ANALYSIS: Egypt's military-economic empire - 0 views
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The roots of the military’s commercial empire go back to the 1980s, when a combination of a peace dividend after Egypt’s 1979 peace treaty with Israel and a fiscal crisis led the country to pare back its defence budget. Defence spending as a proportion of GDP fell from 6.5 percent in 1988 to 1.8 percent in 2012, according to World Bank indicators. The armed forces had to find new sources of revenue.
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forced labour, in the form of conscripts, is almost certainly used in army-run factories. Quite apart from the ethical ramifications of this, it allows the military to undercut its competitors, since conscripts don’t have to be paid full wages
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Businesses controlled by the military are widely dispersed. Some may come under a number of umbrella organisations, including the Arab Organisation for Industrialisation, the National Services Projects Organisation (NSPO) and the Ministry of Military Production. In addition, the EAF holds majority or minority stakes in many other semi-public or private companies, especially in the fields of infrastructure and subcontracting. EAF influence also extends to “sensitive” but nominally civilian infrastructure. Senior positions at a number of airports have for some years been reserved for retired army officers, as a sort of unofficial “pension programme.”
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