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Resuming privatization and increasing the role of carefully structured and appropriately priced PPPs should assist fiscal adjustment and mobilize private resources for infrastructure investment.

In that document, IMF staff worried that "managing popular expectations and providing some short-term relief measures will be essential to maintain social cohesion in the short term," and that this would come at a price: "external and fiscal financing gaps of US$9-12 billion... which would need to be filled with exceptional support from Egypt's multilateral and bilateral development partners, particularly given the limited scope for adjustment in the short term."

As Adam Hanieh from London's School of Oriental and African Studies concluded just after the G8 summit and allied Arab states pledged $15 billion to Egypt, The plethora of aid and investment initiatives advanced by the leading powers in recent days represents a conscious attempt to consolidate and reinforce the power of Egypt's dominant class in the face of the ongoing popular mobilizations. They are part of, in other words, a sustained effort to restrain the revolution within the bounds of an "orderly transition" - to borrow the perspicacious phrase that the U.S. government repeatedly used following the ousting of Mubarak.

If successful, the likely outcome of this - particularly in the face of heightened political mobilization and the unfulfilled expectations of the Egyptian people - is a society that at a superficial level takes some limited appearances of the form of liberal democracy but, in actuality, remains a highly authoritarian neoliberal state dominated by an alliance of the military and business elites.[10]

They welcomed Libya's strong macroeconomic performance and the progress on enhancing the role of the private sector and supporting growth in the non-oil economy. The fiscal and external balances remain in substantial surplus and are expected to strengthen further over the medium term, and the outlook for Libya's economy remains favorable (emphasis added).[12]

The fund's mission to Tripoli had somehow omitted to check whether the "ambitious" reform agenda was based on any kind of popular support. Libya is not an isolated case. And the IMF doesn't look good after it gave glowing reviews to many of the countries shaken by popular revolts in recent weeks.[13]

Egypt’s problems stem from the weakness of the private sector and the "rent-seeking" of state officials. The solution is to open Egypt’s markets to the outside world, lift restrictions on investment in key sectors of the economy, liberalise ownership laws, end subsidies to the poor for food and other necessities and increase market competition.

The mechanisms of this conditionality are discussed further below, at this stage, it is simply important to note that there has been an unassailable link established between aid and the fulfillment of neoliberal reforms.

This policy shift, however, does not represent a turn away from the logic of neoliberalism. Rather, it actually serves to reinforce this logic, by tailoring institutions to the needs of the private sector and removing any ability of the state to intervene in the market.

In the case of Egypt, the discourse of institutional reform has allowed neoliberal structural adjustment to be presented not just as a technocratic necessity – but as the actual fulfillment of the demands innervating the uprisings.

his fundamental message has been repeatedly emphasised by US and European spokespeople over the last weeks: this was not a revolt against several decades of neoliberalism – but rather a movement against an intrusive state that had obstructed the pursuit of individual self-interest through the market.

The political demands heard on the streets of Egypt today – to reclaim wealth that was stolen from the people, offer state support and services to the poor, nationalise those industries that were privatised and place restrictions on foreign investment – can be either disregarded or portrayed as "anti-democratic".

Precisely because Egypt’s uprising was one in which the political and economic demands were inseparable and intertwined, this effort to recast the struggle as "pro-market" is, in a very real sense, directly aimed at undercutting and weakening the country’s ongoing mobilisations.

There are two common elements to all the financial support offered to Egypt to date – an extension of loans (i.e. an increase in Egypt’s external debt) and promised investment in so-called public-private partnerships (PPPs).

n other words, contrary to popular belief, more money actually flows from Egypt to Western lenders than vice versa. These figures demonstrate the striking reality of Egypt’s financial relationship with the global economy – Western loans act to extract wealth from Egypt’s poor and redistribute it to the richest banks in North America and Europe.

