69952
    Kingdom of Morocco: Country Partnership Strategy (CPS) Progress Report
                                       and
    Kingdom of Morocco: First Skills and Employment Development Policy Loan

                          Meeting of the Executive Directors

                                     June 12, 2012

                                 Chair’s Summing Up ∗


       Executive Directors discussed the World Bank Group Country Partnership
Strategy Progress Report (CPS PR) for Morocco (R2012-0112 [IFC/R2012-0166]). They
supported the satisfactory assessment of the CPS implementation to date and noted that
the flexible approach had helped the Bank strengthen the focus on governance,
competitiveness, inclusion, accountability and voice. They welcomed the increased focus
on women and youth.

       Directors acknowledged that prudent macro-management and sustained reform
measures have helped mitigate the impact of shocks from previous global crises. They
noted the country still faces challenges in creating jobs, increasing competitiveness, and
improving social indicators. They also noted the potential impact on the Moroccan
economy of developments in the euro zone, which might contribute to increased
financing needs going forward. Directors commended Morocco for taking bold steps to
begin reforming its subsidy program and better target pro-poor spending.

       Directors welcomed the joint IBRD-IFC focus of the CPS and agreed with the
IFC priorities of promoting private investment, increasing access to finance, especially
for women, and supporting regional integration and south-south investments.

                               Summary of Discussion∗

        With regard to the First Skills and Employment Development Policy Loan, the
Executive Directors approved a loan to the Kingdom of Morocco in the amount of EUR
75.1 million (US$ 100 million equivalent) on the payment terms and conditions set out in
the President’s Memorandum (R2012-0111).

         Executive Directors supported the program’s objectives, which would improve
skills, productivity and quality of employment, based on solid empirical evidence and
analytical work. They urged that close attention be paid to the equity dimension of skills
development and labor market policy, to ensure positive outcomes for youth, women and
rural populations. Directors noted the need also to pursue long-term reforms that favor
employment, including changes in the regulatory framework. Finally, Executive
Directors highlighted the importance of strong coordination with the IFC and other
donors, in order to support the Government of Morocco in the timely implementation of
its skills/employment reform program.


∗
This summary is not an approved record.