The World Bank
          Morocco Accelerating the Transformation of Higher Education Project(P178910)




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                      Program Information Document (PID)


                         Concept Stage | Date Prepared/Updated: 20-Sep-2023 | Report No: PID025




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          The World Bank
          Morocco Accelerating the Transformation of Higher Education Project(P178910)


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   BASIC INFORMATION


   A. Basic Program Data

   Project Beneficiary(ies)       Region                      Operation ID                  Operation Name
                                                                                            Morocco Accelerating the
                                  MIDDLE EAST AND NORTH
   Morocco                                                    P178910                       Transformation of Higher
                                  AFRICA
                                                                                            Education Program
   Financing Instrument           Estimated Appraisal Date    Estimated Approval Date       Practice Area (Lead)
   Program-for-Results
                                  10-Oct-2023                 14-Dec-2023                   Education
   Financing (PforR)
   Borrower(s)                    Implementing Agency
                                  Ministry of Higher
                                  Education, Scientific
   Kingdom of Morocco
                                  Research and Innovation
                                  (MESRI)

  Proposed Program Development Objective(s)
   To improve labor market relevance of priority programs at public universities and strengthen the governance of higher
   education and research.

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   COST & FINANCING (US$, Millions)


   Maximizing Finance for Development

   Is this an MFD-Enabling Project (MFD-EP)?                   No
   Is this project Private Capital Enabling (PCE)?             No

   SUMMARY
     Government program Cost                                                                                       975.00

     Total Operation Cost                                                                                          200.00
        Total Program Cost                                                                                      195.50
        IPF Component                                                                                               4.00
        Other Costs                                                                                                 0.50
     Total Financing                                                                                               200.00



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            The World Bank
            Morocco Accelerating the Transformation of Higher Education Project(P178910)



       Financing Gap                                                                                                     0.00

     FINANCING
       Total World Bank Group Financing                                                                               200.00
          World Bank Lending                                                                                          200.00

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 Concept Review Decision
 The review did authorize the preparation to continue




     B. Introduction and Context

     Country Context

 Morocco has been making impressive progress in economic growth and poverty reduction over the past 20 years, thanks
 to substantial investments in infrastructure and increasing access to education, health and other basic social services, but
 potential growth has been slowing since the early 2010s.1 By 2015, the per capita GDP growth rate had led to doubling of
 Morocco’s per capita GDP compared to 2005 as well as significant poverty reduction over the same period from 15.3
 percent in 2001 to 8.9 percent in 2007 and to 4.8 percent in 2014.2 Whereas Morocco’s GDP growth recovered to 7.4
 percent in 2021 after a decline of 6.3 percent in 2020, real GDP remains 6.4 percent below the pre-Covid trend.3

 The downside of this growth model is its reliance on high levels of public investment with a relatively low multiplier effect,
 which in human development (HD) implied a focus on massively expanding access but not the quality of services; and its
 inadequate provision of opportunities for youth and the female labor force. Based on the Human Capital Index (HCI), a
 child born in Morocco today will only be 50 percent as productive when she grows up as she could be if she enjoyed
 complete education and full health, lower than the average for the Middle East and North Africa (MENA) region but higher
 than the average for lower middle-income countries. Between 2010 and 2020, the HCI value for Morocco increased from
 0.47 to 0.50, but learning poverty is high. Though the country is benefitting from a demographic dividend, the quality of
 the labor force is low. Moreover, only about 50 percent of youth aged 25-35 are employed, often in informal and/or
 precarious jobs. To offer more quality jobs to its youth and increase female labor force participation, Morocco will need
 to accelerate economic growth and labor demand as well as build the human and social capital required to grow and
 compete in the 21st century.




 1
     WB, 2022, Morocco Economic Update April 2022.
 2
   WB, Country Economic Memorandum Morocco 2040: Emerging by Investing in Intangible Capital,
 https://openknowledge.worldbank.org/bitstream/handle/10986/28442/9781464810664.pdf?sequence=2&isAllowed=y
 Poverty measurement is based on the national poverty line.
 3 WB, 2022, Morocco Economic Update April 2022.




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            The World Bank
            Morocco Accelerating the Transformation of Higher Education Project(P178910)


 In addition, even before the pandemic crisis, economies globally have been undergoing substantial transformations, with
 technology, research and innovation and high skilled human capital becoming even more critical elements in driving
 economic competitiveness. These transformations have been leading to fundamental changes in the nature of work and
 the demand for skills, notably in the areas of digital technology and renewable energy.

