Morocco - The economy (Vol. 2 of 2) : Appendices

AF 7 FILE CGPY Appe VOL. 2 This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION THE ECONOMY OF MOROCCO APPENDICES March 14, 1963 Department of Operations Africa  EQUIVALENTS Currency Unit 5 dirham (DH) DIU 1 U.S. $0.1974 DH 5.06 = U.S. $1.00 DH 1 million U.S. $197,400 EiH 100 million = U.S. $19,740,000 Weigehts All weights are expressed in metric tons unless otherwise stated. Area 1 hectare = 2.471 acres 100,000 hectares = 247,100 ac,res  THE ECONOMY OF IMIOROCCO APPENDICES Table of Contents A. DEVELOPMENT OF HUM4AN RESOURCES B. LIST OF MAJOR MONETARY INSTITUTIONS IN MOROCCO C. PUBLIC INSTITUTIONS IN MOROCCO D. INSTITUTIONS WIITH PUBLIC PARTICIPATION E. STATISTICAL APPENDIX  APPENDIX A DEVELOPMENT OF HUMAN RESOURCES 1. This appendix deals with two important aspects of human resources development in Morocco: the educational system and the public service. It emphasizes institutional reform, staffing and training - all important factors in the program of Moroccanization. Educational System 2. In the human resources field institutional reform has meant restructuring the educational system, including a reformulation of ob- jectives and curriculum. In 1958-60 a series of studies were made of the educational sector in conjunction with the development of the Moroccan 5-year plan. In the school year starting October 1, 1960, the first application was made of the new concepts for Moroccanization of the educational structure. First, the base of the educational pyramid has been markedly broadened with a view to achieving universal primary education of five years' duration. Primary school enrollment for the 1961-62 school- year, public and private, reached a total of 960,000 or about 50, of the estimated eligible primary school population. The public primary school population, which now accounts for about 90% of the total, increased six times from 1950-51 to 1961-62. The rate of increase has accelerated during the past two years. In 1961-62 225,000 new students, public and private, were enrolled and in 1962-63 310,000 in the primary schools; it is estimated that this new enrollment figure for 1962-63 is about equal to the number of children six years of age. 3. Second, an attempt is being made to unify the educational structure by eliminating over time the different categories and qualities of education which existed under the protectorate and still obtain in the country. There have eeen separate categories of education with dif- ferent curricula and different languages and qualities of instruction known as Islamic or Moroccan-type education, Israelite education and European or French-type education. There have also been wide differences between the curricula and quality of instruction of public and Drivate schools, and between urban and rural schools. Through curriculum reform, new programs of teaching training, construction of new facilities, in- creasing expenditures on public education, although public subsidies to private schools continue, and through "Arabization", i.e., required in- struction in Arabic and increasing use of Arabic as the language of in- struction, the Government is attempting, within the serious limits of staff, physical facilities, and funds, to unify the structure. 4. Third, the Government is also attempting to revamp the structure to meet the identified need, on the one hand, for middle level technical, skilled and supervisory personnel and, on the other, for professionally trained supervisory and management personnel. Secondary education, Wulike primary education which is viewed as mass education, is thought of as selective, as the developmert of cadres and management needed for the  - 2 - development of the economy and more particularly for the Moroccanization of it. Thus secondary education has been divided into channels. The first of these, l'enseignement long, is in turn divided into two cycles of three years each. The first three years is required of all secondary school pupils in this channel and leads to a Certificate of Secondary Studies. Tr.a second three years, in a new departure, provides for specialization, quali- fying those who take one or three options - "industrial, commercial or social" - "to enter the productive life of the country" directly, whereas those who take one of the five remaining options - "toriginal letters, modern letters, mnath, experimental sciences or economies" - are qualified to pursue these specialities in institutions of higher education. All graduates of secondary schools of this type, l'enseignement long, receive a baccalaureat. 