Congressional Morocco Caucus that aims to promote strategic relations binding Morocco and the US.  Rep. Phil English, one of four co-chairmen of the caucus that was founded at the initiative of congressman Lincoln Diaz-Balart, said the parliamentary group is a step forward toward the conclusion of a free trade agreement and will reinforce Moroccan-US historic relations that date back to 1777.

In addition to investment and business opportunities which the FTA, that is currently being negotiated in Washington, will open to both countries, the agreement may transform Morocco into a hub for regional trade given its geo-strategic location, English noted. Moroccan delegate minister for foreign affairs and cooperation and chief negotiator for the FTA with the USA, Taib Fassi Fihri, told the caucus members that their adherence to the fresh group evidences that they share Morocco's approach, vision and determination to cement bilateral partnership, adding that the US decision to conclude an FTA with the north African country, confirms its support to the important economic, political and social reforms currently being conducted in Morocco under the aegis of H.M. king Mohammed VI. In this vein, he said the new caucus' support for the anticipated agreement ``is crucial, because negotiations are delicate in certain areas."

For his part, U.S. trade representative, Robert Zoellick, reiterated support to the agreement, stressing that it will open the world's largest market for Moroccan products.  Negotiations between the two countries began in January and are expected to be completed by the end of the year. Moroccan and US officials cited important progress in the 4th round of negotiations that started this week in Washington. © MAP 2003

Morocco, US to Hold 5th Round of FTA Negotiations in October

WASHINGTON, July 25- Morocco and the United States agreed to hold the 5th round of negotiations for a free trade agreement next October in Morocco, Morocco's delegate-minister of foreign affairs and cooperation and chief negotiator for an FTA with the US, Taieb Fassi Fihri announced Thursday. Fassi told reporters in a joint press conference with US chief negotiator for an FTA, Catherine Novelli, that Moroccan and US negotiators that held the 4th round of negotiations this week in Washington drew the general guidelines of the agreement as well as the principles and practical modalities for trade liberalization.  The Moroccan minister underlined that Moroccan negotiators expounded to the US side ongoing economic and social reforms in Morocco, underlining that an FTA with the US is a sign of trust in the kingdom's economy. For Novelli, negotiations were very productive, and enabled to reach significant moves forward at all levels and sectors. According to the US official, there are still pending issues but negotiations are going on the right path and they are due to end at the end of 2003.  

To a question on the effect of the agreement on trade relations with the European Union, Fihri denied that a free trade agreement with the USA would entail any effects on Morocco's trade with the EU, insisting that it is an opportunity for Morocco to diversify cooperation with countries all over the world. Both the EU and the USA share the view that it is important that Morocco secures a good development level by draining foreign investments, he argued. Novelli also stressed that the Americans support the promotion of economic relations between Morocco and the European Union, underscoring that Americans strongly believe that trade liberalization contributes to opening markets, generating jobs, and bringing about prosperity. Morocco and the US are hoping to reach before end of this year the agreement announced in April 2002 during a state visit to the USA by H.M. King Mohammed VI. Morocco will therefore become the first African country to conclude an FTA with the US. © MAP 2003

US volunteer corps financial experts in Morocco to promote economic growth.

A US delegation of the Financial Services Volunteer Corps (FSVC) visited Morocco this July 13-18 in a mission meant to better target US technical assistance to the Moroccan financial and business sectors. FSVC said in a release the purpose of the visit, an initiative of the U.S. Department of State, is "to obtain advice from Moroccans on the best manner in which to structure US technical assistance to the country's financial and business sectors in preparation for the signature of a Free Trade Agreement between Morocco and the United States of America." FSVC Executive Director, Andrew Spindler, said Friday in a press briefing the delegation inquired about the needs of small and middle-sized enterprises, underlining that an assistance program will be adopted to address funding problems.

It is likely that an FSVC program of financial sector technical assistance in Morocco funded by Middle East Partnership Initiative resources will result from the team's visit, the release goes on.  In this connection, the delegation held talks with senior-level officials in Bank al-Maghrib, the finance ministry and private sector operators to probe means to promote economic growth. According to Spindler, FSVC may organize training that profit to small and middle-sized enterprises and bank cadres. Founded in 1990, FSVC is a non-profit organization that mobilizes the expertise of financial professionals to assist countries making the transition to market economies by recruiting senior bankers, lawyers, accountants, and other professionals to serve as volunteers on carefully designed assistance missions. It is supported by grants from USAID corporations and individuals. FSVC has since its creation carried out hundreds of projects in more than 23 countries.

