Morocco’s CESE project: Capacity building key for regionalization

In late 2012, the Economic, Social, and Environment Council (CESE) was charged by King Mohammed VI with assessing “effective access to basic human, economic, social, cultural, and environmental rights in the southern provinces.”It released its first report in March of this year. Another interim report is expected shortly, and by the end of 2013, the Council will complete a comprehensive assessment of the governance of Morocco’s southern provinces, which include the Western Sahara.

CESE is addressing five challenges: “boosting the economy; consolidating social cohesion and promoting culture; enhancing social inclusion and consolidating the fight against poverty; ensuring effective protection of the environment and sustainable territorial development; and defining responsible, inclusive governance.”

Morocco has done something unique in that it has instituted reforms from above rather successfully through gradual but serious steps.

The importance of the CESE project cannot be overstated. At a time when governments in the region are in turmoil over defining constitutional powers, mechanisms for decision-making, and embracing principles of governance, Morocco is an example of a path that can be taken through the shared commitment of a country’s leadership and its citizens. Once again King Mohammed is pushing a major policy shift by encouraging debate and consultation among all stakeholders, including the opposition, to learn from the past so that Morocco’s strategies are firmly grounded in what Moroccans value.

This is the same thinking that led to the Human Development Report, which evaluated the first 50 years of Morocco’s development after it regained full independence in 1956. Based on its recommendations, King Mohammed undertook the National Initiative for Human Development (INDH), a multi-billion dollar effort that is the country’s cornerstone program to reduce poverty, end the marginalization of target populations, and promote sustainable economic development.

The CESE project has the same ground-breaking implications, since the King has made it clear its recommendations will result in guidelines for the regionalization strategy to devolve political and economic decision-making power to locally elected officials. As a colleague recently remarked to me, “Morocco has done something unique in that it has instituted reforms from above rather successfully through gradual but serious steps.” To complement this approach, the King is now focusing on capacity-building at the local levels to prepare the country for regionalization, and the CESE is the point of the spear.

What the CESE is doing and saying

In its initial report in March 2013, the CESE provided extensive coverage of the more than 50 meetings it held in the south, hearing testimony from more than 1,000 stakeholders representing “local elected officials, representatives of professional chambers, business leaders, trade union representatives, chiefs of external branch offices, and representatives of dozens of civil society organizations involved in human and social rights.”

In addition, extensive research on human development indicators is being collected and analyzed to determine the performance of government programs in the southern regions. These meetings are supported by a CESE citizens’ web-based forum called Al Moubadara Lakum to gather studies, recommendations, projects, analyses, and ideas about the “format of the new development model for the southern provinces.” In addition, CESE has called for proposals from researchers and doctoral students in fields related to this project.

To any objective observer, the report included criticism of the government as well as praise. Progress in health, education, and basic services was contrasted with deficient public administration, the predominance of security considerations in the approach to political rights, and the ineffective engagement of civil society. A key observation by the CESE team is that “among other shortcomings and limitations to address is a wake-up call for a change in the mindset, behaviors, and habits of policymakers and elites in charge of ensuring the development of the southern provinces.”

This calls for a progressive outlook of incremental change that mirrors the King’s proposed new relationship for governance. The report includes strong statements on human rights with specific references to seminal UN documents and the 2011 Constitution regarding the protection and pre-eminence of human and civil rights. In one salient statement, the report notes that, “Underpinning the expectations in the south in terms of social well-being, the realization and exercise of freedoms, and transparent, responsible attitudes by government authorities and their representatives is an aspiration for the advent of a mature civil society which is recognized and empowered to run local affairs.”

The CESE will release policy recommendations in the final report later this year, and its intentions are clear: to chart a path for Morocco’s regionalization that is based on a reformulated partnership among the people, the government, and the King. This is the legacy the King is committed to, and he will continue to take steps to ensure its achievement.

Taking a fresh look at Morocco’s economic development

In the first two weeks of September, I’ll be writing my blogs from Morocco, which will give me a front row seat to see how economic growth is advancing given challenges internally and within the larger international business environment.

