*EPF107 03/27/00
Text: U.S. Ambassador to Morocco Gabriel's Remarks on Globalization
(Globalization offers challenges, opportunities and threats) (3670)

U.S. Ambassador to Morocco Edward Gabriel defines globalization as "the process that is shrinking and transforming our world -- speeding up the flow of information and resources, and bringing people, countries and organizations closer together, whether they like it or not. Globalization is a real and unavoidable process, with very real challenges, opportunities and -- yes -- threats."

"Morocco can bring its own unique and enduring values and strengths to make globalization a process that boosts the nation into a new era of growth and prosperity. But Morocco can only do that by understanding and facing these challenges head on," Gabriel said March 21 in a speech at the Higher Institute of Management Studies in Casablanca.

Gabriel pointed out that in the 1980's the United States went through a difficult re-structuring of its economy. Today, he said, the U.S. economy is at one of its strongest points ever -- the lowest unemployment rate in 30 years, the lowest poverty rates in 20 years and the lowest inflation rate in 30 years.

"The principles and values that helped the U.S. succeed in the era of globalization are not unique to American culture and society," he said. "There are basic principles that nations like Morocco can, and must, embrace in order to prosper in the new millennium. These principles are:

-- Opening up the economy to trade.
-- Investing in human capital;
-- Attracting capital.

Gabriel noted that the Eizenstat Initiative [launched in 1998 by Stuart Eizenstat, formerly undersecretary of State for economic, business and agricultural affairs], which aims to bolster intra-regional trade between Morocco, Algeria, Tunisia and the United States, can do much to invigorate the benefits of trade for Morocco's economy. "Only eight percent of trade in the Middle East and North Africa is intra-regional, compared to 20% in the Americas or 60% in Europe," he said. In December 1999, the U.S. government delivered its first budget for the implementation of programs to support this initiative, he said.

At the World Economic Forum in Davos, Switzerland, earlier this year, U.S. Secretary of the Treasury Lawrence Summers outlined five necessary areas of U.S. involvement needed to make the benefits of globalization accessible for developing countries like Morocco, Gabriel said:

-- The U.S. must continue efforts to support a more open, rules-based global trade system.

-- We must support the strong flow of private capital.

-- We must be there to assist with economic reform initiatives and to help emerging market economies.

-- We must provide development assistance to the world's developing nations, especially in the area of debt relief.

-- We must lead cooperation in the face of transnational problems.

"The main challenge that globalization presents us, as individuals and as societies, is to find a balance between preserving our sense of identity, culture and community while thriving in the global economy," Gabriel concluded. "This challenge must be faced by governments, communities, families and individuals. ..."

Following is the text of Ambassador Gabriel's speech:

(begin text)

"Morocco and the United States: How We Can Face Globalization Together"

Delivered by Ambassador Edward Gabriel
March 21, 2000
at the Higher Institute of Management Studies
in Casablanca

Introduction: F'tour at McDonald's

One of the major symbols of our age is the McDonald's Restaurant. There are more than 25,000 of these fast-food franchises in over 100 countries. To most people, McDonald's is no more than a nice place to drop by and get the kids a quick meal. To some, they are the symbol of a monolithic and threatening American domination of the planet.

The McDonald's restaurant in downtown Rabat is situated in the building of the former Soviet Union Cultural Center. Many people see it as some sign of American triumph. For many, it is a symbol of globalization.

I think of globalization too when I see McDonald's, but for different reasons. During the month of Ramadan, McDonald's in Morocco serves a special f'tour menu -- harira, milk, dates and a Big Mac. For me, this is an even more important symbol of globalization -- the way that local practices and customs have a way of changing and transforming even the biggest and most international of organizations. A traditional Ramadan f'tour with a Big Mac at the former USSR Cultural Center in downtown Rabat -- that is globalization.

What are we talking about when we discuss globalization? What is this phenomenon?

Since the end of the Cold War, we have seen three forces that have created a more connected and integrated world:

-- The spread of free market forces: There has been a dramatic shift in favor of systems in which economic opportunities are decentralized and fueled by the private sector.

-- The impact of new communications and information technology: The Internet, satellite and portable telephones, increasingly powerful computers and other new technologies have made communicating and exchanging information easier and cheaper than in any time in human history.

