Chapter

Do Governments Pick Winners or Losers? an Assessment of Industrial Policy in Egypt

Ahmed Galal

in Industrial Policy in the Middle East and North Africa

Published by American University in Cairo Press

Published in print April 2008 | ISBN: 9789774160509
Published online September 2011 | e-ISBN: 9781617970290 | DOI: http://dx.doi.org/10.5743/cairo/9789774160509.003.0002
Do Governments Pick Winners or Losers? an Assessment of Industrial Policy in Egypt

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Shortage of products in the global markets and the drive for rapid diversification and industrialization led Egypt to erect high trade barriers to protect domestic industries and provide support to large national projects. Markets played a modest role in resource allocations and planning was the name of the game for almost a decade and a half. Egypt opted for a partial liberalization of the economy under the name of infitah or “open door policy” in the mid-1970s. Partial liberalization ironically amounted to increased selective intervention as segments of the economy were liberalized while others were left unaffected. Egypt embarked on a program that involved price and trade liberalization, privatization, a reduction of subsidies and taxes, and deregulation.

Keywords: diversification; partial liberalization; resource allocations; subsidies; deregulation

Chapter.  7698 words.  Illustrated.

Subjects: International Relations

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