Several stories this past month provided greater details of the progress that is being made. There are three that are particularly interesting in that they point to the decisions Morocco is making about how to make its economy more globally competitive.

Growing Saudi-Moroccan business ties

This week, Saudi Arabia and Morocco launched a new round of projects to ratchet up the volume of business between the two countries. It should come as no surprise that the current trade balance favors Saudi Arabia because energy importer Morocco needs Saudi energy supplies to meet domestic demand.

The head of the Saudi-Morocco Business Council, Mohammad al-Hamady, noted that the total volume of trade between the two countries amounted to approximately $4.4 billion in 2011, with Saudi Arabia exporting far more to Morocco than it imports. He added that economic and trade relations between the two countries have been growing steadily, with Morocco becoming Saudi Arabia’s sixth-largest trading partner.

As part of its commitment to Morocco’s overall development, last year Saudi Arabia committed $1.2 billion over the next five years for investments, primarily in tourism development projects, making it the third largest investor in Morocco. Hamady believes that a major obstacle to greater trade is the lack of direct maritime transport lines between the two countries, and this was at the top of the agenda of the Saudi-Moroccan Business Council meetings in Jeddah this week.

Exploring for energy sources

CNBC and Reuters carried stories on expanding oil exploration projects in West and North Africa, with a special nod towards Morocco.

Ken Judge, the commercial director of Gulfsands, which had been active in Syria, said that “As you might imagine, after Syria what we’re looking for is some stability, and Morocco’s got terrific political stability, but it also has the best fiscal terms of any country in the Middle East and North Africa region.”

These efforts complement the expanding Moroccan focus on renewable energies, with RFPs for two more solar projects coming out shortly.

These opportunities and others, both trade and investment, are to be highlighted in the upcoming US-Morocco Business Development Conference to be held November 4-5, 2013 in Rabat.  Later that month, Rabat will host The Morocco Summit with a wide-ranging exploration of Morocco as a hub for inter-regional business across Europe, Africa, and the Middle East.

Young business leaders

BBC carried a very interesting video report that reviewed projects to advance the economic status of women in rural areas, where there is great need to overcome poverty and illiteracy in advancing women’s empowerment. The report details projects that are run by young educated women working to enable women with little education to become family breadwinners through commercializing artisanal crafts and other products for domestic and international markets.

Another story about youthful entrepreneurs recounts how several Moroccans worked for months before receiving their first rate-free loan for entrepreneurs to start up a food delivery service in Morocco.

Their key decision was to build a talented staff from scratch who then acquired their skills by constructing the company from the ground up. Youssef El Kachchani of www.doofry.com, the food delivery company, found great success in recruiting widely via the web and putting potential employees through a two-week intensive reading session before starting.

This was similar to the strategy used by Youssef El Hammal, who launched www.stagiaires.ma in 2012 to connect students with recruiters. He found that hiring recent graduates was better than employing ones with more experience because “they’re highly motivated and excited to learn. Because they haven’t been working for corporations, they’re still open-minded, creative risk-takers.”

So it should be an interesting time to catch up with what’s going on in Morocco. With a new government coalition being formed and an extensive economic reform agenda in the wings, it is a period of great anticipation that the economy will expand and create the jobs so badly needed in Morocco.

In national address, King of Morocco calls for stronger links between education, skills, and markets

On Tuesday, August 20, in an address on the 60th anniversary of the Revolution of the King and the People, King Mohammed VI outlined his pride, hopes, and vision for his country’s educational sector. Remarkably, he spent less than two sentences on what had been accomplished with far more attention paid to where Morocco must go to secure its future.

The king spoke about “another revolution, which I am spearheading with a view to developing human resources, achieving economic and social progress, and promoting a dignified life for our citizens.” He noted the dedication of Moroccan parents to a good education for their children, and tied the development of the country’s human resources to good citizenship, largely abetted by family cohesion and a strong and relevant educational sector.

“Nevertheless, we still have a long, arduous journey ahead of us if we are to enable this sector [education and training] to actually play its role as an engine for the achievement of economic and social advancement,” he announced.

