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Document of
The World Bank
Report No.: ICR00003788
IMPLEMENTATION COMPLETION AND RESULTS REPORT
(IBRD-81720)
ON A
SERIES OF LOANS
IN THE AMOUNT OF €148.4 MILLION
(US$200 MILLION EQUIVALENT)
TO THE
KINGDOM OF MOROCCO
FOR THE
SKILLS AND EMPLOYMENT DEVELOPMENT POLICY LOANS 1-2
February 28, 2017
Social Protection and Labor Global Practice
Middle East and North Africa Region
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CURRENCY EQUIVALENTS
(Exchange Rate Effective December 2015)
Currency Unit = Moroccan Dirham (MAD)
MAD 1.00 = US$0.10
€1.00 = US$1.04
FISCAL YEAR
January 1 – December 31
ABBREVIATION AND ACRONYMS
AFD French Development Agency (Agence Française de Développement)
AGR Revenue-Generating Activity (Activité Génératrices de Revenus)
ALMP Active Labor Market Program
ANAPEC National Employment Promotion Agency for the Promotion of Employment and
Skills (Agence Nationale de Promotion de l’Emploi et des Compétences)
ANPME National Agency for the Promotion of Small and Medium Enteprises (Agence
Nationale pour la Promotion des Petites et Moyennes Entreprises)
CIP First Employment Contract (Contrat d’Intégration Professionnelle)
CNEF National Education and Training Charter (Charte Nationale de l’Education et de la
Formation)
CNSS National Social Security Fund (Caisse Nationale de Sécurité Sociale)
CPS Country Partnership Strategy
CSE Higher Council for Education Higher Council for Education (Conseil Supérieur de
l’Enseignement)
CSF Special Training Contracts (Contrats Spéciaux de Formation)
DPL Development Policy Loan
EU European Union
GDP Gross Domestic Product
GIZ German Development Agency/German Society for International Cooperation
(Deutsche Gesellschaft für Internationale Zusammenarbeit)
GoM Government of Morocco
HCP National Statistics OfficeHigh Commission for Planning (Haut -Commissariat au
Plan)
INDH National Initiative for Human Development (Initiative Nationale pour le
Développement Humain)
IPE Unemployment Benefit Insurance Scheme (Indemnité pour Perte d’Emploi)
M&E Monitoring and Evaluation
MCC Millennium Challenge Corporation
MENA Middle East and North Africa
MILES Macroeconomic performance, Investment climate, Labor market policies and
institutions, Education and skills, and Social protection for workers
MOLSA Ministry of Labor and Social Affairs (Ministère de l’Emploi et des Affaires Sociales)
NGO Non-governmental Organization
OFPPT National Vocational Training AgencyOffice of Vocational Traning and Employment
Promotion (Office de la Formation Professionnelle et de la Promotion du Travail)
PCS State-Funded Social Insurance Coverage (Prise en Charge par l’Etat de la couverture
Sociale)
PLR Performance and Learning Review
PNEI National Agreement for Emerging Industries (Pacte National pour l’Emergence
Industrielle)
PPP Public-Private Partnership
PUEN Education Emergency Program (Programme d’urgence éducation-formation)
RNAE National Register of Self-Entrepreneurs (Registre National de l’Auto-Entrepreneur)
SEDPL1 First Skills and Employment Development Policy Loan
SEDPL2 Second Skills and Employment Development Policy Loan
SME Small and Medium Enterprise
TVET Technical and Vocational Education and Training
VTD Vocational Training Department
Vice President: Hafez Ghanem
Country Director: Marie Françoise Marie-Nelly
Practice Manager: Hana Brixi
Task Team Leaders: Diego Angel-Urdinola and Kamel Braham
KINGDOM OF MOROCCO
Skills and Employment Development Policy Loans 1-2
CONTENTS
Data Sheet A. Basic Information .................................................................................................................... i
B. Key Dates ................................................................................................................................ i
C. Ratings Summary ................................................................................................................... ii
D. Sector and Theme Codes....................................................................................................... iii
E. Bank Staff ............................................................................................................................... v
F. Results Framework Analysis .................................................................................................. v
G. Ratings of Program Performance in ISRs ............................................................................. xi
H. Restructuring (if any) ............................................................................................................ xi
1. Program Context, Development Objectives and Design ........................................................ 1
2. Key Factors Affecting Implementation and Outcomes......................................................... 13
3. Assessment of Outcomes ...................................................................................................... 22
4. Assessment of Risk to Development Outcome ..................................................................... 30
5. Assessment of Bank and Borrower Performance ................................................................. 31
6. Lessons Learned.................................................................................................................... 34
7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners....................... 35
Annex 1. Bank Lending and Implementation Support/Supervision Processes......................... 36
Annex 2. Summary of Borrower's ICR and/or Comments on Draft ICR ................................. 38
Annex 3. List of Supporting Documents .................................................................................. 48
Annex 4. Summary of the Performance of Prior Actions Supported by the Series .................. 49
Annex 5. Brief Description of ALMPs in Morocco.................................................................. 56
i
A. Basic Information
Program 1
Country Morocco Program Name Morocco First Skills
and Employment DPL
Program ID P120566 L/C/TF Number(s) IBRD-81720
ICR Date 02/21/2017 ICR Type Core ICR
Lending Instrument DPL Borrower GOVERNMENT OF
MOROCCO
Original Total
Commitment USD 100.00M Disbursed Amount USD 97.00M
Implementing Agencies
Ministère des Affaires Générales et de la Gouvernance (MAGG)
Cofinanciers and Other External Partners
Agence Francaise de Développement
Program 2
Country Morocco Program Name MA-Second Skills and
Employment DPL
Program ID P144185 L/C/TF Number(s) IBRD-81720,IBRD-
84180
ICR Date 02/21/2017 ICR Type Core ICR
Lending Instrument DPL Borrower GOVERNMENT OF
MOROCCO
Original Total
Commitment USD 100.00M Disbursed Amount USD 93.02M
Implementing Agencies
Ministry of General Affairs and Governance (MAGG)
Ministry of Education and Vocational Training
Ministry of Labor and Social Affairs (MOLSA)
Cofinanciers and Other External Partners
B. Key Dates
Morocco First Skills and Employment DPL - P120566
Process Date Process Original Date Revised / Actual
Date(s)
Concept Review: 11/02/2011 Effectiveness: 08/30/2012
Appraisal: 03/19/2012 Restructuring(s):
Approval: 06/12/2012 Mid-term Review:
ii
Closing: 12/31/2012 12/31/2012
MA-Second Skills and Employment DPL - P144185
Process Date Process Original Date Revised / Actual
Date(s)
Concept Review: 09/19/2013 Effectiveness: 10/15/2014
Appraisal: 07/02/2014 Restructuring(s):
Approval: 08/26/2014 Mid-term Review: 12/14/2015
Closing: 12/31/2015 12/31/2015
C. Ratings Summary
C.1 Performance Rating by ICR
Overall Program Rating
Outcomes Moderately Satisfactory
Risk to Development Outcome Moderate
Bank Performance Moderately Satisfactory
Borrower Performance Satisfactory
C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)
Overall Program Rating
Bank Ratings Borrower Ratings
Quality at Entry Moderately Satisfactory Government: Satisfactory
Quality of Supervision: Satisfactory Implementing
Agency/Agencies: Satisfactory
Overall Bank
Performance Moderately Satisfactory
Overall Borrower
Performance Satisfactory
C.3 Quality at Entry and Implementation Performance Indicators
Morocco First Skills and Employment DPL - P120566
Implementation
Performance Indicators
QAG Assessments
(if any) Rating:
Potential Problem
Program at any time
(Yes/No):
No Quality at Entry
(QEA) None
Problem Program at any
time (Yes/No): No
Quality of
Supervision (QSA) None
DO rating before
Closing/Inactive status Satisfactory
iii
MA-Second Skills and Employment DPL - P144185
Implementation
Performance Indicators
QAG Assessments
(if any) Rating:
Potential Problem
Program at any time
(Yes/No):
No Quality at Entry
(QEA) None
Problem Program at any
time (Yes/No): No
Quality of
Supervision (QSA) None
DO rating before
Closing/Inactive status
Moderately
Satisfactory
D. Sector and Theme Codes
Morocco First Skills and Employment DPL - P120566
Original Actual
Major Sector
Public Administration
Compulsory pension and unemployment insurance 10 10
Education
Vocational training 10 10
Tertiary Education 40 40
(Historic)Health and other social services
Other social services 40 40
Major Theme/Theme/Sub Theme
Finance
Financial Infrastructure and Access 6 6
MSME Finance 6 6
Human Development and Gender
Education 32 32
Access to Education 8 8
Science and Technology 8 8
Standards, Curriculum and Textbooks 8 8
Teachers 8 8
Labor Market Policy and Programs 46 46
Active Labor Market Programs 23 23
Labor Market Institutions 23 23
Private Sector Development
Enterprise Development 6 6
MSME Development 6 6
Social Development and Protection
iv
Social Protection 11 11
Social Insurance and Pensions 11 11
MA-Second Skills and Employment DPL - P144185
Original Actual
Major Sector
Education
Vocational training 40 40
Tertiary Education 10 10
(Historic)Health and other social services
Other social services 40 40
Industry, Trade and Services
Other Industry, Trade and Services 10 10
Major Theme/Theme/Sub Theme
Finance
Financial Infrastructure and Access 6 6
MSME Finance 6 6
Human Development and Gender
Education 32 32
Access to Education 8 8
Science and Technology 8 8
Standards, Curriculum and Textbooks 8 8
Teachers 8 8
Labor Market Policy and Programs 46 46
Active Labor Market Programs 23 23
Labor Market Institutions 23 23
Private Sector Development
Enterprise Development 6 6
MSME Development 6 6
v
E. Bank Staff
Morocco First Skills and Employment DPL - P120566
Positions At ICR At Approval
Vice President: Hafez M. H. Ghanem Inger Andersen
Country Director: Marie Françoise Marie-Nelly Neil Simon M. Gray
Practice
Manager/Manager: Hana Brixi
Yasser Aabdel-Aleem Awny El-
Gammal
Task Team Leader: Diego Angel-Urdinola Nadine T. Poupart
ICR Team Leader: Diego Angel-Urdinola
ICR Primary Author: Sati Achath
MA-Second Skills and Employment DPL - P144185
Positions At ICR At Approval
Vice President: Hafez M. H. Ghanem Inger Andersen
Country Director: Marie Françoise Marie-Nelly Neil Simon M. Gray
Practice
Manager/Manager: Hana Brixi
Yasser Aabdel-Aleem Awny El-
Gammal
Task Team Leader: Diego Angel-Urdinola Nadine T. Poupart
ICR Team Leader: Diego Angel-Urdinola
ICR Primary Author: Sati Achath
F. Results Framework Analysis
Program Development Objectives (from Program Document)
The Loan Agreements for the programmatic Skills and Employment Development Policy
Loan (SEDPL) series do not define the Program Development Objective (PDO).
PDO from the SEDPL1 Program Document: The objective of the SEDPL is to support
the Government of Morocco to implement its program of improving skills, productivity
and quality of employment through specific objectives:
A. Matching skills developed within the vocational training and higher education systems
to the needs of the labor market;
B. Improving the effectiveness of intermediation services, including active labor market
programs;
C. Improving job quality; and
D. Strengthening the labor market information system.
vi
Revised Program Development Objectives (as approved by original approving authority)
The PDO formulation for SEDPL2 was slightly revised.
PDO from SEDPL2 Program Document: The SEDPL2 Development Objective is to:
A. Improve the efficiency and relevance to labor market needs of skills development
programs (Pillar A);
B. Improve the effectiveness of intermediation services (Pillar B);
C. Promote the formalization of micro-enterprises (Pillar C); and
D. Strengthen the labor market information system (Pillar D).
The four development objectives (Pillars) of SEDPL1 and SEDPL2 are essentially
consistent. For the purpose of this report, the PDO articulated in the SEDPL2 program
document is considered to be the PDO for the programmatic series.
Indicator(s)
Morocco First Skills and Employment DPL - P120566
Indicator Baseline
Value
Original Target
Values (from
approval
documents)
Formally
Revised
Target
Values
Actual Value
Achieved at
Completion or
Target Years
Pillar A
Indicator 1 :
Rate of internal efficiency of vocational training programs
Value
(quantitative or
Qualitative)
60.0%
68.0%
70.0%
Date achieved 12/31/2012 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Fully achieved, exceeding the target.
Pillar A
Indicator 2 :
University graduation rate (bachelor) in open-enrollment faculties, by gender
Value
(quantitative or
Qualitative)
51.0% Women: 52.0%
56.0% Women:
57.0%
56.0% Women:
56.0%
Date achieved 12/31/2010 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Fully achieved. 98% achievement rate for women
vii
Pillar A
Indicator 3 :
Number of beneficiaries of on-the-job vocational training
Value
(quantitative or
Qualitative)
122,000.00
134,000.00
123,633.00
Date achieved 12/31/2013 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Achievement rate was 92%. The Government managed to increase provision of
on-the-job vocational training despite a stagnant labor demand between 2014
and 2015, due to slower than expected economic growth.
Pillar A
Indicator 4 :
Number of disadvantaged youth (that is, those who have not attained tertiary
education) benefiting from NGOs-offered training programs.
Value
(quantitative or
Qualitative)
3,300.00
3,700.00
4,856.00, of which
women: 2,748.00
(56.0%)
Date achieved 12/31/2012 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Fully achieved, exceeding the target. NGOs showed a strong capacity to reach
beneficiaries (of which women represented the majority) and to connect them
with master trainers at the local level.
Pillar B
Indicator 5 :
Number of Taehil beneficiaries, by gender
Value
(quantitative or
Qualitative)
18,000.00
Original target:
25,000.00, of
which women:
50.0% Revised
target (April
2015): 18,000.00,
of which women:
50%
15,170.00, of which
women: 6,978
(46.0%)
Date achieved 12/31/2013 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Achievement rate was 60% based on the original target and 84% based on the
revised target (of which 46% women). The target was revised in April 2015
due to lower than expected economic growth and labor demand.
Pillar B
Indicator 6 :
Number of CIP beneficiaries, by gender
Value
(quantitative or
Qualitative)
0.00
100.00 of which
women: 60.0%
71.00, of which
women: 50.0%
Date achieved 12/31/2013 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Achievement rate was 71% (83% for women). The program had lower take-up
by enterprises than expected, as it required firms to hire workers with an open-
ended contract in order to benefit from wage subsidies.
viii
Pillar B
Indicator 7 :
Number of beneficiaries of the State-funded social insurance coverage (Prise
en charge par l’ Etat de la couverture sociale or PCS) Program, by gender.
Value
(quantitative or
Qualitative)
0.00
1,000 of which
women: 50%
2,343 of which
women: 1,452
(62%)
Date achieved 12/31/2013 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Fully achieved, exceeding the targets.
Pillar B
Indicator 8 :
Number of ANAPEC local offices
Value
(quantitative or
Qualitative)
50.00
77.00
77.00
Date achieved 12/31/2009 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Fully achieved.
Pillar B
Indicator 9 :
Number of new enrollments with ANAPEC, including proportion of non-
graduates, per year, by gender.
Value
(quantitative or
Qualitative)
130,000.00, of which
women: 45.0%, and of
which non-graduates:
10.0%
160,000.00, of
which women:
40.0%, and of
which non-
graduates: 15.0%
186,570.00, of
which women:
41.0%, and of
which non-
graduates: 20.0%
Date achieved 12/31/2011 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Fully achieved, exceeding the targets.
Pillar C
Indicator 10 :
Number of firms, formally operating in the informal sector, registered
annually for professional tax (cumulative).
Value
(quantitative or
Qualitative)
0.00
28,000.00
21,000.00
Date achieved 12/31/2010 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Achievement rate was 75% as the indicator was too ambitious, despite
achievements of bringing firms into the formal sector. Firms’ take-up of the
program could have been further enhanced by fostering more awareness and
simplifying the registration process.
ix
Pillar C
Indicator 11 :
Number of non-salaried workers registered with the National Social Security
Fund
Value
(quantitative or
Qualitative)
0.00
50,000.00
0.00
Date achieved 12/31/2011 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Not achieved. While the program contributed to launch important social
security reforms to extend coverage to non-school workers, the implementation
of these reforms has been complex and sensitive; leading to the non-
achievement of the target indicator.
Pillar D
Indicator 12 :
Number of Active Labor Market Programs (ALMPs) that have been the subject
of an evaluation
Value
(quantitative or
Qualitative)
2 programs: Idmaj and
Moukawalati
2 programs:
Taehil and
CIP.
The evaluation of
the Taehil program
is near completion.
The first phase
report was
delivered, and
the second phase
report is being
validated. The
evaluation of the
CIP program has
not yet been
conducted.
Date achieved 12/31/2013 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Partially achieved. The evaluation of the Taehil program is near completion.
The evaluation of the CIP program has not yet been conducted. The
government plans to undertake the evaluation of the CIP program in 2017.
x
Pillar D
Indicator 13 :
A program of surveys and studies, aimed at responding to the needs of
the labor market and social protection, is carried out
Value
(quantitative or
Qualitative)
3 studies have been
launched
3 studies were
completed and 2
new ones have
been launched
Three studies were
completed: (1)
study on minimum
wage; (2) survey on
labor force
mobility; and (3)
evaluation of Idmaj.
Two new studies
were launched
(evaluation of
Taehil and
evaluation of cost
efficiency of
the extension of
ANAPEC services.
Date achieved 12/30/2011 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Fully achieved. The two studies that were launched are Taehil-the first phase of
the study is completed (report available). The second phase is being finalized
(interim report available). Non-graduates: The first two phases of the study are
completed.
Pillar D
Indicator 14 :
Number of publications of a labor market monitoring report (bulletin) by
the National Employment Observatory
Value
(quantitative or
Qualitative)
0.00
2
15
Date achieved 12/31/2013 12/31/2015 12/31/2015
Comments
(incl. %
achievement)
Fully achieved, exceeding the original target. The monthly bulletins produced
by the National Employment Observer have covered various contributing to
more knowledge of the Moroccan labor market.
xi
G. Ratings of Program Performance in ISRs
Morocco First Skills and Employment DPL - P120566
No. Date ISR
Archived DO IP
Actual
Disbursements
(USD millions)
1 12/10/2012 Satisfactory Satisfactory 96.77
MA-Second Skills and Employment DPL - P144185
No. Date ISR
Archived DO IP
Actual
Disbursements
(USD millions)
1 01/11/2015 Satisfactory Satisfactory 92.79
2 06/05/2015 Moderately Satisfactory Moderately Satisfactory 92.79
3 12/31/2015 Moderately Satisfactory Moderately Satisfactory 92.79
H. Restructuring (if any)
None
1
1. Program Context, Development Objectives and Design
1.1 Context at Appraisal
1. Country background. After a series of peaceful civil demonstrations in 2011,
Moroccans—young people in particular—called for a revamped democratic system, improved
governance, and greater freedoms, voice, and opportunities. This social movement, known as the
‘February 20 Movement’, called for political change to promote a more inclusive development
process. As a response to these demands from the population, King Mohammed VI proposed a
comprehensive package of political reforms that gained wide national support and led to a
constitutional referendum held on July 1, 2011. Elections were held in November 2011 and
resulted, in January 2012, in the formation of a four-party coalition government, with the head of
the winning Justice and Development party (Parti de la Justice et du Développement) becoming
the Head of the Government as well.
