Analysis of Egypt's economic development

Thèmes abordés

Egypt, Egypte, "économie égyptienne", economy, development, Suez, "histoire économique", Nasser, "Third World", "macro economy", "global economy"

Résumé du document

The purpose of this essay is to understand the origins of Egypt's current economic situation by analyzing its development through the XIXth and the XXth century and try to define the main challenges the country has to face in the next 50 years.

Extraits

[...] Although economic and social changes started in the 1920's, he was the one who tried to put Egypt on the way of an “independent” growth based on industrialization and modernization of agriculture. His ideology was mainly based on the willingness to make Egypt independent of foreign influences and on a certain social care. Therefore he was the father of non alignment and of Egypt's industrial revolution. In terms of geopolitical vision he also defined three major “circles” Arabic, Islamic and African1 - Egypt was involved in. He believed this position was giving the country an “historical mission”1. [...]

[...] IMF Website. [...]

[...] Macroeconomic data: growth and inflation rate in Egypt since 1980 GDP, constant prices, in % Inflation, in Source: IMF online database EGYPT'S CHANCE: STABLE INCOME SOURCES ON MID AND LONG TERM Egypt's national pride and ambitions lead to policies the country was not “meant play, because it lacked of resources to fulfill its goals. Examples are the huge industrial development plan in the XIXth century, the non alignment policy, the Aswan dam, etc. The ambitious goals were often not achieved because of a too important dependence on foreign countries in terms of technology or finance. One can even argue they lead to huge resources mess, but important assets remain of these projects as the Suez Canal, the Aswan dam or the chemical and textile industrial network. [...]

[...] This was made possible by the rivalry between the two blocks, who both wanted Egypt on their side: if US influence was considered too invasive, Egypt could easily change for the Soviets and vice versa. Every switch was the occasion of bargaining economic and military help and it helped to pursue Egypt's development. The limit of this policy was the impossibility of getting rid of any influence and the economy remained “neo-colonial”. Technology transfer were for example limited. Major gains: Aswan dam, Infrastructures, new industries (chemicals, automotive). [...]

[...] French-British control administration. Egypt is occupied by British troops Nasser's revolution Nationalization of the Suez Canal Securing the sea road to India was one Great Britain first strategic goals from 1870 to the end of the Second World War. This strategic importance explains the settlements in Gibraltar, Malta, Cyprus, Egypt and Oman Non alignment was an ideology developed by Third world charismatic leaders as Nasser, Nehru and Tito. They wanted to avoid the involvement in the cold war and tried to create a “Third block” focused on development Understanding the main economic trends EGYPT - Main Figures Population Population Working pop Fertility ratio Pop under 14 Economy 2009 GDP Exports 2008 Imports 2008 Agriculture Industry Services Development Unemployement Urban pop (2003) % under poverty line IDH Literacy rate Education rate 80 millions 25 millions 3.05 ch/women 33% A CONSTANT BUT STILL UNSTABLE GROWTH Egypt is a paradox. [...]