Four Medical Units Donated to Mohammed V Solidarity Foundation

CASABLANCA, July 22 - H.M. King Mohammed VI received this Tuesday afternoon at the royal palace in Casablanca a group of donors who extended to the Mohammed V solidarity foundation 4 mobile medical units.  The donors are Mehdi Qotbi, chairman of the Moroccan-French friendship circle, and Aziz Akhnouch, Saad Kettani, Allal Mansouri, Abdelhak Mounir and Francis Breton.  The mobile units comprise each a room for surgeons, a surgery ward and a radiology room. They are equipped with a generator, surgery tables, radiology units, echography devices and other tools for surgery. The sovereign thanked the donors for the humanitarian gestures and instructed the Mohamed V solidarity foundation to use these units by voluntary doctors for diagnosis and health care campaigns, especially in rural areas. MAP 2003

Moroccan and US FTA Negotiators Cite Important Headway

WASHINGTON, July 22 - Moroccan-US negotiations a free trade agreement started in Washington on Monday are making important headway, said Moroccan and US negotiators.  Delegate minister for foreign affairs and cooperation and chief negotiator for the FTA with the USA, Taib Fassi Fihri, said in a meeting held by the US Center of Strategic International Studies (CSIS) the accord will cement the strategic alliance between the two countries, promote investment and business opportunities and support the development and modernization process in the kingdom, recalling the fresh train of laws that were adopted in the kingdom, especially in labor and environment protection. Fihri noted that some sector are very important for Morocco, like agriculture that provides a living for half the Moroccan population and due to its importance as a vector of social and economic development. The minister also hailed US initiatives to establish a partnership with the Middle East and a free zone area with Middle-Eastern countries.  

On his part, congressmen Phil English who chairs a special commission in the Congress on the US- Morocco FTA hailed the progress achieved in trade negotiations between the two counties that "share a common history," stressing that Morocco is a strategic ally and was the first country to recognize the United States in 1777.  The congressman also highlighted Morocco's assets as a promising market offering several business and investment opportunities. US chief negotiator and assistant trade representative, Catherine Novelli, said the FTA will back economic and political reforms carried out by Morocco to take up the challenges of globalization, hailing the north African country's determination to modernize the agricultural and legal sectors. She added that Morocco would be a regional hub for investment and trade given its geo-strategic location at the cross-road between the Middle-East, Sub-Saharan Africa and Europe. US ambassador in Rabat, Margaret Tutwiler, said several bodies in Washington are currently examining Morocco' needs and means that are likely to help it face the current difficulties, recalling Morocco's stand following 9/11.  Morocco and the USA are hoping to sign by end 2004 the agreement that was first announced in April 2002. © MAP 2003

Rabat initiates households waste selective disposal.

The Rabat town hall of Agdal-Ryad has started a trial selective waste disposal in some locations in the capital to get inhabitants accustomed to dispose of various kinds of households waste in different bins. In each of the five locations, people will throw their waste in separate trash bins:a blue one for paper, a yellow for plastic waste, a red one for glass, and a green one for other waste. The town hall will then collect this waste for recycling in a bid to decrease the quantity of waste disposed of in public dumps. A public awareness and information campaign is supporting this initiative.

France Extends additional 150 Million Euros in Financial Assistance to TETUAN, 

July 25 (KUNA) -- France announced an additional 150 million Euro in financial assistance to Morocco, extending over three years, to consolidate the Kingdoms economic and social infrastructure.  French Premier, Jean-Pierre Raffarin, announced at a joint press conference with Moroccan peer, Driss Jettou, following an audience in Tetuan (northern Morocco) with King Mohammed VI "France has decided to double the action of the French Development Agency in Morocco by earmarking an additional 150 million Euros to participate in economic and social infrastructures in Morocco". The fund will finance major projects such as highways and railways.  In addition to these public funds, Raffarin said his country will also be encouraging enterprises to get involved in major projects in Morocco and participate in public-private partnership actions. He also hoped that French local councils will consolidate cooperation with their Moroccan counterparts for the promotion of housing.  