2. Macroeconomic background. Since the early 2000s, Morocco pursued sound macroeconomic policies and continued a process of structural reforms. As a result, the growth
pattern shifted from an average of 2.8 percent growth in Gross Domestic Product (GDP) per
capita per year in the 1990s, to a higher level of growth, averaging 4.9 percent over the 2001–
2010 period. The growth performance allowed GDP per capita to almost double, reaching the
equivalent of US$3,100 in 2011. Furthermore, sound fiscal policies led to the consolidation of
public finance, allowing the budget to run surpluses in 2007 and 2008 (averaging 0.3 percent of
GDP), which allowed the country to withstand the impact of the global crisis and higher world
prices of basic commodities. Nevertheless, Morocco suffered a major deterioration of its terms of
trade, compounded by a significant increase in its food import bill after 2008 (18 percent per
year on average). Moreover, with a strong trade exposure to the European Union (EU), Morocco
was adversely affected by the sovereign debt crises in Spain, Italy, and Portugal and the
subsequent slowdown of economic growth in Europe more generally. As a result, economic
growth beyond the agricultural sector decelerated to an average of 3.5 percent since 2009, and
Morocco’s fiscal balance swung from a surplus of 0.4 percent of GDP in 2008 to a deficit of 6.9
percent of GDP in 2011.
3. Monetary authorities pursued appropriate monetary policy geared toward maintaining
low and stable rates of inflation (an average of 1.6 percent from 2005 and maintained adequate
financial sector supervision). Furthermore, the country sought to deepen its integration into the
world economy through the signing of many Free Trade Agreements culminating with the
‘Advanced Status’ awarded by the EU. Overall, these efforts led to a rather stable
macroeconomic stance and a sound financial sector. Based on these achievements, Morocco
gained an ‘investment grade’ rating in year 2007, which was subsequently confirmed in years
2009, 2010, and 2011.
4. With the involvement of the private sector and state-owned enterprises, Morocco
designed and implemented specific sector strategies to increase investment and employment in
sectors of the economy with high growth potential. Thus, investment in these sectors increased,
strengthening the fundamentals of the economy. High foreign direct investment inflows (an
average of 4.3 percent of GDP over the 2008–2011 period) also contributed to reinforcing gross
investment.
2
5. Sector background. Morocco’s unemployment rate had fallen during 2010–2011, mainly
due to the good economic growth that was brought about by the expansion of the service,
commerce, and public works sectors and lower labor force growth. The country’s overall
unemployment rate decreased from 13 percent in 2000, to 8.9 percent in 2011. Unemployment
rates were higher in urban areas (13.7 percent) than in rural areas (3.9 percent), for young people
(17.6 percent for those ages 15–24), especially those living in urban areas (31.3 percent), and for
skilled workers. Higher education graduates, however, represented only 20 percent of
unemployed workers ages 15–34, while one-third of the unemployed population had no diploma
(Haut Commissarait au Plan – HCP- 2010)1. Other sector issues included the following:
Low quality of education in general terms translated into a low-skilled labor force. According to the World Bank’s 2008 Investment Climate Assessment,
approximately 31 percent of firms that participated in the study identified the low-
skilled labor force as one of the major constraints to doing business in Morocco.
Most Technical Vocational Education and Training (TVET) and Active Labor
Market Programs (ALMPs) were supply driven, social in nature (that is, to keep
young job seekers out of unemployment), and largely run and managed by public
institutions with limited participation of private sector providers, notably by the
National Agency for the Promotion of Employment and Skills (Agence Nationale de
Promotion de l’Emploi et des Compétences, ANAPEC) and the National office of
Vocational Training and Employment Promotion (Office de la Formation
Professionnelle et de la Promotion du Travail, OFPPT). Moreover, the effectiveness
of these programs remained largely unassessed.
The Government needed to review existing regulation and financing mechanisms in the TVET sector. The status quo made it difficult for private providers to enter the
market and address service delivery gaps in public provision (such as limited
coordination with private stakeholders and limited relevance of training courses and
curricula).
School-to-job transition was a major problem, with first-time job seekers
representing half of the unemployed population. Unemployment spells were mainly
of long duration (more than 12 months), especially in the case of skilled workers.
The Government aimed to review regulation and financing mechanisms for social security, to expand coverage, especially among small informal firms and self-
employed individuals. Informality, defined as ‘lack of social security coverage’
(usually understood as pensions or, if the pension system does not exist, as health
insurance) was widespread in Morocco, reaching 80 percent of the employed
population (compared to the MENA region average of 67 percent).
Low labor mobility and a fragmented social security system also played an
important role in explaining poor labor outcomes. Pensions in the public sector were
considerably higher than in the private sector. In addition, they were managed by a
1Haut-Commissariat au Plan (2010). Activité, Emploi Et Chômage. Division des enquêtes sur l’emploi. Rabat.
3
various institutions, which limited portability of benefits and hindered labor
mobility.
6. The Government program. The Government’s 2012–2016 program was structured
around the following five pillars: (i) deepening national identity, preserving social cohesion and
diversity; (ii) strengthening of good governance, democratic participation, and advanced
regionalization and decentralization; and consolidation of the rule of law; (iii) pursuit of a strong,
competitive, multi-sector, diversified, and wealth and employment generating economy; and
pursuit of an economic policy guaranteeing that the benefits of growth are shared; (iv) promotion
of social programs guaranteeing equitable access to basic services and strengthening solidarity
and equal opportunities across citizens, generations, and regions; and (v) consolidation of
Morocco’s regional and international credibility, as well as support to Moroccans abroad. The
World Bank mainly focused its support on Pillars II, III, and IV (Figure 1).
Figure 1. 2012–2016 Government Program and World Bank Support
7. The scope of the SEDPL operation focused primarily on the Government’s objectives
outlined in Pillars III and IV. To improve labor market outcomes (Pillar III), the Government
intended to promote employment growth in the private sector through economic growth, private
investment, and better provision of training and intermediation services. Boosting employment
creation required high rates of investments in high-value-added sectors and improvements in
innovations and productivity. Achieving these goals required parallel improvements in
macroeconomic and investment climate policies, the education and training sector, labor market
policies, and the social protection system. Also, the Government intended to expand social
4
security coverage (Pillar IV) among the working force. As a result, the Government embarked on
a series of reforms/actions to: (a) improve the performance of TVET and the ALMPs sectors, and
of the higher education system (with a focus on improving effectiveness and fostering private-
sector participation in service delivery); (b) promote job creation, particularly among small and
medium firms, and (c) promote higher coverage of social security among informal/low-
productivity workers and the formalization of small firms. Some of these policies were supported
by the SEDPL program.
8. Rationale for World Bank assistance. The Country Partnership Strategy (CPS 2010–
2013) (Report No. 50316-MA) placed the employment challenge squarely at the center of
Morocco’s development. Support to skills development and employment was a key component
of the World Bank’s program and the SEDPL operation was a central instrument of the World
Bank’s lending support. The second SEDPL operation was also fully aligned with the Morocco
CPS 2014-2017) (Report No. 86518-MA) through the support to increased employment and
income opportunities, especially for youth and women. The SEDPL series aimed to contribute to
achieving the first and second pillars of the CPS, namely, (a) encouraging growth,
competitiveness, and employment; and (b) improving the quality of service delivery to citizens.
By doing so, it would contribute to achieving the CPS outcomes related to skills and employment.
The SEDPL was designed in close collaboration with other World Bank-supported activities that
targeted growth, private sector development, and employment creation, namely, the
Competitiveness Development Policy Loan (P128869) and the Sustainable Access to Finance
DPL (P117201). These operations seek complementarity to holistically address supply- and
demand-side aspects of the Moroccan labor market.
9. Rationale for the choice of instrument. A DPL was considered to be the most suitable
instrument, as reforms in TVET/employment policy sectors required the following:
(a) The establishment/revision of regulatory frameworks (notably laws and decrees)
defining changes in the modus operandi of the TVET/ALMPs sectors;
(b) The establishment of new institutions and institutional frameworks that required
regulation to properly enable their implementation and functioning within the public
administration; and
(c) The completion of concrete institutional actions, such as the preparation of sectoral
action plans and/or the implementation of particular programs.
1.2 Original Program Development Objectives (PDO) and Key Indicators (as approved)
10. The Loan Agreements for this programmatic DPL do not define the Program
Development Objectives.
11. The SEDPL development objective, as stated in the Program Document, of the first Skills
and Employment Development Policy Loan (SEDPL1) was to support the Governme nt of
Morocco to implement its program of improving skills, productivity, and quality of employment
through: (a) matching skills developed within the vocational training and higher education
systems to the needs of the labor market; (b) improving the effec tiveness of intermediation
5
services, including ALMPs; (c) improving job quality; and (d) strengthening the labor market
information system.
12. The development objective of the SEDPL2, as stated in the Program Document, was to:
(a) Improve the efficiency and relevance to labor market needs of skills development programs;
(b) Improve the effectiveness of intermediation services; (c) Promote the formalization of micro-
enterprises; and (d) Strengthen the labor market information system.
13. Key indicators for the DPL series as approved were as follows.
Pillar A: Improve the Efficiency and Relevance to Labor Market Needs of Skills
Development Programs.
Indicator 1: Rate of internal efficiency of vocational training programs covered by a programmatic contract, by gender (SEDPL1). This indicator was revised in
SEDPL2 as: Rate of internal efficiency of vocational training programs.
Indicator 2: University graduation rate in open-enrollment faculties, by gender
(SEDPL1). This indicator was revised in SEDPL2 as: University graduation rate in
open-enrollment faculties, by gender.
Indicator 3: Number of beneficiaries of on-the-job vocational training. Added in SEDPL2.
Indicator 4: Number of disadvantaged youth benefiting from NGOs-offered training
programs. Added in SEDPL2.
Pillar B: Improving the Effectiveness of Intermediation Services.
Indicator 5: Number of Taehil beneficiaries, by gender. Added in SEDPL2.
Indicator 6: Number of First employment contract (Contrat intégration
professionnelle or CIP) beneficiaries, by gender.
Indicator 7: Number of beneficiaries of the State-funded social insurance coverage (Prise en charge par l’Etat de la couverture sociale or PCS) Program, by gender.
Added in SEDPL2.
Indicator 8: Number of National Employment Promotion Agency (ANAPEC) local offices.
Indicator 9: Number of new enrollments with ANAPEC, including proportion of
non-graduates, per year, by gender.
Insertion rate (term/open contract) for PCS beneficiaries, by gender, after 6 months (SEDPL1). Dropped in SEDPL2.
Pillar C: Promote the Formalization of Micro-enterprises.
Indicator 10: Number of firms formerly operating in the informal sector, registered
annually for professional tax (cumulative).
6
Indicator 11: Number of non-salaried workers registered with the National Social Security Fund.
Number of pilot regions signing a programmatic contract with the State for
implementing the national strategy for the promotion of micro-enterprises. Dropped
in SEDPL2.
Pillar D: Strengthening the Labor Market Information System
Indicator 12: Number of Active Labor Market Programs (ALMPs) that have been the subject of an evaluation.
Indicator 13: A program of surveys and studies, aimed at responding to the needs
of the labor market and social protection, is carried out.
Indicator 14: Publication of a labor market monitoring report (bulletin) by the National Employment Observatory. Added in SEDPL2.
1.3 Revised PDO (as approved by original approving authority) and revised Key
Indicators, and Reasons/Justification
14. The development objective and the four pillars of the programmatic DPL series were
slightly revised in the second series to better reflect the actual reforms supported by this
operation, namely, to (a) improve the efficiency and relevance to labor market needs of skills
development programs (Pillar A); (b) improve the effectiveness of intermediation services (Pillar
B); (c) promote the formalization of micro-enterprises (Pillar C); and (d) strengthen the labor
market information system (Pillar D). Nevertheless, the four development objectives (Pillars) of
SEDPL1 and SEDPL2 remained essentially consistent during the series.
15. A number of indicators were revised in the SEDPL 2 Policy Matrix to better reflect the
expected results of the Prior Actions supported by the series. The revisions in the indicators
reflected policy changes made by the government and/or changes in the groups targeted by the
policies supported by the series.
16. Under Pillar A, two indicators were revised and two indicators were added.
The GoM had initially planned to develop programmatic contracts for TVET delivery
with public and private providers. Such contacts were never concluded. As such, the
original indicator No 1 “rate of internal efficiency of vocational training programs
covered by a programmatic contract, by gender” was reformulated to cover all vocational
training programs (public and private) as “rate of internal efficiency of vocational
training programs”.
The Prior Actions supported by the series aiming to improve the performance of tertiary education programs, benefited graduates from bachelors programs only (i.e. excluded
post-graduate programs). As such, the original indicator No 2 “University graduation
rate in open-enrollment faculties, by gender” was revised to “University graduation rate
(bachelor) in open-enrollment faculties, by gender”.
7
The following two indicators were added to SEDPL 2 to reflect key Prior Actions included in the series supporting expansion of coverage and improvements in targeting of
TVET programs: (i) indicator No 3 “Number of beneficiaries of on-the-job vocational
training” and (ii) indicator No 4 “Number of disadvantaged youth benefiting from NGOs-
offered training programs”.2
17. Under Pillar B, two indicators were added and one indicator was dropped.
Two indicators were added to measure the coverage of two important ALMPs delivered
by ANAPEC, which complemented the First Employment Contract (Contrat
d’Integration Professionelle, CIP program), and which also aimed at improving the
effectiveness of intermediation services (consistent with the Pillar’s B objective). These
indicators were (i) indicator 5: “Number of Taehil beneficiaries, by gender”, and (ii)
Indicator 7: “Number of beneficiaries of the State-funded social insurance coverage
(Prise en charge par l’Etat de la couverture sociale or PCS) Program, by gender”. See
Annex 5 for a description of ALMPs in Morocco.
The indicator “Insertion rate (term/open contract) for PCS beneficiaries, by gender, after 6 months” was dropped since data collection necessary to track the employment
outcomes of beneficiaries six months after program completion was not undertaken by
the GoM.
18. Under Pillar C, one indicator was dropped.
The following indicator “Number of pilot regions signing a programmatic contract with
the State for implementing the national strategy for the promotion of micro-enterprises”,
was dropped. The reason for dropping this indicator was that these programmatic
contracts were not implemented as policy priorities to support the promotion of micro-
enterprises shifted focus into developing broader policy measures (instead of programs)
to encourage the growth and formalization of micro-enterprises.
19. Under Pillar D, one indicator was added.
Indicator 14 “Publication of a labor market monitoring report (bulletin) by the National Employment Observatory” was added to the series in order to measure the capacity of the
newly established National Employment Observatory to monitor the performance of the
Moroccan labor market.
2Taehil is a program that seeks to improve the employability of unemployed graduates through training to meet specific
recruitment needs (Formation Contractualisée pour l’emploi), retraining of graduates who have difficulty entering the labor
market (Formation Qualifiante ou de reconversion), and training tailored to specific sectors of the economy (SE).
8
1.4 Original Policy Areas Supported by the Program (as approved)
20. The SEDPL series supported four policy areas.
Pillar A: Improve the efficiency and relevance to labor market needs of skills development
programs
21. Pillar A was reformulated in SEDPL2 to better capture the nature of the Prior Actions
supported by the series.3 Prior actions included in the series consisted of a series of “supply-side”
interventions aiming to design and deliver skills-development programs (higher education and
vocational training) that are more aligned with the needs of private sector firms. Indirectly, it was
expected that such interventions would contribute to better match the skills produced by the
system with the skills demanded by the labor market.
22. Higher education. The Government’s objective was to improve the effectiveness o f
initial technical training and on-the-job training (including apprenticeships). The Government
prepared a new vocational training strategy with two main policy directives: (a) to rethink the
governance and financing of public provision of vocational training to better respond to the
needs of the economy, including delegating the management of training centers to industry
federations; and (b) to make vocational training more demand driven by reorienting training
programs to respond to particular skills/employment needs identified in sectoral strategies, such
as the National Agreement for Emerging Industries (Pacte National pour l’Emergence
Industrielle, PNEI) (for example, off-shoring, automobile manufacturing, aerospace industries,
electronics, textiles, and agribusiness), the National Energy Strategy (energy), the National
Tourism Strategy (tourism), the Plan Maroc Vert (agriculture), the Plan Halieutis (fisheries), and
the Vision 2015 (crafts).
23. Vocational training. The Government’s objective was to improve the effectiveness of
initial technical training and on-the-job training (including apprenticeships). The Government
prepared a new vocational training strategy with two main policy directives: (a) to rethink the
governance and financing of public provision of vocational training to better respond to the
needs of the economy, including delegating the management of training centers to industry
federations; and (b) to make vocational training more demand driven by reorienting training
programs to respond to particular skills/employment needs identified in sectoral strategies, such
as the National Emerging Industries Agreement (Pacte National d’Émergence Industrielle) (for
example, off-shoring, automobile manufacturing, aerospace industries, electronics, texti les, and
agribusiness), the National Energy Strategy (energy), the National Tourism Strategy (tourism),
the Plan Maroc Vert (agriculture), the Plan Halieutis (fisheries), and the Vision 2015 (crafts).
3SEDPL1 Pillar A was formulated as “Matching skills developed within the vocational training and higher education systems to the needs of the labor market”. However, none of the Prior Actions under P illar A supported an activity that would “directly”
focus on matching the supply and demand of skills (such as labor intermediation and/or career counseling). Such actions would have been more aligned with the objectives of Pillar B.
9
Pillar B: Improve the effectiveness of intermediation services
24. While the formulation of Pillar B was slightly reformulated in SEDPL2, there was no
change in the substance or nature of the policy actions supported by the series under this Pillar.
The pillar supported a series of actions aimed at improving the performance of intermediation
services and ALMPs.4
25. The Government engaged in an in-depth review of its ALMPs and labor market
intermediation policies, in order to make them more effective and demand-driven. The
Government recognized the need to assess the effectiveness of such policies and their impact on
labor market outcomes of the beneficiaries who participated in these programs. As most
programs were designed centrally, the GoM recognized the need to tailor programs to regional
specificities, while giving regions a stronger role in their implementation. Also, the GoM aimed
at increasing program take-up in the private sector, with the expectation that program
beneficiaries would have a higher chance to finding a permanent job after their participation in
these programs. The ALMPs supported by the series (such as the CIP and the PCS) were
designed to reduce labor costs of program beneficiaries (though the provision of temporary wage
subsides) and thus increase firms’ labor demand. The Taehil program intended to finance
training programs that would respond to the skills needs of existing vacancies, making the
intervention demand-driven (see Annex 5 for details). Finally, while most ALMPs targeted first-
time job seekers who graduated from tertiary education, the GoM recognized the need to extend
coverage of ALMPs to other vulnerable sections of the population that constitute the majority of
the unemployed, namely, low-skilled unemployed youth and long-term unemployed individuals
(those seeking employment for periods longer than 12 months).
26. In coherence with the aforementioned priorities, after 2012, MOLSA introduced a set of
new ALMPs. The first program—State-Funded Social Insurance Coverage (Prise en Charge par
l’Etat de la Couverture Sociale, PCS)—was an improved version of the Idmaj program (see
Annex 5 for details). The program provided subsidies to the employer’s mandatory social
security contributions on the workers’ wages for the duration of their fixed-term contract. This
program aimed to decrease overall labor costs and would thus improve the employability of
young graduate job seekers, who would develop their professional skills and competencies in the
course of their employment at the enterprise. Moreover, to encourage firms to offer a permanent
contract at the end of the program’s period, the enterprise would be further exempted from social
security contribution (employers’ contribution) for 12 months after a beneficiary is formally
hired with an open-ended contract. The second program—the CIP program—which targeted
long-term unemployed graduates (those actively seeking employment for a period longer than 12
months) as well as newly unemployed graduates from study programs having a record of low
labor market insertion rates (based on a list prepared in coordination with the Higher Education
Ministry). The program provided subsidies to firms that would offer an open-ended contract to
beneficiaries in these target category groups for a period between 6 and 9 months.
