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1. Power and potential: The economics of Egyptian construction and ICT

Author:
Matteo Colombo
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Young Egyptians’ dissatisfaction with their employment prospects was a key driver of protests in 2011 and 2013. Since then, the country’s political authorities have worked hard to create job opportunities for young Egyptians by boosting growth in the construction sector (infrastructure and public works), among other things. Since the sector also generates substantial revenues for the country’s power elite, this has been a win-win strategy in the short-term. But overreliance on the construction sector has also created too many informal and unstable jobs that are a poor match for Egypt’s many well-educated graduates. Cairo’s growth strategy has not addressed some of the country’s long-standing economic problems, such as informality and a low overall employment rate. Giving the country’s promising ICT sector a boost similar to that of the construction sector to address such deficiencies and anticipate a looming debt crisis requires a paradigm shift with two elements. First, a deal between Egypt’s political authorities and the power elite that buys time in exchange for future rents. Second, facilitation of private sector dynamism through regulatory encouragement and public seed funding for new business activity.
Topic:
Development, Economics, Employment, and Construction
Political Geography:
Middle East and Egypt

2. Trading short-term gains for long-term costs: the Egyptian political economy under al-Sisi

Author:
Matteo Colombo
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Egypt’s political economy has been operating on the basis of three core principles over the last few decades. First, the country’s political authorities set strategic economic objectives in a top-down manner. Second, the power elite supports the political authorities and, in exchange, tightly supervises homegrown and foreign investment to generate revenues and job opportunities, as well as private benefits. Third, Egyptian citizens acquiesce, willingly or unwillingly, in this division of power that mostly benefits the political authorities and power elites in exchange for improvements in their livelihoods. Since 2014, President al-Sisi has held closely to these principles but relied increasingly on Egypt’s military networks (part of the power elite) to boost economic growth. This strategy has produced short-term gains – informal jobs and an array of consumer goods – at the expense of long-term economic prospects. In particular, the military’s economic influence has deepened some of Egypt’s structural problems: low productivity, inequality, informal unemployment and a suppressed private sector. This limits the future sustainability of the current economic model. Improving Egypt’s economic prospects requires reducing the role of the state – especially the military – in the economy in terms of decreasing the number of associated enterprises and lightening the regulatory framework. However, this is nearly impossible to realise in sectors in which the military already has a dominant profile, such as construction and extractives, because its support is essential for al-Sisi to maintain power. A more promising alternative for European policy makers to consider is influencing the Egyptian government to limit military influence in sectors with growth potential where the military is largely absent, such as manufacturing and Information and Communications Technology (ICT). A government strategy that prevents further military involvement in these sectors, crafts a regulatory framework conducive to private investment and invites foreign funding, can help Egypt realise greater economic growth and higher fiscal revenues.
Topic:
Development, Political Economy, Economy, and Abdel Fattah el-Sisi
Political Geography:
Middle East and Egypt

3. How Huawei’s Localization in North Africa Delivered Mixed Returns

Author:
Tin Hinane El Kadi
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Trade between China and North Africa has increased significantly since the early 2000s, but it has largely reproduced patterns of unequal exchange. Since they were unveiled, the Belt and Road Initiative (BRI) and the Chinese government’s 2016 Arab Policy Paper have signaled the promise of a qualitative shift in China’s engagement with the region. China has committed to increase investments in high-value-added sectors and to boost cooperation in science and technology with countries across North Africa. The digital space is a notable aspect of recent China–North African partnerships. Chinese tech firms are becoming ever more important actors in North Africa through the Digital Silk Road, the digital component of the BRI. North African governments see the Digital Silk Road as an opportunity to help bridge the digital divide and bolster their own national efforts to build digital economies and create high-quality jobs for the millions of unemployed university graduates across the region. In recent years, the region has become home to notable Digital Silk Road projects such as smart cities, satellite navigation centers, data centers, and network infrastructure. Huawei’s localization strategies in Algeria and Egypt show that, far from imposing a one-size-fits-all blueprint on other countries, as Beijing is often depicted as doing in U.S. and European media and policy discussions, Chinese tech players adapt their engagement depending on local development agendas. Flexibility, customization, and services tailored to local demand have been cornerstones of Huawei’s localization strategies in North Africa. Accommodating local development priorities is central to Huawei’s success in globalizing its business ventures. The Chinese firm has responded favorably to Algeria’s and Egypt’s attempts to leverage foreign companies for conducting more value-added activities within their respective economies. Among other things, Huawei opened its first African factory in Algeria, employing Algerians to assemble products for and beyond the Algerian market. It also launched an OpenLab for conducting research and development (R&D) activities in Egypt and established partnerships with several universities in the region to train local students. However, closer scrutiny of Huawei’s localization in both Algeria and Egypt indicates that the company improved its brand image without engaging in meaningful capacity building. For all its success at winning the hearts of government officials across the region, Huawei has engaged in training, manufacturing, and R&D in a way designed to maintain the firm’s technological edge. The Chinese tech giant has managed to localize seemingly developmental activities in North Africa without contributing much to technological upgrading. North African governments should take lessons from China’s playbook of how it became a technological superpower. This means adopting policies that could maximize the benefits of Chinese and non-Chinese investments by ensuring positives spillovers and protecting potential local tech champions. Increasing economic integration across North African countries and moving beyond fragmented bilateral commercial negotiations with China are two steps that may help level the playing field with the Asian giant.
Topic:
Development, Science and Technology, Telecommunications, Huawei, and Digital Space
Political Geography:
China, Asia, Algeria, North Africa, and Egypt

