Millennium Challenge Account

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Millennium Challenge Account

• MCA-Morocco Program- For a real growth boost

11 October 2007
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Contents

• General context Towards truly integrated
  socio-economic development
• Reforms accelerating
• Conclusive achievements
• Persistent constraints
• MCA-Morocco program a genuine opportunity to
  stimulate growth in high potential sectors
• MCA-Morocco programs objective
• Design and implementation methodology of the
  Moroccan proposal
• Consultative and communication process
• Program opportunities
• General impact of the program
• Description of the projects

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General Context

• Towards truly integrated socio-economic
  development

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General Context
Acceleration of reforms implementation
Institution of sustainable socio-economic bases

• Reinforcement and modernization of productive
  structure

Stimulation of the momentum for growth
Reinforcement of social cohesion
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General Context
Conclusive achievements

• Improving growth cycles (5 average between 2001
  and 2006)
• Control of budgetary deficit (3 of the gross
  national product - GNP).
• Active balance payment (2.9 of GNP between 2001
  and 2006)
• Inflation control (1.7)
• Treasury debt decline (57 in 2006)
• Assessment of the gross investment rate 31.6
  of GNP in 2006

A macro-economic situation favorable to growth

• Unemployment rate decreasing (9.7 in 2006)
• Improvement of schooling rate, particularly of
  girls in rural areas (from 62.1 in 2000 to 88.7
  in 2006)
• Expansion of social services (from 17 to 34 of
  the population).
• Promotion of public housing (100.000 per year).

Promotion of human development
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General Context
Persistent constraints

• Drought frequency and scarcity of hydrological
  resources Production volatility affects largest
  labor force in the economy.
• Quasi-structural stagnation of the national
  productive network
• Lack of added value to the production of
  commodities associated with a relative weakness
  in productive diversity of the national economy
• Insufficient competitiveness of sectors
  associated with their weak integration
• Weak productivity related to the lack of human
  resources upgrading and the inadequacy of the
  educational system vis-à-vis the market
  requirements
• Lack of innovation and weak mobilization of
  scientific research

Under-exploitation of sectorial and local
potential.
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General context persistent constraints

• Financial sectors insufficient contribution to
  development
• Job market disequilibrium urban-rural,
  male-female, formal-informal, qualified-unqualifie
  d
• Moroccos strong dependency on imported energy
  (95)
• Strong regional disequilibrium Casablanca region
  provides 50.6 of the national industrial
  production and exports 39.4 of the volume of
  national industrial exports

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MCA-Morocco Program

• A real opportunity to stimulate growth in high
  potential sectors

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Objetive of the proposal
Stimulate economic growth
Improving employment
Raising productivity
Sectors with strong potential
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The Moroccan proposal Design and implementation
methodology
Defining constraints to growth Fighting against
poverty at the sectoral and local level
Market logic - Better exploitation of the
capacities existing at the level of chains of
value in sectors with high growth potential -
Economic and social transformation
New approach
Development of the participative
approach Programs based on a continuing
consultative process including the execution stage
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Consultative and communication approach

• A continuous upward approach

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Upstream process
Consultation with local population, economic
actors, elected members, civil society

• Provide for local development needs
• Guarantee populations participation
• in the programs implementation

• Define constraints to growth and
• to the fight against poverty
• Enrich the Moroccan proposal

Micro-credit associations

• Complete the Moroccan proposal

National meeting

• Refine the Moroccan proposal

Sectorial meeting
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Process continuity
NIHD(INDH) Upward planning and partnership
approach Going from local committees to
strategic committees
Enrichment of the consultative process

• Defined high potential sectors
• Contractual approach with concerned associations
  and cooperatives
• Organization of professional consultations and
  sectoral meetings

Back up of the consultative process implementation

• Reinforcement of communication strategy
• Media coverage of most important moments (radio,
  television and
• written press).
• setting up of a website (information and records
  of the program achievements).

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The MCA Morocco Program Description of Projects
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Programs implementation axes
Agricultural productivity improvement
Traditional fishing upgrading
Craft industry development
Reinforcement of financial services support
Enterprises back up
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Programs costs
In US dollars
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General Impact of the program

• Improvement of national economic growth by 1.1
  of the GNP on an annual average
• Decrease poverty in the programs targeted
  regions 20 of the poorest people in targeted
  zones
• Investments should directly benefit 600.000
  persons and indirectly benefit 3.2 million people

