World Economy and Policy 2024, 2024(1):1

State capitalism and the role of the armed forces in Egypt. In the historical context, the current government and 2016-2023 IMF reforms

Kareem I. Abdallah, Martina Jiránková
Prague University of Economics and Business

This article examines a specific form of state capitalism in Egypt under President Abdel Fattah el-Sisi, characterized by the central role of the military in economic affairs. Following the events of the 2011 Egyptian Revolution, the Egyptian military not only secured its position as a key political player, but also became an integral part of the nation's economic strategy. This role extends to various sectors, which has an impact on the dynamics of markets and private sector participation in them. This paper analyses the developments and implications of this specific military-led economic model, particularly in the historical context and the reforms advocated by the International Monetary Fund. It assesses and addresses the challenges of harmonizing military sector economic activities with IMF recommendations on transparency, fiscal consolidation, and structural reforms. The findings highlight the complex interplay between political power, economic control, and international economic governance, which characterizes the unique challenges Egypt faces in balancing military engagement with market-oriented reforms targeting economic growth.

Keywords: State Capitalism, Military Economy, Egyptian Economic Policy, IMF Reforms, Political Economy

 

JEL classification: E61, H56, O53, P16, P26

Published: May 20, 2024  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Abdallah, K.I., & Jiránková, M. (2024).  . World Economy and Policy, 2024(1), 1
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Abdallah, Moussa. 2015. "'البوابة' تكش⁁بيزن"الأم⁆والحراسا‪ف⁊مصر." https://www.albawabhnews.com/1401023.
    2. Abdel-Fadil, M. 1980. The Political Economy of Nasserism. Cambridge University Press. https://books.google.cz/books?id=Ioa1AAAAIAAJ.
    3. Adel, Ibrahim. 2015. "حس⁆سليما⁆رئيسً‧لرابط
مصنع⁉السيارا‪وفري الطوبج⁊نائبًا." https://www.vetogate.com/1939077.
    4. Adli, Amr. 2015. "اقتصا الجي'''ومستقب/القطا
    5. Adly, Amr. 2023. "Disempowerment without Expropriation: Egypt's Old Oligarchy under Sisi." British Journal of Middle Eastern Studies 50(2): 410-35. doi:10.1080/13530194.2021.1975533. Go to original source...
    6. Al-Arabi. 2017. "بع حمل
تشويه⁍وضغط⁍عل⁉السي البدوي.. مجموع
 المملوك
لـ تشتر⁊قنوا‪الحيا
- شبك
رص الإخبارية." https://rassd.com/333280.htm.
    7. Bahgat, Hossam. 2016. "Anatomy of an Election | MadaMasr." https://www.madamasr.com/en/2016/03/14/feature/politics/anatomy-of-an-election/.
    8. Bremmer, I. 2010. The End of the Free Market: Who Wins the War Between States and Corporations? Penguin Publishing Group. https://books.google.cz/books?id=pseNrLbbaYkC.
    9. Council of Ministers. 2022. "State Ownership Policy." https://egyptembassy.jp/cms/wp-content/uploads/2023/02/State-Ownership-Policy-ENGLISH_230117_041444-2.pdf.
    10. Daily News Egypt. 2015. "Falcon Secures 22 Banks, Acquires 54% of Egypt's Private Guard Service Market: Executive Director - Dailynewsegypt." https://www.dailynewsegypt.com/2015/06/14/falcon-secures-22-banks-acquires-54-of-egypts-private-guard-service-market-executive-director/.
    11. Diwan, Ishac, Philip Keefer, and Marc Schiffbauer. 2016. Pyramid Capitalism: Cronyism, Regulation, and Firm Productivity in Egypt. Inter-American Development Bank. IDB Publications (Working Papers). https://ideas.repec.org/p/idb/brikps/7873.html. Go to original source...
    12. El-Swaify, Samar. 2018. "Last National Cement Company Collapses after 62 Years in Operation - EgyptToday." https://www.egypttoday.com/Article/3/57390/Last-national-cement-company-collapses-after-62-years-in-operation.
    13. Henry, C.M., and R. Springborg. 2001. Globalization and the Politics of Development in the Middle East. Cambridge University Press. https://books.google.cz/books?id=LJLkaG-fbHgC. Go to original source...
    14. Ibrahim, Salih. 2014. "بالأسماء.. قائم
 ف⁉سو⁂الحراس
- تحقيقا‪وملفا‪- الوطن." https://bit.ly/1Sg9cNu.
    15. Ikram, K. 2018. The Political Economy of Reforms in Egypt: Issues and Policymaking Since 1952. American University in Cairo Press. https://books.google.cz/books?id=MLRSDwAAQBAJ.