 To address these challenges and accelerate the structural transformation of its economy, Morocco adopted a New
 Development Model (NDM) in 2021, which prioritizes improvements in human capital and scientific research as catalysts
 for diversifying its economic output and accelerating its economic growth. Notably, the government has embarked on a
 broad reform to universalize access to health insurance, create a unified cash transfer program for the poor and
 vulnerable, and improve the quality of education, including a focus on higher education and university research in
 collaboration with industry.

     Sectoral (or multi-sectoral) and Institutional Context of the Program

 While Morocco has made substantial progress in expanding access to education at all levels in the context of a rapidly
 growing young population, quality has not improved. In 2020-2021, 4 million pupils attended primary schools. At the
 secondary level, an increasing share of children are enrolling in and completing secondary education (11 percent annual
 increase on average 2008-2016). However, quality of learning is low: In 2016, still about 66 percent of 10-year-olds could
 not read and understand a simple text upon completion of primary education.4 This is higher than both the average for
 the region (48 percent) and the average for Morocco’s income group (59 percent). According to PISA 2018 data, 49 percent
 of 15-year old students had repeated at least one grade; far above the OECD average of 11 percent and other MENA
 countries with similar learning outcomes.

 In higher education, Morocco has accomplished several critical successes over the past decade, but for higher education
 to play its role in the country’s economic transformation, several deep-rooted challenges need to be addressed. Major
 achievements include (i) the tripling in student enrolment over an eight-year period; (ii) high female enrolment; and as a
 result of these two, (iii) increased education levels of the labor force; and (iv) emerging centers of academic and research
 excellence. However, several systematic challenges exist: (i) the rapid enrolment surge without sufficient per student
 financing to accompany the expansion, resulting in (ii) quality and relevance deterioration of academic and research
 programs, and low efficiency (high repetition, dropout); (iii) low employability of graduates, partly due to the lack of
 flexibility for HEIs to quickly adapt their programs in collaboration with industry, thus not contributing to a high skilled
 labor force and creating dissatisfaction among unemployed graduates; (iv) inequities and unsustainability of public higher
 education financing; and (v) insufficient autonomy and accountability for results of public universities, hindering greater
 efficiencies and performance improvements.

     Relationship to CAS/CPF

 The proposed higher education and research project will directly contribute to supporting several focus areas of the
 Country Partnership Framework (CPF) for Morocco 2019-2024. It will directly support focus area 2, strengthening human
 capital, notably strengthening the quality and effectiveness of the education system (higher education), by improving the
 quality of PhD graduates, and in the medium term, the overall quality of teaching and learning in higher education. Over

 4
     WB, 2020, Human Capital Index 2020 Morocco Brief, https://databank.worldbank.org/data/download/hci/HCI_2pager_MAR.pdf?cid=GGH_e_hcpexternal_en_ext


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          The World Bank
          Morocco Accelerating the Transformation of Higher Education Project(P178910)


 the long term, the proposed project will also contribute to focus areas 1, promoting job creation by the private sector
 through increasing private sector competitiveness and growth through increased research capacity and closer research
 collaboration with industry; and to focus area 3, supporting the climate transition, by helping climate change adaptation
 through expanded, more sustained and improved quality research. In addition, the Operation will support governance,
 through supporting the better targeting of and more efficient process for student scholarships, and the cross-cutting
 themes of harnessing the digital economy for jobs and faster growth through development of all students’ digital skills
 and the introduction/expansion of degree programs in key digital economy areas, and of gender – empowering women
 and girls for shared prosperity, by creating incentives and promoting a conducive environment and equitable conditions
 for female students and researchers.

 The proposed operation will support the implementation of Morocco’s NDM. The NDM emphasizes human capital
 development as one of its four strategic pillars. Within the human capital pillar, the NDM highlights the role of a results
 oriented HE and research system with autonomous governance and accountability. The proposed operation will support
 the implementation of the NMD on higher education, research, and governance by interventions centered on capacity
 building for results-based governance and university autonomy and by enhancing academic and research quality in
 national priority areas. This includes a contribution of the program to the preservation of natural resources and the
 enhancement of the resilience of territories to climate change and safeguarding of water resources through better use of
 the resource and more rigorous management of its scarcity under strategic pillar 4 of the NMD, territories and
 sustainability.