The Moroccan prime minister who described the 5th high level encounter of the two countries prime ministers, held this July 24-25, as "successful" said it helped move forward to "a significant consolidation of financial cooperation and a restructuring of French financial implements destined to Moroccos economy upgrading". These financial implements will henceforth be more accessible to Moroccan small and medium-sized enterprises, he stressed. Raffarin, who paid this July 24-25 his first official visit to Morocco since he took office in May 2002, was received this Friday by king Mohammed VI. He also chaired with Jettou the fifth high level encounter of the two countries Premiers. Raffarin was accompanied during his visit to Morocco by foreign minister, Dominique de Villepin, and other members of the French government. Article originally published by Kuwait News Agency (KUNA)

H.M. King Mohammed VI Launches Dam Construction in Ben'Hmed

Ben'Hmed (south of Casablanca), July 21 (MAP)- H.M. King Mohammed VI launched this Monday afternoon the construction of the "Boukarkour" dam in the Ben'Hmed locality, near Settat (south of Casablanca). The dam, part of a government plan to fight floods, is estimated at 260 million DH (US$ 27.3 million) supplied by the Jeddah-based Islamic Development Bank (IDB) and the state budget. It uses a new technique that allows to save 25% of the concrete volume used in the conventional concrete and reduce by 33% the time needed to build a dam. Morocco is the 3rd country in the world, after USA and Japan, to make a broad use of this technique. In addition to its importance in preventing floods, the new dam will also be useful in water supply for irrigation, drinking and tourism ends. It will regularize an annual 10 cubic meters of water. In addition to the dam, several projects will be carried out, including a fish culture project and a lake. The sovereign also heard explanations on drinking water supply to the neighboring towns of El Gara and Ben'Hmed. Facilities, worth 160 million DH (US$ 16.8 million), will benefit 130,000 persons, including 92,000 in rural areas. A sewage project will also be carried out in the neighboring city of Berrechid for a cost of 105 million DH (about US$ 11 million). It is financed by the city's town hall, the interior ministry and the drinking water office.

Human rights organization makes mitigated assessment of rights respect in Morocco.

The Moroccan human rights organization (OMDH) praises progress covered in Morocco in the promotion of political and cultural rights and calls for a definitive settlement of pending issues related to serious past human rights abuses.  In its annual report, the OMDH says much progress has been achieved as far as gathering the needed conditions for political participation is concerned, citing in this regard the latest legislative elections that were held on the scheduled date. Presenting the outlines of the report to the press, the OMDH chairman, Abdellah Oualladi, also cited the adoption of important guarantees in the electoral law, mainly the enforcement of the list poll, the allocation of 30 seats at the House of Representatives to women and the enforcement of more stringent measures against electoral law offenders. However, the report criticizes "the passive" attitude of the administration in some cases and the delay in proclaiming the elections results. The organization also calls for setting an independent fact-finding commission to establish truth regarding "serious past human rights abuses," compensate damages, elucidate the case of missing persons and enforce legal and institutional measures to avoid the repetition of such violations.  

The report also praises the new composition of the human rights consultative council (CCDH) whose members were appointed last December by King Mohammed VI. The CCDH comprises 11 members nominated by the king, 12 members nominated by human rights-advocacy associations, 9 members nominated by political parties and trade unions and 6 members proposed by the Ulema (Islamic theologians) associations, magistrates, lawyers, medical doctors, university professors and the Hassan II foundation of Moroccans settled abroad.

The human rights-advocacy organization further calls the CCDH to endeavor "for a headway in the process to fairly settle past serious human rights abuses and open dialogue with the body in charge of following up recommendations of the national forum on past human rights breaches." An appeal was also launched to amend the Mudawana (personal statute law) in order to do justice to women and promote their participation in the society's development. Regarding linguistic and cultural rights, the OMDH underscored that King Mohammed VI has set up an institute in charge of the Amazigh culture that was commissioned to promote the Amazigh culture, follow up the issue of integrating the Amazigh language in education, and propose adequate policies to reinforce the status of Amazigh culture in the Moroccan cultural and information sphere

The textile-clothing sector posted a 28 billion DHS (US $2.8 billion) in sales in 2002, that is a 0.5 rise compared to 2001, chairman of Moroccan Textile and Clothing Industry Association (AMITH), Salaheddine Mezouar, said on Thursday.  Exports constituted 70 percent of the sales, he added, noting that hosiery exports were valued at 7.9 billion DHs (US $790 million), that is an increase of 4.1 percent compared to last year, while apparel products exports dropped by 1.8 percent with 18.4 billion Dhs (US $1.8 billion).  According to Mezouar, apart from the Spanish, Portuguese and UK markets that registered respectively 15%, 24% and 5% rises, drops were recorded in all the other markets in the European Union. Nevertheless, the textile-clothing sector is still the largest employer and exporting industry enterprise, holding respectively 43%, 36% of the market share. A percentage of 23% created enterprises are active in the textile and garment sector, said AMITH's chairman. The sector has contributed 27 percent of the wage bill in the national industry and accounted for 17 percent of its overall investments in 2002. Under a framework agreement between AMITH's and the government, 29 projects received 320 million DHs (US $32 million) from the Hassan II fund in 2002, generating some 7,300 jobs, he added.