Of course, the decision to borrow this money and enter into this "debt trap" was not made by Egypt’s poor. The vast majority of this debt is public or publically guaranteed (around 85%), i.e. debt that was taken on by the Mubarak government with the open encouragement of the IFIs. Egypt’s ruling elite – centred around Mubarak and his closest coterie – profited handsomely from these transactions (estimated in the many billions).

It is actually a debt swap – a promise to reduce Egypt’s debt service by $1 billion, provided that money is used in a manner in which the US government approves. This debt swap confirms the relationship of power that is inherent to modern finance.

The US is able to use Egypt’s indebtedness as a means to compel the country to adopt the types of economic policies described above.

Unless these loans are refused and the existing debt repudiated, Egypt will find itself in a cul-de-sac from which there is little chance of escape. Foreign debt is not a neutral form of "aid" but an exploitative social relation established between financial institutions in the global North and countries in the global South.

OPIC’s mandate is to support US business investment in so-called emerging markets; it provides guarantees for loans (particularly in the case of large projects) or direct loans for projects that have a significant proportion of US business involvement and may face political risk.

In the case of Egypt, this is likely to take place primarily through the use of US government funds to establish public-private partnerships (PPPs). A PPP is a means of encouraging the outsourcing of previously state-run utilities and services to private companies. A private company provides a service through a contract with the government – typically, this may include activities such as running hospitals or schools, or building infrastructure such as highways or power plants.

OPIC’s intervention in Egypt has been explicitly tied to the promotion of PPPs. An OPIC press release, for example, that followed soon after Obama’s speech, noted that the $1 billion promised by the US government would be used “to identify Egyptian government owned enterprises investing in public-private partnerships in order to promote growth in mutually agreed-upon sectors of the Egyptian economy.”

Anyone who has any illusions about the goals of the EBRD’s investment in Egypt would do well to read carefully the EBRD 2010 Transition Report. The report presents a detailed assessment of the East European and ex-Soviet republics, measuring their progress on a detailed set of indicators. These indicators are highly revealing: (1) Private sector share of GDP; (2) Large-scale privatisation; (3) Small-scale privatisation; (4) Governance and enterprise restructuring; (5) Price liberalisation; (6) Trade and foreign exchange system; (7) Competition policy; (8) Banking reform and interest rate liberalisation; (9) Securities markets and non-bank financial institutions; (10) Overall infrastructure reform.[5] Only countries that score well on these indicators are eligible for EBRD loans. A research institute that tracks the activity of the EBRD, Bank Watch, noted in 2008 that a country cannot achieve top marks in the EBRD assessment without the implementation of PPPs in the water and road sectors.

Moreover, fully embracing the pro-market ideological discourse discussed above, the Egyptian government promised to relax control over foreign investments through committing “to overcoming the previous shortcomings of excessive government centralisation. In addition, we will build on existing initiatives to achieve a greater level of decentralisation, especially in terms of local planning and financial management”.

As the decades of the Egyptian experience of neoliberalism illustrate all too clearly, these measures will further deepen poverty, precarity and an erosion of living standards for the vast majority. Simultaneously, the financial inflows will help to strengthen and consolidate Egypt’s narrow business and military elites as the only layer of society that stands to gain from further liberalisation of the economy. The expansion of PPPs, for example, will provide enormous opportunities for the largest business groups in the country to take ownership stakes in major infrastructure projects and other privatised service provision. Alongside foreign investors, these groups will gain from the deregulation of labour markets, liberalisation of land and retail activities, and the potential access to export markets in the US and Europe.

These measures also have a regional impact. Their other main beneficiary will be the states of the Gulf Cooperation Council (Saudi Arabia, Kuwait, United Arab Emirates, Bahrain, Qatar and Oman), which are playing a highly visible and complementary role alongside the IFIs. Saudi Arabia has pledged $4 billion to Egypt – exceeding the amounts promised by the US and EBRD.

As with the investments from Western states, these financial flows from the GCC are dependent upon the further liberalisation of Egypt’s economy, most likely through the mechanisms of PPPs. Indeed, Essam Sharaf, Egypt’s interim prime minister, and Samir Radwan, finance minister, have both travelled frequently to the GCC states over recent months with the aim of marketing PPP projects, particularly in water and waste water, roads, education, health care and energy.

