US embassy cable - 05RABAT1250

C O N F I D E N T I A L SECTION 01 OF 04 RABAT 001250 
 
SIPDIS 
 
STATE FOR NEA/MAG AND NEA/PI 
TUNIS FOR MEPI RO 
 
E.O. 12958: DECL: 06/14/2015 
TAGS: ECON, EFIN, EAID, PGOV, KMPI, MO 
SUBJECT: GEEKS AND GEEZERS: MOROCCO'S GENERATIONAL DIVIDE 
 
Classified By: ECONOMIC COUNSELOR MICHAEL KOPLOVSKY FOR REASONS 1.4 B & 
 D. 
 
1. (C) SUMMARY: A new generation of Moroccan leaders is 
emerging, characterized by their formative Anglo-Saxon 
experiences, entrepreneurial and pro-American outlook, high 
levels of education and technical skills, and strong, 
well-informed political opinions.  They are eager, even 
impatient, to both succeed and make a contribution to 
Moroccan society.  Their dreams and ambitions are now running 
head-first into the entrenched interests of Morocco's older, 
more established generation, the self-defined business and 
government elites.  Post believes U.S. assistance programs 
should be focused to provide younger, reform-oriented 
Moroccans with venues and outlets for their energies.  Beyond 
macro-level support for overall economic reform efforts and 
job creation, Post believes the USG should reach out to the 
younger generation through the creation of alternative fora 
and associations, enhancing access to alternative media, and 
expanding exchange programs.  END SUMMARY. 
 
2. (U) This cable is based loosely on the book "Geeks and 
Geezers," by Warren G. Bennis and Robert J. Thomas (Harvard 
Business School Press, 2002).  Bennis and Thomas analyzed 
shared and divergent values and traits among leaders in 
America over two distinct generations.  This cable applies 
that analytical process to Moroccan society, with a 
particular focus on economic and business leaders.  This 
analysis is based largely upon anecdotal evidence, drawn from 
discussions and meetings with Moroccans over the past two 
years. 
 
----------- 
The Geezers 
----------- 
 
3. (C) Morocco's older generation (50 years plus) of elites 
is characterized by palace connections, French education, 
big-business interests, and a conservative outlook.  On 
issues of reform, they prefer a gradualist approach and to 
work within the system (a closed-door process).  Geezers 
control much of Morocco's key industries, including banking 
and financial services, telecommunications, mining, and 
agribusiness.  These men were born under French colonialism 
and came of age during the long reign of Hassan II, 
accumulating their assets, status, and influence in that era. 
 Consequently, they are defined by entrenched interests and 
believe in preservation of the status quo.  At best, their 
outlook and mentality helps ensure stability and continuity. 
At worst, they often display a frustrating lack of 
initiative, bureaucratic inertia, and outright resistance to 
reform efforts or even newer ways of doing things.  Many of 
the Geezers entered government and now occupy positions at 
the subministerial level and above.  Often, they move between 
the private sector and government in a revolving-door process 
best described as "cozy."  Prominent Geezers include: 
 
-- Mourad Cherif, early sixties, Chairman of the state-owned 
firm OCP, former Chairman of the state firm ONA, and a former 
Minister of numerous Ministries including Housing and 
Employment, Foreign Trade and Investments, and Finance. 
 
-- Mohammed Karim Lamrani, mid-80s, Chairman of Sfipar 
Holding, former Prime Minister and King's Counselor. 
 
4. (C) However, the characteristics of this generation are 
best embodied by 74 year old Othman Benjelloum, Director 
General of BMCE bank and chairman of other financial and 
insurance sector concerns.   Benjelloun is one of the 
smartest businessmen in Morocco; in fact, contacts claim he 
"could make money regardless of the business environment." 
There is in fact a widespread perception in Morocco that he 
prefers to keep the economy restricted so he can boost his 
own profits.  Many believed that he was the force behind 
attempts to keep the Moroccan insurance sector closed to U.S. 
companies.  When laws liberalizing the sector were being 
debated in parliament (and foreign firms still not allowed to 
own majority stakes in insurance companies), Benjelloun 
bought up most of the smaller firms, leading to his current 
dominant market share.  One he gained control, Benjelloun 
advocated for liberalization of the sector, with the 
suspicion that he wanted to cash out by selling to a large 
foreign company.  Benejelloun was also behind the now defunct 
U.S.-Morocco Council on Trade and Investment, to which he 
contributed large amounts of his own money (some estimates 
were as high as USD two million).  Many in the business 
community believed he used the Council (which helped identify 
investment opportunities for U.S. companies) to funnel 
projects to his own bank. 
 
