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Archive for the ‘Egypt’ Category

The Dead Hand of Socialism: State Ownership in the Arab World

September 12, 2014 Comments off

The Dead Hand of Socialism: State Ownership in the Arab World
Source: Cato Institute

Extensive government ownership in the economy is a source of inefficiency and a barrier to economic development. Although precise measures of government ownership across the Middle East and North Africa (MENA) are hard to come by, the governments of Algeria, Egypt, Libya, Syria, and Yemen all operate sizeable segments of their economies—in some cases accounting for more than two-thirds of the GDP.

International experience suggests that private ownership tends to outperform public ownership. Yet MENA countries have made only modest progress toward reducing the share of government ownership in their economies and are seen as unlikely candidates for wholesale privatization in the near future.

MENA countries need to implement privatization in order to sustain their transitions toward more representative political systems and inclusive economic institutions. Three main lessons emerge from the experience of countries that have undergone large privatization programs in the past. First, the form of privatization matters for its economic outcomes and for popular acceptance of the reform. Transparent privatization, using open and competitive bidding, produces significantly better results than privatization by insiders, without public scrutiny. Second, private ownership and governance of the financial sector is crucial to the success of restructuring. Third, privatization needs to be a part of a broader reform package that would liberalize and open MENA economies to competition.

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Country Analysis Brief: Egypt

August 26, 2014 Comments off

Country Analysis Brief: Egypt
Source: Energy Information Administration

Egypt is the largest oil producer in Africa outside of the Organization of the Petroleum Exporting Countries (OPEC), and the second-largest natural gas producer on the continent, behind Algeria. Egypt plays a vital role in international energy markets through the operation of the Suez Canal and Suez-Mediterranean (SUMED) Pipeline.

The Suez Canal is an important transit route for oil and liquefied natural gas (LNG) shipments traveling northbound from the Persian Gulf to Europe and North America and southbound shipments from North Africa and countries along the Mediterranean Sea to Asia. The SUMED Pipeline is the only alternative route nearby to transport crude oil from the Red Sea to the Mediterranean Sea if ships were unable to navigate through the Suez Canal. Fees collected from the operation of these two transit points are significant sources of revenue for the Egyptian government.

Middle East Transitions: A Long, Hard Road

August 11, 2014 Comments off

Middle East Transitions: A Long, Hard Road
Source: International Monetary Fund

Since the onset of the Arab Spring, economic uncertainty in Egypt, Jordan, Libya, Morocco, Tunisia, and Yemen (Arab Countries in Transition, ACTs) has slowed already sluggish growth; worsened unemployment, particularly of youth; undermined business confidence, affected tourist arrivals, and depressed domestic and foreign direct investment. Furthermore, political and social tensions have constrained reform efforts. Assessing policy options as presented in the voluminous literature on the Arab Spring and based on cross-country experience, this paper concludes that sustainable and inclusive growth calls for a two pronged approach: short term measures that revive growth momentum and partially allay popular concerns; complemented with efforts to adjust the public’s expectations and prepare the ground for structural reforms that will deliver the desired longer tem performance.

Select Diaspora Populations in the United States

July 24, 2014 Comments off

Select Diaspora Populations in the United States
Source: Migration Policy Institute

Diaspora populations often perform essential functions in the economic and human capital development of their countries of origin, and can continue playing a strong role in shaping these countries long after they or their forebears departed.The Rockefeller Foundation and the Aspen Institute have launched the Rockefeller-Aspen Diaspora Program (RAD), a joint venture to better understand diaspora members’ financial and human capital investments and to design an approach to foster further growth in these areas. The Migration Policy Institute has partnered with RAD to produce profiles of 15 diaspora communities in the United States, which is home to nearly 60 million first- or second-generation immigrants.

These profiles address 15 different diaspora populations in the United States, gathering in one place key data and analysis on diasporas from Bangladesh, Colombia, El Salvador, Egypt, Ethiopia, Ghana, Haiti, India, Kenya, Mexico, Morocco, Nigeria, Pakistan, the Philippines, and Vietnam. Each profile explores the demographic characteristics of first- and second-generation immigrants in a particular diaspora, their educational attainment, household income, employment patterns, geographic distribution, and remittance volume.

Five longer profiles, focusing on Colombia, Egypt, India, Kenya, and the Philippines, also detail historical immigration pathways and contemporary entry trends, poverty status, active diaspora organizations, and country-of-origin policies and institutions related to interaction with emigrants and their descendants abroad.

CRS — Egypt: Background and U.S. Relations (updated)

June 16, 2014 Comments off

Egypt: Background and U.S. Relations (PDF)
Source: Congressional Research Service (via U.S. State Department Foreign Press Center)

This report provides an overview of the key issues for Congress related to Egypt and information on U.S. foreign aid to Egypt.

Inside Inequality in the Arab Republic of Egypt : Facts and Perceptions across People, Time, and Space

April 8, 2014 Comments off

Inside Inequality in the Arab Republic of Egypt : Facts and Perceptions across People, Time, and Space
Source: World Bank

This book joins four papers prepared in the framework of the Egypt inequality study financed by the World Bank. The first paper prepared by Sherine Al-Shawarby reviews the studies on inequality in Egypt since the 1950s with the double objective of illustrating the importance attributed to inequality through time and of presenting and compare the main published statistics on inequality. To our knowledge, this is the first time that such a comprehensive review is carried. The second paper prepared by Branko Milanovic turns to the global and spatial dimensions of inequality. The objective here is to put Egypt inequality in the global context and better understand the origin and size of spatial inequalities within Egypt using different forms of measurement across regions and urban and rural areas. The Egyptian society remains deeply divided across space and in terms of welfare and this study unveils some of the hidden features of this inequality. The third paper prepared by Paolo Verme studies facts and perceptions of inequality during the period 2000-2009, the period that preceded the Egyptian revolution. The objective of this part is to provide some initial elements that could explain the apparent mismatch between inequality measured with household surveys and inequality aversion measured by values surveys. No such study has been carried out before in the Middle-East and North-Africa (MENA) region and this seemed a particular important and timely topic to address in the light of the unfolding developments in the Arab region. The fourth paper prepared by Sahar El Tawila, May Gadallah and Enas Ali A. El-Majeed assesses the state of poverty and inequality among the poorest villages of Egypt. The paper attempts to explain the level of inequality in an effort to disentangle those factors that derive from household abilities from those factors that derive from local opportunities. This is the first time that such study is conducted in Egypt. The book should be of interest to any observer of the political and economic evolution of the Arab region in the past few years and to poverty and inequality specialists that wish to have a deeper understanding of the distribution of incomes in Egypt and other countries in the MENA region.

CRS — Egypt: Background and U.S. Relations

January 24, 2014 Comments off

Egypt: Background and U.S. Relations (PDF)
Source: Congressional Research Service (via Federation of American Scientists)

This report provides an overview of the key issues for Congress related to Egypt and information on U.S. foreign aid to Egypt.

The United States has provided significant military and economic assistance to Egypt since the late 1970s. U.S. policy makers have routinely justified aid to Egypt as an investment in regional stability, built primarily on long-running cooperation with the Egyptian military and on sustaining the March 1979 Egyptian-Israeli peace treaty. Successive U.S. Administrations have publicly characterized Egypt’s government as generally influencing developments in the Middle East in line with U.S. interests.

U.S. policy makers are now debating complex questions about the future of U.S.-Egypt relations, and these debates and events in Egypt are shaping consideration of appropriations and authorization legislation in the 113th Congress.

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