In essence, the financial initiatives announced over recent weeks represent an attempt to bind social layers such as these – Egypt’s military and business elites, the ruling families and large conglomerates of the GCC, and so forth – ever more tightly to the Western states. The revolutionary process in Egypt represented an attack against these elements of the Arab world.

The first is that the metric of revolutionary success lies solely in the formal arena of institutional politics and the development of democratic mechanisms within it. The second is that Tahrir, along with the ludicrously titled “Facebook youth” who populated the square in January and February last year, is the only alternative space in which pressure on the formal arena is thrashed out.

And it’s that energy, that those who benefit from the status quo, from western governments to multinational corporations, really fear. Little wonder that there has been a rush by the world’s most powerful entities – from Hilary Clinton and David Cameron to Morgan Chase and General Electric – to simultaneously venerate Tahrir (as long as the demands voiced within it don’t overstep the mark), echo the generals’ calls for “stability” (shutting down broader discourses of dissent in the process) and form links with the largely neoliberal Muslim Brotherhood (whose policies, despite anguished op-eds in Washington think-tank journals, pose little threat to American interests, and indeed offer up many opportunities).

What they’re less keen to acknowledge – because it carries the revolution out of its sheltered borders – are the other trenches that are increasingly being etched at the margins of Egyptian society, dividing those who have reaped pharaonic-esque riches as a result of 20-odd years of “structural adjustment” from those left behind in zones of neoliberal exclusion.

Forget Shafiq’s advertising hoardings – the revolution is everywhere and it is potent.

As the sociologist Asef Bayat has argued, actions that appear to be individualistic strategies for survival and not explicitly political attempts to bring down elites can, in the right circumstances, become unstoppable and interlinked channels of mass rejection, a struggle for real agency in an era of globalised corporate cosmopolitanism that strives to deny it to so many.

On Wednesday, Lagarde said that the IMF is “responding quickly” and sending a technical team in early September. That same day, Prime Minister Hisham Qandi said he would hope for an agreement by the end of the year. If an agreement happens, Egypt would be the 20th African country to be indebted to the IMF, according to 2011 statistics. If the final agreed amount is anywhere near the request, the Egyptian loan would be by far the largest on the continent.

Conventional wisdom - or more accurately, perhaps, corporate media - would suggest that this is happening because the growing middle-class have rising expectations for individual freedom, mobility, money, private health and education, luxury commodities, cars, and so on. It is suggested that what is fuelling the discontent with autocratic regimes is middle-class aspiration for an unfettered market and their frustrations with the regimes that prevent them enjoying these benefits.

Almost without exception, the same set of social and economic policies were implemented under pressure from the IFIs (international financial institutions) across the African continent - the so-called structural adjustment programmes (later rebranded as Poverty Reduction Strategy Programmes), all to ensure that African countries serviced the growing debt. But the agenda of the creditors was also to use the debt ‘crisis’ to open avenues for capital expansion, through extreme privatization and liberalization of African economies.

The net effect was to reduce the state to having a narrowly prescribed role in economic affairs, and precious little authority or resources to devote to the development of social infrastructure, its primary role being to ensure an ‘enabling environment’ for international capital and to police the endless servicing of debt to international finance institutions.[8]

the most serious consequence of these policies was not simply the reversal of the many gains of independence, but the erosion of the ability of citizens to control their own destiny. Self-determination, originally such a powerful motor force for mobilisation in the anti-colonial movement, was gradually suffocated. Economic policies were no longer determined by citizens and their representatives in government, but by technocrats from the international finance institutions and the World Bank, with hefty support provided by the international aid agencies.

And where progressive developments occurred – as in Burkina Faso under Thomas Sankara – assassinations, support for military coups and economic isolation were some of the weapons used to prevent citizens having the audacity to construct alternatives to the crass policies of neoliberalism.

