Class XIV international seminar trip Reports February 16-March 1, 2010

Chad Selman

Morocco gained independence from the French in 1956 and has tried to improve education since that time. In the 1990’s, tough economic times slowed improvement, but the government kept trying to improve education. In 2006, the expenditure on education as a percentage of GDP was 5.5 percent, higher than education expenditures as a percent of GDP for Arab countries, such as Omar, Kuwait and Egypt¹.

Compulsory basic education was introduced in the 1960’s, and by 1985 enrollment of school age children had reached 85 percent compared to 17 percent at the time of independence. Even though school is compulsory and free, many school age children do not attend or drop out of school early, especially in the rural areas. The percentage of children attending schools is greater in the urban areas with males having a greater percentage than females. Among school age children the literacy rate has been increasing, but at 70 percent in 2002 is still low compared to 86 percent for the North African region².
Education is the responsibility of the Supreme Council for Education³. This council occupies a central position in a group of councils that are headed by the king. The education system in Morocco is composed of four elements: pre-school, primary, secondary, and tertiary levels. Pre-school education is basic and compulsory to all children under the age of 6. This level is open to children of ages 4 to 6; however, only around 60% of the children attend. Primary education consists of six years of education for children in the age range of 6 to 12 year olds. After primary school, there are 3 years of lower secondary education. At this stage students receive a certificate of collegial studies and are able to move on to the upper secondary level if they wish to move forward. At the lower secondary level, many classes have to be retaken because of failure and in turn there is a big drop out and non completion rate at this step. The upper secondary level is divided into two main areas: general or technical and professional. Upon completion of upper secondary education a student must pass a national achievement examination to be able to move on to the tertiary level.

The tertiary level of education is what we call college level. There are 14 public universities in Morocco in addition to a large number of private universities. Entrance in most universities require the baccalaureat certificate earned from the upper level of secondary education, but some fields such as engineering require special tests and training before entrance is granted. Morocco is also partnering with foreign countries in helping with collegiate education.

Vocational education is available at different levels to students. After six years of primary education students are allowed to take vocational training. After completing any of the next steps of education; vocational training is available with different levels of certification. It appears the more education a student receives before entering vocational school determines the level of skilled training that the student will be able to receive.

There are many problems in the education system in Morocco. Language barriers are one of the major problems along with different values and customs in various areas of Morocco. Arabic is the main language taught in the schools with French being used in the more science based classes. English is becoming more prevalent in the tertiary levels. Rural areas seem to have very low attendance rates and very high drop out rates. Even though school is compulsory there seems to be no enforcement, punishment, or incentives to make children attend. Even though it is a problem, Morocco does seem to be ahead of the United States in teaching different languages to the people. It appears that most students attending secondary schools will know two to three different languages fluently.

Overall, Moroccan education has made great strides in the last few years. They are currently planning and striving to move ahead in the next few years; however, they are farther behind and will take years to catch up with the developed world.

The health care in Morocco is very similar to the educational reforms in Morocco. There have been great strides in improving health care and the well being of the citizens, but there is still a long way to go to bring up some of the health and medical issues to the standards of the region. In 2005, two reforms were legislated by the government of Morocco to expand the health coverage⁴. The Moroccan health care system includes a mix of public and private financing as well as delivery to the people. One reform passed is intended to extend health coverage from sixteen percent to thirty percent of the population. This is a payroll-based mandatory health insurance plan. The second is a publicly financed fund to cover services for the poor. The problem with this plan is not the quantity of care given, but the quality and availability of the care. There are still many problems that need to be worked out with this system because of the number of people that are not classified as poor, but are not covered by a payroll or private insurance carrier. The poor in rural areas still do not know that they can get medical help or where they can receive these services. Morocco has debated national health insurance coverage for everyone for fifteen years, and the debate is very similar to the one in the United States. The same questions arise in both countries: financing, quality, choice of doctors, coverage limits, different care and availability in different areas, prescription coverage, etc.