Moroccan justice minister probes justice reforms with international NGO law group.

Moroccan justice minister, Mohamed Bouzoubaa, probed here on Friday with a delegation of the International Law Group non-governmental organization means to back efforts to reform justice in Morocco. The minister proposed convening experts from Morocco and from the Law group meet to identify areas of cooperation in justice and human rights sector. He also thanked the association for its interest in Morocco and its readiness to bring assistance to Morocco in which a new penal law will enter into force starting next October. The International Human Rights Law Group, which had many activities in Morocco, is a non-profit organization of human rights and legal professionals from over 20 countries engaged in advocacy, strategic human rights lawyering and training around the world. It aims to empower local advocates to expand the scope of human rights protection and promote broad participation in building human rights standards and procedures at the national, regional and international levels. 

http://www.arabicnews.com/ansub/Daily/Day/030721/2003072125.html 

Second handling company operates in Moroccan airports.

A second handling operator will start next January passenger services and luggage and passenger registration activities in Moroccan major airports. The Moroccan office airports announced that it has launched bids for a second handling company for Moroccan airports in order to improve services extended to passengers and to various airliners servicing Moroccan destinations. Morocco possesses 22 airports, including 11 international standing ones. In 2002, 7 million passengers used these airports and 95,000 flights were recorded.

Teaching Arabic language and culture, a must to maintain Moroccan expats children's links with home country

Moroccan delegate minister in charge of Moroccans living abroad, Nezha Chekrouni, said teaching Arabic language and culture to children of Moroccan expatriates is a must to maintain links between this community and their home country.  The official told "La Gazette du Maroc" weekly that teaching Arabic to Moroccan children born abroad should be an integrated approach conducted in partnership between host countries and the Moroccan government. She explained that past experiences in the field have not been successful. Chekrouni, who has recently toured several European countries where she discussed with Moroccan expatriates their education needs, also cited other problems facing this community, mainly the inadequacy between laws in the home country and in the host countries. She said the problem is being addressed through the creation of bilateral commissions with some host countries, like the Netherlands, France and Belgium, but added that their role is very limited. Other problems facing the Moroccan expatriates include their political representation in Morocco, she said announcing that Morocco is currently pondering on a formula to allow Moroccans living abroad be represented in elected bodies, stressing that this should be done on clear democratic bases.

U.S. weighs pre-trade pact aid package for Morocco

WASHINGTON, July 21 (Reuters) - The United States is considering a new aid package for Morocco, a prospective free trade partner, which was struck by a deadly suicide bomb attack two months ago, a U.S. official said on Monday. Margaret Tutweiler, U.S. ambassador to the North African kingdom, said U.S. government agencies were actively discussing how to help Morocco in the aftermath of the attack, which left 44 dead, including the bombers. "Everyone has been charged -- whether it's Agriculture, Treasury, Pentagon, the State Department, USTR -- to take a serious deep look at what additional measures can we ... be doing to assist Morocco at this time," she said. In a discussion on a proposed U.S.-Morocco Free Trade Agreement Tutweiler was not able to say what form the aid would take, but she added: "I ... am cautiously optimistic that they will be tangible and they will be meaningful."

She praised Morocco's King Mohammed for pursuing a free trade pact with the United States despite domestic opposition. The United States provides about $5 million in annual aid to Morocco, compared with Japan and Italy which each give about $100 million, Aziz Mehouar, Morocco's ambassador to the United States, told Reuters. A big increase in U.S. assistance would help Morocco boost its annual economic growth to about 8 percent from 5 percent currently, Mehouar said. "We need serious support from our friends and the United States is one of our best friends." Negotiators from both countries said they were on track to forge the trade pact by year end. The proposed deal has created concern in Morocco's rural areas, where about half of the population lives. Moroccan officials said they need a long transition period for lowering agricultural tariffs to give farmers time to adjust.  Chief Moroccan negotiator Fassi Fihri told reporters the two sides were discussing transition periods in the range of 12 to 15 years for some commodities. Although Morocco is committed to phasing out all tariffs on U.S. farm goods, it would like smaller cuts in the early years combined with quotas to limit imports, he said.

