Morocco is making great strides in many important areas, but still faces many complex challenges. Persistent unemployment and inadequate access to housing, land, credit, and other productive resources remain stumbling blocks to advancement and contribute to social instability. Poverty and illiteracy remain common, especially among women and female-headed households. Large family sizes strain meager incomes and government services. Natural resource degradation and industrial, urban, and agricultural pollution pose threats to the productive base of the economy, to ecosystems, and to human health and productivity. Predicted severe water scarcity also clouds the horizon. These challenges are reflected in many of Morocco's social indicators such as adult literacy, enrollment and unemployment rates, and maternal mortality which generally lag behind those of similar nations identified by the World Bank as lower-middle-income (LMI) countries. USAID has been working in partnership with the Moroccan government to address these issues. While there is much work to be done, the U.S. - Moroccan partnership has yielded positive results and provided many lessons and best practices for success.