-- The rise of emerging markets: Globalization is also fueled by the emergence of new markets, in which consumers from all cultures and societies have the chance to access and reap the benefits of the global economy.

Read 10 newspaper articles about globalization, and you will read ten -- and perhaps more -- different definitions of globalization. Here is how I define globalization:

Globalization is the process that is shrinking and transforming our world -- speeding up the flow of information and resources, and bringing people, countries and organizations closer together, whether they like it or not. Globalization is a real and unavoidable process, with very real challenges, opportunities and -- yes -- threats.

Morocco can bring its own unique and enduring values and strengths to make globalization a process that boosts the nation into a new era of growth and prosperity. But Morocco can only do that by understanding and facing these challenges head on.

In January, His Majesty sent a message to the 8th annual meeting of the National Council on Youth and the Future, saying:

"...We must be aware at the same time that globalization, despite its constraints, reveals positive aspects from which we can profit to make it a source of progress for our economy and our society, taking into consideration the need to preserve the essence of our historical social and cultural identity."

And here is what President Bill Clinton said at a speech to the World Economic Forum in Davos, Switzerland.

"Growth is at the center of [globalization]...It gives people hope every day, but the economics must be blended with other legitimate human concerns. We can do it -- not by going back to the past, but by going together into the future."

What Can Globalization Do for Morocco?

In the 1980s, the U.S. went through a difficult re-structuring of our economy. Whole industries closed in certain regions, unemployment went up, and Americans were angry over the loss of American jobs to countries where the work could be done more cheaply. These were the growing pains as the U.S. economy moved into a new digital, knowledge-based economy. Former U.S. Secretary of Labor Robert Reich described the process as economic worth changing from what one owns or does, to what one knows. This is the fundamental principle of a knowledge-based economy -- it places the highest value on the specialized skills and knowledge a worker brings to the market. The transformation to a knowledge-based economy was a wrenching change for the U.S., and President Bush lost his re-election bid in 1992 largely because of unhappiness over this difficult transformation.

Today, our economy is at one of its strongest points ever -- the lowest unemployment rate in 30 years, the lowest poverty rates in 20 years and the lowest inflation rate in 30 years. Since 1992, 20 million new jobs have been created in the U.S., and income inequality is decreasing. This is important not because the U.S. wants to be an economic "hyper-power." Americans -- like Moroccans -- want to work, want to earn enough to give their children a better future and to make their lives more meaningful.

The principles and values that helped the U.S. succeed in the era of globalization are not unique to American culture and society. The keys to success in the global economy are not controlled by American institutions nor hidden away in the vaults of the National Security Council. There are basic principles that nations like Morocco can, and must, embrace in order to prosper in the new millennium. These principles are:

-- Opening up the economy to trade: Rules-based trade is the best engine to lift living standards, lower unemployment, and build shared prosperity. From the 1970s to the 1990s, countries that built their growth on openness to trade grew at least twice as fast as those who chose not to open up to the world. We believe that the Eizenstat Initiative, which aims to bolster intra-regional trade between Morocco, Algeria, Tunisia and the United States can do much to invigorate the benefits of trade for Morocco's economy. Only eight percent of trade in the Middle East and North Africa is intra-regional, compared to 20% in the Americas or 60% in Europe. Trade between neighbors is vitally important to a nation's economy, and this is what the Eizenstat Initiative seeks to support.

-- Investing in human capital: The global economy is a knowledge-based economy. Investing in learning, encouraging excellence at all levels of education, and reducing illiteracy, especially among Morocco's female population, are crucial to its success in the global economy.

-- Attracting capital: Morocco needs investment to power its participation in the global economy. Never before in history has capital been so easy to move - billions of dollars move from country to country everyday in the time it takes to click a computer mouse. To attract that investment, Morocco needs to reform and streamline its bureaucratic procedures so that investment is easy and transparent. The global economy moves today at lightning speeds - investors do not have time to wait for endless bureaucratic approvals and they will not tolerate corruption and lack of transparency.

Anyone who has listened to the speeches of His Majesty Mohamed VI knows that Morocco is on the right track. There is nothing in what I have just described that I have not heard the leader of this nation call for in his speeches and guidance to his people. I think the world is noticing Morocco's dedication to achieving these goals.

What Can the U.S. Do?