To make this happen, King Mohammed made several critical recommendations. First of all, noting that Moroccans had to master at least two languages to acquire university degrees, he encourages Moroccans to become proficient in foreign languages to “thus expand their knowledge base, refine their skills, and gain competence needed to be able to work in Morocco’s new professions and areas of employment, in which there is a significant shortage of skilled workers.” He then went on to emphasize technical and vocational training grounded in skills needs of the marketplace, from high tech manufacturing and IT to artisanal crafts that serve the tourism industry.

Building on lessons learned

Referring to the kingdom’s Education Action Plan 2013-2016, King Mohammed made a point that education policy should not be subject to re-invention with every new administration and should build on the experience of previous programs. “It hardly makes sense for each government to come with a new plan every five years and disregard previous programs…The education sector should, therefore, not be included in the sphere of purely political matters, not should its management be subjected to outbidding tactics or party politics.”

Referring to the disparities in quality between the private and public educational systems, the king called for speedy adoption of educational reforms he previously addressed and called for “implementation of the constitutional provisions regarding the Higher Council for Education, Training, and Scientific Research,” which is charged with implementing national reforms at all levels and promoting more rigorous and market-linked programs. To this end, King Mohammed directed the Higher Council for Education to carry out an evaluation of the achievements of the National Charter for Education and Training over the past ten years to provide baseline data for educational reform.

This step of looking back to move forward is how the king has launched all of the country’s major reforms. In closing his speech, he called for “a broad-based, constructive debate on all the major issues of concern to the nation, in order to achieve the tangible results Moroccans are looking forward to,” reaffirming his model of consensus and consultation as the basis of reform.

So the speech squarely places education and human development at a top priority on the king’s domestic agenda, and it doesn’t appear that he’ll wait another year for effective results.

Tourism shows no decline in Morocco – opportunities growing!

In the past two weeks, there have been no less than nine major stories on topics related to the tourism industry in the kingdom. The news is overwhelmingly positive and is another indicator that Morocco is doing something right when it comes to attracting and satisfying demanding specialty travelers looking for something in addition to Morocco’s extraordinary geography, cuisine, and hospitality.

There was even a story last year that tourism companies and officials from Kenya had come to Morocco to study how it has developed destination sites for international and domestic visitors. In looking at how Morocco is doing, it’s instructive to look at the diverse offerings available in Morocco that greatly expand the definitions of “cultural” and “eco” tourism. Take the music and film scene, for example. Morocco hosts the Fez Sacred Music Festival, Gnawa celebrations in Essaouira and other sites, as well as the Tangier Jazz Festival and others. The Marrakech International Film Festival is approaching its 12th edition in December 2013, and Dakhla had its fourth international film festival this past spring.

Morocco’s tourism strategy

How is Morocco able to avoid the decline in visitors that has affected other Maghreb countries? Aside from aggressive marketing campaigns, one helpful factor is the increase in flights into Morocco from Europe and other destinations. Although budget flights from Europe have increased 25 percent this year, Driss Behima, chairman and CEO of Royal Air Maroc, says that there are major tourism destinations such as Quarzazate, Errachidia, Laayoune, Dakhla, and Essaouira with little or no air service, providing ample opportunities for growth. The year-on-year increase in commercial passengers was 3.55 percent for April, and overnight stays grew by 11 percent in Marrakech and 12 percent in Agadir during this time. Although convenient flights from the US are still limited, there continues to be hope for another connection in 2014. Linked to this growing airline network and the sea cruise tourism coming across from Gibraltar and Spain is the increase in mid-range and four and five star hotels to cater to diverse and demanding palates and needs of visitors.

Another factor is that Morocco is getting better at developing and promoting its myriad destinations and attractions for specialty travelers, including tours that combine cooking classes with site visits, and, for more traditional sports, an amazing number of golf courses. For those who like to travel the high road, Morocco has moved strongly into polo, attracting visitors to strategically placed locations with breathtaking backdrops, such as the Atlas Mountains near Marrakech. Another key factor in this growth is the willingness of international and local investors to develop projects that have strong commercial appeal, such as the polo field located within a classic residential and hotel complex, mirroring similar upscale projects in Europe. The heightened role of the private sector, benefiting from Morocco’s Plan Azul and other incentives for tourism development, is drawing quite serious international investments.