27. Finally, the Government was envisioning the extension of the services of ANAPEC,
which mainly targeted graduates, to the non-graduate population (the bulk of the unemployed) as
4SEDPL1 Pillar B was formulated as “Improving the effectiveness of intermediation services, including ALMPs”.
10
well as those benefiting from the Unemployment Benfit Scheme (Indemnité pour Perte d’Emploi,
IPE). Extending ANAPEC coverage to non-graduates would require amending Law No. 51/99
establishing ANAPEC and reorganizing ANAPEC's services. Given the financial impact of the
measure, government stakeholders (notably MOLSA and the Ministry of Economy and Finance)
agreed to first assess the capacity of ANAPEC to take on this new mandate. As a result, MOLSA
decided to launch a pilot program, supported by the French Development Agency (AFD)
(Agence Française de Développement), to test the extension of ANAPEC's services to this new
target population group and estimate the associated costs. The pilot phase, still ongoing as of
January 2017, aims to benefit 1,500 non-graduate job seekers registered in a select set of local
offices for a period of eight to ten months. Results of the pilot are expected to be documented in
2017.
Pillar C: Promote the formalization of micro-enterprises.
28. While the formulation of Pillar C was slightly reformulated in SEDPL2, there was no
change to the substance or nature of the policy actions supported by the series under this Pillar.
Actions supported under this pillar intended to: (i) improve the employment quality of non-
salaried workers by improving their access to social security; and (ii) support the formalization
of micro-enterprises and self-employed individuals. The new formulation was intended to better
reflect the actions supported by this pillar.5
29. The Government introduced a series of measures intended to increase formalization rates
of workers and firms. First, the Ministry of General Affairs and Governance (MAGG)
envisioned encouraging the progressive formalization of micro-enterprises with a revenue below
MAD 3 million per year. The goal was to give incentives for these firms to register with the tax
administration to get a preferential tax scheme. Registration would, in turn, allow firms to have
access to financial services and to issue receipts—which are necessary to, for example, engage in
contracts to provide services to public and private providers. At the same time, the Government
prepared the National Strategy for Micro-Enterprise Development, which included four priority
axes to foster productivity and growth for small and medium enterprises (SMEs), namely, (a)
improving access to financing; (b) developing fiscal incentives; (c) supporting SMEs to register
their workers in social insurance schemes; and (d) supporting the provision of pre- and post-
enterprise creation, such as coaching, advisory services, and administrative support.
30. Second, the Government sought to expand social security coverage for salaried workers,
independent workers, and the poor. For salaried workers, the National Social Security Fund
(Caisse Nationale de Sécurité Sociale, CNSS) expected to increase the number of contributors by
150,000 between 2009 and 2011. This objective was largely surpassed as the number of CNSS
contributors amounted to 500,000 in the same period. Efforts to increase coverage are still
ongoing.
31. Third, the Government revised its regulatory framework to comply with the EU decent
work agenda including: (a) a law on occupational health and safety (draft Law 03-11); (b) a law
on domestic employment (draft Law 34-06); (c) a law on purely traditional work (draft Law 20-
5SEDPL1 Pillar C was formulated as “ Improving job quality”.
11
11); (d) a ministerial decree on seasonal work; and (e) a ministerial decree on dangerous work
for children, among others.
32. Finally, the Government decided to create a new legal scheme for self-employed
individuals to create necessary incentives for these workers to enter in the formal economy.
Incentives of the scheme include access to preferential tax schemes, simpler registration rules,
capability to procure with the public administration, and access to social security. The measure is
expected to promote higher levels of formality and reduce labor market segmentations among the
most vulnerable segments of the population, including women.
Pillar D: Strengthening the Labor Market Information System
33. Actions under Pillar D intended to improve access and utilization of data to better
monitor and assess the performance of the labor market. The series supported the GoM to
strengthen its labor market information system and its capacity to monitor and evaluate
employment policies and programs. In particular, the series supported: (i) the integration of
information systems across education, employment, and social security institutions; (b) better
access to individualized data on labor markets; and (c) the establishment of a National
Employment Observatory.
1.5 Revised Policy Areas
34. The policy areas were not revised beyond the introduction of minor adjustments to the
formulation of policy pillars A, B, and C, as described above.
1.6 Other Significant Changes
35. The formulation of some SEDPL2 Prior Actions was different than the action triggers
identified under SEDPL1. These revisions were introduced to better reflect the progress of the
policy pillars supported by the series and the actual measures taken by the Government under
SEDPL2. In particular, the envisioned Prior Actions No. 1, 7, and 8 were substituted with
alternative measures as described in Table 1.
12
Table 1. Changes in SEDPL2 Prior Actions
Initial Prior Action
(SEDPL2 Triggers as
Stated in SEDPL1
Program Document)
Revised Prior Action Rationale for Change
Contribution to SEDPL2
Objectives
Prior Action No. 1. Labor Ministry’s Vocational Training Department signs with ten (10) providers (including private
providers) programmatic contracts (with development plans) in line with the new vocational training strategy.
The Ministry of National Education and Vocational Training has signed 13 multiannual training contracts with private sector entities, by January
9, 2014.
The adoption of the vocational training strategy and subsequent programmatic contracts was delayed due to a government
reorganization. The signing of multiannual training contracts responding to the urgent needs of specific sectors (textile, automobile) was
in line with the draft vocational training strategy.
The new Prior Action would contribute to the SEDPL2 objective of improving the relevance of skills development programs as the
multiannual contracts respond to specific industries’ needs and support dual training programs mostly delivered in private enterprises.
Prior Action No. 7. The Cabinet has adopted the draft law amending Law No. 51/99 establishing
ANAPEC, in order to extend ANAPEC coverage to non-graduates.
The MOLSA has launched the preparation of an 18-month pilot program to extend the coverage of the
ANAPEC to non-graduates (that is, those who have not completed high school, baccalauréat, or do not have a vocational training diploma), in the
areas covered by five local offices of such agency.
MOLSA prepared a draft law that was submitted to the General Secretariat of the Government and the
Ministry of Economy and Finance. Given the financial impact of the measure, the stakeholders had agreed to test ANAPEC’s capacity to
take on this new mandate. SEDPL2 supported the launch of a pilot program to test the extension of ANAPEC’s services to non-graduates and
estimated the associated costs. The development of a pilot operation before scale-up is consistent with international best practices and with Bank’s
recommendations. Governments should only scale-up programs that have proven to be cost-effective.
The revised Prior Action would contribute to the objective of improving the effectiveness of
intermediation services through extending services to about 1,500 non-graduates who were excluded from such services. Also, the pilot
will assess the viability (technical and financial) of having ANAPEC extend implementation services to unskilled job seekers.
13
Prior Action No. 8.
MAGG has signed, at least with two regions, the programmatic contracts for the
implementation of the National Strategy for the Promotion of Micro-enterprises that was adopted on May 17, 2013.
The Council of Government has adopted on November 7, 2013, a draft Law No. 114.13 to establish a legal, fiscal,
and social status for self-entrepreneurship that (i) minimizes the costs of becoming a formal self-entrepreneur; (ii) simplifies the
administrative procedures; and (iii) provides for the establishment of a social insurance coverage mechanism for self-entrepreneurs.
The signature of the programmatic contracts had been delayed as the preparatory work required for the action proved more
complex than anticipated, given that the Government undertook a reorganization that resulted in the creation of a new Ministry for Small Enterprises and
Informal Sector Integration. The revised prior action supports adoption of an important draft law promoting self-entrepreneurship.
By minimizing the costs of becoming a formal self-entrepreneur, simplifying the administrative procedures, and providing
for the establishment of a social insurance coverage mechanism for self-entrepreneurs. The draft law, once implemented, will provide incentives to
relevant micro-enterprises to become formal.
2. Key Factors Affecting Implementation and Outcomes
2.1 Program Performance
36. The SEDPL series consisted of two programmatic DPLs. SEDPL1 was approved by the
World Bank’s Board of Executive Directors on June 12, 2012, and closed on December 31, 2012.
SEDPL2 was approved by the World Bank’s Board of Executive Directors on August 26, 2014,
and closed on December 31, 2015. The reforms supported by the series were designed to
increase the employability of first time job seekers through more efficient and relevant skills
development programs (higher education and vocational training) and better labor intermediation
services (Pillars A and B). The reforms supported by the series also aimed to improve
employment quality by promoting the access on non-salaried workers to social security and by
supporting the formalization of micro-enterprises (Pillar C). Finally, the series supported a series
of reforms to enhance the GoM’s capacity to monitor the performance of the labor market (Pillar
D). Annex 4 includes a summary of the performance of prior actions for each phase in the
SEDPL series. The SEDPL series was instrumental to: (a) removing significant regulatory
bottlenecks preventing the private sector’s involvement in service delivery of TVET programs;
(b) promoting the formalization of the economy; and (c) developing institutional frameworks to
monitor the performance of the main stakeholders involved in service delivery in the
TVET/ALMP sectors.
14
Table 2. Prior Actions for SEDPL1
Pillar A: Matching Skills Developed within the Vocational Training and Higher Education Systems to the
needs of the Labor Market (“flow”)
Prior Action No. 1
In the academic year 2010/11, four (4) public universities, covering 75% of their member institutions, (a) have set up an information system capable of monitoring students’ progress, by features such as discipline, level and
geography, with a view to improving the internal efficiency of higher education, and (b) and have produced regular reports for each university and for the group of universities as a whole.
Prior Action No. 2
In the academic year 2009/10, the fifteen (15) public universities have provided in at least 80% of their bachelor-level academic programs in their open-enrollment member institutions, a course module of 80 hours in foreign languages, computer literacy, communication and study skills.
Prior Action No. 3
The Ministry of Labor and Vocational Training, Vocational Training Department, has established three (3) new
vocational training institutes, in high-demand sectors (namely, fashion and air/space industries in 2010 and automobile in 2011), under the management of (private or public-private) sector professionals.
Pillar B: Improving the Effectiveness of Intermediation Services, including ALMPs (“stock”)
Prior Action No. 4
The Ministry of Labor and Vocational Training, Employment Department, has developed and implemented in 2011: (i) an active labor market program aimed at labor market insertion of hard-to-place unemployed (Contrat intégration professionnelle) and (ii) an improved wage subsidy program for the unemployed (Prise en charge par l’Etat de la couverture sociale).
Prior Action No. 5
ANAPEC has implemented a 2009-2011 action plan to increase its number of local offices and employment counselors.
Pillar C: Improving Job Quality
Prior Action No. 6
The Ministry of Economy and Finance has implemented since January 2011 a set of measures to encourage the formalization of micro-enterprises, namely: (a) income tax is reduced from 30% to 15% for businesses whose after-tax turnover is equal to or less than 3 million DH; and (b) income tax amnesty upon registration for professional tax (“patente”).
Prior Action No. 7
Royal Decree No. 1.11.181 dated November 22, 2011, amending and completing Royal Decree No. 11.72.184, dated July, 27, 1972, to extend social security coverage by the National Social Security Fund to licensed drivers, has been published in the National Gazette No. 5998 dated November 24, 2011.
Pillar D: Strengthening the Labor Market Information System
Prior Action No. 8 The National Education Evaluation Agency has developed in 2011 a survey instrument on short- and medium-term labor market status of graduates of universities and professional schools.
Prior Action No. 9
The Ministry of Labor and Vocational Training, Employment Department has institutionalized in 2011, via
memoranda, with the National Social Security Fund, and the Ministry of Industry, Commerce and New Technologies the exchange of labor force data.
15
Table 3. Prior Actions for SEDPL2
Pillar A: Improve the Efficiency and Relevance to Labor Market Needs of Skills Development Programs
Prior Action No. 1. The Ministry of National Education and Vocational Training has signed 13 multiannual training contracts with private sector entities, by January 9, 2014.
Prior Action No. 2. The Council of Government (Conseil de Government) has adopted on June 5, 2014, a draft Law No. 13.74, which among others provides for the governance and financing of on-the-job training.
Prior Action No. 3. A national commission to follow up on the implementation of the National Qualifications Framework (Cadre national des certifications) has been established by Circular No. 5-2014 dated June 4, 2014,
issued by the Head of Government (Chef du Gouvernement).
Prior Action No. 4. The Ministry of National Education and Vocational Training has developed a support mechanism aimed at nongovernmental organizations (NGOs), designed to offer vocational training programs to out-of-school youth from disadvantaged backgrounds.
Prior Action No. 5. The Council of Government has adopted on July 11, 2013, a draft Law No. 80.12 to establish the National Agency for Evaluation and Quality Assurance of Higher Education and Scientific Research (Agence nationale de l’évaluation de l’enseignement supérieur et de la recherche scientifique) to carry out institutional evaluations of public and private higher education and scientific research institutions.
Pillar B: Improve the Effectiveness of Intermediation Services
Prior Action No. 6. The MOLSA has revised its 2012–2016 Strategic Action Plan to include a detailed 2014–2016
work program that defines priorities, programs, budgets, and monitoring indicators and clarifies responsibilities in monitoring its implementation.
Prior Action No. 7. The MOLSA has launched the preparation of an 18-month pilot program to extend the coverage of the ANAPEC to non-graduates (i.e, those who have not completed high-school, (baccalauréat), or do not have a vocational training diploma), in the areas covered by five local offices of such agency.
Pillar C: Promote the Formalization of Micro-Enterprises
Prior Action No. 8. The Council of Government has adopted on November 7, 2013, a draft Law No. 114.13 to establish a legal, fiscal, and social status for self-entrepreneurship that (i) minimizes the costs of becoming a formal self-entrepreneur; (ii) simplifies the administrative procedures; and (iii) provides for the establishment of a social
insurance coverage mechanism for self-entrepreneurs.
Pillar D: Strengthen the Labor Market Information Sstem
Prior Action No. 9. The MOLSA has established an M&E mechanism for the employment measures included in its 2012–2016 strategic action plan.
Prior Action No. 10. The Council of Government has adopted on May 15, 2014, a draft Decree No. 2.14.280 regarding, inter alia, the establishment of a National Labor Market Observatory Department (Direction de l’Observatoire National du Marché du Travail) at the MOLSA, for monitoring and analyzing the labor market, and the 2014 budget of the MOLSA includes a specific allocation for the National Labor Market Observatory to carry out its mission.
2.2 Major Factors Affecting Implementation
37. The implementation of the SEDPL was positively affected by various factors such as
adequate government commitment, sound background analysis, good coordination with
development partners, incorporation of lessons learned from previous operations in Morocco,
and appropriate mitigation measures for the risks were identified. These, and other factors, are
discussed further in the following paragraphs.
38. Adequacy of government commitment, stakeholder involvement, and participatory
processes. The government’s commitment at the time of SEDPL1 preparation was adequate and
satisfactory. For creating more jobs in the private sector and faster growth, the GoM embarked
on a series of policy reforms in the areas of investment climate, education and training, labor
market, and social protection. For instance, the GoM launched an Education Emergency Program
16
2009–2012 (Programme d’Urgence Education-Formation, PUEN) to fill the gaps in achieving
the National Education and Training Charter (Charte Nationale de l’Education et de la
Formation, CNEF) and especially to improve education quality. In higher education, the PUEN
concentrated on improving the quality and relevance of the curricula to labor market needs with
the goal of reducing unemployment among university graduates. Also, since 2006, the Higher
Council for Education (Conseil Supérieur de l’Enseignement, CSE) has served as the main forum
for wide-ranging consultation on education policy. The CSE was consulted on all education
reforms, advised on all national education matters, and carried out comprehensive evaluations of
the national education system. In June 2011, the VTD launched a process to develop a new
strategy for vocational education in Morocco. The first phase of this process involved a series of
consultations with government departments; public and private vocational training providers,
including the main public provider of vocational training, namely, the OFPPT; and
representatives of the state and unions and employers’ organizations.
39. The GoM also undertook a series of initiatives in the social protection sector that were
intended to positively affect the labor market. First, the Government engaged in actions to
improve coverage of social insurance, notably health. In 2012, the GoM introduced a
noncontributory health insurance targeted to protect poor/informal workers and their households
(the Health Insurance for Low-Income Households (Régime d’Assistance Médicale pour les
Economiquement Démunis) program). The program benefited about 8.5 million individuals in
2015. Second, in 2000, the Government signed an agreement with employers’ and workers’
representatives to establish an IPE for private sector workers affiliated with the CNSS. Third, a
national commission and a technical commission for pension reform were established in 2007.
40. Soundness of the background analysis underpinning the operation. In 2008, the
World Bank prepared the Macroeconomic performance, Investment climate, Labor market
policies and institutions, Education and skills, and Social protection for workers (MILES) Report.
This was a comprehensive analysis of the employment issue in Morocco and formed the
conceptual basis for the SEDPL series. The report recommended a set of parallel policies and
actions with regard to education and training, labor market policies, and social protection, which
were eventually incorporated as part of the program design. One of the main recommendations
of the study was to design and develop intermediation and skills development programs that
would better respond to the needs of employers (Pillar A and B). The World Bank also prepared
a Youth Study (2009), which provided important analytical underpinnings that fed the design of
the operation. In particular, the study highlighted the importance to target training and
employment policies to disadvantaged youth, a population that was somehow underserved and
constituted a great majority of unemployed in the country (Pillar B). Also, the regional study on
ALMPs in MENA (Angel-Urdinola et al. 2013)6 provided important insights into the need to: (a)
give the private sector a more prominent role in the provision of training and employment
services to private providers; and (b) develop result-based public-private partnerships (PPPs) to
6 Angel-Urdinola D.; A. Kuddo; A. Semlali, (2013). "Building Effective Employment Programs for Unemployed
Youth in the Middle East and North Africa," Directions in Development No 15805. World Bank Publications,
Washington DC.
17
improve the efficiency and effectiveness of current programs and policies (Pillars A and B). On
the social protection side, the World Bank produced a Strategic Note on Targeting and Social
Protection that reviewed social assistance and social insurance programs in Morocco. The note
made specific recommendations on the necessity to extend coverage to the working poor and to
promote formalization of micro-firms (Pillar C). Finally, several publications conducted by the
GoM also helped shape the policy dialogue that contributed to the design of the series. In
particular, MOLSA produced a note, “Third Employment Forum - Introductory note - Troisièmes
Assises pour l’emploi - Note introductive” (May 2011) that provided an analysis of the prevailing
situation of the labor market, based, among others, on the latest labor force survey results.
MOLSA also conducted an impact evaluation of the Idmaj program (2011), which highlighted
the needs to systematically assess and correct the design of existing ALMPs (Pillar D).
Furthermore, The Economic and Social Council (Conseil Economique et Social), a body
composed of associations, union groups, scientific experts, and intellectuals, prepared a report on
youth employment based on existing data and consultations of youth groups. These reports
confirmed the World Bank’s results and reiterated the importance of targeting the employment
policy to disadvantaged youth, especially the unemployed and not in school (Pillar B).
41. Regarding the education sector, the World Bank’s analytical program included reports on
higher education policy, which helped shape the sectoral dialogue. The World Bank’s Flagship
Report in 2008 (‘The Road Not Traveled’) (Report #46789) contributed to a public debate on the
level of education sector outcomes, by emphasizing the need to improve design and
accountability measures in the sector. At the same time, the Higher Council for Education
Annual Report for 2008 provided a comprehensive and candid diagnosis of the state and
performance of the education sector and laid out recommendations for improving the country’s
education outcomes. All these reports provided important analytical underpinnings to design the
prior actions supported under Pillar A.