((Reporting by Doug Palmer, doug.palmer@reuters.com ; Reuters Messaging: doug.palmer.reuters.com@reuters.net ; +202 898 8341))

King Mohammed launches construction of national library in Rabat

Morocco's King Mohammed, who was accompanied by Prince Moulay Rachid, launched this Wednesday construction of the national library of the Kingdom of Morocco, part of the "Rabat, capital of Arab culture" celebrations. The project is destined to endow Morocco with a modern and performing cultural institution that will safeguard documents and cultural legacy and promote the spread of knowledge. Extending over 53,978 square meters, the project will cost 150 million DH (US$ 15.7 million) to be financed by the Hassan II fund for economic and social development. The national library will feature facilities for the public, spaces for books and audio-visual material, digital documents, post cards, stamps and posters as well as spaces for research, a library of printed material and other documentary funds. The library will have an Arab and international influence and will be the most important reference in research and cultural exchange, culture minister, Mohamed Achaari said. The new project will help safeguard the Moroccan cultural heritage and will be a support to students and researchers, he went on.

Angelina Jolie to star in Alexander movie shot in Morocco

Angelina Jolie who stars in Lara Croft 2: The Cradle Of Life, joins Colin Farrell and Anthony Hopkins in Oliver Stone's Alexander to be shot in Morocco. The 28-year old actress will play Alexander's mother Olympias in the flick about the life story of the Macedonian conqueror, reports from Hollywood say. Oliver Stone will start shooting next September 22 in Morocco. Hopkins will play Ptolemy while the role of Phillip, Alexander's father, has yet to be cast.

The Moroccan state-owned drinking water company (ONEP) said it is projecting to invest 20 billion DH (US$ 2.1 billion) in its 2003-2007 work plan in order to develop the supply of water resources nationwide. ONEP general manager, Ali Fassi Fihri, told a meeting of the company's administrative board held in the presence of minister of territory development, water and environment, Mohamed El Yazghi, 6.7 billion DH (US$ 705 million) will be allocated to supply drinking water to some 5.6 million people in rural areas while another 9.4 billion DH (US$ 989 million) will go to drinking water supply in cities. A budget of 3.9 billion DH (US$ 410.5 million) will be earmarked to liquid sanitation in 81 cities.  The ONEP general manager noted that in 2003, various projects carried out by the company in rural areas, for a total cost of 485 million DH (US$ 51 million) benefited nearly one million inhabitants. In the same year, it is projected to supply drinking water to 46 new centers, which is a progression of 48% compared to 2002. The government committed to supply drinking water to 90% of rural populations by 2007.

Japan donates Morocco $1.8 million to complete fishing village

Japan has donated Morocco 18 million Dirhams (US$ 1.8 million) to complete the second phase of the Sidi Hsain fishing village in the northeastern province of Nador. The fishing village's overall cost is estimated at 61 million DH (US$ 6.4 million). The Japanese donation is the fourth of the kind to Morocco's program of traditional fishing promotion, after its contribution to three other similar villages on the Mediterranean coast. Works to start next August will comprise port and ground facilities, including a wholesale market, a workshop for the repair of boats and an ice-making unit. The donation document was signed on Tuesday by Morocco's fisheries minister, Tayeb Rhafes, and Japan's ambassador to Morocco Yoshitaka Kwamura.

Textile, Clothing Sales Reach $2.9bn In 2002

Morocco's textile and clothing industry saw its turnover edge up 0.5 per cent year-on-year in 2002 to $2.9 billion, data compiled by industry group AMITH revealed Tuesday. The association said exports accounted for 70 per cent of that total with orders to the UK, Spain and Portugal up five per cent, 24 per cent and 15 per cent, respectively. It added exports to other EU nations fell last year while overall hosiery exports slipped four per cent year-on-year and shipments of ready-made apparel slipped two per cent from 2001.

Morocco begins work on first highway to Marrakesh

RABAT, July 21 (Reuters) - Construction began on Monday in Morocco on the first highway to connect the busy tourist hub of Marrakesh to the rest of the country. King Mohammed inaugurated work on a 163-km (100-mile) section from the city of Settat, southeast of the business hub Casablanca, to Marrakesh, the official MAP news agency said. It said the project would cost about $390 million, partly financed by loans from Gulf-based funds, and construction would last four years. The new highway will put Marrakesh less than two hours' drive from Casablanca and run parallel to a current two-lane road, which is one of the busiest and most dangerous in Morocco. The North African country has a limited highway network that stretches over about 1,000 km (600 miles) and links main cities in the north, including Fes, Meknes, the capital Rabat and Casablanca. ((Reporting by Gilles Trequesser, editing by Steve Orlofsky; Reuters Messaging: gilles.trequesser.reuters.com@reuters.net; +212-37 720065))

