Morocco - Legal and Judicial Development Project

Report No. PID8712 Project Name Morocco-Legal and Judicial Development... Project Region Middle East and North Africa Project ID MAPE63918 Borrower The Kingdom of Morocco Implementing Agency The Ministry of Justice (MOJ) of the Kingdom of Morocco Environment Category C Date this PID revised February 2000 Projected Appraisal Date April 2000 Projected Board Date June 2000 Background There have been substantial efforts over the past few years to modernize Morocco's legal and regulatory framework, aiming at establishing a more business-friendly environment. Such efforts have been motivated in large measure by the need to bring Morocco's legal framework up to par in light of the 1997 Association Agreement with the European Union. More recently, attention has turned to another key determinant of the efficiency and effectiveness of the legal and regulatory framework-the functioning of the judiciary. The judiciary has long been criticized by all stakeholders in Morocco, particularly with regard to business-related litigation. In the 1998 PSA update the Bank has identified a series of deficiencies in the functioning of the Moroccan judicial system as well as weaknesses in its legislative framework, in particular with regard to providing for an adequate and supportive environment for private sector development. Major shortcomings include a lack of: (i) efficiency and timeliness in the judicial process, resulting in huge backlog of cases, even at the Supreme Court level; (ii) transparency in judicial decision-making and of predictability in judgments; (iii) capacity to enforce judgments; (iv) competence in matters of commercial law, broadly defined; and (v) dissemination of legal information. The Moroccan policy-makers now fully recognize the pressing need to improve the functioning of the judiciary, and significant reform efforts are already underway. Following the current Government's assumption of office in early 1998-and, significantly, the non-partisan Justice Minister's reappointment-the judicial reform agenda was put forward as a top priority in the program presented by the Prime Minister in his first address to the newly elected parliament in April of 1998. Program and Project Objectives The reform of the Justice sector will remain an essential component of the forthcoming five-year economic development plan. This reform program will  focus on five major dimensions: (1) organization of the sector, including the improvement of the network of jurisdictions (carte judiciaire); (2) human resources, including training of magistrates, auxiliaries of justice and management personnel; (3) a general framework for performance assessment of the judiciary; (4) information and communication, and (5) moralization of the sector and promotion of ethical standards. Within the context of this broad reform program, aiming essentially at the development of an independent, competent and professional judiciary, committed to high standards of ethics and capable of efficient and transparent dispute resolution, the Project objective is to improve the legal framework and the performance of the judiciary in business related activities. This objective will be pursued by: (a) strengthening the judicial system's capacity to handle business related cases through the introduction of modern court and case management tools and systems in specialized commercial tribunals and registries of commerce; (b) strengthening, in terms of statutes, management, and curriculum, the National Institute for Judicial Studies (INEJ) so as to ensure that it becomes a well managed, autonomous institution, capable of providing adequate training for magistrates and auxiliaries of justice, particularly in matters relating to commercial and business law and ethics standards; (c) increasing the Government's capacity to disseminate legal and regulatory information (including judicial decisions, laws, and regulations) useful to lawyers, judges and all other interested individuals, whether or not within the business community, and to assess the impact of the overall justice reform program through awareness actions and users surveys; and (d) further modernizing the Moroccan legal and regulatory framework with particular emphasis on a Commercial Arbitration Code consolidating into a single legal instrument the numerous arbitration provisions currently scattered in Moroccan laws and streamlining the commercial procedures. Project Description (A) Strengthening of the judicial system's capacity to handle business-related cases and modernization of the Registries of Commerce. (B) Strengthening the Ministry of Justice's capacity to manage and disseminate legal, judicial and regulatory information, including a public awareness program, through provision of technical assistance and equipment. (C) Upgrading the training of judges through the reorganization of INEJ, including (i) the introduction of modern systems of management, information and research tools; and (ii) the reformation of INEJ's present curriculum, staffing and course materials (including library resources and equipment) so as to provide for adequate requisite training for magistrates, particularly in matters relating to commercial and business law and ethics. (D) Drafting of an Arbitration Code and amendment of existing codes of commercial and civil procedures, so as to improve and streamline access to justice. Project Implementation Implementing Agency: The Ministry of Justice will be the executing agency of the Project. Within the Ministry, a Project Implementation Unit (PIU) will be - 2-  established and will be responsible for the day to day implementation of the Project. The PIU will provide technical assistance and support to the other agencies, such as INEJ, involved in project execution. The PIU will: (a) be