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Home/ Middle East/North Africa Uprising 2011/ Contents contributed and discussions participated by Arabica Robusta

Contents contributed and discussions participated by Arabica Robusta

Arabica Robusta

Samir Amin, "The Electoral Victory of Political Islam in Egypt" - 0 views

  • They support a form of "lumpen development" -- to use the term originally coined by André Gunder Frank -- that imprisons the societies concerned in a spiral of pauperization and exclusion, which in turn reinforces the stranglehold of reactionary political Islam on society.
  • A strong, upright Egypt would mean the end of the triple hegemony of the Gulf (submission to the discourse of Islamization of society), the United States (a vassalized and pauperized Egypt remains under its direct influence), and Israel (a powerless Egypt does not intervene in Palestine).
  • The planned failure of the "Egyptian revolution" would thus guarantee the continuation of the system that has been in place since Sadat, founded on the alliance of the army high command and political Islam.  Admittedly, on the strength of its electoral victory the Brotherhood is now able to demand more power than it has thus far been granted by the military.  However, revising the distribution of the benefits of this alliance in favor of the Brotherhood may prove difficult.
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  • At the end of protracted negotiations it was agreed that Morsi was the "winner" of the second round.  The assembly, like the president, was elected thanks to a massive distribution of parcels (of meat, oil, and sugar) to those who voted for the Islamists.
  • We will see how the revolutionary movement, which is still firmly committed to the fight for democracy, social progress, and national independence, will carry on after this electoral charade.
  • And the Muslim Brotherhood is very well placed to take advantage of this decline and perpetuate its reproduction.  Their simplistic ideology confers legitimacy on a miserable market/bazaar economy that is completely antithetical to the requirements of any development worthy of the name.  The fabulous financial means provided to the Muslim Brotherhood (by the Gulf states) allows them to translate this ideology into efficient action: financial aid to the informal economy, charitable services (medical dispensaries etc.).
Arabica Robusta

Pambazuka - Egypt's working class and the question of organisation - 0 views

  • The above mentioned example does not mean that I am necessarily praising the politics of the TUC or the Labour Party. What I am trying to highlight is the existence of a machine or a structure that can mobilise the working class, articulate their demands, and claim their representation.
  • Despite the presence of leftists in the leadership board of the federation, the political discourse followed by the leadership has been one of economism, separating the economic from the political in propaganda and agitation, which in effect is only hindering the maturity of the labour movement in terms of articulating a political programme.
Arabica Robusta

After Egypt's Presidential Elections, Can We Expect Changes in Energy Policies? - 0 views

  • On the plus side, Egypt not only has the largest population in the Middle East, but is one of the Arab world's most diversified economies with oil and natural gas reserves, world-class tourist attractions and a strategic trading location between Europe, the Middle East and Africa, which explains why no major investors have left Egypt since Mubarak’s ouster. The new administration could improve Egypt's economic prospects should it prove to be less corrupt than Mubarak’s.
  • ENI, which has been operating in Egypt since 1954 through its subsidiary International Egyptian Oil Company (IEOC), owns a 56 per cent working interest in the Meleiha Concession, with Russia's Lukoil holding a 24 percent stake and Japan's Mitsui owning 20 percent. In Egypt's Western Desert ENI already produces about 36,000 bpd in five different development licenses.And, unlike Egypt’s eastern neighbour Saudi Arabia, which has been nervous about the implications of the Egyptian revolution, Qatar, which was always more enthusiastic about Egypt's political changes, is focusing more on private-sector investment there, most notably when earlier his month, Qatar Petroleum engaged in “serious” talks about investing in an Egyptian oil-refinery project.
Arabica Robusta