5.' Another major innovation is the establishment l'enseignement moyen, the second channel of secondary schools, a series of essentially vocational schools giving courses of three years duration, for those who are not selected for instruction in the secondary schools, l'enseignement long, and also for those who complete their primary school education late 7T-to 17 years of age). The categories of courses are "general, commer- cial, industrial, agricultural, and feminine". Graduates receive a cer- tificate roughly equivalent to the Certificate of Secondary Studies. 6. The size of the secondary school population (including technical schools), although expanding, remains relatively small when compared Witl ths expans-on in the primary s2hool sector. The total enrollment for the school year 1961-62 reached 95,515. Of these, about 20,000 were new pupils. For the schoolyear 1962-63, the number of new pupils reached 36,000. The goal apparently is to enroll about 40% of the students who complete primary education in secondary school, and of these, to direct one-third into l'enseignement long, and two-thirds into l'enseignement moyen. The educational pyramid narrows sharply at the end of the primary school level with an increasing number of school-leavers, who cannot be expected to make a meaningful contribution to the economy. It remains to be seen, too,how many of the growing number of pupils coming into primary school complete the five-year course and how many are lost en route. The Moroccan Govern- ment is concerned with the problem of primary school-leavers ahd has an inter-Ministerial Committee studying the problem, particularly with relation to the growing problem of unemployment in the country. 7. Fourth, higher education has undergone reorganization, too,to reflect the new Moroccan emphasis. The ancient Islamic university, l'Univer- L site Karaouyine (also known as the Universite de Qarawiyin), located at Fe-, has over the centuries been the center of theological and religious higher education in Morocco. The university was reorganized in 1962, with the law faculty located at Fez, a faculty of Arabic language located at Tetouan, and a faculty of theology located at Marrakech. The new university, original- ly known as the l'Universite Moderne de Rabat, was renamed in 1962 the Universit'e Mohammed V, and reorganized with a new medical school. The university has a faculty of Law and Economics, which includes a Center of  - 3 - Economic and Social Development and a Center of Business Admilnistration, a faculty of Medicine, a faculty of Letters, including an Institute of Sociol- ogy, and a faculty of Mathematics, Physics and 1matural Sciences, incluirng an Institute of Studies and Research for Arabization, and the University Center for Scientific Research. 8 . There are other special centers and schools of higher education. These are l'Ecole Mohammadia d'ingenieur for training mining, public works, electric, electronic and mining engineers, l'Ecole liarocaine d'Agricultu2e, l'Ecole des lviines de Rabat, l'Ecole Normale Superieure, l'Ecole Marocaine d'Administration, le Centre de Formation de Conseillers en PLaniXEcation et en Orientation Scolaire. The last four institutions are either recent or recently reorganized and expanded institutions deriving from smaller more specialized bodies, e.g., l'Ecole Normale Superieure is an outgrowth of the Pedagogical Institute for Secondary Instruction. The enrollment ill the special centers and schools is still relatively small compared to the enrollment in the faculties of Law and Letters. For example, in the acadermic year, 1961-1962 the Law faculty had an dnrollment of 2,376, and the facult.- of Letters of 857, whereas the School of Engineering had an enrollment of only 98 and the School of Agriculture of only 57. 9. Fifth, special mention should be made of the emphasis on upgrading the quality, at times very poor, of existing Moroccan instructors, par- ticularly at the primary level, as well as to train large numbers of new Moroccan instructors for the expanding primary school needs and new Moroc- ca: "professors" for the grow-ing secondary school requirement. The new Ecole No-male Superieure is specifically directed towards meeting the growing demand for qualified Moroccan secondary school teachers. 