Beyond state and market

State Capacity and Industrial Development: A Comparative Study of Iran and Egypt (1990–2010)

“…The ruling class relied heavily on foreign loans and credits, which have been largely governmental due to the country’s geopolitical importance. Most Western governments were loaning Egypt primarily for political or indirect economic considerations (Adly, 2021, p. 169). While the repayment condition was easier, it gave the creditor governments (Western countries, especially the United States) a strong voice in Egypt’s governance.…”

“…In the early 1990s, the United States government and international financial institutions, namely, the World Bank and IMF, put Egypt and other formally socialist countries under pressure to liberalize their economy, reduce expenditures, and allocate their resources to more productive purposes. They also coupled debt relief with a stand-by agreement with the IMF and long-term involvement of the World Bank in a structural adjustment program that took off in 1990 (Adly, 2021, p. 170).…”

“…Some of the biggest business elites who turned into politicians found their way and formed the first businessman cabinet in the history of Egypt. Under such administration, economic liberalization and privatization gained an unprecedented pace (Adly, 2021, p. 172).…”

“…This, on the one hand, facilitated the military establishment with new sources of revenue, particularly after the ERSAP’s fiscal austerity. On the other, it was regarded as a significant step to increase the country’s industrial capacity (Abul-Magd, 2017, p. 263; Adly, 2021, p. 171; Sayigh, 2019, p. 68).…”