Industrial Policy in Egypt 2004-2011

摘要: Globalisation forces all countries to become more competitive by shifting capital and labour new economic sectors. However, while it is widely accepted today that proactive industrial policies are needed for such structural change, there disagreement what extent low middle-income also able design implement without ending up with perverse incentives investors bureaucrats, the creation of rents less allocative efficiency. This discussion paper looks at experience Egypt during President Mubarak’s last years in office. The country a particularly interesting case be studied because back long history very top-down policies, government before revolution, which had been appointed Mubarak 2004, embarked on different, much market friendly course. question thus whether this government, included considerable number big business people, was better promote change thereby competitiveness favouring well-connected groups entrepreneurs expense others. argues Egypt’s policy adopted after 2004 fact interventionist, selective redistributive than earlier ones oriented towards demand, boosted foreign direct investment, exports growth. But growth neither pro-poor nor sustainable; mainly based short-term effects export primary goods rather innovation. improve entrepreneurs’ access finance, simplify tax rates procedures cut away red tape. did not succeed raising technology contents Egyptian exports, firms’ sophistication absorption, level applied research main reason failure men office apparently understand many small medium enterprises face other problems themselves causes these too fundamental relieved just policies. These include significant deficits quality education training Egypt, rule law, transparency fairness administrative judicial procedures, private sector representation availability affordable land production. In addition, missed help overcome failures coordination typically prevent change.