    Rationale for Bank Engagement and Choice of Financing Instrument

 The Bank has a significant amount of experience from projects aiming to strengthening and modernizing higher education
 systems, both from within and outside of the MENA region. The Bank could leverage its global technical knowledge to
 support a system-approach to higher education and research reform, including: (i) provide the know-how on results-
 monitoring and transparent results-oriented financing in higher education; (ii) build university capacity for external
 financing mobilization; (iii) support the analysis on female labor force participation and employment and linkages with
 economy-wide policies; (iv) advise on cross-sectoral linkages including health, climate change and energy transition,
 digital, governance, and social protection; and (v) ensure continuity in student learning from early childhood through basic
 to higher education. In addition, the Bank has an active education portfolio of lending and analytics in Morocco, and this
 Program will draw on the successes and lessons learned of past engagement.

 The Program for Results (PforR) instrument is well suited to supporting the implementation of an integrated government
 Program, promoting a results-focus, fostering consensus and alignment among multiple stakeholders and strengthening
 capacity for reform implementation and sustainability of results through the use of country systems. In the context of
 higher education and scientific research, a well-designed, comprehensive, innovative government program is in place,
 supported by the highest level of government, building on previous reform efforts, and including specific results to be
 attained, and with detailed implementation arrangements. The proposed program would help the government prioritize
 and sequence the planned reforms and accompany their implementation and monitoring and evaluation.

  C. Program Development Objective(s) (PDO) and PDO Level Results Indicators

    Program Development Objective(s)


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          The World Bank
          Morocco Accelerating the Transformation of Higher Education Project(P178910)


  To improve labor market relevance of public university programs and strengthen specific governance capabilities of
  the higher education and research systems

  PDO Level Results Indicators

 The PDO achievement will be measured by the following proposed preliminary PDO indicators which will be refined during
 preparation:

      -    National system for tracking graduate employability established
      -    Increased enrollment of students in priority degree programs
      -    Active thematic research institutes-networks
      -     Number of universities achieving a pre-defined set of performance indicators of their annual development
           indicator targets

  D. Program Description

  PforR Program Boundary

 To address the above challenges in higher education and research and implement the NDM, the Ministry of Higher
 Education, Scientific Research and Innovation (MESRI) launched a transformative and ambitious sector plan in 2023, the
 National Plan for the Acceleration of the Transformation of the Ecosystem of Higher Education, Research and Innovation
 (Plan National d’Accélération de la Transformation de l’Ecosystème de l’Enseignement Supérieur, de la Recherche et de
 l’Innovation, PACTE-ESRI). The PACTE-ESRI’s objective is to prepare and empower generations of professionals, academics,
 and researchers to tackle future challenges and offer smart solutions that contribute to socio-economic development and
 human capital accumulation. The PACTE-ESRI focuses on four pillars to be implemented from 2022-2030: (1) academic
 excellence (quality and relevance); (2) research excellence; (3) territories of innovation; and (4) governance and
 operational excellence, which is a cross-cutting pillar. In addition to the cross-cutting, central governance pillar, each pillar
 also includes governance elements.

 The proposed operation will support selected interventions under Pillars 1, 2 and 3 of the government program and
 incentivize results to increase efficiency in the implementation of these interventions.

  E. Initial Environmental and Social Screening

 The project will be the first to be implemented by the Ministry of Higher Education and Scientific Research (MOHESR). The
 current management capacity is relatively low, but the identified environmental and social risks are not likely to be
 significant. During the project preparation an in-depth institutional capacity assessment will be carried out and the
 relevant mitigation measures proposed.




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          Morocco Accelerating the Transformation of Higher Education Project(P178910)


   Legal Operational Policies                                                           Triggered?
   Projects on International Waterways OP 7.50                                          No
   Projects in Disputed Area OP 7.60                                                    No


   Summary of Screening of Environmental and Social Risks and Impacts of the IPF Component