42. Finally, development partners carried out analyses that had contributed to the formulation
of supported policies: (a) the U.S. Agency for International Development (USAID) produced a
report on skills development; (b) the European Commission produced a report on vocational
training; (c) the European Foundation for Training produces a report on vocational training, (d)
the German Development Agency (GIZ) (Deutsche Gesellschaft für Internationale
Zusammenarbeit) produced a report on labor market entry from enterprise-based apprenticeship
training; and (e) AFD produced an in-depth report assessing transitions from the education and
training system into the labor market. These analyses highlighted the importance of clearly
linking learning outcomes to the needs of the labor market, by channeling more students into
professionally oriented programs and by increasing opportunities in apprenticeship and on-the-
job programs (in close coordination with private sector training providers and federations).
43. Technical assistance. To ensure adequate implementation of the actions supported by the
series, a two-year Programmatic Employment TA program (P130087) was developed by the
World Bank to strengthen the capacity of the MOLSA and ANAPEC to design and evaluate
employment programs and ALMPs (actions supported by the operation’s Pillars B and D). At the
same time, the World Bank’s program attracted additional technical assistance from the AFD,
GIZ, and the Millennium Challenge Corporation (MCC) to support the Government with the
implementation of actions included under Pillars A, B, and C.
18
44. Good coordination with development partners. The EU and the AFD aligned their
budget support programs with that of the World Bank. This was a key factor, for example, to
ensure that complex reforms, especially of the vocational training system, were completed (albeit
with some delays). The AFD, for instance, provided technical support to the MOLSA to
implement some of the reforms supported by the program, notably the development of a pilot
program with ANAPEC to provide employment services to unskilled youth (SEDPL2 - Prior
Action No. 7). GIZ provided the Ministry of Industry with technical support to design and
implement the regulatory frameworks for the self-employed legal scheme (SEDPL2 - Prior
Action No. 9). Recently, the MCC committed significant funding to support the implementation
of the National Employment Observatory (SEDPL 2 - Prior Action No. 10) and to support the
ongoing reforms of the vocational training system, supported by Pillar A of the SEDPL series.
45. Lessons learned from previous operations. The SEDPL series design incorporated
lessons learned from sectoral DPLs in Morocco. A summary of the main lessons learned is as
follows:
The programmatic support of DPLs created a dynamic set of institutional and financial incentives that were conducive to the achievement of program reforms, and
the quality of technical analysis underlying the reforms was essential to a successful
outcome.
For a reform approach involving several actors, it is essential to have the right level
of coordination as well as a shared understanding of the different institutional
incentives (to ensure ownership and buyout of reforms).
Effective service delivery requires attention to transversal issues—such as employment generation—that call for efforts across the board (public and private
stakeholders) to realize national priority objectives.
The success of a reform program is a result of the quality not only of the legal
measures taken by the Government but also of the institutional capacity of the
institutions involved in the implementation and enforcement of the reform.
46. Furthermore, the operation was complemented by other World Bank operations that
sought to address key constraints to promoting employment growth (both on the demand and
supply sides):
The Competitiveness DPL series aimed to contribute to the creation of ‘more and
better jobs’ by: (a) improving the investment climate; (b) furthering trade policy
reform and trade facilitation; and (c) improving economic governance.
The Education DPL I and II aimed to improve the effectiveness and efficiency of
service delivery and learning outcomes at the primary and lower secondary
education levels.
The National Initiative for Human Development (INDH) - Phase 2 Support Project
aimed to ameliorate the conditions of poor and vulnerable groups by establishing a
more inclusive mode of governance.
19
The Strengthening Micro-Entrepreneurship for Disadvantaged Youth (P144134),
supported by a MENA Transition Fund Grant, aimed to provide targeted
disadvantaged young men and women of ages 18–29 years with access to micro-
entrepreneurship business development services. This project complemented the
ALMPs supported by the SEDPL series by providing services to population groups
that do not currently benefit from ANAPEC: non-graduates and disadvantaged youth
selected by youth organizations and community-based organizations, who either are
not employed or work in the informal sector.
47. Relevance of the risks identified at appraisal and effectiveness of mitigation
measures. The operation faced the following risks:
Political risk. The political and social events in Morocco since 2011 created real pressure for meaningful and quick change. As such, the Government needed to
respond to high expectations among the population, especially in the education,
social protection, and labor sectors, by promoting reforms that would have to be
implemented in a credible manner.
Mitigating measure. To mitigate this risk, the Government confirmed that there was
a credible and strong commitment to the reform agenda. The Government reiterated
its willingness to continue working on the implementation of key measures that
should not be delayed in light of the social expectations. The World Bank, through
two supervision missions, as recorded in the Implementation Status and Results
Reports (ISRs), documented steady progress in the implementation of the measures
supported by the program despite a lengthy process reaching political consensus,
especially to support reforms in the TVET system.
Macroeconomic risks. The deterioration of the ongoing global economic
difficulties at the time, further impact of poor weather on the agricultural sector, and
high food and energy prices were risks that would have contributed to slowing down
economic growth in Morocco. Had the prevailing global economic uncertainty
further deteriorated, especially if European stagnation evolved into a recession,
Morocco would have faced reduced growth prospects. Moreover, continued low
rainfall could have potentially further affected agricultural growth forecasts and
overall growth rates. Furthermore, if oil prices had remained at the prevailing levels
for the year, Morocco would have likely seen its growth prospects reduced by about
0.5 percent.
Mitigating measure. The Government showed strong commitment to pursue fiscal
and competitiveness reforms, including the full liberalization of liquid fuel subsidies,
which started in 2013. Mitigating measures in the agriculture sector included support
to farmers and lower import duties on cereals. The Government devised strategies to
cope with potentially sustained high oil prices, including requesting World Bank
support to develop mechanisms to hedge commodity price risk. These strategies
have not yet been implemented, as oil prices started to drop after 2014.
Governance risk. There were risks posed by implementation deficiencies and a lack of accountability.
20
Mitigating measure. The new constitution, approved in 2011 envisioned a
participatory process in the Government. The envisaged agenda had broad support
and the Government reiterated its willingness to continue to work for the quick
implementation of key measures that would enhance the accountability and
effectiveness of the administration.
Implementation capacity risk. Many decentralized entities, including university faculties, ANAPEC offices, and CNSS offices varied in their implementation
capacity, and all would require access to information about the policy measures (for
example, objectives, time lines, implementation steps, appropriate guidelines, and
system tools) to enable them to respond appropriately to instructions issued by the
central government.
Mitigating measure. The World Bank took advantage of regional TA activities (for
example, MENA university governance score cards) to continue building technical
capacity in these decentralized entities. A two-year Programmatic Employment TA
program (P130087) was developed by the Bank to strengthen the capacity of
MOLSA and ANAPEC, in particular, their capacity to design and evaluate
employment programs and ALMPs. Other institutions that were part of the program
already displayed strong implementation capacity, as evidenced by the CNSS and its
success in implementing the 2009–2011 strategy to extend coverage.
48. Vested interests across different actors. As TVET and employment policies involve
social partners, notably the private sector and labor unions, conflicting goals and interests across
these groups made it difficult to build consensus, which was the reason that implementation of
some of the reforms supported by the program took longer than expected. For instance, vested
interests across different actors were particularly notable in the implementation of vocational
training reforms (Pillar A) as the reform involved a reallocation of large funding to the provision
of vocational training programs (out of the hands of public actors and into the hands of private
actors such as federations and NGOs).
49. Regulatory complexity. Complex regulatory aspects contributed to some delays in the
implementation of some reforms. For instance, after a long process of consultation and
consensus building, the draft law to reform on-the-job training was adopted by the Government
in 2014 (SEDPL2 - Prior Action No. 2). As such, the draft has not been sent to the parliament yet,
which will introduce some delays on its publication and thus on its operationalization. Similarly,
while the draft law creating the National Agency for Evaluation and Quality Assurance of Higher
Education and Scientific Research (SEDPL2 - Prior Action No. 3) was adopted in 2013, the
actual implementation of the agency’s mandate (i.e. evaluation and quality assurance) has not
fully materialized, since it took over 2 years for the law to be approved by Parliament, for
application decrees to be ready, and for the agency to be properly staffed.7
7The National Agency for Evaluation and Quality Assurance of Higher Education and Scientific Research, was
created by Law No. 80-12 (Dahir of July 31, 2014). It is included in the list of public establishments with legal
personality and financial autonomy. Its Director was officially appointed as a Council of Government on September 10, 2015. The Agency is managed by a Board of Directors which held its first meeting on April 1, 2016, and consists of ex-officio members, designated members, and a staff representative Elected (The decree fixing the modalities of
21
50. Finally, while the law supporting the creation of the self-employment status (SEDPL2 -
Prior Action No. 8) was adopted in 2013 and approved by Parliament in 2015, the completion of
follow-up decrees that further regulated the implementation of the measure are not yet finalized.
In fact, one applicatory decree concerning the eligible economic activities/professions that can
benefit from the scheme is still in draft as are the regulatory frameworks for the provision of
social security benefits under this scheme. Such delays, however, are not uncommon to the
Morocco legislative process. Most importantly, the prospects of successful completion (in the
short-run) of the three aforementioned reforms is quite favorable as they have been adopted,
endorsed by the GoM, and dispose of clear operational plans.
2.3. Monitoring and Evaluation (M&E) Design, Implementation, and Utilization
Rating: Substantial
51. M&E design. The outcomes of the sector policy reforms were envisioned to be
monitored according to the indicators mentioned in section 1.2. These indicators and target
values were taken from the Government’s multi-year educational program and shared with all
development partners. They were subsequently incorporated into the Policy Matrix, negotiated
with the Government, and approved by the Board of Executive Directors. Most indicators
included in the series were adequate to assess pillar objectives and to test the links in the results
chain. Indeed, a great majority of the indicators selected to monitor the progress in Pillars A, B,
and C entailed the number of beneficiaries of particular programs and/or served by different
institutions. Some of these programs/institutions were introduced (or reinforced) as a direct result
of the prior actions supported by the series. At the same time, these programs and/or institutions,
by design, had a clear mandate to deliver programs and services that were directly related to the
reform objectives. These features made the results framework very straightforward for the most
part. Most indicators had clear definitions/baselines and were easy to obtain and verify through
available and reliable administrative data originated from real-time management information
systems. Nevertheless, there were some shortcomings in the design of the M&E framework. In
some instances (e.g. Indicator 3: Number of beneficiaries of on-the-job vocational training)
targets were not always realistic as they under-estimated the business cycle. On-the-job training
programs, for example, tend to have a lower take up by enterprises during times of economic
downturn. Finally, the performance of one indicator included in the series (Indicator 1: Rate of
internal efficiency of vocational training programs), while adequate to assess progress in the
overall sector, was only partly attributable to the actions supported by the series.
52. M&E implementation and utilization. SEDPL funds were released based on the reports
that Prior Actions have been satisfactorily met by the Government. M&E activities were carried
out by the World Bank in partnership with MAGG, and the implementing ministries, on the basis
of the agreed-upon indicators, for which results were measurable and readily available. Based on
the data collected, the World Bank properly assessed the progress, for the most part, of Prior
Actions in each of the four policy areas as documented in two ISRs that were completed
the election of this member was published in the Official Bulletin of April 7, 2016). In addition, the agency benefits from: (i) a provisional facility (sis, 35 Avenue Ibn Sina-Agdal, Rabat) placed at its disposal by the supervisory
ministry; (ii) staff (3 engineers, 3 administrators, 3 managers and one secretary); (iii) an operational budget. It should also be noted that the amendment of the Organic Law to include the Agency in the list of establishments was published in the Official Bulletin of June 18, 2015 Public bodies with legal personality and financial autonomy.
22
following supervision missions in April and December 2016. Data collected in the April 2015
ISR highlighted significant delays in the implementation of some reforms supported by Pillars A
and C of SEDPL2. The evidence provided by these data triggered the organization of a series of
follow-up meetings with relevant ministries involved in the implementation of the reforms. This
process led to the development of concrete action plans. Consequently, the data collected in the
December 2015 ISR highlighted significant progress made by the GoM reaching the reform
targets.
2.4 Expected Next Phase/Follow-up Operation
53. There are still a number of challenges in Morocco’s labor market. In order to address
these challenges and sustain the benefits of SEDPL, continued World Bank involvement in the
employment policy/TVET sector is needed. A potential follow-on project could support labor
market reforms currently envisioned by the Government under the National Employment
Strategy (notably reforms of ALMPs and labor regulation) as well as those envisioned by the
National Strategy for Vocational Training (notably those aiming at further promoting PPPs for
delivery of training and apprenticeship and better governance of the vocational training tax). This
tax is collected through employer contributions (payroll taxes) and primarily finances technical
training programs provided by the OFPPT, which are often misaligned with the needs of the
private sector. Such arrangements result in some employers’ reluctance to pay this tax (and/or
hiring workers informally) since they do not often see the direct value added of such
contributions. Furthermore, the Bank could engage more deeply in the ‘data access/data use’
agenda to assess the performance of labor markets in Morocco. Despite efforts to improve labor
market observation and despite the fact that Morocco has several surveys/datasets with
significant information about the labor market (such as CNSS data on wage earners, industry-
level data, labor force surveys, labor inspection data, and so on), data are largely underutilized
and inaccessible, without clear guidelines or processes on how to use/access available datasets.
Expanding the utilization of available data could surely contribute to a better monitoring and
understanding of the performance and needs of the Moroccan labor market.
3. Assessment of Outcomes
3.1 Relevance of Objectives, Design, and Implementation
Rating: Substantial
54. The objectives of the SEDPL series were, and continue to be, highly relevant to the
country’s economic and social development. The operation was timely and appropriate to the
needs of Morocco and aligned with the Government’s strategy on employment and TVET policy.
Moreover, the core design and implementation arrangements remain highly relevant (PDO,
policy pillars, and stakeholders). The design of the operation (pillars and Prior Actions) was
consistent with the priorities highlighted in the Morocco CPS (2010–2013) and in the
Government’s 2012–2016 program and its Development Policy Letter. With regard to adequacy,
the operation pursued a combined approach supporting a total of 19 Prior Actions. Of these, six
supported regulatory changes (laws/decrees), 10 supported institutional actions, and three
supported the launch and implementation of new government programs. As described in more
detail in the following sections, this combined approach was instrumental to: (a) remove
significant regulatory bottlenecks preventing the private sector’s involvement in service delivery
23
of TVET programs; (b) develop skills development programs and ALMPs that are better aligned
to the needs of the labor market, (c) promote the formalization of the economy; and (d) develop
institutional frameworks to monitor the performance of the main stakeholders involved in service
delivery in the TVET/ALMP sectors.
55. The 2016 Performance and Learning Review (PLR) of the Morocco CPS 2014-2017
underscored that the SEDPL series was a fundamental part of the World Bank’s multipronged
response to address supply and demand-side constraints to employment creation in Morocco.
The series was instrumental to achieve progress on the CPS Pillar 1 (Promoting Competitive and
Inclusive Growth), strategic outcome 1.6 (Better match skills developed through higher
education and vocational training with the needs of the job market). Indeed, the SEDPL series
complemented: (a) the Competitiveness DPL series, aimed to boost the demand for ‘more and
better jobs’ by improving the investment climate, trade policies, and governance; (b) the
Education DPL I and II aimed to improve the effectiveness and efficiency of service delivery and
learning outcomes at the primary and lower secondary education levels; (c) the National
Initiative for Human Development, which supported revenue generating activities for job
creation at the local level; and (d) the International Finance Corporation’s program on
employment (‘E4E Initiative’) that engaged the private sector to create opportunities and
enhance labor market skills for Moroccan youth.
56. The CPSs for 2010–2013 and 2014–2017 placed the employment challenge at the center
of Morocco’s social and economic development. Support to skills development, employability,
formalization, and school-to-work transition are key components of the World Bank’s program
which were well adopted by the design of the SEDPL series. The series contributed to achieving
the first and second pillars of the 2010–2013 CPS: (a) encouraging growth, competitiveness, and
employment; and (b) improving the quality of service delivery to citizens. The series was also
aligned with the first and third pillars of the 2014–2017 CPS: (a) Promoting Competitive and
Inclusive Growth; and (b) Strengthening Governance and Institutions for Improved Service
Delivery to All Citizens. SEDPL2 contributed to the first area in particular, by supporting
employment and income opportunities, especially for women and youth.
3.2 Achievement of Program Development Objectives
Rating: Moderately Satisfactory
57. The SEDPL was broadly successful in achieving its objectives, and the Government’s
actions under the operation have paved the way for achieving most of the desired outcomes.
Furthermore, the objectives of the SEDPL remain highly relevant to Morocco’s current priorities
and to the World Bank’s CPS. The operation contributed to strengthening the Government’s
provision of TVET and ALMPs, especially for disadvantaged youth and fostering better
coordination and participation of the private sector.
58. In particular, the SEDPL series successfully supported the launching and implementation
of a reform process that resulted in overcoming substantial regulatory and institutional
constraints which were preventing more active participation of the private sector in the provision
of TVET programs. The series also contributed to the development of new institutional
frameworks necessary to improve the governance and performance of TVET and employment
24
programs and to test and pilot initiatives to promote formalization of firms and workers in the
grey economy. These reform objectives continue to be important for Morocco and reform efforts
will likely be sustained and further pursued in the near future.
59. The main achievements of the operations can be summarized as follows:
Pillar A: Improve the Efficiency and Relevance to Labor Market Needs of Skills
Development Programs
Sector achievements. In recent years, access to higher education and completion rates have
improved in Morocco. The number of higher education graduates registered an average annual
growth rate of 14 percent over the 2009–2015 period (from 104,112 graduates in 2009 to
229,785 in 2015)—with a cumulative increase of 121 percent. The number of new entrants in the
free access to training areas increased from 79,091 to 178,187 between 2009/10 and 2014/15
(representing an annual growth rate of 18 percent and a total growth of 125 percent over the
period).
60. Tertiary education access and completion rates improved significantly between academic
years 2009/10 and 2014/15. In terms of access, the overall number of graduates doubled between
2009/10 and 2014/15 (from 29,320 to 57,372 graduates). In terms of completion rates, the
number of new enrollments who graduated increased from 76 percent in the 2009/10 academic
year to 87 percent in the 2014/15 academic year. This represents an annual growth in completion
rates of 14 percent and an overall growth rate of 96 percent during the period. Finally, the share
of the labor force with completed higher education has increased by 22 percent between the
2013/14 and 2014/15 academic years. Access and completion rates for TVET programs have
also improved in Morocco in recent years. In particular, the internal rate of efficiency of
vocational training programs (that is, completion rates) has increased from 66 percent in 2012 to
70 percent by December 31, 2015, exceeding the Government’s 2015 target of 68 percent.
61. Program achievements. The reforms supported under this pillar have been highly
relevant to improve the alignment between the supply of skills produced by the TVET and higher
education systems and the demand for skills in the labor market. Reforms supported by the pillar
have contributed to the reduction of substantial constraints limiting the participation of private
providers in the delivery of TVET programs. Prior Action No. 1 and 2 supported by SEDPL1
contributed to equipping students in public universities with skills that were reported by
employers to be relevant in the labor market (such as languages, computer literacy,
communication, and study skills). Prior Action No. 3 supported by SEDPL1 was the first attempt
by the Government to finance training centers managed by private sector federations. This pilot
was so successful that similar efforts are currently being scaled up as part of the Government’s
new Vocational Training Strategy with the support of donors such as the EU, the AFD, and the
MCC.
