One reason Egypt’s political development was frozen for so long is the lasting influence of Gamal Abdel Nasser (president 1956 – 1970), who allied the country with the Soviet Union and imposed a policy of economic nationalism and statism, and created huge loss-producing state enterprises and a bloated bureaucracy. Other reasons are Egypt’s geography, geology, economy, history, and geopolitical position, each of which has stifled the generation of an open political and economic system and strengthened the country’s static and authoritarian political system by providing revenue directly to the rulers, without requiring the consent of a productive population. Since the rulers don’t rely mainly on taxes, they have little reason to promote good governance or to be accountable to the people. ...
Plutocratic Land of the Pharaohs
In short, the Land of the Pharaohs is a dual society, with a thin layer of powerful and wealthy people whose wealth has largely derived from rents from the state, ruling over a mass of impoverished people. The poorly managed “privatizations,” undertaken in a climate of pervasive corruption and hostile business climate have done little to address the country’s intolerable inequalities. Moreover, the country faces a total public debt that is above the 100 percent of GDP and public finances are taking a nose dive, resulting in delays in payment of wages to public servants, traditionally a strong base of support for such rent-seeking states. The pressure has been building for years, and the example of Tunisia accelerated the process, resulting in an explosion of anger and rage....
...The roots of the revolt have been growing for years. It will take some time before we see what will grow from those roots: a pluralistic democracy, a renewed and even more tyrannical military state, or an intolerant Islamist tyranny.
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