 The environmental risks associated with the project is classified as Moderate, given the combination of environmental
 impacts of the project activities in the higher education sector, and the limited existing capacity for environmental and
 social risk management within the existing PMU and the concerned implementing agencies. The project will generate
 positive impact as it will develop and implement curricula including on Green/blue economy (e.g. programs related to
 renewable energy, climate change, electric vehicle manufacturing). Since there will be no construction activities, the
 environmental risks will be more related to research activities within the existing footprint of selected universities in
 Morocco, and more specifically to the management of waste generated by the labs following the installation of the
 necessary equipment and furniture. The digitalization will also enhance the use of electronic equipment that may
 increase at the end of the life cycle, e-wastes. The mishandling of hazardous/chemicals materials during the activities in
 the new or existing may laboratories may represent a risk that will need to be adequately handled. Indeed, the choice of
 equipment will be determined in close consultation with local companies. The partners and experts will also be able to
 advise on the choice of equipment. Thus, at this stage, the environmental risks are considered Moderate given these
 planned activities in the framework of the project. These activities could generate negative environmental impacts and
 nuisances such as noise (Datacenter room), poor management of electrical waste (batteries if any) and bio and chemical
 waste generated from lab facilities. All the risks and impacts are predictable and could be mitigated following the WBG
 EHS guidelines and good international industry practices (GIIP). The mitigation measures will be included in the ESMF.
 The social risks associated with the project are Moderate. Given that the project will not include physical works of any
 kind, the main social risks are centered on (i) the risk of elite capture more generally (benefiting higher income groups)
 and also specifically the exclusion of marginalized individuals and groups in project activities (namely as educators,
 university administrators, university students and PhD candidates); and (ii) the risk of all project workers violating the
 project code of conduct, namely by committing sexual exploitation and abuse and/or sexual harassment amongst
 themselves and/or towards project beneficiaries, as detailed below. Additionally, there could be potential long-term
 effects on migration with young post-graduates leaving the country for better opportunities abroad (i.e. brain drain).
 First, the risk of elite capture and potential exclusion of vulnerable and marginalized groups entails the risk of
 disadvantaged individuals to be excluded from benefiting from project activities, based on their identity (gender, race,
 age, disability, minority or migrant status etc.) and the intersectionalities amongst these identities. Although the project
 will place a special emphasis on recruiting female professors and admitting women university students and PhD
 candidates, the risk of exclusion of women in general, and especially minority/migrant women (especially women of
 Sub-Saharan African origin) and/or women with disabilities, is still highly likely to take place during the student
 application/selection process and recruitment of administrative and teaching staff. This could take place either by
 discrimination of candidates or lack of diversity amongst candidate pools applying for teaching positions or admission
 into university and/or PhD programs. Any assumption of “equal opportunity�?, or “blindness�? to issues of gender, race,
 ethnicity or ability in staff or student recruitment/selection, in the name of equality, has in fact proven to have the


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          The World Bank
          Morocco Accelerating the Transformation of Higher Education Project(P178910)


 opposite effect. Therefore, to ensure fairness, strategies and measures must be taken to consider potential student’s
 historical and social disadvantages that prevent them from otherwise operating on a level playing field. To avoid or
 minimize this risk, specific measures need to be proactively taken to ensure equitable and inclusive access to activities
 under Component 1, 2 and 3. In other words proactive outreach focused on reaching potential staff and/or students
 from historically excluded groups would be in order. Specifically, to manage the risk, four steps will be advised as part of
 the ESMF and SEP: (1) identification of who the excluded individuals and groups are; (2) analysis of why and how they
 are excluded from higher education; (3) designing measures that break down possible barriers and maximizes
 opportunities for those previously excluded from benefits; and (4) measuring impact for excluded groups as part of the
 project’s results framework. Second, there is a risk of sexual harassment amongst coworkers (teaching, administrative,
 maintenance staff) at the workplace (university) and/or sexual exploitation and abuse towards university students and
 PhD candidates, perpetrated by project workers (administrative or teaching staff). Globally, research shows that PhD
 students are especially vulnerable to sexual exploitation and abuse, given their one-on-one academic relationships with
 mentors and professors, who are often men, and the unequal power differential between them, given that professors
 control grading decisions that directly impact the student’s academic record and professional opportunities.


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   CONTACT POINT

   World Bank
     Cornelia Jesse
     Senior Education Specialist

     Lea Jeanne Marie Iungmann
     Education Specialist

   Borrower/Client/Recipient
    Kingdom of Morocco

   Implementing Agencies
    Ministry of Higher Education, Scientific Research and Innovation (MESRI)
    Slimane Mehdad, Director of Budget, slimanemehdad@gmail.com

   FOR MORE INFORMATION CONTACT

   The World Bank
   1818 H Street, NW
   Washington, D.C. 20433
   Telephone: (202) 473-1000
   Web: http://www.worldbank.org/projects




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          Morocco Accelerating the Transformation of Higher Education Project(P178910)




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