62. Prior actions supported by SEDPL2 (Prior Actions No. 1, 2, and 4) further contributed to
promoting the involvement of the private sector in the delivery of training programs. In
particular, owing to the actions supported by the operation, the number of beneficiaries of on-
the-job vocational training has reached more than 123,000 beneficiaries per year (see Indicator
No 3 for the series). In addition, the number of disadvantaged youth benefiting from NGOs-
25
offered apprenticeship programs has increased from 3,300 in July 2014 to 4,856 in December
2015, exceeding the Government’s 2015 target of 3,700. Finally, the regulatory changes
supported by Prior Action 2, once approved by parliament, will be catalytic to improve the
relevance and scope of on-the-job training programs as it will allow proceedings from the
training tax (a payroll tax paid by enterprises) to be managed by enterprises and federations to
improve the skills of their workforce. In the meantime, the authorities have taken action to
ensure funding for continuing education/on-the-job training. To this extent, a special account
was opened at the OFPPT to withhold about 30 percent of the revenues of the vocational training
tax, which is being managed by a tripartite committee composed of trade unions, the federation
of employers (Confédération générale des entreprises du Maroc), and the OFPPT.
63. Finally, Prior Actions supported by SEDPL2 (Prior Action No. 3, and 5) supported
important institutional reforms of the TVET and higher education systems. In particular, the
series supported the establishment of a National Certification Agency, with an appropriate legal
framework, to oversee the implementation of the National Qualification Framework. This is an
important step to ensure that trainees will be placed in one of eight job classification categories
so that employers understand the skills of the trainees. Also, the series supported the
establishment of the National Agency for Evaluation and Quality Assurance of Higher Education
and Scientific Research. This agency will be catalytic to monitor and assure the quality assurance
of tertiary education programs and institutions.
64. In summary, despite some delays in the adoption of the on-the-job training law, the series
successfully supported a reform process that resulted in more active participation of the private
sector in the provision of TVET programs, notably through removal of substantial regulatory and
institutional constraints. The series also supported important institutional reforms aimed at
improving the quality and efficiency of service delivery in the TVET and Higher Education
Systems, notably: (i) the establishment of a National Certification Agency (in charge of
overseeing the implementation of the National Qualification Framework); and (ii) the
establishment of the National Agency for Evaluation and Quality Assurance of Higher Education
and Scientific Research (responsible for monitoring and assuring the quality assurance of tertiary
education programs and institutions). Annex 4 provides a detailed description of the
achievements of each prior action in the series.
65. Conclusion. The performance of the Prior Actions of SEDPL1 and SEDPL2 supporting
SEDPL Pillar A is considered satisfactory.
Pillar B: Improve the Effectiveness of Intermediation Services
66. Sector achievements. ANAPEC extended its national presence by increasing the number
of its local offices in the territory from 50 in 2010 to 77 in 2015. This went hand-in-hand with a
rapid increase in the new job seekers registered with ANAPEC. Between 2014 and 2015, the
number of registered unemployed increased from 130,000 in July 2014 to 186,570 by December
2015. Out of this total, about 76,490 were women (41 percent) and about 37,310 were non-
graduates (20 percent). One of the main programs supported by ANAPEC is the provision of
wage subsidies to job seekers who are employed through ANAPEC. These subsidies reduce
labor costs thus boosting the firm’s demand for formal employment. The Government has three
26
main ALMPs - these programs include: (a) Idmaj, a wage subsidy program (tax breaks on the
salaries of the program’s beneficiaries) that enables unemployed graduates to acquire relevant
experience through a paid internship for a maximum of 24 months; (b) Taehil, a program that
seeks to improve the employability of unemployed graduates through training to meet specific
recruitment needs (Formation contractualisée pour l’emploi ), retraining of graduates who have
difficulty entering the labor market (Formation qualifiante ou de reconversion), and training
tailored to specific sectors in the economy (SE); and (c) Moukawalati, an entrepreneurship
program that provides job seekers with technical and fi nancial support (in the form of a loan, up
to MAD 250,000) so that they can set up their own businesses. In 2015 alone, more than 700,000
individuals benefited from these programs.
67. Program achievements. ANAPEC successfully implemented its 2009–2011 action plan
to increase the number of local offices to 77 nationally (SEDPL1 - Prior Action No 5). Also, the
series contributed to shifting ANAPEC’s priorities to more disadvantaged segments of the
population. Traditionally, ANAPEC’s services mainly targeted university graduates who were
first-time job seekers. The SEDPL series supported ANAPEC to design and implement: (a) a
new wage subsidy program aiming to support labor market insertion of hard-to-place
unemployed (CIP) (SEDPL1 - Prior Action No. 4); and (b) a pilot program aiming to extend the
coverage of ANAPEC to non-graduate job seekers, currently under implementation with
technical support of AFD (SEDPL2 - Prior Action No. 7). Finally, while The MOLSA revised its
2012–2016 Strategic Action Plan to include a detailed 2014–2016 work program, some of the
targets set were not fully met. For instance, the Government’s goals with regard to coverage for
the Taehil program (an on-demand training program) were only partially achieved (see Indicator
No 5 for the series).
68. In summary, the series contributed to make employment services more demand-driven
and adapted to the needs of the enterprises and to prioritize the provision of employment services
to more disadvantaged segments of the population, notably as high-school dropouts.
Traditionally, employment services in Morocco targeted university graduates who were first-
time job seekers.
69. Conclusion: The performance of Prior Actions of SEDPL1 and SEDPL2 supporting
SEDPL Pillar B is considered satisfactory, with the exception of some shortcomings in the
intended achievement of Prior Action No. 6 in SEDPL2.
Pillar C: Promote the formalization of micro-enterprises
70. Sector achievements. To date, more than 13,000 individuals have been given the status
of self-entrepreneur. The benefits of the status include lower taxes, permission to work from
home (other businesses need to have a commercial address to operate), invoicing, eligibility to
bid for government contracts, and access to credit facilities from some banks. In addi tion, the
National Agency for the Promotion of Small and Medium Enteprises (ANPME) (Agence
Nationale pour la Promotion des Petites et Moyennes Entreprises) has developed institutional
partnership with different stakeholders to further support auto-entrepreneurs to start and grow
their business. In addition, between 2011 and 2015, about 21,000 firms formerly operating in the
informal sector, have become formal (that is, registered to pay professional tax).
27
71. Program achievements. The SEDPL series supported the Government to launch two
programs aiming to support and encourage firms and workers to join the formal economy. The
Government introduced a set of measures to encourage the formalization of micro-enterprises,
mainly through the provision of income tax reductions and amnesties for small firms that would
register for professional tax (‘patente’) (SEDPL1 - Prior Action No. 6). In addition, the
Government created a new legal status for self-entrepreneurship (SEDPL2- Prior Action No. 8).
The benefits of the status include lower taxes, permission to work from home (other businesses
need to have a commercial address to operate), invoicing, eligibility to bid for government
contracts, and access to credit facilities from some banks. To date, more than 13,000 individuals
have been given the status of self-entrepreneur. Finally, A Royal Decree No. 1.11.181 dated
November 22, 2011, was issued to extend social security coverage by the CNSS to licensed taxi
drivers (SEDPL1- Prior Action No. 7). This reform was not implemented. Indeed, during
supervision missions, different stakeholders involved in the reform (CNSS, Ministry of Interior)
were unable to provide any information about the status of this action or about the number of taxi
drivers who benefit from this scheme.
72. In summary, the series supported the Government to launch two flagship programs
aiming at supporting and encouraging firms and workers to join the formal economy. However,
the GoM intention to expand social security coverage to taxi drivers was not successfully
attained.
73. Conclusion. The performance of SEDPL1 and SEDPL2 Prior Actions supporting SEDPL
Pillar C is considered modest due to the institutional complexity of reforms concerning social
security coverage of non-salaried workers.
Pillar D: Strengthen the Labor Market Information System
74. Sector achievements. Some progress has been achieved to strengthen the national labor
market information system. First, the Government developed a survey in partnership between the
Hassan 1st University and the Higher Education Council to monitor short- and medium-term
labor market insertion of Higher Education and Training graduates. These data, if well
disseminated, could influence students to choose careers that are in demand by the labor market.
In addition, some line ministries and agencies have started to develop agreements to exchange
administrative data on labor (for example, data on wages, industry-level data, labor inspections
data, and so on). Finally, the Government created the National Labor Market Observatory
Department within MOLSA. The observatory is fully operational with a multidisciplinary team
of 25 staff, a dedicated budget, and its own premises. The observatory has already published two
annual reports on the labor market (the Social Balance Sheet report and the State of the Labor
Market report), thematic monthly newsletters/bulletins, and technical papers. Three additional
studies have been completed: (a) a study on minimum wages in Morocco; (b) a survey on labor
force mobility; and (c) the evaluation of the national employment program Idmaj. Nonetheless,
the observatory has only limited access to micro-data, such as the National Labor Force Survey
(produced by the HCP). To improve this situation, the observatory would need to work closely
with the HCP and develop partnerships and clear protocols for data use and exchange. The
establishment of the observatory is an important step in the progressive construction of the
integrated observation system for the labor market with a network of observatories at the central,
branch (that is, economic activity), and regional levels.
28
75. Program achievements. The SEDPL series supported: (a) the development of a survey
instrument on short- and medium-term labor market status of graduates of universities and
professional school (SEDPL2 - Prior Action No. 8); (b) the institutionalization of data exchange
agreements between MOLSA, the CNSS, and the Ministry of Industry (SEDPL2 - Prior Action
8); (c) the establishment of an M&E framework for ALMPs; and (d) the creation of the National
Labor Market Observatory Department.
76. In summary, the series supported: (i) the development of new data to monitor labor
market outcomes, (ii) data sharing protocols across institutions, and (ii) the establishment of a
National Employment Observatory. These actions contributed to improving the country’s
capacity to measure and monitor labor market outcomes. To sustain the important actions
supported by the series, Morocco needs to improve its open-data policy as well as the access and
use of micro and administrative data, which are still under-utilized.
77. Conclusion. The performance of Prior Actions of SEDPL1 and SEDPL2 supporting
SEDPL Pillar D is considered satisfactory in implementing the agreed actions to strengthen the
labor market information system. Sharing and utilizing pertinent labor market data and
information is likely to improve as the National Labor Market Observatory Department is fully
operational and has been publishing labor market reports, studies and surveys.
3.3 Justification of Overall Outcome Rating
Overall Program Rating: Moderately Satisfactory
78. The overall outcome rating for the project is moderately satisfactory, reflecting an overall
rating of substantial for relevance of objectives, design, and implementation (Section 3.1), a
moderately satisfactory rating for achievement of Program Development Objective (Section 3.2),
whereby Pillars A, B and D are rated satisfactory and Pillar C is rated modest8.
3.4 Overarching Themes, Other Outcomes and Impacts
(a) Poverty Impacts, Gender Aspects, and Social Development
79. Poverty impacts. Many groups of stakeholders have benefited from the policy measures
supported by the SEDPL, in particular young graduates, unemployed individuals, and workers
with poor-quality jobs—thus contributing to social and economic inclusion of beneficiaries.
Moreover, the program has supported a series of TVET (such as apprenticeships) (SEDPL2 -
Prior Action No. 4) and ALMPs (SEDPL2 - Prior Action No. 7) that target individuals without
tertiary education, a group that is particularly vulnerable to poverty and which has been
traditionally excluded from these types of programs. In addition, the new status of self-employed
is likely to benefit informal working poor individuals to gain access to markets and credit
(SEDPL2 - Prior Action No. 8). As such, interventions under the SEDPL program are likely to
have created positive impacts on poverty alleviation.
8The SEDPL series substantially achieved or surpassed most of the results targets, as set in the SEDPL1 and SEDPL2 policy and
results matrices. Out of a total of 14 PDO indicators included in the series, nine were fully achieved and four were partially achieved. Only one indicator was not achieved.
29
80. Gender aspects. Some Prior Actions have benefited mostly women, such as the multi-
annual training contracts with NGOs (apprenticeships) which benefit many young women (56%
of total beneficiaries) working in the textile and craft sectors as well as in other sectors such as
nursing, cooking, and cosmetology. Likewise, about 62% beneficiaries of the PCS program were
women (surpassing the original target of 50%). Moreover, about 40 percent of all beneficiaries of
ANAPEC programs are women. In addition, the number of women enrolling in TVET and
higher education has significantly increased in recent years. Finally, many individuals who have
acquired the self-entrepreneurship status are women.
81. Social development. Action actions supported by the program were designed to improve
the socioeconomic status of individuals by enhancing their upward mobility in the labor market
through two main channels: (i) higher and faster mobility from unemployment into employment
and (ii) labor mobility from informal/low quality employment to formal employment. For
instance, Pillar A aims to improve the employability of new labor market entrants exiting tertiary
education and/or vocational training – thus promoting a faster school-to-work transition. Actions
under Pillar B aim to improve intermediation services, which would in turn help reduce
unemployment spells that arise due to asymmetries in information or skills. Actions under Pillar
C aim to improve the formalization of firms and individuals aiming to improve not only their
access to social security (and thus protection against risks) but also their access to markets and
financing. Finally, measures to strengthen the labor market information system (Pillar D) will
likely have positive social impacts in the medium/long term through improved targeting, design,
performance, governance, and accountability of employment programs. A better information
system, which will include gender-specific information, will also enable the Government to: (a)
identify and reach out, in a more efficient/effective manner, to the most marginalized individuals
in society; and (b) introduce gender-specific and local-specific labor policies.
(b) Institutional Change/Strengthening
82. Some of the achievements of institutional strengthening resulting from the SEDPL series
include the following:
Several vocational training institutes have been established by the VTD in high-demand sectors such as the automobile and fashion sectors, under PPPs with private sector
federations (SEDPL1 - Prior Action No. 3). These institutes are responding better to
business needs with regard to delivering training programs constructed around the skills
set that industries actually require. These programs also provide greater opportunities for
trainees and graduates to access internships and other on-the-job training experiences.
The establishment of a National Certification Agency was an important step to ensure
that training programs: (a) take into account the recommendations of market
observations; and (b) meet the minimum requirements of quality and adequacy (SEDPL2
- Prior Action No. 3).
The capacity of NGOs to deliver training programs to unskilled youth at the local level has been strengthened, which in turn builds the overall national capacity to reach and
serve disadvantaged populations at the local level (SEDPL2 - Prior Action No. 4).
30
The National Agency for Quality Assurance and Evaluation of Higher Education and Scientific Research became the agency responsible for monitoring quality assurance
missions and to evaluate public and private higher education institutions (including the
provision and renewal of accreditation for training centers, universities, and doctoral
programs) (Prior Action No. 5 in SEDPL2).
The establishment of the ANPME has improved the Government’s capacity to promote
entrepreneurship and integrate informal workers and firms into the formal sector (Prior
Action No. 8 in SEDPL2).
The National Labor Market Observatory Department (SEDPL2 - Prior Action No. 8) could play an important role to develop an integrated system for the observation of the
labor markets, in close coordination with sector-specific and region-specific observatories.
Among other objectives, the observatory will strengthen data analysis on employment
policy and enrich the monitoring indicators of the labor market nationally. The
observatory could also be key to ensure the use of similar concepts and classifications
(skills, professions, and so on) in coherence with the national statistical system.
(c) Other Unintended Outcomes and Impacts (positive or negative, if any)
The SEDPL’s role in the creation of the observatory at the national level, faci litated the
creation of branch/sector observatories at the grassroots level, some of which were
supported by the International Finance Corporation.
The SEDPL is supporting the extension of ALMPs to the non-graduated population.
The SEDPL contributed to extending health coverage, and access to credit to the working
poor (notably through the creation of the self-entrepreneur status).
Actions supported by the SEDPL attracted donor funding and technical assistance to help the Government implement some of the reforms included in the program.
No unintended negatives aspects were identified as a result of the SEDPL series.
4. Assessment of Risk to Development Outcome
Rating: Moderate
83. The objectives of the SEDPL series continue to be highly relevant to the country’s
economic and social development. The SEDPL series successfully launched a reform process
aiming to overcome substantial regulatory and institutional constraints preventing more active
participation of the private sector in the provision of TVET programs. The series also contributed
to the development of new institutional frameworks necessary to improve the governance and
performance of TVET and employment programs and to test and pilot initiatives to promote
formalization of firms and workers in the grey economy. The Government has credible and
strong incentive to further pursue this reform agenda, in light of the social expectations.
Nevertheless, the ultimate success of the reform program will depend of the institutional capacity
of the institutions involved in the implementation and enforcement of the reform. As such, it is
important that the World Bank and other development partners continue to support the GoM
implement and evaluate the reforms supported by the series.
31
84. Particularly, the following policy measures supported by SEDPL series will likely be
sustained and reinforced in the near future:
The promotion of a higher participation of private sector providers in the delivery of training programs, through the implementation of The National Vocational Training
Strategy;
The improvement in the governance and accountability of the tertiary education
system, through the active participation of The National Agency for Evaluation and
Quality Assurance of Higher Education and Scientific Research;
The improvement in the governance, access and effectiveness of entrepreneurship programs, through the establishment of the ANPME as a body with a direct mandate
to support the entrepreneurship agenda in Morocco
The expansion in access of government programs that support low-skilled job
seekers, through the development of new ANAPEC services targeted to the
population who have not attained tertiary education;
The improvement in the knowledge of the performance of the Moroccan labor market, through the activities undertaken by the National Labor Market Observatory
Department.
5. Assessment of Bank and Borrower Performance
5.1 World Bank Performance
(a) World Bank Performance in Ensuring Quality at Entry
Rating: Moderately Satisfactory
85. The World Bank's performance during preparation was Moderately Satisfactory. During
project preparation, the team was able to identify critical gaps and opportunities for interventions
in the TVET and employment sectors. The objectives of the program were consistent and
compatible with the Government’s development priorities and with the World Bank’s CPS for
Morocco. During preparation, the World Bank assessed the operation’s risks and benefits, and
lessons learned from earlier operations were incorporated into the project design. In addition, the
operation supported selected reforms in the Government’s program that would otherwise take
longer to achieve (such as the completion of the National Vocational Training Strategy).
86. Additionally, the SEDPL operation was prepared in consultation with donors active in
Morocco's TVET and employment sector. The preparation of the operation was conducted in
collaboration with several donors and in coherence of ongoing sectoral operations, such as the
EU’s Advanced Status Program and the AFD’s budget support program. The International
Labour Organization Training Center in Torino contributed to the design of SEDPL’s labor
market information system component. Furthermore, the World Bank coordinated closely with
the European Training Foundation on its strategic advice to the VTD. The program also
developed complementarities with the AFD’s agenda to support high-end, industry-specific
vocational training centers managed by the private sector. Finally, the World Bank and the
32
International Monetary Fund maintained close collaboration with a general understanding on the
division of labor and a shared assessment of the critical macroeconomic challenges facing the
country. However, in retrospect, the institutional implementation challenges which a few policies
encountered, i.e. regulatory complexity and vested interests across different actors, were not fully
appreciated and proactively mitigated at preparation stage, thus contributing to a Moderately
Satisfactory Quality at Entry rating.
(b) Quality of Supervision
Rating: Satisfactory
87. The World Bank's performance during the implementation of the operation was
satisfactory. The Bank focused on assessing the operation’s development impact. The Bank
allocated sufficient budget and staff resources, and the project was adequately supervised and
closely monitored. The Bank regularly prepared Aide Memoires, alerted the GoM on issues that
arose during implementation, and facilitated prompt corrective action. For instance, the Aide
Memoire produced by the Bank after a supervision mission held in April 2015 highlighted
significant delays in the implementation of most reforms supported by Pillars A and C of
SEDPL2. This triggered the organization of an internal meeting between relevant ministries
involved in the implementation of the reforms and the processes led to the development of
concrete six-month action plans for the issues that were flagged by the Bank. Consequently, the
following supervision mission held in December 2015 noted significant progress in most actions
supported by Pillars A and C, as action plans were carried forward. In addition, the ISRs
realistically rated the performance of the operation. The Bank deepened the policy dialogue with
the institutions involved in the implementation of the program of reform and ensured the
availability of staff and specialists to advise the Government on all policy and technical areas
involved. For instance, the World Bank provided feedback to MOLSA during the preparation of
the new National Employment Strategy (NES) as well as during the preparation of the pilot
aiming to extend ANAPEC services to non-graduate job seekers. The Bank was also involved in
several technical discussions that provided inputs to the completion of the National TVET
Strategy. The World Bank closely monitored the progress of the operation and worked
effectively to sustain the dialogue with the Government in the policy areas supported by the
SEDPL series. Finally, as described above, the World Bank was successful in bringing other
development partners to further support the reforms supported by the series, notably the EU, the
AFD, the GIZ, and the MCC.