Rights group says Moroccan police using torture

PARIS, July 24 (Reuters) - A Paris-based human rights group said on Thursday it was concerned about reports indicating police in Morocco were using torture and beatings in their investigationsinto terrorism. Delegates of the International Federation of Human Rights Leagues (FIDH), on a July 12-19 visit to Morocco, heard that of thousands of people questioned since deadly suicide bombings in May, some were kept in jail for weeks and mistreated by police.  "It was brought to the knowledge of the FIDH delegation that harsh treatment and torture (beatings, electrocution, sexual abuse) have been practiced over the course of police investigations," the FIDH said in a statement. The rights group said two people died in suspicious circumstances after interrogation, some trials were conducted without witness hearings and the death sentence was pronounced on the basis of insufficient investigations or charges. Detention conditions in some jails had also become harsher since the May 16 bombings, with cramped cells, no newspapers and restricted family visits, it said. "At a time when trials have been opened for 700 Islamic suspects, the FIDH is calling upon the Moroccan authorities to put a stop to these observed rights violations," the group said.

"The FIDH urges Morocco and its sovereign not to...proceed with executions that will only hand over to the extremist enemies of their freedom their long-awaited martyrs." Around 700 people will go on trial in Morocco in the days ahead in connection with the five almost-simultaneous May 16 bombings in Casablanca which killed 44 people. Human rights activists in Morocco and abroad have already voiced concerns about the implementation of new anti-terrorism legislation and a perceived regression in civil liberties. Morocco changed its penal code at the start of the year to extend the time police can hold suspects to beyond 48 hours when national security is involved, in a bid to combat terrorism.  Rights campaigners have also been concerned about some 300 people, mainly suspected left-wingers or Western Saharans, believed to have been killed in detention centres in the 1960s to 1980s. Moroccan authorities are working through thousands of compensation claims by survivors of illegal detentions or unfair trials in those decades. 

((Catherine Bremer, Paris Newsroom, +33 1 4949 5146, Reuters Messaging:catherine.bremer.reuters.com@reuters.net ))

Labour Travails with New Code

To a collective sigh of relief and after over a quarter century of waiting, a new labour code was adopted by parliament at the start of this month. The code enshrines worker's rights, the principle of collective negotiations, and the need for more flexibility in the workplace. Most professionals agree that it ensures better visibility in intracompany relations, but scepticism remains about its successful implementation when it passes into law at the end of the year. Although the informal sector could undermine the code, the latter does nevertheless hold the promise of a large improvement in labour relations. The labour code has been a perennial feature of the legislative agenda for the past 25 years. It has been held up for a number of reasons, from governmental apathy to union intransigence, but a number of key events and trends in the past few years has allowed the impasse to be breached. 

Firstly, union opposition has lessened over the years - concomitant with the changing nature of work relations. A declining public sector workforce, growing flexibility prerogatives in the private sector and the incorporation of informal work networks has seen union bargaining power weaken. This has been furthered by general political apathy (most unions are affiliated to one of the main political parties) and union membership has dropped substantially over the past decade.  Union-government relations have also matured. The previous government of Abderrahmane Youssoufi attempted to push through the code, but was plagued by partisan politics. The rupture of the Confederation Democratique des Travailleurs du Maroc (CDT) with its former party affiliate, the USFP (stemming, some say, over personal differences between CDT's head Noubir El Amaoui and the USFP's Abderrahmane Youssoufi) was a major reason for the subsequent legislative block. Such problems have been absent in Driss Jettou's government. Despite the somewhat unwieldy size of the coalition government (33 ministers and six secretaries of state at the latest count), Driss Jettou is notable for being a technocrat, that is, for having no personal party affiliation. Thus the negotiations passed smoothly. As Miloud Mokharik, national secretary of the Union Marocaine du Travail (UMT, the oldest and only independent union), put it, in an interview with L'Economiste - 'The [government] played its real role, that of mediator and arbiter between the social partners." In other words, the government acted as a political forum for the rival workers' and businessmen's positions.

Hassan Chami, newly re-elected leader of the national businessmen's association, the Confederation General des Entreprises du Maroc (CGEM) said that the code was consensual, a compromise between worker desires and a company management concerned with international competition. The code is therefore commendable for the degree of support it has gained from across the social and political divide. There are five main elements in the new law, which will be formally adopted at the start of 2004. Firstly, employee and union rights are enshrined, although the details surrounding the right to strike are still being negotiated. Recent strikes amongst lorry drivers, tanners, bakers, slaughterhouse workers, and even bankers have been greeted with an almost Gallic shrug of the shoulders. But the signal sent abroad is more critical for a Foreign Direct Investment (FDI)-hungry nation. 

