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JANUARY 7, 2001 - 98th ISSUE

Moroccan Politics and Religion
King Mohammed VI Reasserts his Power Over the Religious Domain
Monarchy Weakens Executive Branch, Seeks to Undermine the Fundamentalist Movement
The current rise of the Islamist movement in Morocco is accompanied by a fear among the secularists over the role of religion in governance. But governance and religion are not meant to be separate under the Moroccan law. The Monarch is meant to be both the supreme governing figure and the supreme religious leader or commander of the faithful (Emir El-Moomineen).
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CHART OF THE WEEK

The Tunisian government's
revenue structure

In 1998, the Tunisian government generated TD 6.6 billion in revenue. Revenue is composed of tax-based revenue and nontax revenue. The contribution of nontax revenue has steadily decreased in Tunisia while tax revenue grew continuously since 1994.

The sharpest increases in the tax revenue category are social security contributions which grew to TD 5.9 billion in 1998 from TD 3.9 billion in 1994.

In contract, revenues from taxes on foreign trade, a category that's part of the tax revenue system, remained unchanged over the last few years. This is while trade in volume and value grew considerably. This stagnation or regression of foreign trade tax revenue highlights two important characteristics on Tunisia's foreign trade.

First, there are declining taxes on trade in an effort to stimulate export. Secondly, Tunisia is adjusting its tax regime to reflect its obligations within the Tunisia-EU free trade zone agreement and the WTO, leading to declining foreign trade revenue.


BUSINESS AND THE ECONOMY

Moroccan Economy
Rain Brings Hope of Economic Growth in 2001
It is finally raining in Morocco and with it comes hope of real economic growth. While February and March are the most critical months in the sector of agriculture, the latest rainfalls bring a great deal of hope for farmers who have a tough and persistent drought and also for those in charge of the economy in Rabat.
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Algeria - Economy
2001 Fiscal Budget Seeks Balanced Sources of Revenue for the State
The Algerian finance law and State budget for fiscal year 2001 has been adopted with measures that will undoubtedly impact consumers and their spending ability. The budget also introduces a more balanced tax collection model, which attempts to diversify sources of tax revenues.
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Transport
Tough Time for Transport Sector in the Maghreb
The idea of completely privatizing sectors of public interest could be a very dangerous policy if not planned with caution. While in most, if not all, highly developed market economies, segments of the transport sector are still public domain, many cities in North Africa have been forced to withdraw entirely from the public transport sector with major risks of service disruptions and declining quality. Weak local governments and lack of money have been the catalysts for such withdrawals and when "experts" of international institutions recommend such action, it is seen by decision makers as a "wisdom" to follow and a solution to all problems.
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Algiers Airport Project
Current Contractors Fear Eviction
The search by Algeria of investment banks to help establish the conditions for the concession of the Algiers airport came as an embarrassment to the three companies that are already working to accomplish the same goal. These companies are Siega or Societe d’Investissement, d’Exploitation et Gestion Aeroportuaire which was mandated by the government to pilot the project, Brown & Roots Condor which has been in charge of the engineering and planning aspects, and Scoal, a construction firm with 600 workers.
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Telecom
Fixed Phones in Algiers
The telecommunications administration will install 120,000 new fixed phone lines in 2001 in the city of Algiers. Each district and administrative locality will get between 1,000 and 4,000 new lines depending on the size of the locality. The largest communities such as Dar El-Beida and Ain-Naadja will get 10,000 lines each.
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Morocco - Administration
Casablanca to Improve Investment Procedures
Good news for those of you who plan to invest or set up a business in Greater Casablanca. This year, Casablanca will have a single administration to handle investment operations. This one stop-shop is modeled on the successful Tunisian system and will soon kick off with an Internet Website.
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POLITICS

Tunisia – Human Rights
European Parliament Demands Tunisia to End Actions Against Human Rights Groups
Upline Securities says the European Parliament (EP) has called on President Zine al Abidine Ben Ali to order an immediate halt to all forms of harassment and repression aimed at human rights groups, and a petition in support of the Tunisian Human Rights League (LTDH) circulating in France and Switzerland has already garnered more than 100 high-profile signatures.
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Algeria - Government
Changes in the Algerian Cabinet Expected
The cabinet of Prime Minister Benflis is set to undergo transformation in the near future. Changes may be soon ordered by the president of the republic, Abdelaziz Bouteflika, with the establishment of super-ministries through the merging of key departments.
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