• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

brief history on political economy in egypt

Extracts from this document...


Nihal El Banna 900061813 PolS. 202. Prof. Ninette Fahmy. Assignment 2. 10/15/2007. A Brief History on Political Economy in Egypt Political economy according to Encyclopedia Britannica is a social science concerned with the raising of revenue by the state and the increase of the state's general resources. Political economy has caused both world wars in a sense. Meaning, that Germany's motive to politically dominate Europe's heartland - in both world wars - was economic in nature. Germany needed markets were it can sell its manufactured products, during its era of industrialization, and markets to secure its supply of cheap raw materials. Thus, its political decisions and foreign policies were based on economic desires. While in World war two, Germany's desire to acquire colonies all over the world was also in attempt to boost its economy. Meanwhile, Britain, France and the United States helped Germany prosper until it was able to threaten their security in Europe. These super powers helped Germany because they had political motives which were keeping Eastern Europe guarded by a powerful capitalist country like themselves, against the rising influence of communism in the Soviet Union and their satellites.1 In Egypt, politics has had many important consequences on the Egyptian economy and vice versa. ...read more.


not be able to establish a strong political influence, threatening the republican regime.6 Moreover, if the state controls all resources then they selectively benefit individuals and/or groups who are loyal to the state.7 As a result, via economic means, the state was able to form and guarantee the loyalty of several influential groups and individuals in society. In the following decades, during Sadat era, the condition has changed as the Soviet Union seemed less cooperative with Egypt. Meanwhile, after the October war in 1973, Egypt's relations with the U.S. seemed to improve. For instance, the U.S. was a leading donor of foreign aid to Egypt.8 As a consequence, Egypt had to invest its foreign aid in a way not contradicting with the U.S. benefits in the region, and naturally the Open Doors policy was adopted.9 The Open Doors policy reflects on the decrease on trade embargoes and tariffs in trade especially with Egypt's Middle Eastern partners.10 (Tariffs and other forms on trade restrictions were imposed during Nasser's era). Once more the importance of foreign aid to Egypt's economy plays its role when Arab countries start supplying Egypt with aid after the Gulf war. ...read more.


proper representation nor the finance to pose a real threat on the political system.16 Third, the Egyptian wealthy entrepreneurs were mostly policy makers at the time of Sadat, and they were so much for the Open Doors policy, because this would give them the opportunity to broaden their investments and becoming wealthier in that sense.17 In conclusion, regarding Egypt's political economy status, presently and in the future, it seems that the country's market economy has to undergo a reconstruction phase, through which Egypt could be more competitive in the international market in the era of globalization. The political regime in Egypt has to be aware of the economic benefits returning on society if proper economic legislations are implemented. Hence, the political regime is less likely to be threatened if people are economically satisfied. The Egyptian government has to put into consideration another level of negative consequences if the country does not improve economically. Such negative consequences are on the level of its regional political status. In other words, Egypt leading political role in the Middle Eastern region has diminished during the last two decades. Meanwhile, other Arab countries, such as Saudi Arabia, had become more influential due to their astonishing economic performance. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. The Role of the Informal Sector in the National Economy.

    It can be romanticized as a breeding ground of entrepreneurship, which could flourish, if only it was not encumbered with a network of unnecessary regulation and bureaucracy. It can be condemned as a vast sea of backwardness, poverty and unsanitary conditions.

  2. Chinese economy sets for soft landing in 2005.

    Wednesday's executive meeting of the State Council, China's cabinet, held that the current economic situation is sound in general. The government's macro-economic control measures have gained remarkable achievements. The meeting also pointed out major existing problems, like the excessively large investment scale and the gap between supply and demand of

  1. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    mostly comes from the divergence in the pre-euro period, where correlations among countries increased much more than among sectors or countries&sectors (0.173 versus 0.036 and 0.036), and from the euro period, where the average decrease was less explicit than with the other classes.

  2. Discuss the extent to which the economic theories in the Market's Reader can be ...

    They are considered as one of market failures since most of the times are harmful for consumer health as well as environment e.g. factory pollutions, manufacturers and petrol used cars. Fourth model; Amarya Sen, which draws attention to the conflictive nature of markets rather than their harmonious aspect .

  1. Discuss the extent to which the economic theories in the Market's Reader can be ...

    The economy is in the grip of what Joseph Schumpeter once called "creative destruction". Today we see networks of firms sharing a common workforce and collaborating around some projects while competing vigorously for other market opportunities. In short, we are living in a new economic era quite unlike the more stable and predictable world we once knew.

  2. Overview of Intercontinental Hotels Group

    And normally, the more substitutes available in the market, the more elastic will be in response to a change in price. * Product differentiation: Product differentiation is a characteristic of monopolistic competition. As we mentioned in previous section, InterContinental mainly focuses on product differentiation rather than price differentiation.

  1. Monetary policy of a globalised economy

    Instead the researcher has proceeded on small questions like what is monetary policy? what is an open economy?, what are macroeconomic aspects involved in an open economy? These have been linked to understand the monetary policy in an open economy.

  2. Was the performance of the French economy in the 1930's entirely a question of ...

    devaluation was that France's exports, on which she had so heavily relied in the 1920's to boost her economy, were priced out of the international market, and resulted in, as Charles Rist a economic commentator during the inter war years wrote, 'the gap between the internal and external purchasing power

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work