According to the United States government, Morocco has an inadequate number of physicians (0.5 per 1,000 people) and hospital beds (1.0 per 1,000 people); however, the majority of population have good access to water (82% of the population) and good sanitation (75% of the population) ⁵. The health care system has 122 hospitals, 2,400 health centers, and four university clinics but it is not nearly enough to take care of the demand and the quantity of people. The health care is better in the urban areas and worse in the rural areas; however, even the urban areas hospitals are mismanaged and are over capacity. It seems that private hospitals and clinics offer a wider variety and better services than public institutions although the cost is prohibitive except to the upper class of people.

Several programs have been initiated to help the people of Morocco. In 1960 the child mortality rate was 215 per 1,000, the rate had decreased to 47 in 2000, and is now at 36⁶. Although they have made great strides it is still six times higher than Israel. There have been successful programs to educate people about hygiene and campaigns against malaria, tuberculosis, venereal diseases and cancer. In 2004, the minister of health announced the country had eradicated a variety of childhood diseases, specifically

diphtheria, polio, tetanus and malaria, but other diseases continue to pose challenges to the Moroccan people. The government has programs to promote the use of contraception, and it is reported that over half of the women in Morocco use these. In Morocco, 57.5 % of the population still does not have running water. 17% of the urban households do not have running water and 81.97% of the rural households do not have running water⁷.

Travelers to Morocco are advised to drink bottled water, and milk should be boiled before drinking. Dairy products should be avoided because they may have been made from raw milk⁸. Most water is safe in large cities and communities, but the rural areas are the unsafe areas. Meat and fish should be eaten when well cooked, preferably very hot. Salads cause an increased risk because they may have been washed in contaminated water. Vegetables should be eaten cooked and fruit should be peeled just before eating.

All public phones have emergency numbers listed on them in case of a health emergency, accident, or a crime. In the event of vehicle accidents involving injuries, immediate ambulance service is usually available. When sick, one should ask a Moroccan resident for a referral to one of the many doctors in private practice. When in a public hospital, tipping can be useful in order to get better treatment⁹.

Vaccination requirements to enter Morocco are more recommendations than requirements. It is recommended that travelers have the mumps, measles rubella vaccine, diphtheria, pertussis, Hepatitis A and B, and be current on the tetanus shots. Malaria is sometimes recommended if you travel to southern regions during the hottest periods of the year from June to October. My health care provider and the local health department seemed to be more worried about flu vaccines and especially for travelers that will be stressed, in a new environment and exposed to all kinds of people on a trip to a foreign country. They both advised to get the regular flu shot and the H1N1 flu shot so that travelers have a better chance of being protected from getting sick.

One area of health concern when going to Morocco is the (DVT) or deep vein thrombosis. Deep vein thrombosis occurs when blood clots form in the legs during plane flights, chiefly because of prolonged immobility¹⁰. Though most blood clots are reabsorbed through the body some may reach the lungs and cause life threatening complications. Symptoms include swelling in the calf, ankles or feet and if a clot reaches the lungs it will cause chest pain and difficulty in breathing. Preventing deep vein thrombosis is the best way to deal with this potential problem. When traveling on long flights you should walk about the cabin and contract the leg muscles while sitting, drink plenty of fluids and avoid alcohol and tobacco. If you have any symptoms of deep vein thrombosis you should seek immediate medical help.

Probably, the biggest risk for most people visiting Morocco is gastronomical upsets with diarrhea being the prevalent stomach problem. With the stress of flying, eating different foods, and a foreign environment most people say if you stay long enough you will get diarrhea. The best way to avoid it is to eat properly prepared foods and bottled water. However if you do get sick, a friend that has traveled to several foreign countries suggest having the following items: 1. A big bottle of Imodium AD 2. Preparation H 3. Own supply of toilet tissue.

Another person that has visited relatives in Morocco says that she did not drink bottled water and was never sick. The same person also commented that the schools are very rigorous and comparable to the schools in the United States and that sports are a big part of the Moroccan life. When she spoke of health care she thought that hospitals were not as rigorous or regulated and were more “casual” than in the United States. In addition she said if specialty care was needed her relatives would go to the United States for treatment.