10. Ordinary educational expenditures have steadily increased since 1950, when education accounted for 14.6% of the ordinary budget. In 1956, education represented 13.7%, and in 1962, it accounted for 17.7%. The equipment or capital budget expenditures for education have not kept pace with the growth of ordinary budget educational expenditures. In fact, from 1955 until 1962 there was more or less a steady decline not only in the percent of the capital budget devoted to education but also in absolute amounts expended. Only in 1962 is there an increase from the average 6.9% for 1955-1961 to 7.8%, and from the average amount of DH 24,200,OOO to DH 39,750,000. 1i. It is pertinent to note the large proportion of combined ordinary and capital expenditures on education allocated to primary education during the last three years, 1960-1962, nearly three-fifths of total educational expenditure. The balance was divided during this period among secondary, technical, and higher education, with roughly the same proportions going to secondary and technical education, and the smallest amount to higher edu- cation. The educational expenditure pattern is consistent with the priori- ties and objectives discussed above, emphasizing primary education, and also diversifying secondary education somewhat to develop both middle level technical personnel and a feed-up to the university level for professionai training.  - h - 12. The capital expenditure program for education in 1961 received a substantial assist from the emergency program of July to October, called Operation Schools, which was launched by the Ministry of National Education under the patronage of the King. The program called for the construction of 356 new classrooms in urban areas and 64E new classrooms and an equal number of new lodgings in rural areas, many of the units being prefabricated. In the event, the Government announced 1,240 new classrooms were constructed instead of the planned 1,000, in addition to the planned lodgings. The Government expended almost DH 2amillion for equipping the classrooms in addition to the cost of construction to accommodate about half of the 225,000 new primary school pupils due to enter school in October 1961. The primary schoolrooms are all to be used for two sessions a day, each class to accommodate about 50 pupils. The double sessions reflects both the shortage of teachers and of physical facilities. In 1962, the Operation Schools was not repeated and the accommodation of the large new primary school enrollment in October 1962 apparently proved difficult. The ordinary capital construction program, in the absence of an emergency program of the Operation Schools type, does not seem able to keep pace with the ex- panding primary school population. Fublic Service i3. The rapid growth of the public service as well as the extent of Moroccanization of it, is demonstrated in the following table Moroccan PublicS,ervice 1/ Moroccans Foreign Totals Permanent Temporary 1956 13,658 28,023 l1,681 1957 16,010 2,156 2h,992 h3,158 1958 29,880 17,422 47,302 1960 42,145 6,4o5 16,078 64,628 1961 51,969 7,59h 12,591 72,154 1962 - April 52,653 7,864 12,368 72,885 1962 - Sept. 57,171 8s542 12,977 78,690 Thus, between 1956, the year of independence, to the end of the third quarter of 1962 the public service nearly doubled. The 1963 budget in keeping with the trend of an expanding public service envisages an increase of nearly 12,000 additional jobs. The Moroccan staff has increased from 1/ Source: La Vie Economique (Casablanca), November 9, 1962.  13,658 to 65,713 while the foreign staff, essentially French, went from 28,023 to just under 13,000. Significant increases in staff appear to have occurred in the Mvlinistry of National Defense and in the area of social services, particularly education and public health, and in some of the economic services. 14 . Of interest is the substantial and growing number of temporary Moroccan appointees, totalling 10% of the total staff or 13% of the Moroc- can staff. The announced 1963 budget contemplates establishment of another 550 temporary positions. The fear has been expressed that the public service is being used to absorb unemployed Mqoroccans and that morale problems are being created both by the employment of excessive staff and by distinction in tenure and prerequisites between permanent and temporary staff, the latter being referred to somewhat ironically as "temporary permanents". 