The African Development Bank (AfDB) will support the third phase of Morocco's Public Administration Reform Support Programme (PARAP III) with a € 66 million loan approved on Wednesday in Tunis, by the Bank's Board of Directors.
The Programme aims at achieving four key objectives: Strengthen public finance management, improve efficiency in human resources management, control the civil service wage bill and streamline procedures and introduce e-government. The overall goal is to promote strong economic growth and sustainable development, thereby strengthening the competitiveness of the economy while ensuring medium-term macro-economic viability.
The Bank's funding, which covers the 2008-2009 period, is a budget support to enable the government to pursue its reform programme. In line with previous programmes, PARAP III is jointly financed with the World Bank and the European Union.
The main outcomes expected from the programme are: the extension of budget management pilot experiences to the entire administration, completion of the new human resources management system (HRM), which requires new job classification and pay reform, maintaining the wage bill reduction rate until the target is reached, and introduction of a new electronic government component. These reforms are expected to begin to produce results by 2009.
The objectives of the PARAP are aligned with Morocco's CSP priorities as well as with the Bank's strategic orientations and policy on good governance for 2008-2012.
The programmes started in 2003, are impacting positively on the macroeconomic, business and social environments as well as on human resources management and gender equity. For instance, they have brought inflation under control, thus resulting in a surplus balance of payments, significant international reserves, reduced public debt GDP ratio and reduced budget deficit.
The programmes also helped in streamlining administrative processes as well as in improving public expenditure management and responsiveness of the public administration that have helped to create a conducive environment for attracting more private investments to Morocco. The improved business climate has resulted in improved gross investments to the tune of 30.3% of GDP in 2007, compared to 27.5% in 2003.
PARAP are also having positive impacts on gender in the country where women represent about 34% of the staff in the Moroccan public administration. More than 45% of female civil servants work in the social ministries (health, education, social welfare).
The Bank started its operations in Morocco in 1970. To date, its cumulative approvals in the country stand at €5.34 billion in 96 projects and programmes.
* 1 UA = USD 162069 = EUR 1.04507 = 11.9601= MAD 11.9601 as at 25/06/2008
CONTACT: Felix Njoku - Tel. : +216 71 10 26 12 - E-mail : f.njoku@afdb.org