Arab Spring: flowers faded, harvest to come | openDemocracy - 0 views

  • In a way counterrevolution started already mid-March 2011 when Saudi and Emirati troops invaded Bahrain to put an end to the movement. Precisely at the same moment NATO forces struck Gaddafi. Cracking down on the uprising in Bahrain, while supporting Benghazi ?
  • It was an Arab movement in the sense that it happened from the Atlantic Ocean to the Persian-Arabian Gulf, which constitutes a cultural and linguistic zone, even if the local dialects are different, a significant number of people have a mother tongue other than Arabic (Tamazight, Kurds…) or do not consider themselves Arabs. A region stretching out from its common destiny.
  • Through the policies of infitâh (economic opening) and the process of privatization, the coherence of the system built post independence has vanished. Neoliberalism has deepened the differences between rich and poor. For the oligarchies, privatization was the opportunity to plunder and control the benefits of oil and other raw materials but also to snaffle the grants of foreign aid. In each country the gap between oligarchy and society has widened. And rage has accumulated.
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  • The Islamists are (provisionally) the great beneficiary of a movement they call “Islamic awakening”. The main Islamist parties have abandoned the revolutionary utopian goal of the Islamic State and progressively transformed into conservative political parties accepting the parliamentarian game. These parties are rooted in urban middle class, professionals, civil servants, etc. the kind of people who aspire to law and order more than to the turmoil of Islamic  revolution.
  • New forms of action developed in the 2000s.
  • The future and the past are still competing.
Arabica Robusta

Egypt's revolution won't end with the presidential election - Mail & Guardian Online - 0 views

  • The apartment blocks on my street in downtown Cairo have accommodated many cycles of Egypt’s political tumult in the past 18 months. A stone’s throw from Tahrir Square, they have been enveloped in teargas, pockmarked by Molotov cocktails, pressed into use as urban barricades by both revolutionaries and pro-Mubarak militias and provided the backdrop for some of the post-Mubarak military generals’ most violent assaults on the citizens they swore to protect.
  • There are a million empirical holes that could be picked in this chronicle – the only results we have so far (from Egyptians voting abroad) put Moussa and Shafiq in fourth and fifth places respectively while the lazy insistence of characterising Aboul Fotouh as an unreconstructed Islamist (and hence automatically anti-Tahrir) bears little relation to the substance of his support on the ground.
  • Two misapprehensions underpin much of the discussion about the revolution.
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  • 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.
Arabica Robusta

Pambazuka - African unity: revisiting the popular uprisings of the North - 0 views

  • Three years ago when Tajudeen Abdul Raheem died in Nairobi, I met one of his many Nairobi-based friends a week later. In jest, he said to me: “Awino, before you die be sure to leave a list of your friends’ names so that we call on them after you die”. It was a tongue in cheek statement but one that epitomized the reality of Taju’s life. He ‘belonged’ to many and even though most of us did not know him very well, his larger than life personality, a connection to his own struggles and an interest in his contributions to the Pan African movement made it seem as though you were comrades from another life time. He had a way of making you feel like you were old friends. You could not but take ownership of him. I am reminded of this conversation today because of the metaphorical similarities it bears with the events that occurred in Egypt and Tunisia specifically. At the height of the ‘Arab Spring’ many African and Pan African commentators were quick to counter the overwhelmingly western media narrative that positioned the uprisings as part of an Arab – Middle Eastern process, disconnected from the histories of democratisation in the rest of Africa. Some needed to take ‘ownership’ of the popular uprisings as Pan African in nature, as inspired by the liberation struggles of the 1960s and 1990s in particular and shaped by the some of our liberation giants – Nkrumah, Cabral, Senghor, Sankara and Lumumba to name a few. In fact, the uprisings presented an opportunity to dismantle the North Africa – Sub Saharan Africa divide. Re-asserting the Pan African slant and situating the ideologies of the Fanons of this world offered an incredible opportunity – we hoped – to transform the uprising discourses and in turn those claimed by the youth in these countries.
  • Despite symbols of democracy such as a seemingly valid constitution, regular cosmetic elections in other parts of the continent, the democratic process was a journey which had effectively been reclaimed by the masses and not left to the political elite.
  • I must underscore that what I speak about here is not the instrumental debate of whether Tunisians, Egyptians and Libyans consider themselves African. By virtue of geography and history they are African without a doubt. In fact, one of the most popular refrains today is the fact that Tunisia gave Africa its name. The more important question for me is whether being African is simply a process of naming or whether it is connected to belonging? If becoming African entails a much a more complex process that is not simply limited to a shared history of colonial oppression, then what do we need to do to differently as those interested in a Pan African agenda beyond invoking semantics?
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  • However, the process of belonging and ownership requires much more than our civil society jamborees. It demands a concerted engagement around some of the central issues that limit real connections. On Africa’s Liberation Day it is to the question of how as citizens we re-assert a new Pan African agenda that we must focus. There are a number of practical realities that we must deal with head on. “Africans moving around Africa with African passports [this distinction is important] are still treated as others. Neither abroad nor at home do we receive first class treatment” (Tajudeen Abdul Raheem)
  • The second reality is the question of language.
Arabica Robusta