88.
(c) Justification of Rating for Overall World Bank Performance
Rating: Moderately Satisfactory
89. With a Moderately Satisfactory rating for quality at entry and a Satisfactory rating for
quality of supervision, the overall World Bank performance is rated as Moderately Satisfactory
in accordance with the Independent Evaluation Group’s harmonized rating criteria.
33
5.2 Borrower Performance
Rating: Satisfactory
90. The borrower’s commitment and ownership of reforms was satisfactory during the
preparation of the SEDPL1 operation. In line with the MILES report recommendations, the
Government intended to implement key measures in the relative short term and requested the
World Bank’s support to build a coherent program in the areas of higher education, vocational
training, labor market policies, and social protection.
91. The Government launched an ambitious investment program and sustained policies for an
improved business environment. The Government developed a national program aiming to
enhance growth and competitiveness and improve social outcomes (2008–2012 Social and
Economic Development Program). The Government's policy statement highlighted the
importance of linking training to labor market needs, through diversifying training programs,
promoting a more active participation of the private sector in service delivery, and taking into
account local priorities.
92. In June 2011, the Labor Ministry’s VTD launched a process to develop a new strategy for
vocational education in Morocco. In 2012, the Government set a new target for employment and
aimed to reduce the unemployment rate between 2012 and 2016, particularly for post-secondary
graduates. Also, The MOLSA prepared a new employment promotion plan for 2012–2016 and
recently completed a 2015–2025 NES. The MOLSA is currently developing an action plan to
implement the strategy and monitor progress.
93. Moreover, the Government undertook a series of initiatives in the social protection sector
that affected the labor market. In particular, the GoM engaged in actions to close the coverage
gap of social insurance. The Government also sought to expand social security coverage for
salaried workers (through the CNSS), for independent workers, and for the poor (through health
insurance for low-income households). All these actions are likely to improve the employment
quality of the working poor.
94. The MOLSA regularly consulted with unions and private sector representatives on its
policies though the institutionalized social dialogue and through meetings with the High Council
for Employment Promotion (Conseil Supérieur de Promotion de l’Emploi), which take place
biannually. In December 2013, MOLSA submitted, for advice to the High Council for
Employment Promotion, the draft law to extend ANAPEC coverage to non-graduates, as well as
the 2014–2016 Work Program. The National Strategy for the Promotion of Micro-enterprises
was prepared using a highly participatory process involving the private sector, the civil society,
local authorities, and institutional partners. The strategy, launched in May 2013, provided the
framework for the draft law on self-entrepreneurship.
95. While there were delays to complete some reforms of the vocational training system
supported by the series, the GoM demonstrated strong commitment to the reform agenda and
achieved significant progress in all the policy areas included in the series.
96. Finally, the Government stakeholders involved in the operation were highly supportive
during all supervision missions and consistently provided feedback, data, and supporting
34
documentation necessary to assess the program’s progress. Given that the implementing agency
and government (borrower) are indistinguishable, there is only one performance rating in this
section.
6. Lessons Learned
97. The Government’s commitment to implementing the reforms supported by the program
was a key factor for the success of the operation. In particular, when the political economy of
some reforms proved to be more complex than expected due to powerful stakeholders with
vested interests, the Government’s commitment and clear vision to overcome these challenges
and pursue them was a key aspect of success for some reforms (perhaps the most relevant ones)
supported by the series.
The Government, in close coordination with the World Bank, which prepares similar
operations, needs to engage in consultations with key actors early in the process of
design, to avoid unnecessary delays. Employment policy reforms in Morocco typically
involve several players (notably the private sector and labor unions) with conflicting
goals and interests. As such, for some reforms, it was difficult to build consensus among
them, and consequently, implementation of reforms was more challenging and/or took
longer than expected.
While preparing Prior Actions and developing targets, the institutional capacity of relevant ministries to implement reforms needs to be well assessed to the extent possible.
In particular, a number of PDO indicators formulated during project design were too
optimistic whereby they did not take into account unanticipated macroeconomic changes.
This was particularly relevant for setting target results for programs that involve the
participation and take-up of the private sector.
Collaboration with other development agencies who supported/co-financed some of the
actions supported by the program proved to be a positive enabler for the success of some
reforms. For SEDPL2, for instance, the financial and technical assistance of AFD and
GIZ helped to accelerate the implementation of some reforms that would otherwise have
taken longer to implement.
The success of the budget support mechanism to effectively promote sectoral action plans could be further strengthened in future operations. This could be achieved by having the
Government commit to allocating resources and/or by using investment financing
instruments (or technical assistance) to support the implementation of these plans. Indeed,
the sectoral action plans supported by the series (such as Prior Actions 6 and 9 in
SEDPL2) had limited impact overall and faced challenges at the time of their adoption.
In the educational sector, the World Bank should consider complementing policy lending with investment lending. DPLs alone will not be sufficient to deliver successful reforms
as some of them need to go hand-in-hand with the need to reinforce the capacity of the
implementing ministries and agencies, as well as of stakeholders delivering training and
education services.
Improving data access is a fundamental requirement to ensure that the GoM’s efforts to
improve labor market observation materialize. While the SEDPL series supported the
35
development of important building blocks to improve labor market observation systems
in the country, future operations could support a broader and far-reaching open-data
policy to remove significant constraints to access and use of available micro and
administrative data.
A more active involvement of the private sector (federations, training providers, and NGOs) is a promising model to increase the quality and relevance of programs as well as
to reach vulnerable segments of the population, especially at the local level. Morocco has
traditionally embraced a public-centered system of service delivery in the areas of
employment and TVET. While reforms that aim to give more room to private service
provision of social services in Morocco might be complex, this operation shows that
progress and success in this area can be achieved.
It is important to ensure that the new the National Agency for Evaluation and Quality
Assurance of Higher Education and Scientific Research establishes independent
evaluations, so that the agency’s performance is at par with international best practices.
In addition, political will and support are important for the success of the agency. The
agency will need adequate resources and technical assistance, especially to set up the
appropriate evaluation criteria.
It is important for the World Bank to continue to foster policy dialogue in the areas of TVET and employment policy. This could be achieved by launching a new technical
assistance program in these areas that could lead to a new series. This would ensure that
the World Bank maintains its edge and influences these important policy areas.
7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners
(a) Borrower/Implementing agencies
Not applicable
(b) Cofinanciers
Not applicable
(c) Other partners and stakeholders
Not applicable
36
Annex 1. Bank Lending and Implementation Support/Supervision Processes
(a) Task Team Members
SEDPL1
Names Title Unit
Lending
Nadine Poupart Task Team Leader, Senior Economist MNSSP
Jeffrey Waite Senior Education Specialist MNSHE
Rene Antonio Leon Solano Economist MNSSP
Dorothy Chen Social Protection Specialist MNSHH
Supervision
Nadine Poupart Task Team Leader, Sr. Economist MNSSP
Rene Antonio Leon Solano Economist GSPDR
Dorothy Chen Social Protection Specialist MNSHH
Jeffrey Waite Senior Education Specialist MNSHE
SEDPL2
Names Title Unit
Lending
Nadine Poupart Task Team Leader, Sr. Economist MNSSP
Gustavo C. Demarco Program Leader MNC03
Ali Sanaa HQ Consultant MNSSP
Ludovic Subran Social Protection Economist AFTSP
Jeffrey Waite Adviser GEEDR
Supervision
Diego Angel-Urdinola Task Team Leader GSP05
Aissato Dicko Operations Analyst GSP05
Kamel Braham Co-TTL, Program Leader MNC01
Fatima El Kadiri Consultant/Economist MNCMA
Alejandra Eguiluz Consultant/Economist GSP05
37
(b) Staff Time and Cost
Stage
Staff Time and Cost (Bank Budget Only)
No. of Staff Weeks US$, thousands (Including Travel
and Consultant Costs)
SEDPL1
Lending
FY11 23.05 185.11
FY12 33.40 212.39
Total: 56.45 397.50
Supervision
FY13 7.68 44.38
Total: 64.13 441.89
SEDPL2
Lending
FY13 8.49 47.19
FY14 35.05 199.21
Total: 43.54 246.40
Supervision
FY15 23.38 125.58
FY16 7.69 47.34
Total: 74.61 419.32
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Annex 2. Summary of Borrower's ICR and/or Comments on Draft ICR
Summary - Implementation Completion and Results Report
For the First and Second Skills and Employment Development Policy Loans
This report represents Morocco's contribution to the completion report on the program to
improve skills, productivity, and the quality of employment.
I- Context for the “Skills-Employment” Program, Objectives, and Implementation
1. Project context
The Government of Morocco places particular attention to employment, one of its national
priorities. In addition to creating wealth, employment is the main form of social inclusion.
Against this backdrop, the Government's program, which covers the 2012-2016 period, focuses
primarily on strengthening macroeconomic balances, developing productive sectors, building on
social gains, and strengthening sound economic and financial governance. In order to ensure
external equilibrium, the Government endeavours to correct external structural imbalances in the
balance of trade and balance-of-payments current account, by identifying and eliminating
constraints on investment and competitiveness, in the context of an integrated vision, including
constraints relating to production factor costs, logistics, exports, education, training, and the
investment climate.
1.1. Sectoral situation
Morocco is grappling with a number of problems that are affecting the labor market. These
concerns relate in particular to:
The quality of the jobs created - the prevalence of low-skilled jobs is having an impact on
productivity. Increased growth has not been accompanied by a significant change in economic
structures that favour technology-intensive activities. The agricultural, public buildings and
works (BTP), and services sectors, which account for 80 percent of total value added, remain
the key drivers of economic growth. In addition, in 2007 the infor mal sector accounted for 37.3
percent of non-agricultural jobs, and 81 percent of jobs in commerce.
Unemployment does not affect all segments of the labor force in a similar manner. The
unemployment rate has fallen in recent years, from 13.4 percent in 2000 to 9.1 percent in 2010,
owing in part to accelerated economic growth. The unemployment rate is higher among young
people, particularly graduates, and women in urban areas. Youth unemployment is especially
worrisome because it co-exists with a dearth of skills in strategic sectors.9
9 According to level of qualification, the unemployment rate among post-secondary graduates was 18.1 percent in
2010, compared to 16 percent among medium-skilled youth. This rate is higher among university graduates at 22.3
39
The geographic disparity in employment. Although the national unemployment rate stood at
9.1 percent in 2010, it was relatively high in urban areas in 2010 (13.7 percent). In rural areas,
where unemployment stood at a mere 3.9 percent, underemployment was prevalent, reaching
13.2 percent in 2010. In addition, the issue of employment is closely linked to the issue of initial
training and the acquisition of scientific and vocational skills provided by the training and
education system at all levels.
1.2. Government strategy
The Government's program, which covers the 2012-2016 period, focuses mainly on
strengthening macroeconomic balances, developing productive sectors, building on social gains,
and strengthening sound economic and financial governance. In a bid to curb unemployment, the
Government set itself the goal of reducing unemployment to 8 percent by improving the business
climate, promoting investment, strengthening local and regional development, supporting small
and medium enterprises, and stepping up the pace of implementation of sector strategies (e.g.,
Export Plus, Green Morocco Plan, the Emergence Plan, Industrial Acceleration Plan 2014-2020,
the Rawaj Plan, crafts, logistics, and basic infrastructure, and Tourism Vision 2020).
In addition to the ongoing implementation of the Idmaj, Taehil, and Moukawalati programs,
three new programs were added to the Government's 2012-2016 program: the Moubadara
(Initiative) program to promote employment among local associations working in the social and
education areas; the Taetir (Training) program that targets long-term unemployed graduates and
seeks to add 50,000 persons to the labor force each year; and the Istiaab (Assimilation) program,
an incentive system for the formalization of the informal economy.10
Furthermore, in order to encourage self-employment through the creation of micro-enterprises
and income-generating activities (IGAs), a new “self-employment approach” focused on greater
support for project developers, through business plan preparation and project start-up assistance,
was adopted.
percent, and stands at 19.7 percent for individuals with a vocational training diploma. This negative correlation between level of qualification and employability is explained in part by the failure of the education and training system to meet the needs of the job market and the tendency of the productive system to employ low-skilled workers. Moreover, the composition of the working age population between the ages of 15 to 59—primarily urban areas (60
percent), young (45.2 percent between the ages of 15 and 29), and with a slight female bias (51 percent)—is therefore one aspect of the employment problem in Morocco. 10 An improved version of the Idmaj program was introduced in 2015 and primarily entailed a reduction in the
internship period to a maximum of 24 months, coverage by the State of employer and employee compulsory health insurance contributions owed to the CNSS for internship program beneficiaries, and the stipulation that companies that have participated in the program must employ at least 60 percent of participants who have completed the internship. To encourage employment in newly created businesses and associations, the Tahfiz program was
introduced. Under this program, participating businesses are exempt from income tax up to a maximum of DH 10,000 for a period of 24 months, and during this same period, the Government will pay the employer’s share of CNSS contributions and the vocational training tax for up to five employees.
40
Morocco has also implemented medium-and long-term strategies for emerging sectors, such as
the Industrial Acceleration Plan (IPOA 2014-2020), which is in line with the Emergence Plan
and seeks to transform the industry into a major driver of growth, the Tourism Vision 2020, the
2015 handicrafts strategy, the Rawaj Plan for the commerce sector, the Moroccan wind energy
program, the integrated solar power generation project, and the Gree n Morocco Plan for the
agricultural sector.
II- Design and Implementation of the Reform Program for Skills and Employment
Development
2.1. Reform program performance evaluation
Pillar 1: Improve the efficiency and relevance to labor market needs of skills development
programs
Since the implementation of the first Development Policy Loan in 2012, significant progress has
been made toward improving the internal and external results of higher education institutions to
ensure greater congruence between education programs and the demands of the economic
environment. The main measures and actions adopted can be summarized as follows:
- The implementation of an information system based on the Apogée software in four public universities, covering 75 percent of their institutions, which facilitates active
tracking of progress made by university students by characteristics, course of study, level,
and region, in an effort to enhance their internal efficiency and routinely produce
individual reports for each university, as well as consolidated reports for the group of
universities. This measure is currently in place in all universities.
- The introduction in 15 public universities during the 2009-2010 academic year of an 80-hour module for foreign languages, IT, communication, and university methodology, in at
least 80 percent of open basic studies courses.
- In order to ensure better planning of skills needs, the vocational training department introduced subcontracting with private providers and programmatic contracts with p ublic
providers. To that end, three specialized vocational training institutes were established in
high-tech sectors identified in the National Pact for Industrial Emergence (2009-2015)
with the signing of the three agreements in 2010 and 2011 (Ecole Supérieure de Création
et de Mode in Casablanca in 2010, the Institut de Formation aux Métiers de l'Industrie
Automobile de Tanger Med/Renault in 2011, and the Institut des Métiers de
l'Aéronautique in Casablanca in 2011), which were managed by professionals in these
sectors under a public-private partnership.
To strengthen efforts to improve the relevance of the skills possessed by the new labor market
entrants, the State concluded 13 multiyear training agreements with the private sector (businesses
and professional associations) with a view to developing training under a public-private
partnership (PPP), in accordance with the policy objectives set forth in the draft vocational
training strategy for the coherent and effective guidance of sector policy actions.
41
Cognizant of the importance of better adaptation of training to labor market needs, on June 5,
2014 the Government adopted draft Law No. 13-74 on the organization of on-the-job training, in
particular governance and financing of on-the-job training. This draft law seeks to develop the
qualifications and skills of workers with a view to promoting business competitiveness, help
individuals to adapt to labor market trends, and facilitate their social and professional
advancement.
In parallel, to encourage businesses to integrate on-the-job training into their development plans,
two amendments to the procedural manuals for the special training contracts (CSF) and of the
Inter-professional Aid and Advisory Groups (GIAC) were signed in June 2014. These
amendments related primarily to the streamlining and simplification of procedures, more flexible
submission deadlines, and the reimbursement and security of the funds earmarked for the CSF.
Thus, the budget allocated to on-the-job training was significantly increased from DH 486.9
million in 2014 to DH 550.2 million in 2015. However, in order to strengthen management of
professional organizations for skills and training needs identification, an association was
established by the General Confederation of Moroccan Businesses in 2016 and will receive an
annual allocation of DH 5 million charged to the on-the-job training budget. This association will
serve as an inter-agency platform to strengthen coordination among the mechanism's various
actors.
In addition, with regard to political support for the National Qualifications Framework, a
national commission chaired by the Head of Government and tasked with following up on the
implementation of the National Qualifications Framework was established by Circular No. 5-
2014 issued by the Head of Government on June 4, 2014. Operationalization of the National
Qualifications Framework will help enhance the visibility of education and training programs
and ensure their alignment within a common framework, with a view to enabling young people
and businesses to make better choices and facilitating international mobility of trainees and
workers through the use of the European Qualifications Framework as the benchmark for the
National Qualifications Framework.
Other measures pertaining to the extension of vocational training coverage (gender, urban/rural,
vulnerable persons) were also launched to ensure equal opportunities. This measure involves the
implementation of a support mechanism targeting non-governmental organizations interested in
offering vocational training programs to out-of-school youth from disadvantaged backgrounds.
To that end, a circular on the admissibility and processing of applications from associations
wishing to conclude agreements to implement internship programs was signed on February 13,
2014.
The number of disadvantaged youth benefiting from internship programs offered by NGOs
increased from 3,300 in July 2014 to 4,856 in December 2015, exceeding the target (3,700) set
by the Government in 2015.
In order to strengthen efforts to improve the relevance of the skills of new workforce entrants,
the National Agency for the Evaluation and Quality Assurance of Higher Education and
42
Scientific Research (ANEAQESRS) was established under the second DPL. The agency is
responsible for conducting quality assurance through evaluations of public and private higher
education institutions, evaluations of training courses to obtain or renew accreditation, and
evaluations of the activities of centers offering doctoral study programs.
Indeed, progress has been made in several areas:
Promulgation of legislation governing the agency:
Law No. 80-12 on the National Agency for the Evaluation and Quality Assurance
of Higher Education and Scientific Research.
Law No. 67-16 amending Law No. 80-12. These amendments related to:
- Article 3: the expansion of the agency's responsibilities to include the
assessment of applications for higher education degree equivalency.
- Article 8: The composition of the agency's board of directors.
Establishment of the agency's management bodies:
Appointment of the director of the agency;
Approval of the internal regulations of the agency's board of directors, the special
staff regulations, and the organizational structure;
Establishment of specialized commissions by the agency's board of directors.
Recruitment of administrative and technical staff: 3 engineers, 3 administrators, and
2 technical specialists.
In 2016, this institution's budget stood at DH 5.8 million for operations and DH 1 million in
investments. In addition, to ensure the smooth operation and effective governance of the agency,
a series of instruments was implemented in 2016, including the staff regulations for the agency,
the organizational structure, and a draft pricing of the services provided. It should also be noted
that the agency's board of directors convened three times between 2015 and 2016.
