I am playing as Austria, it's 1923, I've researched 25 or so techs, most of my divisions have brigades and Generals, yet my troops have morale of around 90 at best, whereas the Germans and Italians are at 140 or so.
Even the Russians are better!
I went with Clausewitz at the beginning, but the morale lag just never seems to go away... What's up with that???