Morocco is situated in northern Africa, but at its northernmost point lies only 12 km (8 miles) from mainland Europe, across the Strait of Gibraltar. The northern regions have a Mediterranean climate, while the south comprises semiarid desert. The late King Hassan's international prestige gave Morocco status out of proportion to its wealth. The main issues facing the country are the internal threat of Islamic militancy and the stalled political process in Western Sahara, the former Spanish colony occupied by Morocco since 1975. The key economic strengths are tourism, phosphate production, and agriculture.

Morocco, the westernmost of the Maghreb states, is the main refuge for descendants of the original Berber inhabitants of northwest Africa. About 35% of Moroccans are Berber-speaking. They live mainly in mountain villages, while the Arab majority inhabit the lowlands. Before independence from France, 450,000 Europeans lived in Morocco; numbers have since greatly diminished. Some 45,000 Jews enjoy religious freedom and full civil rights – a position in society unique among Arab countries. Most people speak Arabic, and French is also spoken in urban areas. Sunni Islam is the religion of most of the population. The king is the spiritual leader through his position as Commander of the Faithful. Female emancipation has been slow to take root in Morocco, but women are starting to take a more prominent role in society.

Strengths

Probusiness policies and abundant labor attract foreign investment. Low inflation. Tourist industry (already important), phosphates, and agriculture all have great potential.

Weaknesses

High unemployment and population growth. Droughts have hit agriculture. Cannabis production (providing Europe's main source of resin) complicates closer EU links.

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The government's large-scale privatization program, which began in 1992, was designed to attract investment, particularly from Europe. Severe drought in 1995 made austerity measures necessary. The new socialist-led government has given social policy a higher priority. Expected revenue from oil reserves will be channeled into the development of rural areas.

Morocco is a constitutional monarchy with a bicameral legislature.

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Although the majority party in parliament now chooses the government, the king reserved the right to appoint or dismiss the prime minister. Legislative elections in November 1997 left parliament split three ways, with only nine seats going to Islamists. The eventual formation of a socialist-led government was seen as the clearest expression to date of the increasing role of the party system.

Main Political Issues

The post-Hassan monarchy

King Mohammed VI is seen as a less dominating figure than his late father King Hassan II. His accession encouraged expectations of change. The knig's marriage in 2002 to computer engineer Salma Bennani was presented as evidence of a more modern and open outlook. The queen is expected to provide a role model for Moroccan women.

Islamic militancy

Mohammed VI and the government in office since 1998 have ushered in a more liberal stance toward Islamist activists. In 2000, Abdessalam Yassine, spiritual leader of the banned Islamic movement Justice and Good Deeds, was released after ten years' imprisonment without trial. Popular support for Islamic fundamentalism is fueled by the fear that Morocco is losing its Islamic identity. Pro-Islamist rallies have far outnumbered those by supporters of greater rights for women.

Morocco's important role in the quest for lasting peace in the Middle East was underlined by Israeli prime minister Yitzhak Rabin's visit to Rabat following the signing in Washington D.C. of the 1993 peace accord with the Palestine Liberation Organization. King Hassan's foreign policy was ambivalent, for while he negotiated with Israel he also headed the Jerusalem Committee of the Islamic Conference Organization (OIC). Generally more pro-Western than other Arab states, Morocco has also earned respect by protecting its Jewish minority.

International disapproval has focused on Morocco's occupation since 1975 of the former Spanish colony of Western Sahara. Resistance by Polisario Front guerrillas, who are fighting for an independent Western Sahara, commenced in 1983 and has continued, despite a UN-brokered peace plan in 1991. Since then, UN proposals have included a referendum on self-determination and autonomy for Western Sahara under Moroccan sovereignty. The process remained stalled in 2002, with the UN extending its mandate to the end of July.

Relations with the EU were strengthened with the signing of an association agreement in late 1995, envisaging free trade in industrial goods within 12 years. However, sovereignty disputes with Spain over rocky islets in the Mediterranean were at the heart of a serious diplomatic row in 2002.

Morocco's long struggle in Western Sahara against Polisario Front guerrillas has given the kingdom's forces a formidable reputation. Moroccans have also fought as mercenaries in the Gulf. In the 1980s, Moroccan sappers constructed a 2500-km (1550-mile) defensive wall to cordon off Western Sahara in an attempt to prevent incursions from Polisario guerrillas based in Algeria. The Polisario forces themselves number some 3000–6000.

Morocco's pro-Western stance has allowed its forces access to sophisticated weapons and training from the West, particularly the USA – unlike neighboring north African states, which are dependent on the former Soviet bloc.