15,. Also of interest and particular relevance to the program of YMoroc- canization is the growth in the six months, April - September 1962, of the foreign staff by 609 or by nearly 5$. Better than half of the foreign staff is accounted for by the Ministry of Education, emphasizing Morocco's con- tinuing reliance on France for substantial numbers of teachers. The Ainis- try of Public Health, the PTT, the Ministry of Justice, the Ministry of In- ta:rior, the Ministry of Finance, the Ministry of Public 'Jorks, and the Ministry of Agriculture (including water and forest resources) account for the bulk of the remaining foreign staff. There are a scattering of foreign staff throughout many of the other ministries and other governmental agencies. Many of the foreign staff are technically in staff or advisory positions as distinct from line or operating positions; many carry the title con- seiller technique. In practice, the line between staff and operating for this purpose appears blurred. 16. The Moroccan Government has a series of programs and institutions for training Morcccans and turning out cadre and staff for the public service. The principal agency within government for training technical and profes- sional staff and for Moroccanization is the Bureau de la Formation Profes- sic.: nelle of the Ministry of Public 1Vorks. Established in January 1957, the bureau is responsible for training not only operating staff (l'echelon de l'execution), but also technical supervisory and management staff (formation de la Maltrise) for the Ministry of Public W1orks and the following series of major public or semi-public services: - l1Energie Electrique du Maroc - Les Chemins de iPer du Maroc - La Societ6e llarocaine de Distribution - La Manutention Marocaine - Les Tramways et Autobus de Casablanca - l'Office National des Transports - Royal Air Nlaroc - La Regie des Exploitations Industrielles  - 6 - 17. B;r its own assessment the bureau has between 1957-1962 met with considerablo success in producing the required cadres of skilled operating personnel for all the aforementioned services. However, also by its own assessment, the Bureau has found it more difficult to develop middle and high echelon technical supervisory and management staff. First, the nature of the task, developing Moroccan personnel to replace highly qualified and experienced French staff, involves considerably more time, ability and effort than training lower-level technical operating personnel; second, frequently it has been necessary to await the training, in the first in- stance, of technical operating staff, who after the training and some ex- perience, would become available for the more advanced training. 18. It is important to note that although, as of 1961, the record in- dicates that Moroccan staff of the aforementioned public and semi-uublic service companies has increased rapidly and considerable 1Ioroccanization has occurred between independence in 1955 and 1961, frequently involving the growth of Moroccan staff from 6% to 65%, in many of the important services, one-third of the "responsible staff", i.e. all staff above the level of unskilled and semi-skilled labor, is non-Ml.oroccan, and, as the Bureau recognizes, these staff gaps are generally concentrated in the middle and highest technical, supervisory and management levels. The French and other non-iforoccan staff of the puiblic and semi-public service total about 3,000. 19. In the other ministries and public services there are less ex- tensive and organized training programs and facilities than those maintained by the Ministry of Public Works. The Government operating agencies con- cerned with agriculture, particularly agricultural extension and advisory work, ONI and ONIM, have serious need for trained staff and face serious problems of training. 203 Thus there has been an expanding public service in Morocco, particularly in recent years, but a continuing shortage of trained Mioroccan intermediate and senior staff. This shortage has also coincided with the growth in the number of Government agencies and increase in public partici- pation in economic affairs, partly as a result of independence, partly as a result of the current development p:Lan, and partly as a logical extension of the principle of dirigisme already present in the economy at the time of independence. 