In his speech before the World Economic Forum in Davos, President Clinton made a forceful argument that developed countries, especially the United States, have the responsibility to help developing countries like Morocco succeed in the global economy. We have to do more than lecture countries on their faults, or prescribe the course of action they should take.

At that same Forum, Lawrence Summers, our Secretary of the Treasury, outlined five necessary areas of U.S. involvement needed to make the benefits of globalization accessible for developing countries like Morocco:

1 - The U.S. must continue efforts to support a more open, rules-based global trade system.

2 - We must support the strong flow of private capital.

3 - We must be there to assist with economic reform initiatives and to help emerging market economies.

4 - We must provide development assistance to the world's developing nations, especially in the area of debt relief.

5 - We must lead cooperation in the face of transnational problems.

I have already mentioned how the Eizenstat Initiative seeks to build a stronger regional market in North Africa. In December 1999, the U.S. government delivered its first budget for the implementation of programs to support this initiative. We are also working, through the U.S. Agency for International Development, to identify ways of streamlining and improving the foreign investment process in Morocco.

On debt relief, I am proud of U.S. support in September 1999 that was instrumental in the decision of the Paris Club to raise the ceiling on Morocco's debt equity swaps from 20% to 30 % of eligible debt. And our USAID program has consistently worked on ways to improve access to health care for Moroccan women and children, to promote better access to education for Moroccan girls, and to help conserve water and protect Morocco's environment. The U.S. budget for assistance in social and economic development to the Kingdom of Morocco has more than doubled in the past year.

Speaking more broadly, those who are benefiting from globalization must acknowledge that globalization can contribute to a growth in inequality. There is a saying that a rising tide raises all boats. However, in both the U.S. and the world, we have seen some boats rise whiles other struggle, even sink. In the United States, there are still poor communities who have not experienced the benefits of globalization. Just as the industrialized nations must reach out to assist countries like Morocco in bridging the gap of inequalities, there must be a resolve within countries - whether Morocco or the U.S. - to bridge the gap between the winners and losers in the global economy.

Assisting countries like Morocco in facing the challenges and reaping the benefits of globalization is in the enlightened self-interest of the United States and all industrialized nations. The more integrated the global economy, the more opportunity there is for everyone. The more integrated a country is in the global economy, the more prosperous and stable it is. These are goals which all nations share.

The U.S must take its global responsibilities seriously and be an advocate for policies that better insure that all boats rise in this tide of globalization. We must do this not because we want to be the masters of the world, or shape globalization entirely to our own ends. Interdependency is the trend of the future, and we must work to ensure that the links are strong and extensive in order to ensure a healthy global economy. Due to the speed and volume at which world capital can move, we have seen how economic crisis in one region can spread to others. The nations and people of the world are becoming more linked and interdependent every day. In order for the U.S. - or any country - to succeed in a global economy, we must work to ensure that all links are as strong as they can be.

U.S. Hegemony?

I have spoken about globalization, how it may benefit Morocco, what both our countries must do to prosper in a global economy. I would like to address an issue which one hears often when discussing globalization: the issue of American hegemony.

What is globalization? It is the tidal wave of American products and services available in the market? Is it the English language? Is it the spread of American television shows and movies, and the gradual infiltration of American culture, to the detriment of local cultures?

Because the United States was uniquely positioned following the Cold War, and because -- in my opinion -- we followed the right policies in regard to free trade, investment, education , and the promotion of entrepreneurship, we have reaped the benefits of the global economy. Our dominance of the global economy can be seen in the spread of our products, our films, our ideas, and our investments. But I reject the idea that globalization is the equivalent of Americanization.

Globalization is not a policy dreamed up at the White House or State Department. It is not "directed" by anyone -- not Bill Clinton and not Bill Gates. It is not an ideology like communism or democracy. It is not a passing fad. It is not a plot or conspiracy aimed at enriching anyone or impoverishing anyone. I often hear of how globalization is some sort of American-led effort, as if the entire might of the U.S. is aimed at imposing globalization on the rest of the planet.

We Americans are dealing with the same issues, pressures and questions of globalization as Moroccans. Just look at the protests during the meeting in Seattle of the World Trade Organization -- most of those protesting were American citizens. Americans have as many questions and suspicions of globalization as anyone else. Every day, Americans like President Clinton and Bill Gates wake up asking the same questions and facing the same worries about the global economy as any of you. What will change? Will these changes bring opportunities or threats? What can I do to take advantage of the opportunities and avoid the dangers?