The air force was formed in 1956 and flies US and European aircraft, notably Mirage interceptors. The navy uses Western-supplied ships, but is insignificant in regional terms. In addition, there are 42,000 paramilitaries.

Around 5% of national income is spent on defense – a relatively high figure for a developing country. Military service, lasting 18 months, is compulsory.

Morocco possesses 75% of the world's phosphate reserves. The discovery of large oil and gas deposits in the northeastern desert in mid-2000 could yield an annual revenue of $400 million.

Morocco's wealth of plant and animal life has suffered severely from long periods of drought, most recently in the early 1980s and early 1990s. The unplanned development of tourist resorts is posing a threat to fragile coastal ecosystems.

Morocco has six international airports. A highway links Rabat and Casablanca, and plans for a new trans-Sahara highway from Tangiers to Lagos, Nigeria, were announced in mid-2000. In rural areas, however, roads tend to peter out.

Despite recent progress, child mortality and nutritional standards for the poorest Moroccans remain well below average. There is one doctor for every 2500 Moroccans and one hospital bed for every 1000 people. Outside the cities, primary health care is virtually nonexistent, with the result that people depend on traditional remedies for illnesses. All employees are required to contribute to a social welfare fund, which operates a system of benefits in the event of illness, occupational accidents, and old age.

Literacy is much lower (only 14%) among the rural population than in the cities. The literacy level and elementary school enrollment rates are well below average for countries with similar living standards; child labor is widely used. There are both state-controlled and private schools. In 1988 the secondary school graduation examination, the baccalauréat, was replaced by a system of continuous assessment.

Urban crime is increasing, but muggings are rare. Apart from a 1990 strike that led to 40 deaths in Fès, there has been little civil unrest. Prisons are overcrowded, and conditions are poor.

Income per head is considerably lower than in the neighboring countries of Algeria and Tunisia. Almost one in five Moroccans live below the poverty line, and the rural–urban gap in wealth is considerable; just under half of the population live in rural areas. A period of drought in the 1990s accelerated urban drift.

Unrest has largely been avoided owing to the fact that Morocco has a thriving informal sector. This provides jobs in clothes manufacturing, food processing, goods transportation, and the hotel and building trades. In addition, there is work to be found in the illegal hashish trade and the smuggling of alcohol and Western goods.

Tourism is vital to the Moroccan economy. Good beaches abound; Agadir has 300 days of sunshine a year. Fès and Marrakech offer cultural interest, while the Atlas mountains attract walkers and skiers. Desert safaris are offered in the Sahara. Most Western tourists come from France, Germany, and Spain.

Independence from France in 1956 was only the first step in ending colonial rule for the oldest kingdom in the Arab world, even though the present Alaoui dynasty has been in power for three centuries.

• 1956 France recognizes Moroccan independence under Sultan Mohammed Ibn Yousif. Morocco joins UN. Spain renounces control over most of its territories.
• 1957 Sultan Mohammed king.
• 1961 Hassan succeeds his father.
• 1967 Morocco backs Arab cause in Six-Day War with Israel.
• 1969 Spain returns Ifni to Morocco.
• 1972 King Hassan survives assassination attempt.
• 1975 International Court of Justice grants right of self-determination to Western Saharan people. King Hassan orders Moroccan forces to seize Saharan capital.
• 1976 Morocco and Mauritania partition Western Sahara.
• 1979 Mauritania renounces claim to part of Western Sahara, which is added to Morocco's territory.
• 1984 King Hassan signs Oujda Treaty with Col. Gaddafi of Libya as first step toward a Maghreb union. Morocco leaves OAU after criticism of its role in Western Sahara.
• 1986 Morocco abrogates Oujda Treaty.
• 1987 Defensive wall around Western Sahara.
• 1989 Arab Maghreb Union (AMU) creates no-tariff zone between Morocco, Algeria, Tunisia, Libya, and Mauritania.
• 1990 Morocco condemns Iraq's invasion of Kuwait.
• 1991 Morocco accepts UN plan for referendum in Western Sahara.
• 1992 New constitution grants majority party in parliament right to choose the government.
• 1993 First general election for nine years. After major parties refuse his invitation, king appoints nonparty government.
• 1994 King Hassan replaces veteran prime minister Karim Lamrani with Abdellatif Filali.
• 1995 Islamist opposition leader Mohamed Basri returns to Morocco after 28 years of exile.
• 1998 Socialists enter government with Abderrahmane el Youssoufi as prime minister.
• 1999 Death of King Hassan. Mohammed VI enthroned. Liberalization program announced.
• 2000–2001 UN special representative proposes a ten-year trial period as part of Morocco.
• 2002 UN extends mandate in Western Sahara as political process stalls.