responsible for procurement, (b) maintain Project accounts and financial management systems, (c) disseminate project related information and (d) conduct the project's mid-term review. The PIU will be the Bank Project team's counterpart during Project preparation, implementation, and evaluation. The PIU will be supervised by a Stressing Committee, presided over by the Minister of Justice and comprising: (i) members of the Bar Association; (ii) professors of law from the major law schools of the country; (iii) members of the private sector (banking sector, stock market, CGEM, labor unions); (iv) members from the administration (finance, higher education, etc.); (v) a representative from the Supreme Court, and (v) a representative from the Secretariat General du Gouvernement (Government's legal counsel). This committee will ensure a wide-ranging participatory approach to the project involving all major stakeholders, and will be responsible for the coordination of the different agencies involved in project implementation. The PIU will report to the Steering Committee. Program and Project Financing According to preliminary estimates, the total program of reform of the Justice system in Morocco is estimated to cost around 150 million dollars for the duration of the five year Plan. The Project will cover a small portion of this reform program, focusing on the reform for business related activities, and will be of an amount of about 5 million dollars. Other donors, such as the European Union, will also contribute to the overall reform program. Lessons from Previous Bank Experience The proposed project will be the first of its kind in Morocco and should be considered as a pilot. However, it should benefit from the experience acquired by the Moroccan Government in implementing the initial steps of the reform of the Justice sector as well as Bank's experience of legal and judicial reform projects in other countries such as Georgia, Venezuela, Bolivia, and Ecuador. The lessons learned from both types of experience underscore the crucial importance of ownership and commitment at the highest level of government as well as stability of relevant government policies and leadership. Experience shows that national stakeholders have to be involved from the outset, and all along, in studying the problems, proposing the solutions, and implementing those that are agreed upon. Experience also shows that strong and sustained support for legal and judicial reform by the country's highest political authorities is crucial. In the absence of strong and constant political support, very little, if anything, can be achieved by the provision of computers, training and other technical assistance to the judiciary. Finally, there is little meaning in trying to transplant in Morocco a "turn key" reform Project, as it will be deemed for failure because of lack of direct relation with the reality of the country, its legal and judicial tradition and culture as well as its particular political, economic and social situation. The Project has at its core the taking into account of the Government's reform priorities. In doing so, the Bank has identified, with the Moroccan Government, a significant and well defined portion of the country's reform project and has proposed to finance it. Sustainability -3-  The Government's reform strategy, supported by the project, includes features that should give a firm foundation for sustainability provided they are successfully implemented, and the political will to bring them into fruition remains unharmed. The more important of these include, but are not limited to: (i) the successful reform of the National Institute for Judicial Studies (INEJ), including its capacity to educate and train magistrates and auxiliaries of justice in a manner that will enable them to run adequately the modernized Moroccan judiciary; (ii) the strengthening of commercial courts capacity for speedy, high quality and transparent rendering of justice, including streamlining of procedures; (iii) the establishment of an operating and efficient management system for the registries of commerce, that will give more security in commercial transactions and provide the business community with a transparent and reliable tool for business creation and monitoring; (iv) the establishment of an operating, efficient legal information management system, allowing for the free flow of knowledge and information throughout the country; (v) the enactment of a commercial arbitration code that will provide the private sector, including foreign investors, with a new alternative for the settlement of commercial disputes; the modernization of the codes of civil and commercial procedures that will streamline court procedures and provide users with a more satisfactory resolution of disputes. Environmental Aspects The Project does not have explicit environmental components or effects and has therefore been classified as Category C. Poverty Category By improving the performance of the commercial judicial system, including for the benefit of small and micro-enterprises, the Project will contribute to greater access to justice for the poor. Program Objectives Categories The project, through improving the legal framework and the performance of the judiciary, will contribute to the development of better governance institutions and to the strengthening the environment for business activities. Contact Points: The InfoShop The World Bank 1818 H Street, N.W. Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Task Manager Ferid Belhaj Tel: (202) 458-5319 Fax: (202) 477-1334 Co-Task Manager Amine Khene - 4-  Tel: (202) 458-4746 Fax: (202) 477-0432 Note: This is information on an involving project. Certain components may not be necessarily included in the final project. Processed by the InfoShop week ending Fabruary 18, 2000. - 5 -