4. Egypt transport policies 2014-2021

Author:
Mohamed Hegazy
Publication Date:
03-2022
Content Type:
Research Paper
Institution:
Arab Reform Initiative (ARI)
Abstract:
The Egyptian Ministry of Transport’s1 YouTube channel provides an excellent documentation of the far-reaching changes taking place in the transport sector in Egypt: new highways connecting cities and new bridges; new train carriages for the national railways; new public transport systems such as the Metro, Monorail and Electric train. Between 2014 and 2021 the Egyptian state has invested 1 trillion EGP (~63.6 billion USD) in the transport sector2 in its bid to achieve sustainable development3 . This paper seeks to examine policies and state investments in the transport sector from a sustainable development perspective, focusing on the environmental and social dimensions.
Topic:
Development, Infrastructure, Transportation, and Sustainability
Political Geography:
Africa, Egypt, and MENA

5. Egypt’s water policy after the construction of the Grand Ethiopian Renaissance Dam

Author:
Sherif Mohy El Deen
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Arab Reform Initiative (ARI)
Abstract:
Egypt is one of the driest countries in the world. It is also the country that is most dependent on a single source of water: The Nile. The Nile River provides over 93% of Egypt’s water needs, according to Egyptian government documents. However, the water crisis discussion mainly focuses on the extent to which previous water agreements with other Nile Basin countries are binding, or on the truthfulness of the current news on the filling and operation of the Grand Ethiopian Renaissance Dam. Hence, this discussion is not addressing the main issue, which is the extent to which operating the Dam would affect the annual water use per capita in Egypt at present, as well as in the near and distant future. The Renaissance Dam crisis is recent, as it began when Ethiopia unilaterally decided to build the Dam in a border region between Ethiopia and Sudan. However, it is a main factor that could exacerbate and deepen the problem of water scarcity in Egypt. Other factors affecting water use per capita in Egypt include exponential population growth and increasing climate change. This policy brief aims to shed light on the main causes and background of the water crisis in Egypt. It will briefly discuss some examples of recent or upcoming projects by the Egyptian government under the new Water Resources Management Strategy (2016-2050). Finally, the paper will highlight the importance of conducting comprehensive and constant feasibility and impact assessments of these projects. These assessments should focus not only on the water dimension, but also on the economic, social, environmental, cultural, and political dimensions. This paper also provides some recommendations and lessons learned from the “Jonglei Canal,” an Egyptian-Sudanese water megaproject that launched nearly five decades ago.
Topic:
Development, Water, Infrastructure, and Dams
Political Geography:
Africa and Egypt

6. Energy in the Eastern Mediterranean

Author:
Karen E. Young, Emily Stromquist, and Colby Connelly
Publication Date:
05-2022
Content Type:
Video
Institution:
Middle East Institute (MEI)
Abstract:
Karen Young, director of MEI's Program on Economics and Energy, is joined by Emily Stromquist and Colby Connelly for a discussion on gas and energy developments in the Eastern Mediterranean.
Topic:
Development, Gas, Investment, and Energy
Political Geography:
Europe, Middle East, Israel, Algeria, Egypt, and Eastern Mediterranean