Morocco should be a very educational and fun place to visit. Some safety precautions to guard your health are a must. There seems to be a big difference in health care and education in the rural and urban areas and also the care and education given to the poor. Most of the literature indicates that if you stay in the urban, more populated areas with good motels that the sanitation is good and the water is safe to drink, but they still recommend drinking bottled water. Eat well cooked food, enjoy the friendly nature of the Moroccan people, and do not worry about what might happen and enjoy the adventure. I am looking forward to learning everything I can about the Morocco on the trip including: the agriculture, the weather, soil, history, transportation, climate, people, culture, entertainment, food and things that I have not even thought about that come with international travel.

This last paragraph is being written after we have been on our learning experience to Spain and Morocco. The information provided above was obtained from books, articles, the internet, etc. Several times the information from one article would be the exact opposite from another and I struggled to get what I thought was the right information. After being there, I believe that what I have written is correct on the average. There is a tremendous amount of difference between the rich and the poor, the educated and the noneducated and the urban and the rural. I am sure we did not see the extreme poor or isolated people on our short visit to Morocco. Morocco is a country with a lot of history and has been a lower class country, but I believe they are trying to educate and improve themselves. Morocco was a very interesting country to see and was part of the trip that I will never forget.
References

¹Education in Morocco. Wikipedia. http://en.wikipedia.org/wiki/Education_in_Morocco - Accessed 2009 October 30.
²Clark, Nick. 2006 April. Education in Morocco. http://www.wes.org/ewenr/06apr/practical_morroco.htm Accessed 2009 October 30.
³Education System. http://education.stateuniversitycom/pages/1018/Morocco/EDUCATION-SYSTEM- OVERVIEW.html Accessed 2009 October 30.
⁴Ruger, Jennifer Prah, and Daniel Kress. Health Financing and Insurance Reform in Morocco. Health Affairs 26.4 (2007): 1009-1016.
⁵Health in Morocco. Wikipedia. http://en.wikipedia.org/wiki/health_in_Morocco Accessed 2009 October 30.
⁶Morocco. LookLex Encyclopedia. http://looklex.com/e.o/morocco.health.htm Accessed 2009 October 30.

⁷Morocco. http://www.roleofwomenineconomicliFe.net Accessed 2009 December 3.
⁸Morocco Health. http://www.worldtravelguide.net/country/180/health/Africa/Morocco.html . Accessed 2009 October 30.
⁹French in Morocco. LangMedia. http://babel.uorego.edu/LangMedia/collection_french.AV/lm_morocco/mo_emergencies

Accessed 2009 October 30.

Spain is part of the European Union (EU) which allows free trade of most goods within the EU countries with a few limitations. All European Union countries must allow for tariff and duty free trade among members. This internal free trade agreement allows free movement of most products within their borders imported from or exported to other EU members. These goods exported or imported within the EU cannot have quantity restrictions either. They cannot limit the number of tones of pork sent from Spain or the bottles of wine received from France. Licenses to buy or sell most goods are not required. The exception is the import and or export specific merchandise including pharmaceutical drugs, military items or technology including defense, police, sport and hunting weapons. There are some great hunting firearms made in the EU and their import and exports are closely licensed. These items require a permit prior to their import or export with specific purpose, origin and destination. (a)

Is a member of the World Trade Organization and has many diverse trade agreements. With its close proximity to Europe they have established a free trade agreement (FTA) with the European Union. This agreement has been negotiated and implemented in phases by sectors since 2000. In January 2006, the bilateral Free Trade Agreement (FTA) between the United States and Morocco went into effect. The FTA represents an important step towards a vision of a Middle East Free Trade Area and was the first for the U.S. in Africa. The U.S.-Morocco FTA eliminated tariffs on most bilateral trade in consumer and industrial products. It provides protection for Moroccan wheat sensitive Moroccan agricultural products such as wheat. (e) It appears to me to be a food security issue for Morocco.