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Agricultural productivity improvement project
Objectives and targeted zones
Increase economic growth and decrease poverty in
targeted zones by reducing the volatility of
agricultural production and raising the volume
and value of the production of arboriculture
fruits
Targeted zones Piedmont and oases zones
characterized by high levels of poverty Low
incomes compared to other regions of the country
Important resources and capacities for the
development of targeted sectors
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Agricultural productivity improvement project
(continued)

• Mobilization of existing capacities and
  improvement of the production environment
• promotion of adding value, marketing back up and
  reinforcement of professional organizations
• Reinforcement of support actions technical
  assistance, training, applied research and
  scientific back up

Project Activities

• Project cost US507M of which US300M MCC
  contribution
• Beneficiaries 136,000 plots covering more than
  217.000 hectares (1 hectare 2.8 acres)

Impact
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Agricultural productivity improvement project
(continued)
Major markets
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Traditional fishing upgrading project
Objectives

• Break the poverty and vulnerability cycle that
  characterize the traditional fishing sector at
  the present time and place it on a path of
  sustainable growth
• Contribute to the continued preservation of
  employment for all actors working in the
  traditional fishing sector and increase their
  income
• Contribute to the preservation of fishing
  resources and set the conditions for sustainable
  development of the traditional fishing sector

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Traditional fishing upgrading project (continued)

• Construction of 20 adjustable unloading units
• Construction and renovation of 10 wholesale
  markets
• Development of 13 ports to be used by 14,680
  traditional fishermen, modernization and
  upgrading of 10,000 small boats and
  reorganization of 2,000 traveling retailers
• Back up scientific research development

Project activities

• Project cost US60M of which US120M MCC
  contribution
• Beneficiaries more than 30,000 fishermen

Impact
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Traditional fishing upgrading project
(continued)
Major markets
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Handicraft development project
Objectives

• Stimulate economic growth through reinforcing the
  ties between the handicraft sector, tourism and
  historical, cultural and architectural resources
  of the Fez Medina
• Modernize production techniques
• Reinforce the national system of instruction and
  professional training in favor of craftsmen and
  the public at large particularly women and girls
• Improve the craftsmens capacity to invest in
  renovated means of production such as ovens and
  modern workshop units

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Handicraft development project
(continuation)

• Modernization of the commercial and historical
  infrastructure of the Fez Medina through the
  rehabilitation and restructuring of five
  historical sites (Bab Al Makina, Fondouks
  (Chemaine/Sbetriyine, Berka et Staounien) and
  Lalla Ydouna Place)
• Support and modernization of production of
  pottery in Fez and Marrakech
• Support handicraft products promotion
• Handicrafts training

Project Activities

• Project cost US151M of which US11M MCC
  contribution
• Beneficiaries more than 30 000 fishermen

Impacts
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Handicraft development project (continuation)
Major markets
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Businesses support project
Objectives

• Support development of the private sector in key
  sectors
• Energize the job market, self-employment and the
  continued strengthening of small and medium
  enterprises
• Support 6,000 young enterprises created within
  the framework of NIHD and the Moukawalati program
  and the improvement of these businesss income
  through training and technical assistance

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Businesses support project (continued)

• Training and technical assistance for newly
  created enterprises within the framework of NIHD
  (INDH), personalized technical assistance by
  OFPPT (Office of professional training and
  employment promotion), combined training and
  technical assistnce by INDH
• Reinforcement of the capacities of the managing
  structures of the project

Project activities

• Project cost US34M financed in the large part
  by MCC
• Beneficiaries 6,000 young entreprises
• Moukawalati agencies, Social Actions Division
  (SAD), Local Committees of Human Development
  (LCHD)

Impact
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Businesses support project (continued)
Major markets
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Reinforcement of financial services support
project
Objectives

• Promote the role of micro-credit associations in
  fighting poverty
• Increase the number of beneficiaries of the
  micro-credit system to reach 4 million people
• Develop new financial products and improve the
  transparency and operational efficiency of
  micro-credit associations

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Reinforcement of financial services support
project (continued)

• Investment in JAIDA fund, a non-banking financial
  institution launched in 2006 to provide loans for
  the micro-credit sector
• Development of new financial products
• Improvement in the transparency and operational
  efficiency of the micro-credit associations

Project Activities

• Project cost US46.2 financed in full by MCC
• Beneficiaries Micro-credit associations and
  their clients

Impacts
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Reinforcement of financial services support
project (continued)
Major markets
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Follow up Assessment
Measure the impact of the implementation of the
Program's components in relation to the
predefined performance indicators
Major markets
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Program management
 Partnership Agency for Progress

• Headed by the Prime Minister
• Supervision of the programs
• implementation

Strategic orientation council

• Coordination and implementation
• of the program in its totality

Management unit
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Thank you very much for your attention