5. (C) Brahim Zniber (another prominent Geezer), is the 
mid-sixities patriarch of a family business that runs Celier 
de Meknes (arguably the best quality wine in Morocco).  In 
addition to his state-of-the art vineyard, Zniber also has 
business interests in bottling, textiles, agriculture, 
banking, and insurance.  This Geezer has long been a good 
contact of Post and favorably disposed towards the United 
States, hosting several U.S. Ambassadors at his winery and 
sending his children to U.S. schools.  It thus came as a 
surprise to many during the FTA negotiations when he 
published an editorial in the leading business newspaper, 
L'Economiste, arguing against concluding the agreement. 
However, the substance of the editorial revealed much about 
his generation's outlook: while claiming that the agreement 
would benefit him personally, he advocated a conservative, 
cautious approach and criticized the speed of the 
negotiations and the proposed tariff reduction timelines.  He 
argued that Morocco was not ready for an FTA and held out the 
possibility for such an agreement in the indefinite future. 
 
6. (C) Hassan Chami, in his late sixties, is the current 
President of the Confederation General des Enterprises du 
Maroc (CGEM), the Moroccan business association.  He is the 
former Minister of Industry and Commerce and received his 
under graduate degree from the prestigious French national 
engineering school L'Ecole Nationale Des Ponts et Chaussees," 
in 1961.  Rare for an accomplished businessman in 2005, he 
speaks no English.  While he has created many enterprises 
over his long-career, Chami's start-ups took place during a 
decidely non-entrepreneurial period in Morocco.  Indeed, it 
is through CGEM that the Geezers exercise their control over 
the private sector and Morocco's business community.  One 
visitor compared a meeting with CGEM to a visit to an 
all-male retirement community.  Because of CGEM's inertia and 
conservatism, the American Chamber of Commerce (AmCham) in 
Casablanca recently ended its collaborative relationship with 
CGEM, although the specific reasons for the split remain 
unclear.  Post was exposed to CGEM's lack of progressive 
thinking during a trip to Marrakech by Ambassador Riley in 
early May.  At a lunch meeting intended to investigate areas 
of cooperation between the Embassy and the Marrakech Chapter 
of CGEM on economic reform and job creation, the local 
officials offered up thread-worn ideas.  While CGEM promised 
to submit a formal written recommendation for possible 
collaboration within one week's time, Post has yet to receive 
any proposal from the CGEM. 
 
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The New Geeks 
------------- 
 
7. (SBU) In contrast, Morocco's Geeks (35 years and under) 
are characterized by U.S., Canadian, or UK educations, 
entreprenuership efforts, and a progressive, modern outlook 
bordering on impatience.  Unlike the Geezers, the ranks of 
the Geeks contain a fair number of women.  They are extremely 
well read and informed on international issues.  With 
Moroccan press somewhat limited in scope and quality, this 
generation has turned to the international press, which they 
devour, particularly through the internet.  As a result, they 
are highly political and opinionated.  Another defining 
characteristic of this generation is that they have generally 
eschewed Government service.  While some Geeks are playing an 
influential role in the GOM at the working-level (such as 
Houdda Marrakchi on Minister-Delegate for Foreign Affairs 
Fassi Fihri's staff and Aziz Bouzzaoui of the Office Marocain 
de la Propriete Industrielle et Commerciale), the majority of 
the younger generation have opted for private sector careers. 
 They view business as more dynamic and the venue through 
which they can have the greatest impact. 
 
8. (SBU) While they have intensely strong (and overwhelmingly 
negative) views on U.S. policy in the Middle East and in 
Iraq, they are fervently pro-American.  It is an outlook 
based largely on their experiences in the U.S. (particularly 
through education or exchange programs) and on their 
favorably views of U.S. economic and business models, 
especially when contrasted with the French model that 
continues (through the Geezers) to dominate Moroccan society. 
 