Research by the Tax Justice Network (TJN) estimates that a staggering US$11.5 trillion has been siphoned 'offshore' by wealthy individuals, held in tax havens where they are shielded from contributing to government revenues.

Many criticise SAPs/PRSPs as being the product of bad policy - neoliberal policies that are said to be dogmatic and an expression of 'market fundamentalism'. But, as Prabhat Patnaik has argued recently, the policies that are being insisted upon by the international finance institutions are the result of the structural needs of financialised capitalism in the present era, something that began as early as the 1970s and today dominates all parts of the global economy.

If a country is graded well by credit-rating agencies then that becomes a matter of national pride, no matter how miserable its people are.

But perhaps the most serious dispossession that we face is a political dispossession. Our governments are more accountable today to the international financial institutions, to the corporations who extract wealth without restriction, to the international aid agencies that finance institutions such as the IMF, than to citizens. In this sense, our countries are increasingly becoming more akin to occupied territories than democracies.

The sweeping away of Ben Ali in Tunisia and of Hosni Mubarak in Egypt took the imperial governments, who had been ardently supporting those regimes financially, economically, politically and militarily, completely by surprise. The corporate media sought to present the uprisings as sudden and spontaneous, despite the evidence in both countries that the eventual pouring of people on to the streets was the outcome of years of attempts to organize protests that had been brutally suppressed. Corporate media sought to present the mobilizations as being the product of Twitter and Facebook, obscuring the agency of people and conveniently forgetting that in Egypt the largest mobilization occurred after both the Internet and mobile phone networks had been blocked.

Imperial response to the uprisings has been, in essence, to establish in Tunisia Ben Ali-ism without Ben Ali, and in Egypt, Mubarak-ism without Mubarak.

With the fall of Mubarak, it is hardly surprising that the US has been eager to push for the formation of a government comprising the remaining components of Mubarakism - the military and the Muslim Brotherhood.

If the events in Tunisia and Egypt inspired hope, its twin, despair, is perhaps what is dominant in relation to Libya, Côte d'Ivoire and Somalia.

the current crisis of capitalism is different from the earlier one in that the scale of concentration and centralization of capital is unprecedented, and accompanied by a financialisation of capital also on an unprecedented scale. As one person recently characterized it: General Motors used to produce cars and occasionally speculated; today General Motors speculates on the stock markets, and occasionally produces cars!

In Africa we have seen the devastation of Somalia, the destruction of the natural environment in places such as the Niger Delta, the military interventions in Libya and Côte d'Ivoire, to say nothing of the arming of regimes that ensure the illegal occupation of the territory of Western Sahara. At the same time we see the emergence of social movements seeking to reassert the dignity of our people, the protests and uprisings that have developed over the continent. The outcome of all these events cannot be foreseen. But there are grounds for optimism, I believe.

What this approach ignores is that while citizens may have a chance to vote once every four to five years, finance capital votes every day on the stock markets, voting that has a direct consequence on every aspect of production, and on the price of every day goods, fuel, land prices, and so on.

Secondly, one of the striking features of the current period is the degree to which there is growing recognition across the global South of the commonalities in experience of the dispossessed. Indeed, there is even recognition of those commonalities emerging in the North - viz the recent uprisings in Wisconsin, Spain and Greece. For the first time in many years, there is a potential to create solidarity links with people in struggle based not on charity and pity, but on an understanding of the common cause of our dispossession.

while recognizing that there are many struggles against those who seek to exploit Africa, there are opportunities also to create today the alternatives to profit-driven motives of corporations. For example, African farmers’ organisations are confronting the onslaught of foundations such as the Bill and Melinda Gates Foundation and the Rockefeller Foundation, backed by oligopolies like Monsanto, that are ‘pushing agro-chemical crops using multi-genome patents.

‘You cannot carry out fundamental change without a certain amount of madness. In this case, it comes from nonconformity, the courage to turn your back on the old formulas, the courage to invent the future. It took the madmen of yesterday for us to be able to act with extreme clarity today. I want to be one of those madmen.’