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Viewing cable 06CASABLANCA142, MOROCCAN PROFESSIONAL ASSOCIATIONS: OVERCOMING

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Reference ID Created Released Classification Origin
06CASABLANCA142 2006-02-02 17:26 2011-08-24 16:30 UNCLASSIFIED Consulate Casablanca
VZCZCXYZ0022
RR RUEHWEB

DE RUEHCL #0142/01 0331726
ZNR UUUUU ZZH
R 021726Z FEB 06
FM AMCONSUL CASABLANCA
TO RUEHC/SECSTATE WASHDC 6192
INFO RUEHRB/AMEMBASSY RABAT 7409
UNCLAS CASABLANCA 000142 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR NEA/PI AND NEA/MAG 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EIND ELAB ETRD MO
SUBJECT: MOROCCAN PROFESSIONAL ASSOCIATIONS: OVERCOMING 
A STIFLING INSTITUTIONAL CULTURE 
 
This cable is sensitive but unclassified, please 
protect accordingly. 
 
1.  (SBU) SUMMARY: Morocco's numerous professional 
associations have had limited effectiveness in lobbying 
for their collective interests and promoting social 
change and reform. Some observers cite conflict between 
so-called "old guard" associations holding back the 
reform efforts of newer groups.  However, business 
contacts suggest that many associations are hampered 
more by internal disputes and their own structural 
flaws.  Moreover, Moroccan law does not require a 
consultative process in the formation of public policy. 
Both the political and corporate spheres in Morocco 
tend to reflect cultural norms favoring top down 
organizational leadership.  As Moroccan associations 
struggle to grow and adapt to a changing social and 
economic climate, they face not only internal 
organizational challenges, but also institutional and 
cultural norms to overcome as well. END SUMMARY 
 
OLD GUARD ASSOCIATIONS 
---------------------- 
2.  (SBU) The Confederation Generale des Entreprises du 
Maroc (CGEM) is Morocco's oldest business association 
and traces its origin to French colonial times.  CGEM 
is designed as an umbrella organization and represents 
more that 120 professional associations and branch 
federations.  Membership includes 200 of Morocco's most 
successful companies representing a significant amount 
of the country's wealth.  CGEM is ubiquitous in the 
press and enjoys strong ties to GOM officials. 
Government officials maintain regular contact with CGEM 
to solicit views regarding initiatives and programs 
affecting its membership.  CGEM's President Hassan 
Chami is known for his close relationship with Prime 
Minister Jettou (both are former Cabinet Ministers 
whose careers alternate between the public and private 
sector). Critics complain that CGEM is too closely 
linked to the GOM to effectively represent private 
sector interests. 
 
3.  (SBU) Chami concedes the challenges in heading an 
association with such a large and diverse membership 
but insists CGEM's mission is to focus on "fundamental 
priorities shared by the majority of companies 
operating in Morocco and make the Moroccan economy 
attractive, especially to investors".  Chami is a 
controversial figure within CGEM himself, having won a 
closely contested re-election in 2003 despite harsh 
criticism from members of the Federation of Small and 
Medium Enterprises (PME-PMI), a CGEM member 
organization. Chami defeated the PME-PMI socialist 
challenger who was backed by some on the largest 
companies in Morocco, including Omnium Nord Africain 
(ONA), the royally controlled multi-national for which 
Jettou was a former Board Member. 
 
4.  (SBU) PME-PMI members feel CGEM gives a 
disproportionate voice to large companies at the 
expense small and medium sized enterprises (SME) and 
PME-PMI is advocating for change.  The dispute between 
SMEs and larger enterprises within CGEM has been 
covered extensively in the press with PME-PMI 
threatening to quit CGEM and incorporate independently. 
PME-PMI members argue that the GOM only contacts the 
top few elite members of CGEM and does not receive 
broad-based, representative advice or opinion. 
Interestingly, the institutional culture of CGEM seems 
to mirror the operations of many of its member 
companies: patriarchal, authoritarian and run by 
elites. Other associations complain that CGEM's access 
to the GOM confers a "sense of self-importance" that 
impairs its ability to work effectively with other 
organizations, even if they share similar goals. 
 
