Egypt’s Military and the Economy

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  • “This Land is their Land” : Egypt’s Military and the Economy
    http://www.jadaliyya.com/pages/index/23671/%E2%80%9Cthis-land-is-their-land%E2%80%9D_egypt%E2%80%99s-military-and-th

    Cet article extrêmement documenté est remarquable sur la réalité et la nature du pouvoir économique et politique des militaires en Egypte
    @alaingresh

    contrary to popular thinking, the army’s share in Egypt’s Gross Domestic Product (GDP) is relatively small. Though limited, hard data shows that it is present in many sectors but does not occupy a commanding position in any, and indeed has no presence in a range of crucial economic sectors. There is little empirical evidence that the private sector has been crowded out by the military at all, with the possible exception of government contracts for new mega-projects in the post-June 2013 period.

    The Egyptian military’s economic model is based on rent extraction. Through its broad legal and effective control of public assets, namely public lands that constitute around 94 per cent of Egypt’s total surface area, the military translates its regulatory mandate into an economic return. The military also wields considerable, if less formal influence through the large number of former officers who hold high level posts in the civil service, particularly in public land management. Public land is crucial for economic growth and for the development of essential sectors, including urban development, manufacturing, tourism, and agriculture—which, together, constitute the bulk of Egypt’s economy. More than any other factor, the chokehold on land use is costly for the economy. The complexity and opacity of the regulatory environment affecting access to it moreover adds to the inefficiency of the private sector. This results in significant opportunity costs for potential growth and urban expansion—in an overcrowded country that needs to expand settlement into the vast tracts of desert land to the east and west of the densely populated Nile Valley.