 
9. (C) One Geek, Abdelmajid Iraqui al-Housseini embodies 
these tendencies.  In his early 30s, Iraqui received his MBA 
from the University of Michigan and went on to work for CMS 
Energy in Detroit and later to become Chief Financial Officer 
of CMS's Jorf Lasfar Energy Company.  He is well known to 
Post for his active involvement in the American Chamber of 
Commerce and support of Free Trade Agreement (FTA) outreach 
activities. Iraqui once helped convince a borderline-Geezer 
to attend an International Visitor (IV) program.  The 
selected participant had balked at traveling to the U.S. in 
response to the visa application questions and expressed 
anger at some USG policies in the Middle East.  The Geek 
encouraged the Geezer to attend, stating, "that's exactly why 
you should go."  Iraqui also displays the fascinating social 
phenomenon of a Moroccan experiencing culture shock upon his 
return from the United States.  To Embassy contacts he often 
bemoans the lack of initiative and drive of older Moroccan 
employees at Jorf Lasfar and has pushed for such initiatives 
as TQM and Six Sigma.  During a reception on Casablanca, one 
Geek (who manages a call center) criticized the 
Administration's foreign policy in one breath, then, 
expressing his frustration with the business climate in 
Morocco said "I'd let George W. Bush run this place!" 
 
10. (SBU) Indeed, these Geeks are often active in venues such 
as the American Chamber of Commerce, particularly on working 
groups such as AmCham's FTA Committee. While often brought 
into the AmCham fold by virtue of their employment or 
association with American firms, the Geeks stay on due to the 
opportunities for interaction with Americans in a forum of 
shared business and social values.  Indeed, Geeks often 
comment that they feel more at home among the AmCham members 
than in Moroccan business associations. 
 
11. (C) The importance of U.S. experiences to shaping this 
generation's world view and outlook cannot be overstated.  In 
fact, formative U.S. experiences can even counteract previous 
influences.  Ali Kettani is a Geek in his early 30's and is 
the managing director of the private equity firm Lighthouse 
Investments.  While Lighthouse has not yet realized its lofty 
ambitions, Kettani has impressed with his slick, CD-ROM-based 
marketing campaign.  Like his close friend Majid Iraqui, he 
is active in AmCham.  While Kettani received his business 
education in Paris, he points to his years on Wall Street as 
the formative experience of his life.  Kettani claims to draw 
more on his Wall Street years than his French management 
education in running his firm.  Indeed, the flip side of 
their pro-American disposition is that these young leaders 
often express an underlying anti-French bias.  They 
frequently blame Morocco's economic doldrums to an outdated 
French system of business that has left the country 
ill-equipped to face globalization.  More significantly, the 
view the French business model and its continuing influence 
as one of the leading obstacles to their own economic and 
social advancement.  Specifically, they cite the difficulties 
of accessing credit and financing through the banking sector 
and the roles that connections and influence (rather than 
merit and competitiveness) play in determining success in 
Morocco. 
 
12. (C) These young Moroccans are also true patriots.  For 
the first time in several generations, young Moroccans 
educated abroad are returning home rather than staying abroad 
for lucrative job offers.  They have been inspired by the 
reform program launched by King Mohammed VI and attracted by 
the potential opportunities of the FTA.  They often return 
with dreams and ambitions, with a new understanding of "what 
is possible," full of confidence, and armed with skills and 
techniques that they believe can apply to Morocco.  These 
Geeks truly want to make a difference, contribute to Morocco, 
and improve their country.  Unfortunately, an emerging 
characteristic among Geeks several years into their return to 
Morocco is frustration.  While displaying the natural 
impatience that defines their generation across countries and 
cultures, many are growing angry that the structural reforms 
have not matched the rhetoric.  As one Geek related to 
Econoff the list of reform programs and initiatives, he 
stressed that much of Morocco's economic life is still 
controlled by the elites behind closed doors and palace 
walls. 
 
13. (C) When channeled in a healthy way, these frustrations 
have led Geeks to create alternative fora and venues for 
their activities, such as young entrepreneur associations and 
social clubs.  Many Geeks in regions we have visited over the 
past two years participate in local Chambers of Commerce, 
Industry, and Services (CCIS) rather than local CGEM chapters 
for reasons of both conscious choice and outright exclusion 
by CGEM.  One promising and ambitious effort is the 
Morocco-American Circle (MAC), an association of Moroccan and 
American alumni of U.S. universities.  While thus far a 
social club, the MAC Board members have big plans to promote 
economic reform, civil society, and create jobs.  The Board 
has already meet with Econoffs and USAID to discuss possible 
funding for their efforts.  Based in Casablanca, MAC already 
has formalized plans for starting a chapter in Rabat. 
 
