Source: The Tahrir Institute for Middle East Policy
Author(s): Timothy E. Kaldas
Once again, Egypt has received financing from the IMF, and once again the IMF has pledged that funding will contribute to a reform program designed to lead to inclusive private sector-led growth. However, due to the evolving sophistication of the regime’s political economy over the past decade, it’s likely that the IMF’s traditional areas of focus—such as privatization of state-owned enterprises (SOEs) and deficit reduction—will be inadequate to deliver the promised results. Despite nominal privatization, the regime will likely continue to dominate and expand its control over economic growth sectors while ensuring the private sector’s increased dependency in order to capture much of the growth in Egypt’s economy, as private sector companies will continue to regularly depend on subcontracts from and joint ventures with what I will refer to as “regime-owned enterprises” (ROEs).
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