SOCIAL
AND LABOR AFFAIRS
Despite Improvements in their Countries'
Economies and Positive Outlook, Households in North Africa
Face Tough Budget Crunch
There is an interesting contradiction in the Algerian social
and economic environments. Money has been flowing into state
coffers in record amounts, and yet paradoxically households'
finances are stretched to their limits. The difficulties
facing families there is generally magnified with the back-to-school
season, as millions of pupils and students return to their
classes, with all the spending needed to prepare them for
the new academic year. But this year, the massive spending
due to back-to-school coincided with the month of Ramadan,
which in itself is typically the most expensive month of
the year. This year, the holly month of Ramadan began two
weeks after schools opened their doors. But to make things
even worse, spending pre-back-to-school has also been high
this year, according to observers. The summer season brought
its own troubles to the household budget. In Morocco, households
are facing an equally difficult environment, although the
outlook for this year's economic performance calls for a
more 7% growth. Rising prices across all product categories
are largely attributed to the need for the government to
withdraw from the business of subsidizing consumption. And
that is a painful transition for the average Moroccan.
[read
here]
ECONOMY AND TRADE
Growing
Libyan-Tunisian Trade Benefits the Tunisian Sahara: Toward Open
Border Policy
Tunisia
has been expanding its trade position in Libya, accelerating
commerce ever since Libya reopened to the world. For the first
seven months of this year, the value of the two countries'
trade reached the TND 1 billion mark (about the same in US$),
compared to TND 570 million the same period a year ago. In
addition to growing flows of goods and services, there has
been a sharp increase in travelers' flow, with Libyan travelers
now accounting for the largest share of Tunisian incoming
tourists. Some 6 million travelers cross the Tunisian-Libyan
border of Ras Jedir.
[read
here]
ECONOMY
AND TRADE
Morocco’s Economy in the First Half of
2006 and Outlook
After
the decrease in economic growth and an unfavorable international
environment with the rise in oil prices in 2005, the Moroccan
economic environment is showing good progress, with substantial
improvements during the first half of 2006, forecasting a
recovery of the GDP growth. This trend, combined with a continuation
of the improvement of public finances and the rise of foreign
assets reveal a continuation of the internal and external
stability of the Moroccan economy.
[read
here]
ENERGY
AND MINING
Libya’s Oil Sector: Toward Resource Nationalism
By: Geoff
Porter
In
a move to increase political control over its energy sector,
the Libyan government formed on September 6, 2006 a new body,
the Council for Oil and Gas Affairs, to set energy sector
policy. The council's mandate contains troubling language
hinting that Libya may be tacking toward resource nationalism.
Coming only six months after the complete dissolution of the
General People's Secretariat for Energy, the move is characteristic
of Libyan leader Col. Muammar Qadhafi's flip-flop method of
rule that prevents any one constituency from consolidating
too much power and ensures that Qadhafi is involved in all
key decisions.
[read
here]
ECONOMY
Central Bank of Tunisia Maintains Same Key
Rate
The
Central Bank of Tunisia announced on August 29, 2006 that
it will maintain the lending key rate unchanged. The bank’s
board noted the importance of pursuing efforts to consolidate
economic growth and boosting global balances, in particular,
by curbing the current deficit and the inflation rate. Assessing
the Tunisian economy, the bank said tourist and agricultural
activities could not be in line with the progress of manufacturing
industries production (exclusive of textile and clothing)
and the consolidation of foreign trade activity. In industry,
the sector's general index of production rose by 1.5% over
the first six months of the current year compared to 0.6%
in the same period of last year, following notably positive
development in mechanical and electrical industries, agrofood
industries and building materials, ceramics and glass industries.
This evolution was, in particular, reflected through higher
level of imports of raw materials and semi-finished products,
up by 12.4% at the end of the second ten days of August 2006.
[read
here]
LAW
White Collar Crime: Busy Fall Season for Morocco’s
Legal System
The Moroccan court system is under scrutiny. It is facing
several major high profile cases, all of which have been the
results of financial scandals that have remained unresolved
for several years. These cases, which include those of some
of the nation’s largest financial institutions and public
administrations, from CIH and BNDE, to CNSS and BCP, add a
new workload to the already busy criminal courts, in particular
since the special courts that have initiated them no longer
exist.
[read
here]