A second important element is a clear framework for dismissals, including precise details of what constitutes contract violations which might lead to eing fired, as well as what indemnities can be expected for unfair  dismissal. There are numerous anecdotes about the difficulty of dismissal, and legal analysts interviewed by OBG confirm that the judicial system is burdened by a plethora of court processes dealing with unfair dismissals. The code should help rectify this impediment, which perversely encourages employers to take on informal non-contracted work. 

A third element is the legalisation of temping and work agencies. subcontracting work to third parties has been a common feature of the economy for a while, and the government, unions, and business leaders now recognise the preference for legal channels (with rights and obligations), rather than the informal work networks that existed previously. The stipulation that a temporary contract can only last up to six months has a rather questionable logic to it, but the increased labour market flexibility should help to soak up the particularly nefarious qualified worker unemployment. Job agencies have an important niche to fill in the labour market - as Jamal Belahrach of Manpower put it, it is necessary to equip the Moroccan economy with the same tools that developed countries use. 

A fourth element is the establishment of collective negotiations, on an annual basis, as well as the creation of company committees, comprising employers, employees and union members. Such links are intended to shift labour relations to one of co-operation and partnership. A fifth and final element is the establishment of the 44-hour working week (except for the agricultural sector, which will remain at 48 hours). This is commendable in terms of encouraging employers not to overwork their employees and it does indirectly support a reduction in unemployment. This notwithstanding, it does offer the prospect of bypassing the regulations by dipping into the informal labour market (including 'informal overtime', as witnessed in 35-hour per week France). This applies particularly to the less supervised services sector.

Some union leaders remain skeptical about the code's implementation. The UNT (affiliated to the PJD) says passing the law is not the issue - it is the law's full application which will be important. This is not a small issue, as it is arguably poor visibility and laxity with regards to labour laws that saw such a large rise in strikes in the latter half of the nineties (with a peak of 439 strikes declared in 1999). The numbers may have fallen since then, but it will still take a quantum leap in vision for the businessman-union conflictual relationship to be replaced by one of partnership. Cultural change is notoriously slow, but annual employer-employee negotiations (at the company, sectoral, and national level) offer the framework for such a change. Other potential pitfalls need to be taken into account. Firstly the annual negotiations: by way of comparison, Tunisia's corporatist system is based on tri-annual wage negotiations between the government, the business community and the unions. They are often protracted, leading one to fear that an annual system as proposed by the code runs the risk of deadlocking negotiations (or alternatively wage inflation and competitive loss). Moreover, such negotiations may work on the micro-scale, but difficulties may emerge on the sectoral and national level, due to the diversity and incomplete representation of the different businessmen and worker associations. Secondly union-business partnerships and the establishment of a company committee will bring unions and business leaders closer. It may paradoxically see unions and workers' interests drift apart, as has happened in other countries where unions have become institutionalised in the company. Put simply, union time is taken up by committee meetings and intracompany workgroups rather than listening to employee complaints on the shop floor. Union professionalisation may entail a marginalisation of their members' concerns. Perhaps the most significant question will be the informal sector. Various estimates put its share of the total workforce at between 25% and 60% (it is by its nature difficult to estimate, thus the wide disparity). What is certain is that the informal sector thrives in a developing country when the public sector is downsized, the market is liberalised, and the formal sector is over-regulated. In this schema, strong worker rights and a social democratic wage bargaining system will encourage outsourcing work to the informal sector (in the name of cost competitiveness). What is therefore required is stronger supervision of the informal sector (including penalties for companies engaged in informal networks) as well as more job creation in the formal sector. That of course, is another debate.

© Oxford Business Group 2003 Article originally published by Oxford Business Group

Get ready to dance your way through the "Fabric of Moroccan Life" exhibit at the National Museum of African Art. This is that rare show that successfully integrates different artistic media - here, fiber arts, music and photography. The piped-in rhythms of what sounds like Middle Eastern belly dancing music propel you to the sensuous, touchy-feely fabrics that, unfortunately, can't be touched. Yet, the exhibit is about touch, if only vicarious touch. The painter Paul Gauguin once wrote, "You painters ask for a technique of color - study carpets, and there you will find everything that is knowledge." He must have been thinking that the textiles' rich three-dimensional design, surface and color were a step forward when contrasted with mere two-dimensional painting. The sensory attractions of Moroccan fibers abound here in textiles as varied as elegantly embroidered velvet-and-metallic-thread wall hangings and silk-and-metallic-thread stitched leather boots. There are also a mountain woman's enormous shaggy wool shawl and a Plains-of-Marakesh rug with Star of David motifs commissioned by a Jewish family. In the last gallery, you see brilliantly hued sienna wedding head scarves painted with liquid from henna plants valued for their color and "blessing power."