    16. International Financial Corporation. 2020. "Creating Markets in Egypt: Country Private Sector Diagnostic." https://www.ifc.org/en/insights-reports/2020/cpsd-egypt.
    17. International Monetary Fund. 2021. "Arab Republic of Egypt: 2021 Article IV Consultation, Second Review Under the Stand-By Arrangement-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt." https://www.imf.org/en/Publications/CR/Issues/2021/07/22/Arab-Republic-of-Egypt-2021-Article-IV-Consultation-Second-Review-Under-the-Stand-By-462545.
    18. ---. 2023. "Arab Republic of Egypt: Request for Extended Arrangement Under the Extended Fund Facility-Press Release; and Staff Report." https://www.imf.org/en/Publications/CR/Issues/2023/01/06/Arab-Republic-of-Egypt-Request-for-Extended-Arrangement-Under-the-Extended-Fund-Facility-527849.
    19. Judson, Dorman W. 2012. "Exclusion and Informality: The Praetorian Politics of Land Management in Cairo, Egypt." https://era.ed.ac.uk/handle/1842/6566.
    20. Kassab, Beesan. 2018. "Egypt's History of Privatisation." ahram online. https://english.ahram.org.eg/NewsContent/3/12/305720/Business/Economy/Egypts-history-of-privatisation-.aspx#:~:text=Privatisation%20in%20Egypt%20has%20gone,Mahdi%20said.
    21. Keqiang, Li. 2015. "Report on the Work of the Government." Report on the Work of the Government. https://english.www.gov.cn/archive/publications/2015/03/05/content_281475066179954.htm.
    22. Kerr, M.H., E.S. Yassin, J. Salacuse, and I. Serageldin. 2019. Rich And Poor States In The Middle East: Egypt And The New Arab Order. Taylor & Francis. https://books.google.cz/books?id=lK2bDwAAQBAJ.
    23. Khalaf, Roula. 2016. "Sisi's Egypt: The March of the Security State." Financial Times. https://www.ft.com/content/8127ef6e-c38e-11e6-9bca-2b93a6856354.
    24. Mabro, R. 1974. The Egyptian Economy, 1952-1972. Clarendon Press. https://books.google.cz/books?id=mp8oAQAAMAAJ.
    25. Musacchio, A., and S.G. Lazzarini. 2014. Reinventing State Capitalism: Leviathan in Business, Brazil and Beyond. Harvard University Press. https://books.google.cz/books?id=xHaWAwAAQBAJ. Go to original source...
    26. O'Brien, P., and Royal Institute of International Affairs. 1966. The Revolution in Egypt's Economic System: From Private Enterprise to Socialism, 1952-1965. Issued under the auspices of the Royal Institute of International Affairs [by] Oxford U.P. https://books.google.cz/books?id=u10wAAAAMAAJ.
    27. Othman, Dalia. 2014. " تكش⁁تفاصي/مشرو
    28. Sabry, Bassem. 2012. "A Guide to Egypt's Challenges: The Public Sector & Privatisation." ahram online. https://english.ahram.org.eg/NewsContent/1/0/49616/Egypt/The-Public-Sector--Privatisation.aspx.
    29. Said, Samira. 2016. "'الجارح⁉للصلب' تعتز⁅استثما‱2 مليا‱جني⁇ف⁉الحدي والكيماويا‪- جريد
البورصة." https://www.alborsanews.com/2016/11/21/931881.
    30. Sayigh, Yezid. 2019. "Owners of the Republic: An Anatomy of Egypt's Military Economy." CEIP: Carnegie Endowment for International Peace. 2019. https://policycommons.net/artifacts/433835/owners-of-the-republic/1404905/.
    31. ---. 2022. "Throwing Down the Gauntlet: What the IMF Can Do About Egypt's Military Companies." 2022. https://policycommons.net/artifacts/2325098/throwing-down-the-gauntlet/3085630/.
    32. Tantawi, Muhammed. 2015. "تعيي⁆الطيا‱هان⁉عقا
رئيس‧لمجل"إدار
شرك
'إيماك' لإدار
المطارا‪- اليو⁅السابع."
    33. Tarouty, S.E. 2015. Businessmen, Clientelism, and Authoritarianism in Egypt. Palgrave Macmillan US. https://books.google.cz/books?id=7e5KrgEACAAJ. Go to original source...
    34. The News. 2016. "Militarizing Hassan Allam Contracting Company with 60 Brigades." Freedom and Justice Gate.
    35. Trimberger, E.K. 1978. Revolution from Above: Military Bureaucrats and Development in Japan, Turkey, Egypt, and Peru. Transaction Books. https://books.google.cz/books?id=ZCtXgIMmApUC.
    36. Waterbury, J. 1983. The Egypt of Nasser and Sadat: The Political Economy of Two Regimes. Princeton University Press. https://books.google.cz/books?id=nKZnQgAACAAJ. Go to original source...
    37. Werr, P., and A. Ismail. 2018. "Egypt's $1.1 Billion Cement Plant in Beni Suef to Start up in Days | Reuters." https://www.reuters.com/article/us-egypt-cement-idUSKBN1FK30K/#: :text=BENI%20SUEF%2C%20Egypt%20(Reuters),adding%20to%20nation's%20bloated%20supplies.

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content