VZCZCXRO5044
RR RUEHBC RUEHDE RUEHKUK
DE RUEHCL #1233/01 3041039
ZNR UUUUU ZZH
R 311039Z OCT 06
FM AMCONSUL CASABLANCA
TO RUEHC/SECSTATE WASHDC 7435
INFO RUEHRB/AMEMBASSY RABAT 7742
RUEHLO/AMEMBASSY LONDON 0217
RUEHNK/AMEMBASSY NOUAKCHOTT 2194
RUEHFR/AMEMBASSY PARIS 0496
RUEHEE/ARAB LEAGUE COLLECTIVE

UNCLAS SECTION 01 OF 02 CASABLANCA 001233 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/MAG AND NEA/PI 
 
E.O. 12958: N/A 
TAGS: ECON EFIN KDEM MO
SUBJECT: MOROCCANS PROTEST HIGH PRICES WITH LOW TURN-OUT 
 
¶1. (U) Summary:  As Ramadan began in late September, so did 
protests in Casablanca and other major cities against the rise in 
prices of basic commodities.  However, levels of participation were 
lower than organizers had hoped.  This was due in part to the fact 
that the GOM gained union acceptance before implementing increases, 
causing unions to stay quiet when protests began.  The low level of 
protest is also attributed to the unwillingness of prominent 
political 
parties to challenge the government on sensitive social issues before 
the 2007 legislative elections.  In addition, many Moroccans feel 
there is little they can do to change the high cost of living.  The 
refusal of many to engage on the issue of rising prices illustrates 
the GOM's success in influencing parties and unions.  End Summary. 
 
---------------------------------------- 
COALITION FORMS TO PROTEST RISING PRICES 
---------------------------------------- 
 
¶2.  (U) A group of organizations in Morocco joined forces at the 
start of Ramadan to initiate a movement against cost of living 
increases.  Spearheaded by the Moroccan Association for Human Rights 
(AMDH), the newly formed coalition brought together about twenty 
organizations, including many left-wing parties, unions, and NGOs 
that 
are not allied with the government.  The coalition encouraged 
citizens 
in cities across Morocco to participate in planned demonstrations 
against price increases of goods ranging from bread, sugar and 
vegetables to fuel, transportation and electricity. 
 
¶3.  (U) The rise in prices has affected a wide array of goods, and 
is partly attributed to an increase in Value Added Tax (VAT) from 
seven to ten percent in 2006.  On average, the price of consumer 
goods 
has increased by 3.3 percent.  Public transportation rose from less 
than 30 cents per ticket to about 40 cents.  Water and electricity 
prices went up seven percent. 
 
----------------------------------- 
MOVEMENT STRUGGLES TO GAIN TRACTION 
----------------------------------- 
 
¶4.  (U) Despite the coalition's vision of holding widespread sit-ins 
in twenty cities across Morocco, demonstrations have not been as well 
attended as organizers had hoped.  A demonstration in Casablanca in 
early October reportedly drew only 400 participants, an underwhelming 
number in a city of about three million. 
 
¶5.  (U) Many believe low turn-out can be attributed to the GOM's 
proactive efforts to open a new pattern of social dialogue with 
unions.  Led by Prime Minister Driss Jettou, the GOM held two 
important social dialogue conferences with the unions before 
announcing price increases.  The conferences included discussions on 
pay raises, the cost-of-living, and job stability.  Only three such 
conferences had been held in the previous ten years, leading social 
observers to speculate that the GOM used the social dialogue 
conferences to get union buy-in by promising future concessions. 
 
¶6.  (U) Others suggest that legislative elections in 2007 may be 
affecting the movement's ability to gain traction.  As an article in 
the October 7-13 issue of the magazine Tel Quel points out, political 
parties and unions allied with the government do not want to 
challenge 
the palace on social issues before elections.  Though they recognize 
that outcry over price increases is legitimate, they are not willing 
to engage on the issue just now.  At the same time, less prominent or 
less popular organizations may be using the rising cost of living as 
a 
rallying point to gain visibility. 
 
¶7.  (U) The "Coordinating Organization for the Fight against Price 
Increases" presumably chose to launch its movement during Ramadan to 
maximize effect.  Household expenses traditionally increase during 
the 
month-long holiday, and people have been particularly hard hit this 
year since it coincided with going back to school.  Nevertheless, 
some 
speculate that Ramadan is actually to blame for low protester turn- 
out.  After fasting all day, then indulging in the traditional rich 
foods of a Ftour, few feel motivated to join an evening 
demonstration. 
 
¶8.  (U) An article in the October 13-20 issue of Le Journal reports 
that, while the movement has not been huge, it has gained strength, 
particularly in small towns.  The article also notes, however, that 
the subject of rising prices fails to draw the attention that issues 
 
CASABLANCA 00001233  002 OF 002 
 
 
such as Palestine or the war in Iraq do.  Even though high costs 
affect a majority of Moroccan households, it is easier to rally 
support for global issues around which there is consensus, regardless 
of party affiliation. 
 
¶9.  (U) While working-class Moroccans acknowledge the reality of 
price increases, they have not taken to the streets en masse.  For 
many, rising prices are simply a fact of life.  EconOff spoke with a 
maid who said she noticed price increases several months ago, but not 
recently.  When asked what people do about the rising cost of living, 
she shrugged and noted that the blue-collar workers most affected do 
not earn sufficient salaries.  One professional Moroccan woman said 
that her husband, a professor, had joined a demonstration in 
Casablanca after receiving an SMS about it.  When asked about working- 
class participants, she said, 'We have to protest for them.'  The 
article in Le Journal reiterated this point, noting that the workers, 
students and artisans who were politically active in the 1970s and 
1980s are now absent from the political arena. 
 
-------------------- 
GOM RESPONSE LIMITED 
-------------------- 
 
¶10.  (U) The GOM's response to the demonstrations has been low-key 
and measured.  Although it did reduce the price of gas by about five 
cents per liter on October 6, this gesture is perceived to be less a 
result of the coalition's efforts, and more an easy way to ease 
existing tension given a recent fall in the per-barrel price of oil. 
The proposed 2007 budget includes a measure to lower the income tax 
rate, but this will not benefit those who do not earn official 
salaries. 
The Central Bank reports that inflation has reached 3 percent in 
the first eight months of 2006, up from an average of 1.7 percent in 
the past 
five years, but it attributes rising prices to positive factors such 
as economic growth and an increase in money supply from tourism and 
remittances. 
 
¶11.  (SBU) Comment: When Moroccans took to the streets to protest 
high prices in 1981, riots left hundreds dead.  The fact that 
peaceful 
demonstrations can take place now illustrates the regime's greater 
degree of openness.  Furthermore, it is unusual in Morocco to see 
groups coalesce to raise the profile of a sensitive socio-economic 
issue. 
 
¶12.  (SBU) Comment (continued): At the same time, the fact that 
government unions and parties have not weighed in publicly on the 
issue of rising prices indicates both the GOM's new proactive 
approach 
to social issues, and its familiar ability to co-opt key parties and 
unions.  The key role that NGOs such as AMDH have played in 
encouraging demonstrations against cost-of-living increases also 
demonstrates the greater role NGOS are playing on the political 
playing field.  End Comment. 
 
GREENE