5.  (U)  The ongoing dispute between CGEM and PME-PMI 
is sometimes characterized among observers as a 
generational conflict between older members 
representing established companies accustomed to large, 
uncontested market shares (referred to, derisively, as 
"dinosaurs") and younger entrepreneurs, often boasting 
western educations and work experience abroad.  There 
may be truth to this, although both sides are quick to 
downplay generational divide.  The dispute does however 
encapsulate the challenge CGEM and other associations 
face in adapting to a changing social-economic 
environment marked by increased competition and rapid 
technological change. 
 
6.  (SBU) Another old guard member, The French Chamber 
of Commerce (CFCIM) has been operating in Morocco since 
1913 and has 2,500 registered members.  It is very 
influential and covers a full range of sectors.  CFCIM 
assistance includes direct intervention with the GOM, 
business surveys, access to seminars and activities, 
and facilitation of visas to France.  CFCIM Executive 
Director Dominique Bruin cites direct intervention with 
GOM customs and tax administration officials as 
examples of successful lobbying on behalf of CFCIM 
members.  CFCIM also distinguished itself by creating a 
management company to finance the building of an 
industrial park near Casablanca designed to attract 
"non-polluting, job creating industries". 
 
7.  (SBU) CFCIM is criticized by some younger French 
entrepreneurs as too focused on large companies and not 
attentive enough to the needs of SMEs, echoing 
criticism within CGEM.  A French-Algerian entrepreneur 
interested in starting a sports franchise in Casablanca 
told Econoff she felt rebuffed by CFCIM because her 
project was too small for them. 
 
8.  (SBU) Old guard member, the Moroccan Banking 
Association (GPBM) is probably the least effective and 
most disliked association according to its members. 
This is mostly attributed to GPBM's GOM-imposed 
structure which requires all the banks to pay dues to 
an association whose president is a political 
appointee, compelling some to claim "taxation without 
representation."  Banking sector contacts further 
complain that they do not have any influence in GPBM. 
As a result, most reform efforts in the financial 
sector have been the result of government initiative 
rather than lobbying efforts by the GPBM. 
 
MORE PROGRESSIVE ASSOCIATIONS 
----------------------------- 
9.  (U)  The Association des Femmes Chefs d'Entreprises 
du Maroc (AFEM) was created in September 2000 to allow 
female entrepreneurs and business leaders to actively 
participate in civil society and promote the cause of 
female entrepreneurship.  While members stress their 
commitment to promoting Morocco's economic and 
industrial growth, AFEM does not limit itself to gender- 
based business issues; it pursues a broad international 
relations and development agenda and actively engages 
social causes.   AFEM members number over 250 and in 
general are educated, well traveled and western in 
orientation.  Their modernity however opens them up to 
charges of elitism.  Econoff spoke to several 
Casablanca businesswomen who described AFEM as not 
representative of the typical Moroccan businesswomen, 
who tend to be small scale entrepreneurs with very 
little capital and few employees. 
 
10.  (SBU) AFEM members can publicly challenge GOM 
officials as during a presentation by Abderrahim 
Harouchi, Minister for Social Development and Family, 
on the King's Initiative for Human Development. 
Harouchi became visibly irritated during aggressive 
questioning.  AFEM members come from well-heeled, 
prominent families and many are married to powerful and 
successful husbands who often finance their business 
ventures.  Very few are self-made entrepreneurial 
success stories.  Saad Hamouimi, Vice President of PME- 
PMI, criticized AFEM's close ties to the leadership of 
CGEM, echoing his organization's criticism of CGEM.  In 
fact, an AFEM member is a leading candidate to become 
president of CGEM. 
 
11.  (SBU) While it is too early to judge AFEM's 
effectiveness as an association, it does exhibit an 
impressive level of organization and commitment to 
assist female entrepreneurs.  However, much like CGEM, 
AFEM is controlled by dominant and influential 
personalities that sometimes distract from the role of 
the association and undermine its credibility. 
 
12.  (U) The progressive Moroccan Textile Association 
(AMITH) is cited by industry observers as a true 
success story for effective lobbying of the GOM in 
engaging support for an important, but struggling 
industry.  AMITH recognized early the global challenges 
facing textile manufacturers and persistently fought 
for the future of the sector despite initial rebuffs 
from the GOM.  AMITH took the initiative to design a 
partnership agreement to engage the GOM and 
successfully attract interest and support to its cause. 
 