Alon Ben-Meir: Egypt Can Rise to the Historical Occasion But It Must Choose Wisely - 0 views

  • To some, the economic gloom might seem to be lifting in Egypt, but they must remember that this "brighter" prospect is mainly due to the $3.2 billion loan the government expects to sign shortly with the International Monetary Fund in the hopes that this will clear the way for other foreign aid. However, foreign aid can only solve immediate and not long-term economic problems and no foreign-aid-dependent country is likely to become prosperous.
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    "Israel is an unmitigated reality and the Egyptian people can benefit greatly from normal relations..." Unquestioning support of Israel's aggressions can only lead to unmitigated disaster.
Arabica Robusta

Pambazuka - How mediator sidetracked the opposition in Senegal - 0 views

  • After his meeting with Obasanjo Macky Sall, whose coalition is a member of the M23, and who had been campaigning vigorously and was seen as a very serious contender for the presidency, declared that he did not discuss (let’s rather say that he did not agree with) any scenario of postponement of the election. He thus rejected both propositions (those of Obasanjo and those made by Alioune Tine). Several other presidential candidates expressed similar views, including Wade’s camp.
Arabica Robusta

Egypt-U.S. Rift Hangs Over IMF Loan Talks as Reserves Plunge - Businessweek - 0 views

  • The government may need to clear other hurdles. Egypt turned down a similar loan arrangement with the IMF in June when the ruling generals said they didn’t want to burden future generations with debt. The erosion of reserves since then has made Egypt’s financial needs more acute. Another change, though, is the election of the first post-Mubarak parliament, which will need to approve an IMF loan agreement.
Arabica Robusta

Pambazuka - African world view on revolutionary ruptures and pace of change in 2012 - 0 views

  • The Tunisian and Egyptian revolutionary processes pointed to the ability of the people to organise, resist and set in motion new political directions. The recursive processes of self-organisation and self-mobilisation along with the new networking tools for political education had placed the initiative in the hands of the progressive forces internationally.
Arabica Robusta

Pambazuka - Egypt: Struggles that fuelled a revolution - 0 views

  • Although world and Egyptian media have been fixated on the symbolic Tahrir Square, little attention has been directed towards places where many Egyptians converging on the square actually live. Bulaq, only a few hundred meters north of Tahrir Square, is one such neighbourhood. The residents of Bulaq represent the essence of why Egyptians erupted in mass protests last year. This is a community that has suffered for nearly forty years at the hands of the Sadat and Mubarak regimes, which aimed to erase the district from Cairo’s map. ‘Bulaq: Among the Ruins of an Unfinished Revolution’ is a short documentary film that shifts the focus from the square and into a community at the heart of the struggle for social justice.
  • The repeal of the Emergency Law and the demand for social justice, including housing rights, have been cornerstones of the Tahrir movement.
  • Nearly sixty percent of Cairo’s residents today live in so-called ‘informal areas.’ These are areas that urbanized without the guidance of a government-approved urban plan. A more accurate description of those areas is ‘improvised urbanism,’ as they continue a long tradition of improvised planning found in Cairo for centuries prior to the city’s relatively brief encounter with formal planning from the mid-nineteenth to the mid-twentieth centuries.
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  • In the 1970s, however, Sadat envisioned the area as a new business district to showcase Egypt’s economic realignment with global capitalism. An aggressive campaign of forced evictions and relocation was commenced. Residents were forced out of their homes and given flats in concrete blocs built on the desert fringes of Cairo. This campaign continued under the Mubarak regime. One of the residents filmed narrates her ordeal when she was evicted in 1982, only to return later.
  • Despite the economic hardships and the deteriorating physical environment, the community is thriving socially. The filmmaker intercuts interviews with scenes of everyday life: a woman smoking outside her home, a butcher cutting meat, a child on a bicycle, and a man who is uncomfortable with the presence of a camera and demands to know what is being filmed.
  • It would have made a stronger case against government policies if the audience had the chance to hear from officials directly how they view the issue of Bulaq. The multinational developers and hotel chains that also benefit from this government policy are also unheard. An interview with the management of the Hilton Hotel overlooking the district, for example, could have been interesting.
  • ‘Those responsible for demolitions have to be tried,’ says one man. ‘In neighborhoods like Bulaq we love each other and work together like one family,’ says a woman. Another man confirms that ‘the owners of this place are the people living here; we own this place.’
Arabica Robusta

