News / Middle East

    Transforming Egypt's Economy, Military Daunt Morsi

    Waleed Ahmed el-Sayed, 31, who received a BA in social services from Assyiut University in 2004, sells juice in Cairo'sTahrir square, May 4, 2012.
    Waleed Ahmed el-Sayed, 31, who received a BA in social services from Assyiut University in 2004, sells juice in Cairo'sTahrir square, May 4, 2012.
    Elizabeth Arrott
    CAIRO – Two of the biggest challenges facing Egyptian President Mohamed Morsi are improving the economy and countering the entrenched interests of the nation's military. The two are deeply entwined.

    Morsi is under pressure to move quickly to create some tangible improvement in the daily lives of his fellow Egyptians, who are suffering from high unemployment, rising prices and shortages in basic commodities.

    Economists have been encouraged by the economic platform pushed by Morsi, based on the Muslim Brotherhood's Renaissance Project.

    "They clearly subscribe to a free market economy and they clearly appreciate private ownership," said Magda Kandi, executive director of the Egyptian Center for Economic Studies. "But they would like to complement this with the kind of rules and regulations that would streamline the operations, so we would not be running into problems similar to what we had before the revolution when the fruits of the growth were not well distributed."

    As uneven as the distribution of wealth was under the old government, the interim period of military rule may have been even worse. Uncertainty and unrest kept both foreign tourists and investment at bay, hurting millions who relied on related industries.

    "We actually suffered under the military rule because of lack of stability, we were hoping that under a military regime, in the transitional period, that stability would be better enforced, and security would be better enforced such that the economy would do better than what we did," said economist Kandil.

    The election of Morsi boosted Egypt's economic prospects, with the stock market rising on news of his victory and the prospect that, for now, protests will subside.

    But tensions remain between the elected government and the military, which has claimed for itself considerable new powers including oversight of defense and the budget.

    Those two powers go to the heart of the military's concerns. Estimates vary on the extent of the military's economic enterprises, which range from mining to microwaves, pavement to pasta. There are no official figures, but former diplomat and presidential candidate Abdullah al-Ashaal puts it as high as 40 percent of the Egyptian economy.

    "This economic institution inside the army is making the army another state within the state itself. So we have virtual state which is called Egypt, we have a real state that is called army. So this cancer has to be removed. Otherwise I don't think any democracy can be established," said al-Ashaal.

    This backbone of the economy may not be as bad as some would make it out. Economist Kandil says that over the decades, the military has proved itself efficient in terms of meeting deadlines, effective management, and affordable prices for ordinary Egyptians. But as the nation moves forward, some people are questioning this decades-long arrangement.

    "They are concerned about the implications of this share, the large share owned by the military, and if the military is to be squeezed out of the political process, which one would expect in a democratic environment, what are the implications for their shares in the economy and whether they would be willing to yield to the democratic process," said Kandil.

    From the actions of the military so far in this transition, it would seem Egypt is destined to remain a mixed economy for some time.

    You May Like

    Republicans Struggle With Reality of Trump Nomination

    Despite calls for unity by presumptive presidential nominee, analysts see inevitable fragmentation of party ahead of November election and beyond

    Nielsen's, Sina Weibo Team Up for Closer Look at Chinese Social Media

    US-based rating agency reaches deal with China's Twitter-like service to gauge marketing effectiveness on platform which has more than 200 million users

    Despite Cease-fire, Myanmar Landmine Scourge Goes Unaddressed

    Myanmar has third-highest mine casualty rate in the world, according to Landmine and Cluster Munition Monitor, which says between 1999 to 2014 it recorded 3,745 casualties, 396 of whom died

    This forum has been closed.
    Comment Sorting
    Comments
         
    by: Godwin from: Nigeria
    July 03, 2012 3:22 PM
    The army is only afraid of what is going to happen soon under the Muslim Brotherhood to Egypt - that is all the reluctance to leave, otherwise every army knows what role it should play in a democracy. It was the premonition of Morsi's victory that made the army swing into action. Egypt dese3rves to be saved, and the army is ready to do it. If there is anything Egypt needs so urgently, it is to be saved from the stupidity of the Arab Spring and the Muslim Brotherhood.

    by: Anonymous
    July 02, 2012 11:07 PM
    Multi-dimensional uncertainties can be minimized only by a compromise between President Morsi and the SCAF on certain basic issues: President Morsi should accept the dissolution of the recently elected Parliament / Peple's Assembly / National Assembly. The SCAF should accept the authority of the president (and his appointed Prime Minister) to appoint (and dismiss) ALL ministers including those for Defense, Foreign Affairs, Interior and Information. The President and the SCAF should agree to hold elections -- within a month or two -- for a single-house Parliament -cum-Constituent Assembly charged with making the the Constitution within a year for the 21st Century Egypt.