13.  (SBU) Business professionals and industry 
observers attribute AMITH success to several factors 
including a narrow sector focus, high quality 
leadership and the undeniable presence of a specific, 
growing threat from China which served, as one observer 
put it, "to concentrate the mind".  The quality of 
leadership is evidenced by former AMITH president 
Mezzour Salahddine who now serves as Minister of 
Commerce of Industry and was also president of a large 
company.   Under his leadership, AMITH showed vision in 
not reflexively lobbying for protectionist measures, 
but rather proposing a credible industry strategy and 
inviting the GOM to participate. 
 
14.  (SBU) The AMCHAM is another effective association 
and a valuable player in advocating for improving the 
business environment as evidenced by its efforts to 
promote the recently signed U.S.-Morocco Free Trade 
Agreement. AMCHAM also successfully lobbied the GOM to 
provide a grace period for members unable to comply 
immediately with the GOM's Arabic-language labeling 
requirements for food products.  AMCHAM also produces 
several products to assist the business community, 
including business surveys and an annual trade and 
investment guide.  The AMCHAM's Director Carl Dawson 
confesses to the same frustrations felt by other 
associations operating in Morocco, highlighting the 
lack of legal mandates for consultation and an 
institutional, authoritarian culture in Morocco that 
inhibits the effectiveness of professional groups. 
 
UP AND COMING ASSOCIATIONS 
-------------------------- 
15.  (U) Newer, fledgling associations are beginning to 
organize and develop as well, including - for example - 
the Moroccan-American Association (MAC).  MAC was 
established over 23 years ago as a predominantly social 
group to promote U.S.-Moroccan ties.  Although dormant 
for many years, MAC recently renewed itself with a 
vibrant membership drive.  Today MAC is a professional 
networking organization with a social conscience and 
recruits young Moroccan professionals who have either 
studied or worked in the United States.  While mostly 
comprised of prosperous, progressive minded, western- 
educated professionals, MAC manages to avoid charges of 
elitism through a fairly diverse and inclusive 
membership.  MAC only recently began discussing 
lobbying efforts in the public sphere and exhibiting 
aspirations to influence policy and promote reform. 
Some observers cite MAC as evidence of a generational 
divide, but many MAC members argue that they are not 
seeking competition with associations such as CGEM, but 
only to complement efforts. 
 
16.  (SBU) MAC, like many associations, is not without 
controversy.  It is currently tested by a split between 
those who would like more focus on lobbying the GOM for 
business-related reforms and associating with the FTA, 
and others who argue that the association needs to 
concentrate on broadening membership and building 
credibility.  Membership recruitment has been 
enormously successful in capitalizing on the growing 
trend of young, western- educated professionals 
returning to Morocco to make their fortune.  Another 
feature that distinguishes MAC from other associations 
is the democratic flavor of meetings where members are 
encouraged to openly comment on the organization.  To 
this extent, MAC outpaces other associations in 
adopting the very reforms it wishes to see in the 
public sector. 
 
17. (SBU) Another fledgling association is the Moroccan 
Association of Risk Capital Specialists (AMIC) which 
has only recently become reactivated, but already 
controls considerable levels of capital that could be 
very influential in the Moroccan economy.  In addition, 
in 2005, it signed a cooperative agreement with the 
U.S. National Venture Capital Association (NVCA) that 
is designed to facilitate the exchange of information 
and technical assistance for Moroccan firms. Exposure 
to counterparts in the U.S. has shown AMIC members the 
potential benefits of lobbying for institutional 
reforms and this lesson should serve it well in helping 
it and other young associations compete with larger 
established associations for influence. 
 
GUILTY BY ASSOCIATION 
---------------------- 
18.  COMMENT:  Although associations face differing 
problems, the common denominator is the challenge to 
 
overcome political and institutional cultures that are 
not adapted to the consultative process as a means to 
promote reform.  The challenge is made more difficult 
when, (as is the case with many Moroccan associations) 
the culture they wish to change is reflected in their 
own organizations.  As associations seek to influence 
and reform Moroccan society, they will continue to 
struggle with their own internal evolutionary processes 
as well.  Perhaps through successful change from 
within, they will become more effective advocating 
public sector reform. Hopefully younger, more 
democratic associations can help lead this change. END 
COMMENT 
 
GREENE