It's as if the diverse ethnic groups of the Kingdom of Morocco - Arabs, Berbers and Jews - all threw their textile traditions into the same pot to create a bubbling, tasty stew. The variety is astonishing considering that Morocco is just slightly larger than California. Alan Knezevich, Museum of African Art assistant director of exhibits, resourcefully managed to retain cohesion in the midst of the show's diversity by re-creating Morocco's rich golds and earth reds on the walls and doorways. Morocco perches on the northwest tip of Africa (in Arabic it's called "al-Maghrib," meaning "setting" or "west"). Morocco borders Algeria to the east, the Mediterranean to the north, the Atlantic Ocean to the west and the Western Sahara to the south. The chief mountain ranges, called the Middle, High and Anti Atlas, run north to south and are the highest in Africa. There's always been an atmosphere of intrigue associated with the country, especially since Humphrey Bogart and Ingrid Bergman imbued its capital, Casablanca, with an aura of romance, internationalism, corruption and espionage in Michael Curtiz's 1942 movie classic.

Fortunately, the exhibit clears up some of the romanticized misconceptions about the country. It illustrates, with many handsome examples, that young city women made fine embroideries and rugs with designs passed down to them by their mothers and grandmothers. Although European and American collectors mostly neglected Moroccan rugs and textiles for years in favor of Turkish and Persian ones, one U.S. museum defied the trend by collecting these geometric, modern-looking works of art. It was the Indianapolis Museum of Art, now owner of one of the most important collections of Moroccan textiles in the United States. Most were astutely purchased in the early 1900s by Indiana native Adm. Albert P. Niblack when he was stationed in Gibraltar with the Navy. (He had what's called "a good eye" and collected them for his sister, Eliza Niblack, who loved textiles. At their deaths, the family left the museum some 2,500 Moroccan, European and Indonesian textiles.) The Indianapolis museum loaned 67 rare and unusual fabrics from this cache, as well as related costumes, jewelry and vintage 1930s photos. Exhibit curator Niloo Imami-Paydar divided the show into two sections, one dedicated to embroideries from the sophisticated, international cities, the other to utilitarian objects made by the mountain Berber peoples. Wealthy young urban women collected many pieces for exhibition or dress as they learned embroidery early. All wanted the biggest and best selection. It was an early instance of "keeping up with the Joneses." 

Each city had its own style. In order not to get hopelessly "lost," you'd better bring along a map or the color-illustrated catalog (a steal for $45 at the museum store). One of the cities was Azemmour, a commercial port just down the coast from Casablanca and haven for the Andalusians, Jews and Muslims banished from Spain in 1610. A brilliant ruby red Azemmour "Hanging" (late 1700s) is the first and oldest fabric to greet you. The hieratic design of peacocks, a Mediterranean motif, and menorahs, a Hebrew symbol, shows its internationalism. Female Jewish embroiderers did the needlework here. As this was evidently a special piece, they stitched from the back to make the design stand out. Its patterning shows the typical Moroccan love of abstraction and repetition, rather than narrative figuration. Another "Hanging," a ceremonial one from the city of Fez made about 50 years later of silk velvet embroidered with metallic threads, uses Islamic architectural silhouettes. It's a rare piece that seldom leaves Indianapolis. Five women's silk belts hung floor-to-ceiling hold both abstract and symbolic designs. One is an eight-pointed star that stands for protection. Other belts sport repeat floral patterns. An intricately embroidered saddle cover was evidently a test of a woman's wifely skills. 

With the rural textiles, you'll want to gear up for "mountain climbing" through the Atlas highlands. Berbers, Morocco's indigenous people, weave wool for both women's shawls and men's hooded robes in strict geometric patternings. The long Berber garments may be holdovers from long-ago Roman times. In the cities, urban clothiers make them from sheer, many-layered materials. Savoring the colorful, geometrically patterned fabrics of this extraordinary show, you may find it difficult to understand why Moroccan textiles were largely ignored until just the last 10 or 15 years. Ms. Imami-Paydar explains that Moroccan techniques and aesthetics differed radically from the more refined, strictly patterned Turkish and Persian rugs that have always been more popular. Yet, in their more individualistic, often free-form, geometric designs that look so modern, Moroccan fabrics could electrify the contemporary textiles market. This informative and handsome exhibit should definitely prod collectors in this new and exciting direction. WHAT: "The Fabric of Moroccan Life" WHERE: National Museum of African Art, 950 Independence Ave. SW WHEN: 10 a.m. to 5:30 p.m. daily through Sept. 21 TICKETS: Free PHONE: 202/357-2700

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