    Hopefully, a new political party preferably under the leadership of Dr. ElBaradei will emerge and participate in the elections for the new Parliament -cum- Constituent Assembly with a clear promise and commitment during the election campaign that it will propose a Constitution unambiguously based on the principle of separation of religion from the management of common educational, political, civic, State and international affairs. Given the growing maturity of Egyptian voters, it is very likely that such a party will win a significant majority of seats of the Parliament-cum-Constituent Assembly.

    by: Anonymous
    July 02, 2012 4:53 PM
    Morsi's biggest challenge is turning the country into a democracy, but apparently people are forgetting that. His goal should be to give up some power, not to assert it.

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Press Freedom in Myanmar Fragile, Limitedi
    X
    Katie Arnold
    May 04, 2016 12:31 PM
    As Myanmar begins a new era with a democratically elected government, many issues of the past confront the new leadership. Among them is press freedom in a country where journalists have been routinely harassed or jailed.
    Video

    Video Press Freedom in Myanmar Fragile, Limited

    As Myanmar begins a new era with a democratically elected government, many issues of the past confront the new leadership. Among them is press freedom in a country where journalists have been routinely harassed or jailed.
    Video

    Video Taliban Threats Force Messi Fan to Leave Afghanistan

    A young Afghan boy, who recently received autographed shirts and a football from his soccer hero Lionel Messi, has fled his country due to safety concerns. He and his family are now taking refuge in neighboring Pakistan. VOA's Ayaz Gul reports from Islamabad.
    Video

    Video Major Rubbish Burning Experiment Captures Destructive Greenhouse Gases

    The world’s first test to capture environmentally harmful carbon dioxide gases from the fumes of burning rubbish took place recently in Oslo, Norway. The successful experiment at the city's main incinerator plant, showcased a method for capturing most of the carbon dioxide. VOA’s Deborah Block has more.
    Video

    Video EU Visa Block Threatens To Derail EU-Turkey Migrant Deal

    Turkish citizens could soon benefit from visa-free travel to Europe as part of the recent deal between the EU and Ankara to stem the flow of refugees. In return, Turkey has pledged to keep the migrants on Turkish soil and crack down on those who are smuggling them. Brussels is set to publish its latest progress report Wednesday — but as Henry Ridgwell reports from London, many EU lawmakers are threatening to veto the deal over human rights concerns.
    Video

    Video Tensions Rising Ahead of South China Sea Ruling

    As the Philippines awaits an international arbitration ruling on a challenge to China's claims to nearly all of the South China Sea, it is already becoming clear that regardless of which way the decision goes, the dispute is intensifying. VOA’s Bill Ide has more from Beijing.
    Video

    Video Painting Captures President Lincoln Assassination Aftermath

    A newly restored painting captures the moments following President Abraham Lincoln’s assassination in 1865. It was recently unveiled at Ford’s Theatre in Washington, where America’s 16th president was shot. It is the only known painting by an eyewitness that captures the horror of that fateful night. VOA’s Julie Taboh tells us more about the painting and what it took to restore it to its original condition.
    Video

    Video Elephant Summit Results in $5M in Pledges, Presidential Support

    Attended and supported by three African presidents, a three-day anti-poaching summit has concluded in Kenya, resulting in $5 million in pledges and a united message to the world that elephants are worth more alive than dead. The summit culminated at the Nairobi National Park with the largest ivory burn in history. VOA’s Jill Craig attended the summit and has this report about the outcomes.
    Video

    Video Displaced By War, Syrian Artist Finds Inspiration Abroad

    Saudi-born Syrian painter Mohammad Zaza is among the millions who fled their home for an uncertain future after Syria's civil war broke out. Since fleeing Syria, Zaza has lived in Lebanon, Egypt, Jordan and now Turkey where his latest exhibition, “Earth is Blue like an Orange,” opened in Istanbul. He spoke with VOA about how being displaced by the Syrian civil war has affected the country's artists.
    Video

    Video Ethiopia’s Drought Takes Toll on Children

    Ethiopia is dealing with its worst drought in decades, thanks to El Nino weather patterns. An estimated 10 million people urgently need food aid. Six million of them are children, whose development may be compromised without sufficient help, Marthe van der Wolf reports for VOA from the Metahara district.
    Video

    Video Little Havana - a Slice of Cuban Culture in Florida

    Hispanic culture permeates everything in Miami’s Little Havana area: elderly men playing dominoes as they discuss politics, cigar rollers deep at work, or Cuban exiles talking with presidential candidates at a Cuban coffee window. With the recent rapprochement between Cuba and United States, one can only expect stronger ties between South Florida and Cuba.
    Video

    Video California Republicans Weigh Presidential Choices Amid Protests

    Republican presidential candidates have been wooing local party leaders in California, a state that could be decisive in selecting the party's nominee for U.S. president. VOA's Mike O’Sullivan reports delegates to the California party convention have been evaluating choices, while front-runner Donald Trump drew hundreds of raucous protesters Friday.
    Video

    Video ‘The Lights of Africa’ - Through the Eyes of 54 Artists

    An exhibition bringing together the work of 54 African artists, one from each country, is touring the continent after debuting at COP21 in Paris. Called "Lumières d'Afrique," the show centers on access to electricity and, more figuratively, ideas that enlighten. Emilie Iob reports from Abidjan, the exhibition's first stop.

    Special Report

    Adrift The Invisible African Diaspora