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Egypt's armed forces cement economic power: military business expansion impedes structural reforms
Ägyptens Militär zementiert seine ökonomische Macht: die wirtschaftliche Expansion der Streitkräfte verhindert Strukturreformen im Land
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Stiftung Wissenschaft und Politik -SWP- Deutsches Institut für Internationale Politik und Sicherheit
Abstract Since toppling President Mohamed Morsi in July 2013, the Egyptian military has successively expanded its civil economic activities. This development has attracted growing criticism, above all in the private sector. The government responded in October 2016 by announcing that the armed forces would di... view more
Since toppling President Mohamed Morsi in July 2013, the Egyptian military has successively expanded its civil economic activities. This development has attracted growing criticism, above all in the private sector. The government responded in October 2016 by announcing that the armed forces would diminish their economic role over the coming two to three years. But strong market positions, established privileges and historically ingrained structures make it unlikely that this will actually occur. Instead the economic activities of the armed forces, for example in the food, energy and construction sectors, will continue to shape the Egyptian economy. Realisation of the structural reforms Cairo agreed with the IMF in November 2016 is more than doubtful under these circumstances. Not least on those grounds, international donors should urge Egypt's leaders to curb the army's privileges. (author's abstract)... view less
Keywords
economic development (on national level); economic reform; economic power; Arab countries; military; economic policy; energy industry; supply; Egypt; influence; North Africa
Classification
Economic Policy
Document language
English
Publication Year
2017
City
Berlin
Page/Pages
7 p.
Series
SWP Comment, 5/2017
ISSN
1861-1761
Status
Published Version; reviewed
Licence
Deposit Licence - No Redistribution, No Modifications