My favorite recent tourism news covers two fantastic opportunities: motorcycle riding across Morocco and kiteboarding in Dakhla. In the latest listing of world’s best motorcycle rides, Morocco tops the list according to CNN. What’s interesting is that this is not limited to hyper-adrenaline enthusiasts. It has also drawn in the over-60 crowd that is determined to check off another item on their bucket list (things one wants to do before they can’t manage it). Dakhla is fast becoming the jewel of eco and sport tourism in Morocco due to its fabulous beaches, prevailing winds, and still unspoiled terrain. For years, it has been a hidden gem of kiteboarding and now is drawing international attention and competitions.

What is especially grand about being a tourist in Morocco is that the opportunities for fun, excitement, visual and culinary treats, and hospitality all combine to provide a great experience for the visitor. There are challenges, however, because there is so much to see and so many opportunities to experience a country that has hundreds of years of heritage interlaced with contemporary attractions.

So the nagging question is “Where to begin?”

In national address, King of Morocco calls for stronger links between education, skills, and markets

On Tuesday, August 20, in an address on the 60th anniversary of the Revolution of the King and the People, King Mohammed VI outlined his pride, hopes, and vision for his country’s educational sector. Remarkably, he spent less than two sentences on what had been accomplished with far more attention paid to where Morocco must go to secure its future. The king spoke about “another revolution, which I am spearheading with a view to developing human resources, achieving economic and social progress, and promoting a dignified life for our citizens.”

He noted the dedication of Moroccan parents to a good education for their children, and tied the development of the country’s human resources to good citizenship, largely abetted by family cohesion and a strong and relevant educational sector.

“Nevertheless, we still have a long, arduous journey ahead of us if we are to enable this sector [education and training] to actually play its role as an engine for the achievement of economic and social advancement,” he announced.

To make this happen, King Mohammed made several critical recommendations. First of all, noting that Moroccans had to master at least two languages to acquire university degrees, he encourages Moroccans to become proficient in foreign languages to “thus expand their knowledge base, refine their skills, and gain competence needed to be able to work in Morocco’s new professions and areas of employment, in which there is a significant shortage of skilled workers.” He then went on to emphasize technical and vocational training grounded in skills needs of the marketplace, from high tech manufacturing and IT to artisanal crafts that serve the tourism industry.

Building on lessons learned

Referring to the kingdom’s Education Action Plan 2013-2016, King Mohammed made a point that education policy should not be subject to re-invention with every new administration and should build on the experience of previous programs. “It hardly makes sense for each government to come with a new plan every five years and disregard previous programs…The education sector should, therefore, not be included in the sphere of purely political matters, not should its management be subjected to outbidding tactics or party politics.”

Referring to the disparities in quality between the private and public educational systems, the king called for speedy adoption of educational reforms he previously addressed and called for “implementation of the constitutional provisions regarding the Higher Council for Education, Training, and Scientific Research,” which is charged with implementing national reforms at all levels and promoting more rigorous and market-linked programs. To this end, King Mohammed directed the Higher Council for Education to carry out an evaluation of the achievements of the National Charter for Education and Training over the past ten years to provide baseline data for educational reform.

This step of looking back to move forward is how the king has launched all of the country’s major reforms. In closing his speech, he called for “a broad-based, constructive debate on all the major issues of concern to the nation, in order to achieve the tangible results Moroccans are looking forward to,” reaffirming his model of consensus and consultation as the basis of reform.

So the speech squarely places education and human development at a top priority on the king’s domestic agenda, and it doesn’t appear that he’ll wait another year for effective results.

US plan to Power Africa can benefit from Morocco’s renewable energy

On his recent trip to Africa, President Barack Obama announced his Power Africa initiative to spend $7 billion over 5 years to fund an electricity program in sub-Saharan Africa that includes geothermal, hydro, wind, and solar power.

