US embassy cable - 05RABAT1108

UNCLAS RABAT 001108 
 
SIPDIS 
 
STATE FOR NEA/MAG AND NEA/PI 
USAIOD FOR ANESA - SARA BORODIN 
 
E.O. 12958: N/A 
TAGS: ECON, SOCI, MO 
SUBJECT:  PM JETTOU (RE)OUTLINES SOCIO-ECONOMIC AGENDA 
 
REF:  RABAT 1070 
 
1.  Summary:  Reinforcing the Government of Morocco's 
(GOM's) commitment to education and literacy, housing, and 
health care, on May 23, Prime Minister Driss Jettou outlined 
his government's priorities and themes for social and 
economic development in the coming months.  End summary. 
 
2.  Following on King Mohammed VI's May 19 speech calling 
for a national economic development plan, Prime Minister 
Jettou on May 23 outlined the government's economic strategy 
to upgrade the economy, improving Morocco's "modest" human 
development index scores.  Jettou catalogued the GOM's 
legislative and budget priorities and agenda for the rest of 
2005.  In addition to echoing earlier social and economic 
themes such as housing, education and literacy, health care, 
and job creation, Jettou also discussed social programs 
targeting sports, culture, and youth.  Jettou said that 51 
percent of the general budget would be allocated to social 
development. 
 
3.  Citing Morocco's woeful development figures - including 
40 percent illiteracy, 40 per 1000 infant mortality, and 
over two million children not receiving basic education, 
Jettou pledged to redouble government efforts to "upgrade 
the economy."  Hoping to eradicate illiteracy by 2015, the 
Jettou goverment will continue to increase enrollment in 
literacy training.  In 2003-2004, the number of 
beneficiaries more than doubled from 200 thousand to 450 
thousand, according to Jettou.  A national charter for 
education will modernize programs, methods, and materials 
(including textbooks) and develop effective new pedagogical 
practices. 
 
4.  The government will address a 1.2 million unit housing 
shortage for low income families through an ambitious 
construction plan that promises an additional 100 thousand 
homes per year.  The Prime Minister also underscored the 
GOM's "Slum-free Cities" program, an ambitious USD 2 billion 
initiative that targets 212 thousand families in 70 cities 
and aims to eradicate unsuitable housing by 2010. 
 
5.  The Prime Minister said his government will implement a 
compulsory health insurance law that will increase private 
and public sector coverage from five to 10.2 million 
Moroccans (still far short of Morocco's 33 million 
inhabitants).  The GOM will continue to bolster the Health 
Ministry's budget.  That ministry received 10 percent annual 
increases since 2002. 
 
6.  Jettou also addressed sports and culture.  He introduced 
new and existing programs including "sports for all" that 
encourages healthy exercise, "Book time" to promote 
literacy, and "Holidays for all."  Jettou noted that the GOM 
has allocated nearly USD 13 million to upgrade and support 
such cultural activities. 
 
7.  Comment:  Jettou's speech carried less punch than the 
King's far reaching vision for national economic development 
(reftel).  The Prime Minister mostly reiterated old themes 
in a "stay the course" lecture.  Most of the figures he 
provided were already public - the GOM is trying to remind 
Moroccans of efforts already underway.  However, in contrast 
to Mohammed VI's large-scale and elaborate vision (reftel), 
these remarks demonstrate the Prime Minister's and the GOM's 
priorities for the short to medium term.  Jettou's ambitious 
and expensive plans for social and economic development also 
coincide with recent news of lower than expected economic 
growth predictions and higher than expected budget deficit 
forecasts for 2005.