(a) ICEX database; National Statistics Institute;. June 2008

(b) Reuters, EU clears Syngenta GMO maize for imports. Mon Nov 30, 2009

(c) Morocco Agricultural, Economy & Policy Paper, March 2009

(d) EUROSTAT, Comext, Statistical regime 4, Sept. 22, 2009

(e) Trade Facts, Free Trade With Morocco, A Vital Step, March 2, 2004

The ability of an economy to thrive and grow as a result of its’ citizens confidence is rooted in the foundations of monetary policy. Monetary policy is defined as the relationship that exists between a country’s interest rates, or the cost to borrow money, and the total supply of money within an economy [1]. Money supply is often associated with currency, for example in the United States the dollar bill. For thousands of years, people have been using scarce resources or commodity money to purchase items because of the perceived value. Some of the first forms of currency included barley, precious metals, cowry shells, beads, etc [2]. As a society becomes more developed and people have the need to obtain goods not in their possession, a complex market develops, known as an economy. This structure, as we understand it today, can be traced back to the Babylonians and their code of law in the 1^st and 2^nd centuries BC that defined terms of rules on debt, legal contracts, basic business practices and defined interest rates on debt. Today, after thousands of years, the fundamental structure of a society’s economy has changed very little. However, the policies that governments implement in controlling monetary supply can have an immeasurable impact on the ability of a society to succeed.

In the following report, the monetary policies and banking structures of both Morocco and Spain will be reviewed to provide a greater insight to the country’s respective economic developments and the advantages or disadvantages they encounter.

Moroccan Monetary Policy and Banking Structure

The growth and development of a country’s economy is a complex process that takes on many different shapes and sizes depending on the stage of development. Generally speaking, as the market systems become more advanced, we observe less dependence in the country on agricultural production and more development in services, manufacturing, housing, etc. Morocco is considered by many around the world to be a “developing” country. This suggests that many market advancements and complexities present in the U.S. have yet to come to fruition in Morocco.

At the heart of every strong economy is a sound banking system. Morocco in its’ recent history has worked to improve banking policies and deregulate some of the state controlled banking system to encourage competition and improve confidence in the system. For years, Morocco struggled, as many developing countries do, with high inflation, currency devaluation, market shocks, and a number of other issues [3]. However, in the 1990’s, the monarchy realized the necessity to economic development in the country was dependent on banking system confidence. In 1993, banking reforms began that liberalized financial markets, restructured capital markets, and put in place components for indirect and market based instruments of monetary policy. The Moroccan Dirham was also made convertible for all current transactions, which helped encourage foreign investment [4].

These changes have led to the current banking system in Morocco that is considered developed and modern by today’s standards and is one of the most liberalized in North Africa. The system consists of a Central Bank, Bank al-Maghreb, sixteen commercial banks, some development banks, and thirty-six financing companies [4]. Although, competition in the financial sector is encouraged, the six largest banks in the country still control 85% of the banking sector assets [5]. The economic troubles the U.S. has faced recently reinforce the dangers in having a concentrated banking system.

The Central Bank of Morocco plays a similar role to the Federal Reserve in the United States. The Central Bank controls minimum capital requirements, liquidity, solvency, and legal lending limit ratios for banks located within the country [6]. More importantly, the new banking laws regard price stability as the primary objective for the Central Bank [7]. Two reasons for this new focus are to encourage foreign investment to spur economic development and promote more citizens to use the banking system. Studies estimate that about 80% of society still does not use banks and most developed networks exist only in the urban areas [8].Much like the Federal Reserve Bank, Bank al-Maghreb has the primary supervisory role of banking entities in the country and issues all licenses. Bank al-Maghreb is made up of a council including the governor of the Bank al-Maghreb, the vice governor of Bank al-Maghreb, the director of the Ministry of Finance Treasury, and six members appointed by the prime minister, three of whom are proposed by the governor [7]. This board composition changed with banking reforms and has removed some of the strong government influence to ensure policy decisions are determined in the interest of the entire country.

Many of the changes previously discussed have allowed Morocco to significantly improve the worldly perspective on their creditworthiness. Morocco’s fiscal deficit has been significantly reduced and government debt has decreased by 20% from 2000 to 2007 [9]. These changes have led to the gradual improvement in living standards and per capita income. However, the impacts of the global economic recession on this delicate economy remain to be seen. The next few years will tell the story in the effectiveness of the country’s monetary policies and fiscal strength.