Critics have attacked the plan from all directions: it is too small and doesn’t involve a long-term commitment; it doesn’t give enough attention to solar power; it doesn’t deal with distribution issues; and it doesn’t bring enough focus on cleaning up conditions that keep the global private power industry wary of investing in Africa—“poorly enforced property rights, corruption, and patchy enforcement of the rule of law.”

Yet no one denies the need as nearly 590 million people lack access to power in sub-Saharan Africa. Ironically, “indoor air pollution from wood stoves now kills 3.5 million people per year, more than AIDS and malaria combined.” In some cases, US regulations will have to be changed to support the project because some environmental rules restrict OPIC funding for projects that emit greenhouse gases. And due to the rural locations of many of those in need, renewable power, according to the International Energy Agency, “could be the most cost-effective option for expanding energy access in about 70 percent of rural areas in developing countries.” One solution already provided by the US company SKYei, is the installation of mini-grids powered by a hybrid of solar and gas that are inexpensive and well suited to rural areas. So far, Ethiopia, Ghana, Kenya, Liberia, Nigeria, and Tanzania have signed up for the first round of projects. Andrew Mayock of the Millennium Challenge Corporation (MCC) believes that the initial fund of $7 billion, which has already attracted an additional $9 billion in commitments from private sector investors, could grow to $30 billion in energy infrastructure investments annually.

Morocco and WAPP – where the roadmap is already en route

While Power Africa moves forward, there are burgeoning opportunities across the continent in central and west Africa. The Economic Community of West African States (ECOWAS), through its West Africa Power Pool (WAPP), has made regional power grid access a priority for the next decade. WAPP intends to integrate the various national power systems “into a unified regional electricity market – with the expectation that such mechanism would, over the medium to long-term, assure the citizens of ECOWAS Member States a stable and reliable electricity supply at affordable costs…facilitating the balanced development of diverse energy resources…for their collective economic benefit, through long term energy sector cooperation, unimpeded energy transit and increasing cross-border electricity trade.”

It should come as no surprise that Morocco is a significant player in WAPP through its close ties to ECOWAS and revived leadership of The Community of Sahel-Saharan States (CEN-SAD). More importantly, Morocco is a strong partner for energy development due to its dominant role in Africa in investing in renewable energies; its success in bringing electricity to 98% of its rural areas; and the logistical ties that exist between Morocco and the countries in Central and West Africa.

As this illustration from the African Development Bank indicates, trends in energy consumption and production favor a strong regional grid between Morocco and its neighbors to the south. Given the expanding utilization of its national resources for local projects, the region is collectively demanding more efficient and productive investment in all types of infrastructure. With this strong commitment to economic and human development, more reliable energy supplies are a core requirement. Reliable energy is an enabler and multiplier of opportunities across many sectors and is a key driver in attracting foreign direct investment, creating jobs and enhancing stability.

”The development of Africa’s electrical power sector is a prerequisite for growth in other industries. A regular, consistent power supply will do much to attract foreign investment and entice international companies to establish operations in Africa…Power sharing has become more prevalent in the African electrical power context in recent years…[as] neighboring countries have seen benefit on the sharing of electricity…countries with limited or unreliable power generation capacity will now have access to power, without the intensive capital investment required to construct new facilities.”

Despite the fading demand from the European leg of the Desertec project, which linked renewable energy from the Maghreb to European customers, it is now obvious that, given projected high growth for sub-Saharan Africa, Morocco’s strategic investments in renewable energies and extension of its power grid southward will provide a critical backbone for regional power distribution. Given the already extensive inputs in power generation and distribution in West and Central Africa, the US should consider broadening its Power Africa program in partnership with Morocco to accelerate the delivery of sustainable energy along the north-south power corridor in the region.

Middle East economic reform requires robust and constructive citizen participation

A great deal of hand wringing goes on as bad news continues to drown out progress in the transitions going on in the Middle East and North Africa. From Egypt and Syria to Libya and Yemen, nay-sayers and pundits readily point out that there are few short-term solutions that don’t require some pain in the process of moving forward. As national identities crumble under the assault of religious and partisan appeals, it is problematic to come up with short-term remedies that don’t have long-term consequences for the political and economic health of the countries.