7. Egypt, the EU, and Migration: An Uncomfortable Yet Unavoidable Partnership

Author:
Dina Abdel Fattah
Publication Date:
09-2021
Content Type:
Special Report
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
The relationship between the European Union and Egypt on migration is as uncomfortable for Europe as it is unavoidable. The EU’s goal of reducing irregular migration by working with actual and potential transit countries around Europe has provided Egypt with greater leverage over its European neighbors – a development that worries not only human rights advocates, but many actors who follow the actions of the country’s authoritarian regime.
Topic:
International Relations, Development, Migration, Authoritarianism, European Union, Refugees, and Borders
Political Geography:
Middle East, North Africa, and Egypt

8. The Eastern Mediterranean Gas Forum: Cooperation in the Shadow of Competition

Author:
Gabriel Mitchell
Publication Date:
09-2020
Content Type:
Special Report
Institution:
Mitvim: The Israeli Institute for Regional Foreign Policies
Abstract:
Established in January 2019, the Eastern Mediterranean Gas Forum (EMGF) is the most significant multinational organization in a geopolitical space often associated with conflict and competition. Currently comprised of Egypt, Greece, Cyprus, Israel, Italy, Jordan, Greece, Italy and the Palestinian Authority, the forum’s purpose to advance opportunities for energy development and cooperation between Eastern Mediterranean states in order to maximize the commercial potential of the region’s hydrocarbon reserves. This paper analyzes the diplomatic processes that resulted in the EMGF’s formation, the current challenges the forum faces, and Israel’s capacity to shape this nascent body’s future. If the forum hopes to grow in the postcoronavirus era, then it must commit to seeking pathways towards economic cooperation, enhancing its scope to include renewable energy, while also prioritizing conflict resolution and the establishment of a new maritime order.
Topic:
Development, Diplomacy, Energy Policy, Geopolitics, Gas, and Strategic Competition
Political Geography:
Middle East, Israel, Greece, Palestine, Italy, Egypt, Jordan, Cyprus, and Mediterranean

9. Character Reform: Egypt’s Year of Education

Author:
James Aird
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
Harvard Journal of Middle Eastern Politics and Policy
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
As Egypt’s ‘Year of Education’ begins, the government pushes much needed reform in pre-university education across the country. Supported by a $500 million World Bank loan, the government is accelerating efforts to train teachers, build schools, and implement tablet technology in primary and secondary education. The reforms include one ambitious project that is especially deserving of more attention: the expansion of a pilot program adapting Japanese educational techniques to the Egyptian context. At a meeting in Tokyo on February 29th, 2016, Japan’s Prime Minister Shinzo Abe and Egyptian President Abdel Fattah al-Sisi announced a joint partnership that sought to link Egypt to Japan through educational development, in part thanks to al Sisi’s personal admiration for Japan’s education system. As part of the joint partnership, Japanese and Egyptian administrators and policymakers set out to reshape Egyptian pedagogy. Modeled on Japan’s Tokkatsu education system, which refers to a program of “whole child development,” Egypt aims to build schools that place great emphasis on teaching students to be responsible, disciplined, and clean, as opposed to the more traditional model prioritizing higher standardized testing scores. A Tokkatsu-inspired curriculum is already being used at over forty schools that accepted more than 13,000 students in September 2018. While President al Sisi plans to personally monitor the new education system, other MENA states should also watch closely. If it successfully contributes to building Egypt’s human capital and improving students’ competitiveness, other states in the region might consider implementing similar educational policies.
Topic:
Development, Education, Reform, Children, Partnerships, and Youth
Political Geography:
Japan, Middle East, North Africa, and Egypt

10. Exporting for Growth: Identifying Leading Sectors for Egypt and Tunisia Using the Product Space Methodology (التصدیر من أجل النمو: تحدید القطاعات الرائدة في مصر وتونس باستخدام منھجیة فضاء المنتجات)