21. Training and the related Moroccanization of staff for industry has been concentrated on the development of skilled labor in Centers for Profes- sional Training run by the Ministry of Labor and Social Affairs. The Centers for Professional Training are now six in number and are expected to increase to twelve during the remainder of the Plan period, with a total capacity of 1,000. The Centers offer training in mechanics, metal working, and general electrical work. Courses are generally about five months, but several run to ten months. There are also two special Centers, which are to achieve a capacity by the end of 1965 of 700, to train in various specialities apprentices coming from the foregoing twelve general Centers for Professional Training. There is, too, one institute for training the technical teachers  - 7 - to staff the above Centers, wlhich is expected to have an annual output of 150 teachers per annum by the end of 1965. The output of all these Centers is designed to meet part of the anticipated need of industry for skillcd labor which the Commission on Professional Training, in connection with the formulation of the five-year plan, esti-mated would increase annually to a level of 10,300 in 1965, to 16,100 in 1970, and finally to 39,000 in 1980 at which level it would stabilize. 22. A new institute, for which U.i\N. Special Fund-financing is being sought, is to meet the bottleneck for technical teachers. Only 20 teachers of the planned 100 to be trained by the existing institute were produced in 1962. The task of reaching an arnual output of 150 by the end of 1965 is a formidable one for the existing institute. In addition, it is hoped to produce in the new institute teachers with longer training and better skills, including better pedagogical skills. In addition, the need for middle-grade personnel, particularly supervisory technical personnel, remains serious and the new institute is designed in part to meet some of this need as well as train teachers.  APPEN\DIX B LIST OF MAJOR 'MONETARY INSTITUTIONS IN MCROCCO Name Created Ownership Major Functions Banque du Maroc 1959 Public Central Bank; sole institution of (former Banque d'Etat emission, manager of foreign re- du Maroc) 15 branches serves, may assist the Treasury. Handles monetary policy. La Banque Centrale 1961 Public Together with 5 regional Banques Populaire Populaires supplying credits to handicraft and small industries. Receives deposits from the public. Corrnmercial and Savings Mostly foreign dominated with Banks - 25 banks with the exception of Banque Marocaine 167 permanent branches pour 1'Expansion Economique and 13 seasonal La Banque NIarocaine du 1959 lviixed A commercial bank, specialized Commerce Exterieur in financing and refinancing foreign trade. La Caisse Marocaine des 1950 "Private" Facilitates transactions among Marches BNDE etc. Con- public authorities and between trolled by Min. them and the private sector. of Finance La Caisse National de 1962 Public All credit operations in agricul- Credit Agricole ture. Operates through regional branches which controls local "caisses". La Banque Nationale 1959 Mixed Provides medium- and long-term pour le Developpement 44% public loans to industry, development. Economique 25% IFC Rediscount facilities. Participation. La Caisse de Prets 1920 Mixed. Since Issues long-term bonds. Gives Immobiliers du Maroc 1960 managed medium- and long-term credits for by Caisse de building and construction (often Depot et de together with la Caisse de Depot Gestion et de Gestion)  -2- La Caisse Centrale 1949 Public Supplies guarantees for credits de Garantie given by banks to projects and enterprises of development interest which might not otherviise obtain the credit. The guaranTee facilitates rediscounting of the credit in the Central Bank. La Caisse de Depot 1959 Public Handles long-term deposits, et de Gestion partly obligatory, partly volun-- tary from certain institutions as National Savings Fund, National Social Security Fund, pension fands. Deposits 70% public. Funds lent to Treasury, deposited in banks. placed in bonds, or invested in property. Le Fond d'Equipement 1959 Public Gives loans to local public Communal Managed by authorities for public works. La Caisse Funds from the Caisse, from other de Depot et loans and budget subsidies. de Gestion L'Office de Cotation 1920 Public The sole bond and share market des Valeurs Mobilieres in Morocco. de Casablance "Bourse de Casablanca"  APJ.NIDIX C Public Institutions in ,.orocco Date of (CiUnronololoicai List) Foundation 1916 Office de la Propriet6 Industrielle 1920 Office Ch6rifien des Phosph-iates (O. C. P.) 1924 Associations Syndicales Agricoles 1928 Office de la Famille Francaise 1928 Bureau de Hecherches et de Participations Minieres 1929 Office Chorifien des Logements militaires 1929 Regie des Exploitations Industrielles (R. E. I.) 1930 Caisse Marocaine des Retraites 1930 Caisse F6derale de Cr6dit et de Mutualite 1937 Caisse Centrale des Banques Populaires 1937 Office Ch_rifien de Controle et d'Exportation (OCE) 1937 Office Cherifien Interprofessionnel des C6reales (OCIC) 1937 Caisse Centrale de Credit et de Pr6voyance 1937 Office National des Transports (O. N. T.) 1938 Bureau des Vins et alcools (B. V. A.) 1941 Caisse de Compensation 1941 Office de l'Irrigation aux Beni-,mir Beni-Moussa 1942 Caisse d'Aide Sociale (C. A. S.) 1942 Office Cherifien des Logements Maritimes 1944 Centre Cinematographique ikarocain (C.C.M.) 1944 Office des Changes 1945 Office Marocain des LInciens Combattants 1946 Office i'ational Mkarocain du Tourisme (O.i\1.ivi.T.) 1948 Office de Cotation des Valeurs !Lobilieres 1949 Caisse Centrale de Garantie 1957 Iviaison de l'Artisan 1957 Centrale de Travaux Agricoles (C.T.A. ou C.T.) 1957 Bureau d'Etudes et de Participations Industrielles (B.E.P.I.) 1958 Chambre de Commerce et d'Industrie 1958 Office National du Th6 (C).N.T.) 1959 Caisse d'Epargne Nationale 1959 Caisse de Depot et de Gestion 1959 Office des Pupilles de la Nation 1959 Fonds d'Equipement Communal 1959 Banque du Mlaroc 1959 Caisse Nationale de tietraites et d'Assurances 1959 Caisse Nationale de Securite Nationale 1960 Office National des Irrigations (ONI) 1960 Centrale drAchat et de Dzveloppement (C.A.D) 1961 Office National de la Modernisation Rurale (O.N.i4.R.) 1961 Caisse Nationale de Credit Agricole (C.N.C.A.) I/ 1/ This institution has since October 1962 been in charge of all agricultural credits. Source: R. Ll-<HAYE, Les Cntreprises Publiques au Maroc, Rabat 1961.  APPENDIX D Institutions with Public Participation lo Direct participation by the Government: Banque M4arocaine du Commerce Exterieur (B.M.C.E.) Banque Nationale de Developpement Economique (B.N.D.E.) Caisse des Prets Immobiliers du Maroc (C.P.I.M.) Compagnie Immobiliere Franco-Marocaine (C.I.F.M.) Compagnie Marocaine de Navigation (COMANAV) Royal Air Maroc (R.A.M.) Societe du Port de Tanger 20 Participations by Bureau de Recherches et de Participations Minieres B.R.P.M.): Compagnie ilarocaine des Barytes (C.M.B.) Compagnie des Mines d'Hassan Diab Compagnie MiniAre du Tichka (C.M.T.) Compagnie Nouvelle des Mines de Bou-Gaffer (MOGAFER) Charbonnages Nord-Africains (C.N.A.) Societe Minas del Rif Omnium Nord-Africain (O.N.A.) Societe Anonyme Cherifienne d'Etudes Minieres (S.A.C.E.M.) Societe Anonyme des Mines del'Adrar Societe Cherifienne d'Etudes i4iniAres de Tizeroutine Societe Algero-Marocaine de Recherches HouillAres du Guir Scciete Cherifienne des Petroles (S.C.P.) Soci6t6 Cherifienne des Sels (S.C.S.) Societe Ch6rifienne de Recherches MiniAres (S.C.R.M.) Societe d'Etudes et d'Exploitations Minieres du Tadla Societe d'Etudes Minieres du Sud (SEMIS) Societe d'Etudes Minieres de l'Ouarzemine Societe d'Etudes et de Recherches Minieres du Sud (SERMISUD) Societ6 SOGEMI Societe Marocaine d'Etudes Siderurgiques (sal.E.S.) Societe Miniere de Ksiba Societe Miniere Marocaine (SOMIMA) Societe MAROC-CHIMIE Societe Miniere du Siroua (SOMIROUA) Societe Miniere de Rehmana Societe Miniere des Guedafa (S.M.G.) Societe Miniere du Ziz Societe des Mines de Bou-Skour Societe des Mines de l'Issougri Societe le Molybdene Societ6 Nouvelle des Mines de L'Bamega Societe Nouvelle de Recherches et d'Exploitations Minieres de Tirkou (SONOTIR) Societe de Transports Miniers (S.T.M.) Les Transports Africains (TRAF) Societe des Mines de Zellidja Societe Maroco-Italienne des Petroles (SOMIP)  Page 2 .PiE,ijIX D 3. Participations by Bureau d'jitudes et de Participations Industrielles (B. E. P. I.): Berliet hviaroc, Societe Marocaine cles Automobiles h.i. Berliet Compagnie viarocaine de Filature et de Textiles (COFITEX) General Tire and ikubber Company of M[orocco VIAFITEX: Compagnie liarocaine des Lie'ges et Fibres Textiles Societe Anonyme ivarocaine Italienne de Rtaffinage (Sd.vIR) Societe d'Etudes et de Coordination Industrielles liarocaine Societe iviarocaine de Constructions Automobiles (SOi'i,,CA) Societe I iarocaine de Fabrications 1i6caniques "TA.LRIKI' Societe d'Etudes Larocaine de Sucrerie (szi.-C) Societe hiAOC-CnIMiIE 4. Participations by l'Office Cherifien des Phosphates (O.C.P.): CGi4i.TAN: Compagnie 1iarocaine de Transports et d'Affretements kiaritimes Societe d'Applications et de hecherches Industrielles (SARI) Societe d'Etudes Speciales et d'Installations Industrielles (S.E.I.) Compagnie Nord-ifricaine de l'Hyperphosphate Reno Banque *Aarocaine de Commerce Exterieur (B.M.C.E.) S ociet6e MihCC-ChCLviIE 5. Other Public Institutions: Societe ivlarocaine pour le D6veloppement du Tourisme (SOIhADEPT) Partici- pation by l'Office Niational Pi,irocain du Tourisme Banque Nationale pour le D6veloppement Economique (B.A.D.E.) et Banque IIarocaine de Commerce Exterieur (B.,i.C.L.) Participations by la Banque du i4aroc Banque Hiarocaine de Commerce 3xterieur (B.i-' C.E.) participation by 1' Office Ch'