Pillar 2: Improve the effectiveness of intermediation services
In a bid to promote labor market integration opportunities for young people, the Government
adopted measures to build on gains made by active labor market programs in place and
introduced intermediation policies, taking into account evaluation results and trends in the
profiles of job seekers. The Ministry of Employment finalized the development of the National
Employment Strategy (SNE) for 2025, incorporating many activities of the strategic plan of
action (Prior action No. 6). ANAPEC implemented an action plan for 2009-2011 to increase the
number of local offices and job counsellors. These actions relate in particular to the following:
- The Ministry of Employment developed and implemented in 2011 (i) an active labor market program designed to find jobs for hard-to-place individuals (first employment
contract), and (ii) an incentive program for long-term employment (PCS), whereby the
State pays, over a period of 12 months, the employer’s share of social insurance
contributions for interns hired by the company.
43
- The ceiling on the expenses of the Youth Employment Promotion Fund increased from DH 640 million in 2014 to DH 680 million in 2015 and then to DH 710 million in
2016, thereby providing financing for the active employment measures and internship
programs, primarily for school dropouts.
- The National Employment Promotion Agency's budget increased by 20 percent between 2015 and 2016 (DH 222.98 million to DH 267.52 million). This agency also
benefited from the provision of 10 budget line items in 2015 and 31 budget line items
in 2016 to facilitate the recruitment of job counsellors who will be responsible for
working with non-graduates. The agency has expanded its presence across the country,
increasing the number of local offices in the country from 50 in 2010 to 77 in 2015.
This was accompanied by an increase in the number of new job seekers registered with
ANAPEC. Between 2014 and 2015, the number of registered unemployed persons
increased from 130,000 in July 2014 to 186,570 in December 2015.
- Based on the 2012-2016 strategic action plan, the Ministry of Employment and Social Affairs prepared a detailed work plan for the 2014-2016 period outlining the priorities,
programs, budgets, and monitoring indicators, and clarifying responsibilities with
respect to monitoring its implementation;
- The Ministry of Employment and Social Affairs launched the preparation of an 18-month pilot program to extend ANAPEC coverage to non-graduates (i.e., to those who
do not have a high school diploma (baccalauréat) or a vocational training diploma) in
regions covered by five of the agency's local offices. The service selection procedure
was completed in early 2015.
- The initial implementation phase for the 18-month pilot program to extend ANAPEC coverage to non-graduate job seekers was launched during the second half of 2015. A
service package targeting this population segment was prepared and included an
adapted pedagogy and appropriate tools (use of dialect Arabic, videos, testimonies, and
role playing).
- As a result of the pilot carried out in six offices instead of the scheduled five, 1,622
placement interviews had been conducted and 581 individuals had participated in job
search workshops by late November 2016. The final results of this pilot should be
available by the end of the first half of 2017. This measure replaces the one on the
adoption of a draft law amending Law No. 51/99 establishing ANAPEC with a view to
extending coverage to non-graduates.
- The evaluation of the employability improvement program (Taehil) was launched by the Ministry of Employment in 2015. This evaluation involves a process evaluation and
an impact assessment. The process evaluation was completed in late 2016 and the
impact assessment will be launched in early 2017.
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Pillar 3: Promote the formalization of micro-enterprises
With a view to improving the quality of work and promoting the formalization of micro-
enterprises, the Ministry of Economy and Finance, under the 2011 Budget Law, introduced a set
of measures to foster the formalization of micro-enterprises, namely (i) the reduction of
corporate income tax from 30 percent to 15 percent for businesses whose pre-tax sales are lower
than or equal to DH 3 million, and (ii) the income tax amnesty upon registration for the business
tax (SEDPL1 - Prior Action No. 6).
In addition, on November 7, 2013 the Government Council adopted draft law No. 114.13
establishing a legal, fiscal, and social status for self-entrepreneurs, minimizing the costs
associated with becoming a formal self-entrepreneur, streamlining administrative procedures,
and providing for the establishment of social insurance coverage mechanism (SEDPL2 - Prior
Action No. 8). This law was passed in Parliament in January 2015 and published in the official
gazette in March 2015.
Following the enactment of Law 114-13 on the status of self-entrepreneur, the following four
implementing decrees for this law were adopted:
Decree No. 2-15-257 of 20 Jumada II 1436 (April 10, 2015) establishing the
composition and operating procedures for the national self-entrepreneur committee.
Decree No. 2-15-258 of 20 Jumada II 1436 (April 10, 2015) adopted pursuant to
Articles 5, 6, and 8 of Law No. 114-13 on the status of self-entrepreneur relating to
the procedures for registration in and removal from the National Register of Self-
Entrepreneurs (RNAE) and the information contained in the register.
Decree No. 2-15-303 of 18 rabii I 1437 (December 30, 2015) establishing the list of
industrial, commercial, and handicraft activities and the list of activities deemed
services that may be carried out by self-entrepreneurs.
Decree No. 2-15-263 of 20 Jumada II 1436 (April 10, 2015) on the ineligibility of
taxpayers engaged in certain professions, activities, and the provision of services
for tax benefits for self-entrepreneurs.
The two draft laws on social and medical coverage referred to in Law No. 114-13 on the status of
self-entrepreneur (see Article 2) and adopted by the Government Council in January 2016 are
still under discussion in Parliament.
The implementation of this legal, tax, and social status for the reform of self-entrepreneurship
began as a pilot project in June 2015 in a small number of postal service (Poste Maroc) agencies
in Morocco and was later rolled out across the entire country, with the help in particular of the
partnership concluded between Poste Maroc and seven Moroccan banks (ABB, AWB, CCA,
45
BMCE, CA, ICF, and SG), which enabled these banks to register applicants in the RNAE via
their bank branches.
Moreover, in an effort to improve the quality of employment, the Government implemented a
series of initiatives in the area of social protection for workers, mainly through the expansion of
social insurance coverage to other categories of workers, particularly non-salaried road transport
sector workers with a professional driver's license. This new CNSS-managed system is governed
by Law No. 84.11 amending and supplementing the dahir (royal decree) on Law No. 1-72-184 of
15 Jumada II 1392 (07-27-1972) on the social security system. This law was published in
Official Gazette No. 5998 of November 24, 2011. This measure will help improve access to risk
management mechanisms for this category of workers.
Pillar 4: Strengthen the labor market information system
In order to produce data to allow stakeholders at all levels to make effective decisions on
employment and employability policies, the selected actions relate to:
- The development in 2011 by the National Evaluation Agency of a survey tool on the short- and medium-term integration of graduates from higher education institutions and
management training programs. The survey provides information using a questionnaire
that seeks to study the relationship between higher education and employment two years
after graduation. It includes questions on the socioeconomic background of graduates,
their school and university career, the transition from higher education to employment,
early career, the links between study and employment, job satisfaction, and their
retrospective view of higher education.
- Institutionalization by the Ministry of Employment in 2011, by means of a labor data exchange agreement with the National Social Security Fund (CNSS) and the Ministry of
Industry, Commerce, and New Technologies.
To address the need to implement an information system on the labor market and for monitoring
and evaluation of the different pro-employment initiatives, the Government has carried out
several actions:
- The establishment, in 2014, of a mechanism for the systematic monitoring and evaluation of active labor market programs provided for in the Ministry of Employment's 2012-2016
strategic plan. This measure was realized with the preparation of a monitoring and
evaluation manual for employment promotion programs and three-year programming of
monitoring and evaluation activities over the 2014-2016 period, in order to monitor and
evaluate active labor market programs slated for the 2014-2016 period. This action was
implemented on a phased basis, in order to develop the necessary data tools. The first
action plan defined by the Ministry of Employment and Social Affairs for the period
2014-2016 (Annex 1 of the MSE) covers two main indicators (the number of
46
beneficiaries and the integration rate) and some of the secondary indicators (context
indicators and outcome indicators). The other indicators identified (integration cost,
efficiency cost, and others) will be taken into account in the preparation of the three-year
plan (2017-2019). The Ministry, in collaboration with ANAPEC and the other partners,
are making the necessary efforts to provide as many monitoring indicators as possible.
- The adoption by the Government Council on May 15, 2014 of a draft decree on the reorganization of the organizational structure of the Ministry of Employment and Social
Affairs, including for the establishment of the National Labor Market Observatory
Department to monitor and analyse the labor market. The National Labor Market
Observatory Department is fully operational with a multidisciplinary team of 23
professional staff with diverse profiles (statisticians, econometrists, demographers,
economists, etc.), a dedicated budget, and its own premises. This department has begun to
produce annual reports on the labor market (social balance sheet, labor market situation),
monthly thematic reports and technical documents. In 2016, the department received a
budgetary allocation of DH 6.2 million (payment and commitment credits), compared to
DH 100,000 in 2015, to enable it to conduct labor market studies and thus improve the
quality and availability of information needed to make employment-related decisions.
III-Evaluation of Project Performance
3.1. Relevance of objectives, design, and implementation
The objectives and design of the skills development and employment reform program have been
deemed relevant to the Government's priorities and the current context in which skills
development and the creation of quality jobs have been confirmed as a priority in Morocco.
The Development Policy Loans (SEDPL1 and SEDPL2) have largely succeeded in achieving
their objectives and the measures adopted by the Government under the operation contributed to
the achievement of the expected results. The high overall relevance of the objectives confirms
that the objectives of SEDPL1 and SEDPL2 were clear, relevant, and important and that the
design of the program reflected proper diagnosis of Morocco's economic and social development
priorities.
3.2. Justification of overall outcome rating
In view of the objectives and outcomes achieved during the first and second Development Policy
Loans, the project could be rated satisfactory, despite some delays related to timelines for the
implementation of certain reforms, in particular the vocational training reform.
Indeed, the vocational training development strategy, which was drafted by the Department of
Vocational Training in close collaboration with all national and international stakeholders and
partners, required additions and adjustments stemming primarily from the merging of the units of
the Ministry of Education and the Vocational Training Department into a single ministry, and the
establishment of the Higher Council for Education, Training, and Scientific Research.
47
The primary objective was to strengthen the pillars with a view to promoting greater
complementarity and increased synergy between these two components of the education and
training system, which have now been brought under the same ministry.
Another important goal was to incorporate the new initiatives, which were implemented during
the first half of 2014. These initiatives included the integrated information and academic and
professional career guidance system as well as the project to establish vocational baccalauréats.
These were designed and are currently being implemented jointly by the two departments, in
addition to the reform of special training contracts which was adopted by the Government in
collaboration with economic and social partners on June 2, 2014.
IV-Critical Analysis of Bank and Borrower Performance
4.1. Assessment of Bank performance during project preparation
Preparation of the program to support skills development and employability began following
several consultations and fruitful dialogue between the departments concerned and the Bank. The
program’s objectives and pillars had therefore already been identified when the program was
launched, thereby facilitating project preparation and execution.
4.2. Assessment of Bank performance during project execution
The Bank routinely monitored execution of the project through follow-up and consultation
missions, which helped overcome constraints to the implementation of a number of the activities
of the World Bank's support project.
In the case of the Moroccan authorities, despite the complex nature of the reforms undertaken as
part of that operation, coordination between the ministry departments involved in this program
and the desire of decision makers to implement these reforms resulted in the satisfactory
execution of the project.
V- Key lessons to be learned from the design and implementation of the program in
support of skills development and employment
The experience of the SEDPL1 and SEDPL2 to support skills development and employment was
very positive. Success is due, inter alia, to improved governance and the creation of synergy
between the various stakeholders, fruitful dialogue between the Bank and Moroccan authorities,
coordination of the key reform pillars (governance, institutional and financial framework), and
the technical assistance provided during project execution.
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Annex 3. List of Supporting Documents
1. Program Document, The Kingdom of Morocco, First Skills and Employment
Development Policy Loan, May 14, 2012; Report No. 68822-MA
2. Program Document, The Kingdom of Morocco, Second Skills and Employment
Development Policy Loan, July 29, 2014; Report No. 89186-MA
3. Letter of Development Policy (March 2012)
4. Letter of Development Policy (July 2014)
5. Morocco Country Partnership Strategy Report No. 86518-MA, April 1, 2014
6. Aide Memoires and ISRs
7. Loan Agreement, July 27, 2012, Loan No. 8172-MA
8. Loan Agreement, September 19, 2014, Loan No. 8418-MA
49
Annex 4. Summary of the Performance of Prior Actions Supported by the Series
(See Prior Actions in Tables 2 and 3)
Pillar A. Improve the efficiency and relevance to labor market needs of skills development
programs
SEDPL1
1 Prior Action No. 1. In the academic year 2010/11, four public universities, covering 75
percent of their member institutions: (a) have set up an information system capable of monitoring
students’ progress, by features such as discipline, level, and geography, with a view to improving
the internal efficiency of higher education; and (b) have produced regular reports for each
university and for the group of universities as a whole. Currently, this measure is extended to all
universities.
2 Prior Action No. 2. In the academic year 2009/10, a total of 15 public universities
provided in at least 80 percent of their bachelor-level academic programs in their open-
enrollment member institutions, a course module of 80 hours in foreign languages, computer
literacy, communication, and soft skills. These skills were introduced systematically into
academic programs to enable students to perform better in their disciplinary studies, which
would in turn result in higher qualification rates. These skills areas are, moreover, among the
cross-disciplinary skills that employers are looking for in new recruits, across a range of
professions.
3 Prior Action No. 3. The VTD has established three new vocational training institutes, in
high-demand sectors (namely, fashion and air/space industries in 2010 and automobile in 2011),
under the management of (private or public-private) sector professionals. Through management
by sector professionals, these institutes are responding better to business needs with regard to
delivering training programs constructed around the skills set that industry truly requires and
providing greater opportunities for trainees and graduates to have internships and other on-the-
job training experiences.
SEDPL2
1. Prior Action No. 1. The National Vocational Training Strategy has been approved by the
Government, and the implementation of the multiannual training contracts with private sector
entities has been successfully launched. To date, eight automobile training centers have been
created at the initiative of Moroccan private sector, under a public private partnership between
the Ministry of Industry, the Ministry of Education and Vocational Training, the Ministry of
Finance, and the Automobile Industry Federation. These centers have the following value added
features:
70 percent of the training is on life skills;
They function on results-oriented principles; and
They have the resources and flexibility to be able to engage in varied activities and create synergies among them (such as formation diplomante, formation qualifiante,
entreprenariat, experience de validation des acquis pour les chômeurs, and so on).
50
2. These centers are funded with public sector funds, while the management is left to the
private sector. They are envisioning to become progressively more autonomous in their funding
needs. For instance, they can bill for the services on continuous education/on-the-job training
(paid by companies), and they acquire public subsidies to cover traditional in-class two-year
‘certified’ vocational training courses (formation diplomante). The plan is to create more such
centers over the next few years. To this extent, a contract has been signed for the creation of 20
new training institutes that will be managed by the private sector. The cost of the strategy has
been estimated at US$67 million, part of which will be financed through professional taxes and
the state budget. Donors including the EU and MCC are already supporting this action. These
private-run training centers are expected to become autonomous (that is, self-financing) after five
years of operation.
3. Prior Action No. 2. The Council of Government (Conseil de Gouvernement) adopted, on
June 5, 2014, a draft Law No.13.74, which, among others, provides for the governance and
financing of on-the-job training.
4. The implementation of this action did not yield expected results, due to the inability of
the Parliament to approve the draft law in its current form which is not consistent with the law
that supported the creation of the OFPPT, the national providers of vocational training. As such,
the political economy of the reforms is quite complex since federations claim that their
contributions to the vocational training tax (a payroll tax) is largely subsidizing traditional initial
vocational training and not on-the-job training, which is where enterprises see a large gap. At the
same time, the OFPPT has a large number of beneficiaries, as the institution also fulfills an
economic mandate (that is, to build the skills of the workforce to be adapted to the labor market)
and a social mandate (to offer thousands of youth an alternative to unemployment, through
vocational training courses). As expected, the OFPPT is not interested in releasing funding to the
private sector and/or to decrease training coverage—making the political economy of this reform
quite complex. That said, even if the law has still not been presented to Parliament, some
progress has been made to ensure funding for continuing education/on-the-job training. To this
extent, a special account was opened at the OFPPT to withhold about 30 percent of the revenues
of the vocational training tax, which is being managed by a tripartite committee composed of
trade unions, the federation of employers (Confédération générale des enterprises du Maroc),
and the OFPPT. In spite of this major achievement, firms still face significant constraints to a
certain extent to access these funds to further the financing of on-the-job training programs.
5. Prior Action No. 3. In July 2015, The National Commission for the National
Qualification Framework validated the establishment of a National Certification Agency, with an
appropriate legal framework, to oversee the implementation of the National Qualification
Framework. This is an important step that would allow for a greater legal basis for the agency to
carry out its mandate, which is to ensure that training centers, as they develop their programs,
take into account the recommendations of the agency in relation to training adequacy,
certification, skills accreditation, and labor market demands. The agency will also ensure that
each trainee will be placed in one of eight job classification categories so that employers know
what to expect about the skills of the trainees. The agency’s program is expected to help trainees
better communicate their skills to employers and thus enhance their job mobility. For those who
do not hold a vocational training diploma, the agency will help them obtain a ‘skills’ certificate
based on their experience, after passing a qualifying examination. The agency will also evaluate
51
insertion rates of graduates and the remuneration obtained by graduates according to their
profession and accredit the courses to ensure the quality of certified training. Furthermore, there
is a broad consensus about the need to strengthen the legal framework for the National
Commission for the National Qualifications Framework (now supported by a decree and not by a
law) and to accelerate the implementation and functioning of the agency.
6. Prior Action No. 4. A total of 25 NGOs offering vocational training to out-of-school
youth from disadvantaged backgrounds were audited and subsequently provided with capacity-
building training to improve their performance. The delivery model of using NGOs to provide
apprenticeships to unskilled youth proved to be very successful. First, NGOs showed having the
capacity to connect disadvantaged youth (those who have not attained tertiary education) with
experienced practitioners (notably in the areas of arts and crafts, cooking, sewing, hair dressing,
and so on) that would build their skills on a learning-by-doing basis. For example, the Center for
Apprenticeship for Young Women, which started functioning in 2011, is providing one-year and
two-year training courses to young women in nursing, cooking, stitching, sewing, information
technology, hair dressing, cosmetology, and graphic arts. The training includes in-class training
as well as on-the-job training. After graduation from the center, about 90 percent of trainees
succeed in finding jobs where they use the skills they acquire. The Ministry of Education and
Vocational Training pays NGOs for each individual trained. To date, more than 4,800 youth
have benefited from such programs, and the great majority (about 80 percent) have found a job
where they can apply the skills acquired after program completion. Given the success of the
program, Memorandums of Understanding have been signed with 64 NGOs to conduct similar
training programs in different localities of Morocco, and the Government is aiming to continue
to scale up this model nationally.
7. Prior Action No. 5. The National Agency for Evaluation and Quality Assurance of
Higher Education and Scientific Research was established by Law No. 80-12 (Dahir of July 31,
2014), but it only became operational in early 2016. The agency is listed as a public institution
with a legal identity and financial autonomy. This agency is responsible for the quality assurance
of tertiary education programs and institutions. To achieve this mandate, the agency will need to
conduct periodic evaluations of public and private higher education institutions, evaluation of
training courses, as well as evaluation doctoral study centers. Its Director was officially
appointed as a Council of Government on September 10, 2015. The Agency is managed by a
Board of Directors, which held its first meeting on April 1, 2016, and consists of ex-officio
members, designated members and a staff representative elected (the decree fixing the modalities
of the election of this member was published in the Official Bulletin of April 7, 2016). The
Ministry of Higher Education has provided the agency with staff consisting of three engineers,
three directors, three managers, and a secretary. The agency has its own premises. However, the
agency still lacks adequate budget to be fully functional and has not yet started to fulfill its
mandate (that is, conduct evaluations). It should also be noted that the amendment of the Organic
Law to include the Agency in the list of establishments was published in the Official Bulletin of
June 18, 2015, public bodies with legal personality and financial autonomy.