Author:
Amirah El-Haddad
Publication Date:
01-2018
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This discussion paper is available below in both Arabic (2019) and English (2018). The structural transformation of countries moves them towards more sophisticated, higher-value products. Network analysis, using the Product Space Methodology (PSM), guides countries towards leading export sectors. The identification process rests on two pillars: (1) available opportunities, that is, products in the product space that the country does not yet export which are more sophisticated than its current exports; and (2) the stock of a country’s accumulated productive knowledge and the technical capabilities that, through spillovers, enable it to produce slightly more sophisticated products. The PSM points to a tradeoff between capabilities and complexity. The methodology identifies very basic future products that match the two countries’ equally basic capabilities. Top products are simple animal products, cream and yogurt, modestly sophisticated plastics, metals and minerals such as salt and sulphur for Egypt; and slightly more sophisticated products such as containers and bobbins (plastics) and broom handles and wooden products for Tunisia, which is the more advanced of the two countries. A more interventionist approach steers the economy towards maximum sophistication, thus identifying highly complex manufactured metals, machinery, equipment, electronics and chemicals. Despite pushing for economic growth and diversification, these sectors push urban job creation and require high-skill workers, with the implication that low-skilled labour may be pushed into unemployment or into low-value informal jobs. A middle ground is a forward-looking strategy that takes sectors’ shares in world trade into account. This approach identifies medicaments in the chemicals sector; seats (e.g. car and aeroplane seats) in the “other highly manufactured” sector; inflated rubber tyres in the chemicals community (plastics and rubber); containers, bobbins and packages of plastics also in the plastics and rubber section; and articles of iron and steel in the metals sector for Egypt. The top product for Tunisia is furniture in the highly manufactured and special purpose goods community, followed by three products in plastics and rubber in the chemicals community, and finally three machinery sectors.
Topic:
Development, Economic Growth, Exports, and Economic Development
Political Geography:
Middle East, North Africa, Egypt, and Tunisia

11. Social Policy in the Middle East and North Africa

Author:
Melani Cammett, Kristin Fabbe, Marc Lynch, Allison Spencer Hartnett, Ferdinand Eibl, Anna Getmansky, Tolga Sınmazdemir, Thomas Zeitzoff, Melp Arslanalp, Rania AbdelNaeem Mahmoud, Sean Yom, Wael Al-Khatib, Alexandra Blackman, Dina Bishara, Markus Loewe, Lars Westemeier, Asya El-Meehy, Marc C. Thompson, and Caroline Abadeer
Publication Date:
10-2018
Content Type:
Research Paper
Institution:
Project on Middle East Political Science (POMEPS)
Abstract:
This spring, major protests swept through Jordan over economic grievances and subsidy reforms. In July, protestors took to the streets in the south of Iraq, demanding that the government address persistent unemployment, underdevelopment, and corruption. Meanwhile, earlier in 2018, Tunisians launched a wave of protests to oppose tax hikes on basic goods and increased cost of living. Such highly politicized responses to social policy concerns are the norm rather than the exception across the Middle East and North Africa. Social policy is where most citizens actually encounter the state and where policy most impacts peoples’ lives. As such, social policy and, more generally, welfare regimes, deserve a more central place in political science research on the region, as they have in the broader discipline. On April 20, 2018, POMEPS and the Harvard Middle East Initiative, led by Tarek Masoud, convened a workshop with a dozen scholars from around the world to discuss theoretical and policy issues related to social policy in the Middle East. The diverse, multidisciplinary group of scholars at the workshop addressed these questions from multiple perspectives. By probing the conditions under which reform occurs or may occur, the essays in POMEPS Studies 31, Social Policy in the Middle East and North Africa emphasize both possibilities for and persistent obstacles to change and underscore the deeply political nature of social policy reform.
Topic:
Development, Education, Energy Policy, Politics, Culture, Prisons/Penal Systems, Reform, Employment, Youth, Social Policy, Political Parties, Social Contract, and Housing
Political Geography:
Iran, Turkey, Middle East, Algeria, Saudi Arabia, North Africa, Egypt, Jordan, and Tunisia

