Promoting Economic Liberalization In Egypt: From U.S. Foreign Aid to Trade and Investment
By Bessma Momani in the Middle East Review of International Affairs, Vol. 7. No. 3 (September 2003)
Full article available for download here – Promoting Economic Liberalization in Egypt
Bessma Momani describes how the Mubarak administration was put under pressure by the United States to liberalize their economy in the 1990s. This had come after several years of liberalization in Egypt but was now centered on the opening up of international markets. The pressure from the United States had less to do with the success of the reforms and more to do with Egypt as a strategic ally in the Middle East. For this reason, aid from the U.S. has never stopped and was $2 billion annually in 2003. The article also discusses, in some detail, the complications of starting a Free Trade Agreement between the two nations. It would be interesting to hear a dissuasion from Momani on how these reforms affected the Egyptian economy in later years, and how the relationship has changed since the uprising.