A Study On Egypt’s Industrialization From The Perspective Of Political Economy(1952-2011)

The industrial development of a country is affected by various factors,such as resource endowment,political system,development strategy,and international political economy system.Necessary factors for industrial development include reasonable institutions,wise leaders,diligent workers and entrepreneurs.The development of industrialization from the perspective of political economy considers the model of interaction between state,market,and social interest groups.Political economy interaction models in different periods have shaped different industrialization strategies,social and economic policies,and produced different results in the process of industrialization in Egypt.Industrialization is a complex development process that requires the analysis of state,society and market,as well as economic variables.This study discusses industrialization in Egypt and factors affecting industrialization by analyzing the triangular relationship between state,society and market from the perspective of political economy,focusing on the historical and political role of state in facilitating and hindering industrialization,especially the role of state in dealing with the relationship between international political factors and domestic economic policy choices.On the one hand,it interprets industrial policies,development strategies,political economy interaction patterns under different development models.On the other hand,analyze the interaction pattern between state,interest alliances and market to promote industrialization.Review the historical background of industrialization,analysis the development motives and goals,interpreting the political economy interaction model in development process,practice and achievements under different industrialization development modes.This thesis is composed of six chapters.Chapter one:Introduction.This chapter expounds the significance of studying Egypt’s industrialization from the perspective of Political economy in the context of globalization and the "One Belt One Road" initiative,by sorting out brief comments on domestic and foreign relevant theories and research.The introduction includes this study’s main research objects,methods,framework,and primary innovation.Chapter two:Historical background of the development of modern Egypt’s industrialization.This chapter sorts out Egypt’s early industrialization practice and its achievements from a historical perspective,and analyzes the development and changes of society and class structure caused by economic development.In the 19th century,due to the commercialization of Egyptian economy and the expansion of long-staple cotton cultivation,foreign capital began to penetrate and gradually control Egyptian economy.The West has effectively demonstrated its industrial technological superiority in Egypt through its military power,which is the main reason that the Egyptian rulers first tried to develop industrialization.Egypt’s early industrialization practices had an important impact on the development of modern Egypt’s industry.Chapter three:Motives and goals of promoting modern Egypt’s industrialization.Arab economic nationalism is the internal causes" for promoting Egypt’s industrialization.Land reform successfully destroyed the feudal land system and became the internal driving force for Egypt’s industrialization.External threats and a series of aid policies from major powers constitute the external driving force for the development of industry.Promoting the industrial economy and realizing national independence is the main goal of developing the industrial economy in Egypt.Chapter four:Model of political economy interaction in the process of industrialization.This chapter analyzes configuration of actors that facilitated industrialization arising from the political economy interaction patterns during the Nasser,Sadat and Mubarak periods,in order to assess the interactions between Egypt’s political economy order,alliances of interests and external actors by analyzing formulation of development strategies,political structure of interest alliances,and the industrialization process in these three stages.In terms of the role of state in social and economic sphere,the relationship between state and society has been defined many times since the 1952 revolution based on the dominant political ideology,because the traits and main programs of industrialization are largely influenced by socio-economic and political context,as well as the role and ideology of state in socio-economic context.In Egypt’s modern history,there are three different models of state-society relations:the Arab socialist developmental model between 1952-1970;the rentier economy-statism model between 1970-1980;and the bourgeois-predatory model between 1980-2011.Chapter five:Political economy analysis of industrialization achievements.Using relevant statistical data to analyze the achievements and problems of industrialization,this chapter analyzes the role of state in promoting industrialization,industrial policies and development goals under different development models.The most prominent feature of statism is that state drives economic development as the main producer and investor.During Nasser’s peroid,State’s autonomy plays an important role in promoting industrialization.Egypt showed a developmental state which promoted industrial economy.During Sadat’s period,State changed from relative autonomy to external dependence,and shift from a public sector-led industrial development model to a non-productive development model based on private and foreign investment.The economic reform and structural adjustment program implemented by Mubarak transformed Egypt from statism characterized by promoting economic development and social welfare to a post-statism political economydevelopment system.The post-statism system has largely withdrawn from the ownership of industrial and commercial enterprises and the provision of other social services,and has gradually moved towards the trend of de-industrialization.Chapter six:Conclusion.This chapter summarizes the process of Egypt’s industrialization,the role of state in promoting industrialization,and analyzes the experience and lessons from industrialization.Judging from the several stages of industrial development that Egypt has gone through,the ever-changing international political economy system plays an important role in development strategy that Egypt has adopted.During relatively successful periods,State played a central role in structuring economic development and social relations.In general,State uses its autonomy and intervention in the economy to play a leading role in distribution of income among different classes.During Nasser’s period,Egypt’s nationalism policies changed the distribution of income in the country and benefited the majority of the population.Since the open-door policy,State has chosen to support private sector and foreign investment,but at the expense of the majority of population.This reflects changes in the relationship between state and society.Ultimately,State has chosen to side with wealthy interests since 1991 at the expense of the majority of Egyptians.Although the nature of state class and the coalition of social support continue to change,the Clientelist State established by Nasser and led by Sadat and Mubarak has continued.Egypt’s Clientelist State is also an important feature of rentier state.Rent income leads state to neglect economic development.The mobilization of external resources and aids has become an inherent feature of the political economy system established by Nasser and continue by Sadat and Mubarak,which preventing Egypt from developing dependency.