-------- 
Tensions 
-------- 
 
14. (C) Relations between the generations are generally 
cordial as the Geeks resign themselves to expressing their 
frustrations to other Geeks and like-minded American 
interlocutors and the Geezers assume a benevolent, 
patriarchal attitude toward the young upstarts.  However, 
tensions between the two often break into open conflict as 
the Geeks try to show initiative and the Geezers attempt to 
reassert their authority and control.  This Spring, a 
business conference (that EconCouns spoke at) jointly 
organized by a Fez young entrepreneurs organization and the 
local chapter of CGEM was derailed because of a perceived 
slight.  The CGEM leadership objected to the use of the young 
entrepreneurs' logo and relative placement of CGEM's and the 
youth organization's names on the conference invitations and 
program.  While the catalyst for the dispute was the 
seemingly trivial issue of logos, for the Geezers the 
initiative and independence shown by the young entrepreneurs 
was a direct threat to their control of Fez's business life. 
For the Fez Geeks, the message was clear: CGEM did not view 
itself as an equal partner. 
 
15. (SBU) One possible bridge between the generations are 
forward looking Geezers like Saad Kettani.  Kettani 
(late-fifties) is the chairman of Wafa Assurance and 
maintains board membership on the other organizations in the 
Wafa group of companies including credit and real estate.  He 
was appointed by the King to lead Morocco's failed bid to 
host the 2010 World Cup.  Kettani has impressed Post and 
Washington visitors with his long-range outlook, pro-U.S. 
disposition, and support for deep economic and political 
reforms.  Saad Kettani's children study at U.S. universities, 
he is helping to create a new generation of Moroccan Geeks. 
 
--------------- 
Recommendations 
for Engagement 
--------------- 
 
16. (C) Our interactions with Geeks in Morocco over the past 
two years have led to the following conclusions and 
recommendations: 
 
-- Enhance Exchange Programs.  Our experience with Moroccan 
Geeks shows that U.S. education or experience is vital and 
can have a profound, long-term impact on our Public Diplomacy 
efforts. We should look to opportunities to increase 
business, educational, and cultural exchanges through IV 
programs, university scholarships, and other means.  While a 
long-range and relatively costly approach, Post has reaped 
the benefits of university scholarship programs from a 
generation ago.  Many of the members of the GOM's 
Agricultural FTA negotiating team were U.S. educated, which 
helped facilitate at times tense and difficult discussions. 
 
-- Streamline and Regularize Entry and Departure Procedures. 
At the same time, Geeks who frequently travel to the U.S. 
regularly complain about perceived lack of customer service 
at ports of entry and unclear or inconsistent arrival and 
departure procedures.  New York's JFK Airport is a frequent 
target of criticism and many have taken alternative routings 
to avoid JFK. 
 
-- Access to Alternative Media.  Tech savvy Geeks don't just 
surf the web for entertainment; they use it to inform and 
educate themselves and establish connections.  Efforts to 
help bridge the digital divide in Morocco could spread the 
benefits that the Geeks now have to a broader segment of 
Moroccan society.  Access to alternative media goes a long 
way to combatting misperceptions and sharing ideas. 
 
-- English Language Training.  Moroccan Geeks speak the 
language, both literally in terms of English language 
abilities and figuratively in terms of understanding culture 
and applying American standards and business practices.  They 
are comfortable in both cultures and provide an ideal bridge 
between the two.  Like Exchange programs, today's Geeks prove 
the long-term benefit of English language training. 
 
-- Creation of Alternative Fora.  A Geek once told Econoff 
that the Geezers "couldn't die off fast enough."  As 
entrenched interests will continue to reassert their control 
for the foreseeable future (particularly through exclusionary 
tactics), we should help create venues for the Geeks to 
express their views, share ideas, and network.  Successful 
attempts will provide the younger generation with a sense 
that they have a voice, albeit a separate one.  More 
importantly, when the Geeks establish organizations such as 
MAC on their own initiative, it is in our interest to provide 
them with robust support. 
RILEY