The development and advancement of the Spanish economy is far different from that discussed in Morocco. The economy of the Iberian Peninsula can be traced back to the prehistoric times of the Iberians and Celts that centered on raising cattle [10]. As a result, there is no surprise that a far more advanced and complex economy is observed in Spain. We observe that underlying this economy is a banking system considered to be one of the most solid and best equipped Western economies to handle the worldwide recession. In fact, Spain’s largest bank participated in the United Kingdom government’s bailout of the UK banking sector [10].

Although Spain has a central bank, their function and authority has been diminished with the establishment of the European Union. For a large part, Banco de Espana serves as an intermediary between the European Union’s Central Bank and the Spanish banking sector. The general responsibilities of implementing monetary policy, conducting currency exchange operations, and promoting the sound working of payment systems are administered by the European System of Central Banks [11] In order to better understand the economic policies and structures in Spain, we must explore the structure of the European Union banking system.

The establishment of the European Monetary System (EMS) began in 1979 to address fluctuating exchange rates surrounding a common currency. Over the next 20 years, countries altered their monetary and economic policies to converge on the common monetary unit to later become known as the Euro. This convergence allowed the European Union to establish the Economic and Monetary Union that eventually granted access to the Euro currency for eleven countries, one of which was Spain, on January 1, 1999 [11].

The European Central Bank was established with a 5 billion Pound capital deposit by each member National Central Bank. The governing council for the European Central Bank is comprised of the members of the Bank’s Executive Board and all Governors of the National Central Banks whom have adopted the Euro currency. The council meets every two weeks and acts individually rather than as a representative of their country. As observed in Morocco, the EU’s primary monetary policy objective is to provide price stability in the sense of level prices without extended periods of inflation or deflation. Similar to the U.S., the EU uses short term interest rates and money supply as its primary mechanism to control inflation [11]. Despite the success and continued development of the EU, addressing specific monetary issues relative to a geographical region or country are more difficult.

Spain over the last four decades had grown their tourism industry into the second largest in the world. The economy had been regarded as one of the most dynamic in the EU and Spain’s economy created more than half of the EU’s jobs from 2000 to 2005. Similar to the U.S., Spain had also benefitted greatly from the worldwide real estate boom that led household debts to triple in a decade and many households now have negative equity in their mortgages [12]. As Spain slipped into a recession at the end of 2008 and now faces unemployment rates at or near 20%, one wonders if a National Central Bank could have more easily and directly addressed the apparent inflation issues that led to this situation. Unfortunately, the European Central Bank could not address the warning signs in one country individually, but rather had to make their policy decisions based upon the health of the entire Union. A parallel to this challenge is considering the mechanisms the Federal Reserve and the U.S. Government have implemented nationwide. Many states on the coasts and the Midwest had a similar situation as Spain, yet many of the Plains states were later to feel the impacts from the recession and appear to be far less severe. Had policies been enacted immediately by the Fed to address East and West Coast problems, Oklahoma may have been thrown into an inflationary market or could have entered the recession a lot sooner with deeper impacts to our economic health.Despite these frustrations for Spain, there is significant traction and advantages to these countries to be a part of a common currency that encourages trade, opens markets, and allows for greater movement of capital into and out of a country. As the economic recovery begins, the Euro System will adapt to address these issues, but in the meantime, Spain may suffer a disproportionate economic contraction.

1. 
   Mansfield, Edwin. Applied Microeconomics. W.W. Norton & Co., 1997. 2^nd Ed.
   

2. 
   “History of Money.” Wikipedia: The Free Encyclopedia. 8 Jan. 2010. 13 Jan. 2010. http://en.wikipedia.org/wiki/History_of_money
   

3. 
   “An Overview of the Moroccan Economy.” The Literature and Culture of Morocco in a Postcolonial Web. 13 May 2001. 18 Dec. 2009 http://www.postcolonialweb.org/morocco/economics/economy1.html
   

4. 
   “Finance and Banking System.” Country Perspectives – Morocco. ANIMA Investment Network. 18 Dec 2009. 18 Dec 2009. www.animaweb.org/en/pays_maroc_financesbanques_en.php
   

