Preparation

Topics: International trade, European Union, Free trade Pages: 48 (15550 words) Published: August 25, 2013
OECD DEVELOPMENT CENTRE
Working Paper No. 129
(Formerly Technical Paper No. 129)

ECONOMIC REFORM IN EGYPT IN A CHANGING GLOBAL ECONOMY
by

Joseph Licari
Research programme on: Strengthening Links between Developing Countries: Regional Co-operation and Integration

December 1997 OCDE/GD(97)226

TABLE OF CONTENTS

ACKNOWLEDGEMENTS ........................................................................ 6 RÉSUMÉ ................................................................................................. 7 SUMMARY .............................................................................................. 7 PREFACE ................................................................................................ 9 I. RECENT DEVELOPMENTS IN THE EGYPTIAN ECONOMY ............. 11 II. EGYPT AND THE EUROPEAN UNION .............................................. 23 III. POLICY REFORM AND POLITICAL CONSTRAINT .......................... 33 IV. CONCLUSIONS ................................................................................. 45 NOTES .................................................................................................... 47 APPENDIX A. EGYPT’S FOREIGN TRADE, 1970-94 ............................ 49 APPENDIX B. COMPOSITION OF EGYPT’S EXPORTS TO THE EUROPEAN UNION .................................................................. 50 APPENDIX C. COMPOSITION OF EGYPT’S IMPORTS FROM THE EUROPEAN UNION ............................................................ 51 REFERENCES ........................................................................................ 53

5

ACKNOWLEDGEMENTS

The author, Associate Professor of Economics at the University of ParisSorbonne (Paris IV) and former Ambassador of Malta, is grateful to Ulrich Hiemenz and Kiichiro Fukasaku for helpful comments, and to Vincent Malaizé who lent support in collecting data and bibliographical material.

6

RÉSUMÉ
L’Égypte, pays le plus ancien et le plus peuplé du monde arabe — l’un des plus influents dans la région du Sud de la Méditerranée — entre aujourd’hui dans l’économie mondiale. Au cours des années 90, ce pays a adopté avec succès des politiques de stabilisation macro-économique et engagé les programmes de réforme structurelle nécessaires pour entrer sur le chemin d’une croissance forte, tirée par les exportations. La principale contrainte reste d’introduire les changements à un rythme qui ne mette pas en danger la stabilité politique. Ce document examine les résultats des accords de l’Uruguay Round du point de vue de l’économie égyptienne ; il étudie également les relations économiques tissées avec l’Union européenne dans le cadre de l’Initiative de partenariat Europe-Méditerranée et identifie les principaux défis de politique intérieure. Il en ressort que l’Union européenne pourrait offrir à l’Égypte une aide technologique accrue et s’ouvrir à ses produits agricoles. L’Égypte pourrait de son côté libéraliser plus avant son régime commercial, y compris dans le secteur des services, et simplifier les formalités administratives qui freinent les échanges. L’Égypte pourrait également accroître l’ouverture de son économie à la concurrence étrangère et intérieure et envisager une baisse multilatérale des taxes douanières.

SUMMARY
Egypt, the oldest and most populous country in the Arab world, and one of its most influential in the Southern Mediterranean region, is now moving into the global economy. During the 1990s the country has pursued successful macroeconomic stabilisation policies and has also begun the structural reform programmes needed to put the country onto an export-led, high-growth path. The main constraint for this is the need to introduce change at a pace which will not undermine political stability. This paper reviews the results of the Uruguay Round Trade Agreements from the perspective of the Egyptian economy, examines the country’s economic relationships with the European Union in the context of...

References: ALONSO-GAMO, P., S. FENNELL and K. SAKR (1997), Adjusting to new realities: MENA, the Uruguay Round and the EU-Mediterranean Initiative, Working Paper of the IMF. CENTRE FRANÇAIS
POUR LE COMMERCE EXTÉRIEUR
(CFCE) (1997), Égypte: un marché, Paris.
COCHRANE, S.H. and E.E. MASSIAH, Egypt: Recent Changes in Population Growth, their Causes and Consequences, HCO Working Paper 49. DADUSH, U. and M. RIORDAN (1996), The Maghreb Countries and the European Union’s Mediterranean Initiative: A Background Note, World Bank, Washington, D.C. ECONOMIST INTELLIGENCE UNIT, Egypt, Annual country profiles and Quarterly country reports, London. FINANCIAL TIMES (THE) (1997), Survey: Egypt, 13 May, London. FONTAGNÉ, L. and N. PÉRIDY (1997), The European Union and the Maghreb: Towards a New Partnership, OECD Development Centre Studies, Paris. GALAL, A. and B. HOEKMAN (eds.) (1997), Regional Partners in Global Markets: Limits and Possibilities of the Euro-Med Agreements, London and Cairo. GATT (1993), Trade Policy Review, Arab Republic of Egypt, 1992, Geneva. HAVRYLYSHYN, O. and P. KUNZEL (1997), Intra-industry trade of Arab countries: an indicator of potential competitiveness, Working Paper of the IMF, Washington, D.C. HOEKMAN, B. and A. SUBRAMANIAN (1996), Egypt and the Uruguay Round, World Bank and IMF, Washington, D.C. MAJD, N. (1996), Egypt’s Free Trade Agreement with the EU, World Bank, Washington, D.C. NIBLOCK, T. and E. MURPHY (1993), Economic and Political Liberalisation in the Middle East, British Academic Press, London. PETRI, P. (1997a), Trade Strategies for the Southern Mediterranean, Technical Paper No. 127, OECD Development Centre, Paris. PETRI, P. (1997b), The Case of Missing Foreign Investment in the Southern Mediterranean, Technical Paper No. 128, OECD Development Centre, Paris. POMFRET, R. (1986), The Mediterranean Policy of the European Community, London. SAFADI, R. and S. LAIRD, The Uruguay Round Agreements: Impact on Developing Countries, World Development, Vol. 24, No. 7. SHIELLS, C.R., A. SUBRAMANIAN and P. UIMONEN (1996), Effects of the Uruguay Round on Egypt and Morocco, Working Paper of the IMF, Washington, D.C. SOCIAL FUND FOR DEVELOPMENT (1997), Annual Report 1996, Government of Egypt, Cairo.
53
WEISS, D.W. and U.G. WURZEL (forthcoming), The Economics and Politics of Transition to an Open Market Economy: The Case of Egypt, OECD Development Centre Studies, Paris. WINTERS, L.A. (1996), The European Union’s Mediterranean Agreements: a Comparative Analysis and Assessment, World Bank,Washington, D.C. WORLD BANK (1997), Arab Republic of Egypt, Country Economic Memorandum, Vol. I-IV, 15 March, Washington, D.C.
54
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Nestle: Coffee Preparation and National Brands Essay
  • preparation Essay
  • Preparation Essay
  • Essay on Preparation of Cyclohexanol
  • JAM preparation Essay
  • Essay on Educational Preparation
  • Educational Preparation Essay
  • Preparation for an Interview Essay

Become a StudyMode Member

Sign Up - It's Free