Pambazuka - African world view on revolutionary ruptures and pace of change in 2012 - 0 views

  • There is a lot to be learnt from the last capitalist depression during the 1930s when some economists and political leaders believed, that militarism and investment in military capital could resolve the crisis. Indeed, some economists today credit the militarism of the German society with ending the crisis without mention of the huge price paid by humans in the Second World War.
  • Anti-imperialist and progressive forces on the ground in Kenya and even those involved in the political game will have to be strategic in their planning, just as our forces have been strategic in Nigeria. There is a reason why we interred Tajudeen Abdul Raheem in Funtua, in the North of Nigeria. Tajudeen had worked tirelessly against the manipulation of religious differences and we should be publicising the book of the writings of Tajudeen in this revolutionary moment. We must keep his ideas alive as one part of our arsenal.
Arabica Robusta

Pambazuka - On the African awakenings - 0 views

  • because of the depth of the current crisis of capitalism, that duality will become, I believe, ever more polarised in the coming period. In this presentation I want to explore some of the causes and dynamics around what I would describe as a time of African Awakenings.
  • Indeed, I think it would be a mistake to consider the shifting political and social climate in Africa being based on the overt, large-scale uprisings alone. There is growing evidence in a number of countries of social movements re-emerging during the last 10 years, providing a framework through which the disenfranchised have begun to re-assert their own dignity, proclaiming - even if only implicitly - their aspiration to determine their own destiny, their own right to self-determination.
  • The remarkable growth and spread of alternative media such as Pambazuka News is, I would suggest, further testimony of the changing mood on the continent. Ten years ago when we launched Pambazuka News, I was dismissed as a hopeless romantic for naming the website and newsletter 'Pambazuka' meaning, in Kiswahili, the awakening. I believe that the gathering momentum of these awakenings defines the social and political scene on the continent today. We are witnessing not so much an ‘Arab Spring’ as an African Awakening.
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  • 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.’
Arabica Robusta

Transnational Institute | Africa: Chilling the Arab Spring - 0 views

  • If the IMF leadership praised the dictatorship, insisted on austerity and advocated squeezing poor people for more taxes, what business does it have today in giving similar advice to Tunisia, or anywhere in the Middle East and North Africa, or for that matter Europe or anywhere at all? What can we learn about IMF thinking in Tunisia, Egypt and Libya, as well as Palestine?
  • In contrast, there was no IMF conditionality aimed at reforming the dictatorship and halting widespread corruption by Ben Ali and his wife's notorious Trabelsi family, or lessening the two families' extreme level of business concentration, or ending the regime's reliance upon murderous security forces to defend Tunisian crony capitalism, or lowering the hedonism for which Ben Ali had become famous.
  • In addition to expanding Public Private Partnerships (PPPs, a euphemism for services privatization and outsourcing), the IMF named its priorities: "adopting as early as possible a full-fledged VAT, complementing energy subsidy reform with better-targeted transfers to the most needy, and containing the fiscal cost of the pension and health reforms."
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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]
Arabica Robusta

Egypt's 'orderly transition'? International aid and the rush to structural adjustment |... - 0 views

  • Over the past few weeks, the economic direction of the interim Egyptian government has been the object of intense debate in the World Bank, International Monetary Fund (IMF) and European Bank for Reconstruction and Development (EBRD).
  • This article argues, however, that a critique of these financial packages needs to be seen as much more than just a further illustration of Western hypocrisy. 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 mobilisations.
  • Egypt is, in many ways, shaping up as the perfect laboratory of the so-called post-Washington consensus, in which a liberal-sounding "pro-poor" rhetoric – principally linked to the discourse of democratisation – is used to deepen the neoliberal trajectory of the Mubarak era. If successful, the likely outcome of this – particularly in the face of heightened political mobilisation 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. 
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  • 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.
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