12. Harvard Journal of Middle Eastern Politics and Policy: Spring 2015

Author:
Jennifer Rowland, Nada Zohdy, Brian Katulis, Michael Wahid Hanna, Faysal Itani, Muhammad Y. Idris, Joelle Thomas, Tamirace Fakhoury, Farouk El-Baz, Kheireddine Bekkai, Amira Maaty, and Sarah McKnight
Publication Date:
01-2015
Content Type:
Journal Article
Journal:
Harvard Journal of Middle Eastern Politics and Policy
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Our Spring 2015 volume captures the troubling developments of the past year in the Middle East and North Africa. In 2014, the Syrian conflict that has so beguiled the international community spilled over into Iraq, with the swift and shocking rise of the Islamic State in Iraq and al-Sham (ISIS). ISIS is causing the ever-complex alliances in the region to shift in peculiar ways. In Iraq, US airstrikes provide cover for Iranian-backed militias fighting ISIS; while in Yemen, the United States supports a Saudi intervention against a different Iranianbacked armed group that has taken control of the Yemeni capital. Meanwhile, simmering political disputes in Libya escalated into a full-blown civil war, sparking concern in neighboring Egypt, where the old authoritarian order remains in control despite the country’s popular revolution. The Gulf countries contemplate their responses to record-low oil prices, continuing negotiations between the United States and Iran, and the threat of ISIS. And Tunisia remains one of the region’s only bright spots. In November, Tunisians voted in the country’s first free and fair presidential elections. This year’s Journal brings new analysis to many of these complex events and broader regional trends. We begin with the positive: an exclusive interview with former Tunisian Prime Minister Mehdi Jomaa. In this year’s feature articles: Brian Katulis zooms out to assess the Obama administration’s record in the Middle East over the past six years; Michael Wahid Hanna refutes the notion that the Iraqi and Syrian borders will need to be redrawn as a result of ISIS’ takeover; and Faysal Itani analyzes the US coalition’s strategy to defeat ISIS, arguing that it cannot succeed without empowering Sunni civilians. Muhammed Idris and Joelle Thomas turn to economics in an assessment of the United Arab Emirates’ efforts to go green. Tamirace Fakhoury points out a blind spot in the study of the Middle East and North Africa: how large diaspora communities affect political dynamics in their home countries. Farouk El-Baz takes us to Egypt, where he proposes a grand economic plan to pull the country out of poverty and set it on a path toward longterm growth. From Egypt, we move west to the oft-neglected country of Algeria, where Kheireddine Bekkai argues for more inclusive education policies on national identity. Finally, Amira Maaty comments on the region’s desperate need for robust civil societies, while Sarah McKnight calls for improvements in Jordan’s water policies.
Topic:
Security, Civil Society, Development, Environment, Migration, History, Natural Resources, Social Movement, Islamic State, Economy, Political stability, Arab Spring, Military Intervention, Identities, and Diversification
Political Geography:
Middle East, Algeria, North Africa, Syria, Egypt, Jordan, Tunisia, United Arab Emirates, and United States of America

13. Insights for Egypt's and Tunisia's Islamists from Turkish Experience of Democratic Transition

Author:
Ahmet Uysal
Publication Date:
02-2014
Content Type:
Journal Article
Journal:
Insight Turkey
Institution:
SETA Foundation for Political, Economic and Social Research
Abstract:
Turkey is achieved a viable combination of Islam, democracy and development. After prolonged periods of political instability and interruptions in democratic rule, the Islamic-leaning AK Party government overcame the hurdles preventing it from reaching power in the early 2000s. It achieved a significant degree of democratization and economic growth without oil or foreign aid and repeatedly won elections ever since. As such, the party's success offers important lessons for Islamists in Tunisia, Egypt and Morocco. The lessons of the Turkish experience are especially relevant in dealing with the opposition and democratization, as well as achieving stability and growth.
Topic:
Development
Political Geography:
Turkey, Egypt, and Tunisia

14. Egypt's Difficult Transition: Why the International Community Must Stay Economically Engaged

Author:
Hafez Ghanem
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper presents a political-economy analysis of the Egyptian transition experience from the fall of President Hosni Mubarak in February 2011 until the end of 2013, and considers options for the future. Establishing a stable democracy in a country with weak institutions and no democratic culture will take years or even decades. With the benefit of hindsight, most observers were too optimistic in 2011 when they predicted that the “Arab Spring” would quickly lead to democracy. They are probably too pessimistic today when they declare the failure of Egypt's democratic transition. The millions of Egyptians who swarmed into Tahrir Square in January 2011 demanding that Mubarak step down, and then again in June 2013 asking for the overthrow of President Mohammed Morsi, have learned how to use “people power.” A wall of fear has been broken, and it would be difficult for another autocratic regime to succeed in ruling Egypt for an extended period of time.
Topic:
Democratization, Development, Islam, and Political Economy
Political Geography:
Arabia, North Africa, and Egypt