It seems to me that, aside from Tunisia at the best of times, which is not often enough, there is a failure by governments in transition to sustain effective messaging that people can understand on how the government is going to concretely tackle unemployment and corruption. Blaming the IMF for subsidy reforms is not a credible strategy for laying the groundwork for other steps that must be taken to reduce public debt incurred as a result of inflated bureaucracies, inefficient labor regulations, and insufficient investment capital available for small and medium-sized enterprises (SMEs). Even Morocco’s parliament is encountering problems passing needed reforms to reduce expenditures and stimulate sustainable economic growth.

The challenges in the Maghreb are enormous, and yet citizens are rarely being mobilized to take part in economic development. Rather, they are pulled in different directions by political forces more concerned with scoring points and securing power than contributing to a way forward that is balanced, equitable, and contributes to necessary long-term changes.

Considering the options

Outside organizations are working in the MENA to provide mechanisms to bridge the messaging gap between governments and citizens. The George C. Marshall Foundation in cooperation with the Stimson Center and L’Insitut Arabe des Chefs d’Enterprises recently held a conference in Tunis that “brought together business people, academicians, policy planners and other thought leaders for a day and a half discussion on regional economic integration in the Maghreb…” The purpose of the conference was to determine how the action principles behind the success of the Marshall Plan in rebuilding Europe “might best be applied to contemporary situations where economic reconstruction or mass relief is needed.” One of its principal tenets seemed quite relevant to my thinking about the challenge of promoting both top-down and grassroots support for economic reform, “Political leadership and elements of self-sacrifice and determination are essential to the success of aid programs.”

In the US, Bill Clinton’s first presidential campaign, built around the message “the economy, stupid,” illustrated how critical it is to capture the public’s imagination and involvement in a dialogue about progress that has consequences beyond slogans. Similarly, the pressures of trying to reverse decades of economic and political mismanagement have resulted in a credibility barrier, especially for the transitional governments in Libya, Tunisia, and Egypt. As is evident from the competing demonstrations in those countries, evolving a consensus on key solutions without some parties feeling marginalized is an overwhelming challenge at times.

 Reaching the people

A key lesson in “participatory democracy” that seems to have emerged from the trials of the transitional governments is that the process of engaging citizens effectively in participatory and respectful politics is daunting under the best of circumstances. Their previous experiences with the former governments in Libya, Tunisia, and Egypt in particular have not given people a sense of national citizenship that transcends more particular allegiances. To help address this “communications gap,” the U.S.-Middle East Partnership Initiative (MEPI) has launched a series of civic engagement programs in the Maghreb to enable youth, civil society, and advocacy organizations to more effectively engage in the political process.

The World Bank Institute (WBI) along with the World Bank Middle East and North Africa (MENA) recently “brought together government officials and civil society practitioners from Morocco, Jordan and Tunisia to discuss how citizen engagement can contribute to more informed policies; how to develop codes of practice for public consultations; and how to use online tools to facilitate consultations.” The program aims to enable governments to “make informed decisions while creating public trust” by ensuring that the voices of those most impacted by the policy have been heard and addressed. Moreover, the program supports an inclusive process to ensure that the right players are involved, recognizing that public consultations can be critical “since the government may not have all the solutions at hand.”

This program complements others in the region such as the National Dialogue on Civil Society in Morocco focusing on how more inclusive and transparent communications between governments and citizens can reduce conflict and promote consensus around key development and governance issues. An essential element is training trainers in both government agencies and NGOs on the principles of public consultations as a tool for civic engagement.

While these efforts may be small steps in terms of bringing governments and citizens together, they are critical for directing “street” energy into advocacy tools using social media and other outreach technology and e-government programs to provide better access for people and greater knowledge and awareness for public officials. For the international donor community, there is a lesson here from the Marshall Foundation’s tenets: “Any successful aid program must be driven by the country and not imposed by outside countries or institutions.” When people speak as part of a respectful dialogue and government listens and acts to credibly engage its citizens, the street will return to being a thoroughfare rather than an avenue of protest and disorder.