Conclusion. The performance of Prior Actions of SEDPL1 and SEDPL2) supporting SEDPL
Pillar A is considered overall satisfactorily. In the instance of Prior Action No. 2 for SEDPL2,
for which the draft law is pending Parliament approval, the authorities have in the meantime
taken action to ensure funding for continuing education/on-the-job training.
52
Pillar B. Improving the effectiveness of intermediation services.
SEDPL1
8. Prior Action No. 4. The Ministry of Labor and Vocational Training, Employment
Department, developed and implemented in 2011: (a) an ALMP aimed at labor market insertion
of hard-to-place unemployed (CIP); and (b) an improved wage subsidy program for the
unemployed (Prise en charge par l’Etat de la couverture sociale). The CIP had very little take-
up by enterprises, as they required firms to hire workers with an open-ended contract—to receive
wage subsidies. Despite the incentive, firms still prefer to hire workers using fixed-term
contracts—which allow greater flexibility for dismissals. As such, the number of beneficiaries
benefiting from these programs was lower than expected. On the contrary, wage subsidies
(without requiring firms any hiring conditions) had a positive take-up rate by enterprises, as they
contributed to reduce overall labor costs.
9. Prior Action No. 5. ANAPEC successfully implemented its 2009–2011 action plan to
increase the number of local offices to 77 nationally.
SEDPL2
10. Prior Action No. 6. The MOLSA has revised its 2012–2016 Strategic Action Plan to
include a detailed 2014–2016 work program that defines priorities, programs, budgets, and
monitoring indicators. The MOLSA recently finalized its 2015–2025 NES, and integrated many
actions that were envisioned in the revised Strategic Action Plan to the NES. And this despite the
absence of a formally adopted execution of the plan. At the same time, ANAPEC also finalized
its 2016–2020 strategic plan, which aimed at: (a) improving the agency’s service delivery at the
local level (in consultation with the municipalities); (b) increasing the coverage of employment
services to non-graduate job seekers; (c) creating six new agencies; and (d) improving
intermediation services. In the end, some of the targets for ALMPs set by the MOLSA and
ANAPEC were not fully met. As a result of significant delays in the implementation of new
ALMPs such as Tahfiz, which aims to provide incentives to new enterprises and NGOs that hire
unemployed individuals.11 Also, the Government’s goals with regard to coverage for the Taehil
program (an on-demand training program), was set for 18,000 in 2015. Achievement rate was
60% based on the original target, and 84% based on the revised target (of which 46% women).
The GoM revised the indicator’s target in April 2015 (during the World Bank’s first supervision
mission) because economic growth (and labor demand) in Morocco was lower than expected in
2014, and the growth forecast for 2015 was adjusted downwards. As such, the GoM anticipated a
lower program take-up by enterprises than originally forecasted.
11 Under the program, the state covers employer contributions to social security for 24 months as well as the vocational training tax for jobs created by new companies and NGOs between January 2015 and December 2019. Also, salaries of workers are exempt from income tax if they are less than or equal to MAD 10,000 per month (about
US$1,000 per month)
53
11. Prior Action No 7. With support of the AFD, MOLSA launched the preparation of a
pilot program to extend the coverage of ANAPEC to non-graduate job seekers. While the
implementation of the pilot has faced significant delays, progress has been achieved and the
preparation of the pilot was launched with technical assistance of the French National
Employment Agency (Pole Emploi) and with financial support of AFD. Two preparatory phases
have already been completed: (a) the categorization and profiling of the target population of non-
graduates; and (b) the identification of the employment services that will be provided to this
population group. Also, seven sites have already been identified to conduct the pilot, and each of
these sites will be reinforced by two full-time counselors who will be fully dedicated to address
the needs of the pilot’s target population. Furthermore, ANAPEC with the technical support of
Pole Emploi has already developed training modules targeted to the new population in four main
areas: (a) awareness about job market opportunities; (b) support for preparing resumes and job
interviews; (c) developing a professional plan; and (d) soft skills. Preliminary results of the pilot
are expected to be available by mid-2017.
Conclusion. The performance of Prior Actions of SEDPL1 and SEDPL2 supporting SEDPL
Pillar B is considered broadly satisfactory. With the exception of the SEDPL2 Prior Action 6
shortcomings.
Pillar C. Promote the formalization of micro-enterprises
SEDPL1
12. Prior Action No. 6. The Ministry of Finance has implemented a set of measures to
encourage the formalization of micro-enterprises, namely: (a) income tax being reduced from 30
percent to 15 percent for businesses whose after-tax turnover is equal to or less than MAD 3
million; and (b) income tax amnesty upon registration for professional tax (“patente”), that is,
transition from informality to the first level of formality. The number of micro-enterprises
benefiting from these measures was lower than expected due to: (a) lack of general awareness
about the program; and (b) some complexity in the registration process.
13. Prior Action No. 7. A Royal Decree No. 1.11.181 dated November 22, 2011, was issued
to extend social security coverage by the CNSS to licensed taxi drivers. This reform was not
implemented. Indeed, during supervision missions, different stakeholders involved in the reform
(CNSS, Ministry of Interior) were unable to provide any information about the status of this
action or about the number of taxi drivers who benefit from this scheme.
SEDPL2
14. Prior Action No. 8. The law on the legal, fiscal, and social status for self-
entrepreneurship was approved by Parliament and published in the National Official Bulletin in
March 2015. After that, the implementation of the reform started on a pilot basis. Also, the
Government drafted three implementation decrees to complement the law: (a) a decree for the
establishment of the ‘tax’ status for self-entrepreneurs; (b) a decree for the establishment of a
national committee for entrepreneurship (ANPME); and (c) a decree identifying activities that
would be eligible to benefit from the status. All decrees have been adopted. Moreover, two other
decrees have been prepared to allow self-entrepreneurs to benefit from the national health
54
insurance schemes. The first decree will define the system’s tariffs and contribution structures.
The second decree will give the CNSS the mandate to include self-entrepreneurs into the system.
However, not much progress was achieved with regard to the goal of providing self-
entrepreneurs with a contributory pension account, as this item was part of a broader and
complex reform on social security. To date, more than 13,000 individuals have been given the
status of self-entrepreneur. The benefits of the status include lower taxes, permission to work
from home (other business need to have a commercial address to operate), invoicing, eligibility
to bid for government contracts, and access to credit facilities from some banks. Also, the
ANPME has developed institutional partnerships with different stakeholders to further support
auto-entrepreneurs to start and grow their business.
Conclusion. The performance of Prior Actions of SEDPL1 and SEDPL2 supporting SEDPL
Pillar C is considered modest due to the institutional complexity of reforms concerning social
security coverage of non-salaried workers.
Pillar D. Strengthening the labor market information system
SEDPL1
15. Prior Action No. 8. In 2011, the National Education Evaluation Agency developed a
survey instrument on short- and medium-term labor market status of graduates of universities
and professional schools. While these data and data/survey results are available, the Government
needs to improve its processes to use and disseminate these data to achieve the intended
purposes, namely, that tertiary education graduates choose an academic formation that is on
demand by the labor market.
16. Prior Action No. 9. In 2011, the MOLSA institutionalized through a data exchange
agreement with the National Fund of Social Security and the Ministry of Industry, Trade, and
New Technologies, the exchange of data on labor. These agreements contributed to punctual
exchanges of information and to some data analysis, however, access to administrative data on
employment remains limited in Morocco and most institutions do not have the culture of data
sharing. Indeed, though several datasets exist to assess the labor market (CNSS data on wage
earners, industry-level data, labor force surveys, labor inspection data, and so on), data are
largely underutilized and are guarded by a few individuals. Additionally, there are no clear
guidelines or processes on how to use/access available datasets. Not only are the data unavailable
to the public, but also largely unavailable to the overall administration that generally conducts
analysis in silos. This overall situation contributes to a generalized lack of in-depth analysis of
the Moroccan labor markets.
SEDPL2
17. Prior Action No. 9. The MOLSA has established an M&E mechanism for the
employment measures and notably for the provision of ALMPs. Despite the formal approval of
an M&E operations manual and having adequate budget allocation for M&E activities, further
work is needed to have the manual implemented successfully. Indeed, this will require a
definition of a clear action plan by MOLSA, of key aspects of the manual (notably data
collection and production of key performance indicators to move away from an outputs-based
55
monitoring system to a results-based monitoring system. The MOLSA claims that the
implementation of this action will be undertaken gradually. Nonetheless, the first action defined
by the MOLSA for 2014–2016 focuses on monitoring two main indicators for all ALMPs
implemented by ANAPEC, namely: (a) the number of beneficiaries; and (b) their insertion rates
after program completion. Other performance indicators (such as unit cost, adequacy rates, level
of salaries after program completion, and so on) will be developed later (most likely between
2017 and 2019).
18. Prior Action No. 10. The National Labor Market Observatory Department, created in
2015, is now fully operational with a multidisciplinary team of 25 staff, a dedicated budget, and
its own premises. The establishment of the observatory is an important step in the progressive
construction of the integrated observation system for the labor market with a network of
observatories at the central, branch (that is, economic activity), and regional levels. The
governance of the observatory follows a participatory approach, by which social partners
(federations, unions, and the public administration) shape and define activities and priorities
through a technical monitoring committee (TMC). The TMC includes representatives of main
stakeholders involved in employment policy, including sectoral ministries (such as industry,
education, and labor), the federation of employers, the HCP, ANAPEC, OFPPT, CNSS, branch
observatories, universities, trade unions, and academics. The role of the TMC is to: (a) guide and
coordinate the implementation of the multiannual program of the observatory that is established
based on the needs of the department and its partners, in statistics, studies, and labor market
analysis; (b) validate the annual work program of the observatory; (c) ensure i mplementation of
data exchange agreements across different ministries; (d) strengthen the database of the
observatory and enrich available monitoring indicators on the performance of the labor market;
and (e) ensure the use of standard concepts and classifications adopted by the national statistical
system.
19. The observatory has already published two annual reports on the labor market (the Social
Balance Sheet report and the State of the Labor Market report), thematic monthly
newsletters/bulletins, and technical papers. Three additional studies have been completed: (a) a
study on minimum wages in Morocco; (b) a survey on labor force mobility; and (c) the
evaluation of Idmaj. Two new studies have also been launched (the evaluation of the Taehil
Program and an evaluation of cost efficiency of the extension of ANAPEC services to non-
graduates). The evaluation of the Taehil Program (an on-demand retraining program) is ongoing.
On the other hand, the observatory has only limited access to micro-data, such as the National
Labor Force Survey (produced by the HCP). To improve this situation, the observatory will need
to work closely with the HCP and develop partnerships and clear protocols for data use and
exchange.
20. Conclusion. The performance of Prior Actions of SEDPL1 and SEDPL2 supporting
SEDPL Pillar D is considered satisfactory in implementing the agreed actions to strengthen the
labor market information system. Sharing and utilizing pertinent labor market data and
information is likely to improve as the National Labor Market Observatory Department is fully
operational and has been publishing labor market reports, studies and surveys.
56
Annex 5. Brief Description of ALMPs in Morocco
1. The GoM disposes of a series of ALMPs. These programs include: (a) Idmaj, (b)
Taehil, and (c) Moukawalati.
(a) Idmaj is a wage subsidy program (tax breaks on the salaries of the program’s
beneficiaries) that enables unemployed graduates to acquire relevant experience
through a paid internship for a maximum of 24 months. The program has been
enforced since 2011 by two initiatives that aim to incentivize employment creation
further and that give additional subsidies to firms if and when they hire their interns
offering indefinite contracts. The subsidies are in the form of either a waiver of the
contribution to social security charges for the employer regarding the newly hired
employee (that the state covers for a period of 12 months) or a cash subsidy linked
to the job skills training provided to the newly hired employee. Despite the efforts,
firms are still reluctant to participate in these initiatives that are still constraining for
them, as firms are still required to offer indefinite contracts, and the Government’s
help is not always secured and procedures to get the subsidies are long).
(b) Taehil is a program that seeks to improve the employability of unemployed
graduates through training to meet specific recruitment needs (Formation
Contractualisée pour l’emploi), retraining of graduates who have difficulty entering
the labor market (Formation qualifiante ou de reconversion), and training tailored to
specific sectors in the economy (SE)
(c) Moukawalati is an entrepreneurship program that provides job seekers with
technical and financial support (in the form of a loan up to MAD 250,000) so that
they can set up their own businesses. After a recent evaluation, the program has
changed its name and, in 2015, modified its service offering, focusing more on
coaching and training and withdrawing its previous commitments regarding the
financing of entrepreneurship projects, as one of the lessons learned is that even with
the Government’s guarantee on the loans, the private sector still finds the micro-
enterprises a very risky clientele.
2. These programs replaced and built upon the experience of previous programs that have
been implemented since the late 1980s. They are implemented by ANAPEC that was established
in 2001. The three main ALMPs that are currently being implemented by ANAPEC (Idmaj,
Taehil, and Moukawalati) have had some positive results with regard to providing quality
services to their beneficiaries and, to a lesser extent, job placement ( table 3.1). The programs in
general lack a clear commitment toward insertion and could benefit from more advanced
intelligence services within ANAPEC that would prospect better where job demands are and
adapt the agency’s services to better fit the employers’ needs.
3. However, the programs display poor targeting as well as limited coverage and, as
such, are not fully addressing the needs of the unemployed. As mentioned earlier, these
57
programs mainly target unemployed12 graduates and cover only about 60,000 people per year,
that is, a small fraction of the unemployed population. This is partly due to the limited capacity
of ANAPEC to deliver employment services, as proxied by the number of ANAPEC staff
relative to the number of registered job seekers (staff caseload). For example, in 2010, Morocco
had a staff caseload of 1,507, or fifteen times the staff caseload recommended by the
International Labour Organization.13 Also, ANAPEC has only 75 local offices across Morocco,
less than necessary to reach its target population. In addition, there is poor inter-institutional
coordination as well as lack of governance and accountability mechanisms, including the
absence of proper M&E. As a response, in the context of the strategy, MOLSA is aiming to
increase the reach and impact of ALMPs and to reinforce the capacity of public and private labor
market intermediation agencies (that is, to improve job matching based on existing vacancies).
Supported by the World Bank’s DPL series (SEDPL2), a pilot program is currently taking shape
that would start addressing ANAPEC’s services to the non-graduate population in five selected
ANAPEC agencies. This program will be carefully evaluated with the aim to scale up good
practices nationally (in phases) and conditional availability of financial and human resources to
undertake these activities at a larger scale.
4. The Government has engaged in an in-depth review of its ALMPs and labor market
intermediation policies. It has recognized the necessity to extend coverage of ALMPs to low-
skilled unemployed youth, and long-term unemployed, and to improve program design to reduce
dropout, substitution, and deadweight loss effects. Tailoring these programs to regional
specificities and giving regions a stronger role in their implementation is also envisaged. With
the support of the World Bank’s SEDPL2, the Employment Department of the Labor Ministry
has unveiled its 2012–2016 Strategic Action Plan (Plan d’Action Stratégique, 2012–2016). The
objectives of the Strategic Action Plan are to (a) increase the reach and impact of ALMPs by
evaluating existing ALMPs and creating three additional programs and (b) reinforce the capacity
of public and private labor market intermediation agencies. The three new ALMPs envisioned
are (a) Moubadara, which encourages employment in NGOs; (b) Taȃtir (or CIP), which provides
paid internships for the long-term unemployed; and (c) Istiȃab, which seeks to encourage the
formalization of the informal sector. A recent supervision mission for SEDPL2 took place in
April 2015. The findings confirm the good progress that the Ministry of Employment is making
in following the action plan. ALMPs are being evaluated as planned and are being adjusted
according to the findings. Outreach to distant areas (through internet services) and adjustment of
the services to reach people who are already active are confirmed priorities, as well as focusing
on a set of core services of the ANAPEC that add value.
5. ANAPEC is currently exploring possibilities to service non-graduate job seekers.
With regard to its goal of increasing coverage and improving its intermediation services, the
Government envisions extending ANAPEC services, which currently target mai nly graduates, to
the non-graduates (the bulk of the unemployed) as well as those benefiting from the soon-to-be-
established IPE. Figures from 2014 show that of the 158,284 individuals enrolled in ANAPEC
12 Moukawalati was opened in 2009 to the non-graduate unemployed (primary school certificate level). 13 Angel-Urdinola et al. 2013. Building Effective Employment Programs for Unemployed Youth in the Middle East and North Africa. Washington, DC: World Bank.
58
programs, 42 percent are women and 18 percent are non-graduates. 14 Extending ANAPEC
coverage to non-graduates will require amending Law No. 51/99 establishing ANAPEC. It will
also require a reorganization of ANAPEC services. The Ministry of Labor prepared a draft law
that has not been approved by the Ministry of Finance, which expressed the need to test
ANAPEC’s capacity to take on this new mandate. The Labor Ministry is launching an 18-month
pilot program, supported by the AFD, to test the extension of its services to this new target
population and estimate the associated cost. The pilot phase will target 200,000 non-graduate job
seekers registered in five local offices across Morocco. The work for this pilot started in April
2016. Initial discussions are being held between the Ministry of Labor and the AFD (which is the
service provider) to set the criteria for selecting the areas to work on and the main lines of
outreach and services to provide.15
6. Morocco has also developed a labor-intensive public works program through the
Promotion Nationale. Managed by the military, the public works program aims to provide
temporary employment for underemployed and unemployed, mostly in rural areas. Despite this
rural objective, the program operates substantially in less poor urban areas. Like many labor -
intensive works programs worldwide, the Promotion Nationale undoubtedly has the potential to
be an effective instrument of response to shocks and crises. It does not, however, use the best
practices with regard to targeting and selection of high labor intensity, and governance
frameworks. The lack of transparency of its operations further hampers the assessment of its
potential. In 2009, the Promotion Nationale had a budget of MAD 1 billion for an estimate of
50,000 beneficiaries (Targeting and Social Protection Strategic Note, World Bank 2012).
7. The Government has also launched several initiatives to promote
entrepreneurship/micro-entrepreneurship. It concerns mainly public programs, including (a)
Imtiaz and Moussanada programs of ANPME, which are designed for SMEs and have the ability
to provide financing up to MAD 1 million; (b) OFPPT entrepreneurship initiatives; (c)
cooperatives in the context of the social economy agenda; (d) revenue generating activities
(Activités Génératrices de Revenus, AGR) in the context of the policy of alleviating
vulnerability (INDH program and programs offered by Morocco’s Social Development Agency,
ADS); and (e) self-employment through the Moukawalati program (Table 3.1 presents the
number of beneficiaries of programs).
14 Data collected in meetings with ANAPEC officials during supervision mission of SEDPL2 in April 2015. 15 For more details on the advancement, please see Aide Memoire of the Supervision Mission for SEDPL2 (April 2015).
59
Table 3.1. Number of Beneficiaries of the Government Programs to Support Employment
Direct Beneficiaries* Year
Ministry of Employment - ANAPEC
Idmaj 523,347 2014
Taehil 123,796 2014
Moukawalati 5,781 2014
Ministry of Employment
IPE 27,000** 2013
ANPME
Moussanada 805 2010–2012
Imtiaz 174 2010–2013
Ministry of Interior
Promotion Nationale 50,000 2009
Number of AGR (INDH) 3,738 2012
Ministry of Social Development
Number of AGR (ADS) 6,100 2008
Note:
* Since its creation
** Target estimate of the Government. The law is still under implementation
*** Estimates of the activity report of the OFPPT