5. 
   “Efficient Capital Markets and Portfolio Investment.” U.S. Department of State. 18 Dec. 2009. 18 Dec 2009. http://www.state.gov/e/eeb/rls/othr/ics/2009/117848.htm
   

6. 
   “Morocco.” Info-Prod Research (Middle East) Ltd. 15 Jan 2010. http://www.infoprod.co.il/article/21
   

7. 
   “Morocco Monetary Transparency.” Oxford Analytica Ltd. Country Report 2006. Dec 2006. 18 Dec 2009. http://www.calpers.ca.gov/eip-docs/investments/assets/equities/international/permissible-2007/morocco-monetary-report-2006.pdf
   

8. 
   Album, Andrew. “Middle East: Moroccan Banking Sector.” The Free Library. Farlex. 1 Dec 1998. 18 Dec. 2009. http://www.thefreelibrary.com/MOROCCAN+BANKING+SECTOR.-a062926847
   

9. 
   “Economy of Morocco.” Wikipedia: The Free Encyclopedia. 10 Dec. 2009. 13 Dec. 2009. http://en.wikipedia.org/wiki/Economy_of_Morocco#Fiscal_Policies_and_Debt_Managing
   

10. 
    “Economic History of Spain.” Wikipedia: The Free Encyclopedia. 28 Dec. 2009. 14 Jan. 2010. http://en.wikipedia.org/wiki/Economic_history_of_Spain
    

11. 
    “The Eurosystem.” Banco de Espana Eurosistema. Dec. 2009. 14 Jan. 2010. http://www.bde.es/homee.htm
    

12. 
    “Economy of Spain.” Wikipedia: The Free Encyclopedia. 3 Jan. 2010. 14 Jan. 2010. http://en.wikipedia.org/wiki/Economy_of_Spain
    

Spain and Morocco are two very different countries geographically, spiritually, and especially economically.

The economy of Spain has grown every year from 1994 through 2008, when it began a recession in the 3^rd quarter. In 2009, Spain had a GDP of $1.37 trillion compared to GDP of the U.S. of $14.26 trillion. 3.4% of this GDP came from the agricultural sector. More statistics about the Spanish economy can be found in Table 1. Spain is considered a mixed capitalist economy, being that there is a mixture of privately owned industry intermingled with more centralized economic planning and government regulation than we are accustomed to in the U.S. The current socialist president, Jose Luis Rodriguez Zapatero has been in office since 2004 and has been trying to carry out key structural reforms regarding employee rights, government spending, and government involvement. The fiscal budget within Spain consisted of a revenue stream $420.4 billion in 2009, compared to $1.9 trillion of revenue in the U.S. More information regarding the fiscal standings of Spain can be seen in Table 2. Some major Spanish industries include textiles and apparel, chemicals, shipbuilding, automobiles, medical equipment, and tourism. Spain has a labor force of 22.97 million people, 4.2 percent of which are employed in agriculture. At the end of 2009, the unemployment rate was at 18.1 percent, it is estimated higher around 20 percent in March 2010. More information on the labor force of Spain can be found in Table 3.

The economy of Morocco is much different however. New policies in the early 1990’s brought economic stability to Morocco but has not spurred economic growth. The GDP for Morocco was $146.7 billion in 2009, compared to Oklahoma’s $104.5 billion. It’s GDP per capita is tremendously lower however by almost $24,000 per individual. 18.8% of Morocco’s GDP comes from the agricultural sector. More statistics about the Moroccan economy can be found in Table 1. Many trade agreements have been signed between Morocco and importing countries and this has provided more jobs for its people. The main issues faced by Morocco’s growing economy are a lack of education and skilled laborers and a wide income gap between upper and lower levels of income. Moroccan government revenues totaled $22.9 billion is 2009, as compared to the Oklahoma statewide revenue of $15.9 billion. More information about the Moroccan financials can be found in Table 2. Some major Moroccan industries include phosphate rock mining and processing, leather goods, construction, and growing ever more important, tourism. The labor force consists of 11.46 million people, 44.6 percent of which are doing agricultural labor. The unemployment rate at the end of 2009 was 9.9 percent; it has remained fairly steady. More information regarding the Moroccan labor force can be seen on Table 3.