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Posts tagged ‘Egyptian economy’

Forget the Coup: Egypt’s Economy Is the Real Problem

Any new permanent government will face the choice Morsi had but never made: market economic reforms on the one hand and a command-and-control statist economy on the other.

Ben W. Heineman, Jr.

Ben W. Heineman, Jr.

By Ben W. Heineman, Jr.

(This article first appeared on TheAtlantic.com, where Ben Heineman is a frequent contributor)

Egypt’s political dilemmas are based, in important part, on its economic dilemmas. But since the overthrow of the Morsi government, far less attention has been paid to crucial economic issues than the political and constitutional conflicts. But economic issues–and the lack of a legitimated economic vision–have been as much a cause of the unrest, change and uncertainty in Egypt, and during both the Mubarak and Morsi tenures. And they may be more intractable.

Any new permanent government will face the choice Morsi had but never made: between market economic reforms on the one hand, led by economists and business people to promote growth, jobs, and trade, and a command-and-control statist economy on the other, which provides subsidies for essentials like energy and staples like bread, rice, and sugar–and also provides sinecures for ex-military officers. Part of the problem is that “liberalizing” reforms–there have been three waves since the end of Nassar’s regime than 40 years ago–are perceived as helping the rich and reflecting crony capitalism, rather than raising Egypt as a whole.

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Egypt’s Economic Winter

Ben W. Heineman, Jr.

Ben W. Heineman, Jr.

By Ben W. Heineman Jr.

(This article first appeared on TheAtlantic.com, where Ben Heineman writes frequently)

The international media have made a huge story out of Egyptian President Mohamed Morsi’s power-consolidating decrees and the balloting on his proposed constitution. How the fundamental political disputes — between factions of the religious and secular, Islamic and Christian, and civilian and military, and between rich and poor and urban and rural — will be resolved in the Middle East’s most populous nation is seen as a harbinger for the political impact of the Arab Spring.

A companion story has received much less mainstream media attention: Egypt’s escalating economic crisis since the Tahrir Square uprising. Yet the question of whether and how Egypt deals with these economic issues is deeply intertwined with the salient political questions, and has significant implications for the future. Indeed, a lack of economic opportunity was arguably as significant a cause of the Egyptian “revolution” as political repression. Read more

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The Quest for Economic Legitimacy in Egypt

By Ben Heineman

The Power & Policy Fellows’ Forum

By Ben Heineman

Since Anwar Sadat took over from Gamal  Abdel Nasser more than 40 years ago, Egypt has gone through episodic waves of economic liberalization, from privatization to changes in fiscal/monetary policy to sectoral restructuring.

However, during this period of start-stop economic reform, there was no meaningful reform of the constitutional structure and the political system. Read more

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