I have also often heard the worry that globalization will somehow erase the cultural and societal values of Morocco. I reject that idea also. As an outside observer who has had the privilege of getting to know Morocco and its people, I have been awed by Morocco's long history, its cultural heritage, the strength of its people's religious beliefs, their reverence for tolerance, family and community. These are not weak values. This is not a feeble heritage.

I admire Moroccans for their attachment to their family, for their pride in their heritage, for their respect for new ideas and openness to the world. These are enduring values, and not likely to be swept away by any force, be it globalization or something else. Just as we should not underestimate the speed and power of globalization, we should not underestimate the strength of the enduring values at the core of ourselves and our societies. Will globalization change Morocco and Moroccans? Undoubtedly so, just as it has changed my own society. But the only constant of life is change, and the alternative to embracing the changes of globalization is far more frightening.

What are the costs that globalization imposes? New ideas, fast-moving change, unfamiliar concepts, an economy driven by the private sector rather than one planned by the government. There are economic disruptions and social changes as an economy and society adjust to become more competitive in the global market. These are issues all nations face in the era of globalization.

What if a country opts out of globalization and refuses to pursue reforms that can make it more integrated into the world economy? What if a nation decides to wait until a more slow-moving or more congenial style of globalization comes along?

I am convinced that the greater price will be paid by those who reject globalization or those who choose -- out of fear or lack of confidence -- to hesitate to fully engage in the global economy. What are the costs of opting out of the global system, of rejecting integration into a global economy? I think the costs are stagnation, isolation and ignorance. These are the true threats to any culture and civilization.

Everyone wants the benefits of globalization: economic prosperity, jobs, access to information, opportunity for growth. But in Morocco, as in may countries, there is great suspicion of the costs of globalization: loss of cultural identity, domination by the U.S. or multi-national forces, too much economic insecurity. I believe that Morocco is wise to be cautious when approaching globalization. But excess caution may cause Morocco to lose its chance to fully succeed in the global economy.

Morocco can adapt to globalization, and can add to the richness of an integrated global economy and society. Globalization will have an impact on Morocco, but Morocco can make its own impact on globalization. This is already happening. As I mentioned at the beginning of this speech, McDonald's in Rabat serves f'tour during Ramadan!

Conclusion

Titanic changes in the world economy, the rush of new technologies, the acceleration of communications and information, ultimately lead to issues affecting our core notions of identity, morals and values. Globalization is not just an economic force. It is not a process confined only to bank accounts, stock markets and multinational corporations. Globalization is also creating new "globalisms"

-- A global civil society, in which NGOs have the ability to exchange information and create linkages with like-minded groups in other countries;
-- Global learning and education, in which through distance learning and sharing of information, students and teachers have access to almost infinite sources of research and learning;
-- Global sharing and access to information, in which censorship and government control of the media become more and more impossible.

I am not a cheerleader for globalization, but I am an optimist. Globalization is a phenomenon that encompasses much more than just what we eat at McDonald's. Globalization is creating widespread change in ways that are often unpredictable, even frightening. But it is that energy and potential for change that makes globalization such an enormous opportunity, not just for entrepreneurs in Silicon Valley or bankers in New York, but for people in Morocco.

And when it comes to Morocco and the Moroccan people, I am an even greater optimist. In my job as Ambassador, I often host U.S. officials visiting Morocco for the first time in years. They always marvel at how much has changed, how different the country seems to them. And yet they also marvel at how the medina of Fes, the Djemma El Fna of Marrakech, the Tour Hassan in Rabat, and countless other places in Morocco maintain the same strong sense of place and identity that is uniquely Moroccan. For me this is evidence that Morocco has the capacity to thrive in the global economy, while preserving its unique identity.

Globalization is a human endeavor, a challenge to the way people view the world and their place in it. The main challenge that globalization presents us, as individuals and as societies, is to find a balance between preserving our sense of identity, culture and community while thriving in the global economy. This challenge must be faced by governments, communities, families and individuals. Globalization's most important changes are happening inside you and me.

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(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: usinfo.state.gov)
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