web analytics
March 27, 2015 / 7 Nisan, 5775
At a Glance
InDepth
Sponsored Post


Fixing Egypt’s Economy: No More Military Macaroni

The military has grown so large because of preferential tax treatment, subsidized labor, an extra-legal status, and old-boy networks.
An ad for the Egyptian military-made Queen Macaroni products.

An ad for the Egyptian military-made Queen Macaroni products.

Originally published at Daniel Pipes.

Since July 3, Gen. Abdul-Fattah al-Sisi has made it clear who runs Egypt: he does. He faces two great challenges. One is the Islamist element, spoiling for a fight to take back the power it so recently lost. The other, my focus here, is the economy.

The country once famous as the “breadbasket of the Nile” now imports something like 70 percent of its food. To make matters worse, decreasing income could mean that the money will just not be there – other than gifts from Saudi Arabia and other governments – to fend off starvation. Plus, the prospect looms of severe cuts in the country’s Nile water allotment. What to do?

There is only one choice if Egypt is to break the bonds of poverty: pull the military out of the economy. As detailed by Shana Marshall and Joshua Stacher for MERIP and Nimrod Raphaeli for MEMRI, what’s sometimes known as “Military, Inc.” controls somewhere between 25 and 40 percent of the economy. Its products

range from consumer goods such as laptops, flat-screen televisions, sewing machines, refrigerators, pots and pans, plastic table covers, butane gas bottles, olive oil, and bottled water to medical equipment, tourism, real estate, and gas and energy. The military owns and operates no fewer than nine factories for macaroni.

The military has grown so large because of preferential tax treatment, subsidized labor, an extra-legal status, old-boy networks, and many other privileges. As can be imagined, its enterprises run along socialistic lines and are steeped in nepotism and baroque forms of corruption.

Egypt’s economy can only take off if Sisi has the courage to tell his colleagues that the gig is up, that the armed forces are leaving the macaroni and other businesses so that Egyptians can build a proper economy. I can’t imagine he will do this of his own accord, for officers have become accustomed to the good life, with plenty of money and an abundance of free servants.

Hammering at this message is one of the more important actions that foreign governments can take when meeting with Sisi and the military leadership.

About the Author: Daniel Pipes is a world-renowned Middle East and Islam expert. He is President of the Middle East Forum. His articles appear in many newspapers. He received his A.B. (1971) and Ph.D. (1978) from Harvard University and has taught at Harvard, Pepperdine, the U.S. Naval War College, and the University of Chicago. He is a board member of the U.S. Institute of Peace and other institutions. His website is DanielPipes.org.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “Fixing Egypt’s Economy: No More Military Macaroni”

Comments are closed.

Current Top Story
Prime Minister Binyamin Netanyahu.
Netanyahu to Release Frozen Palestinian Authority Tax Revenue
Latest Indepth Stories
Islamic Relief Worldwide Logo

In November 2014, Islamic Relief Worldwide was classified as a terrorist organization by the United Arab Emirates.

Safran-032715

Too rarely appreciated for its symbolic weight; it can represent freedom and independence.

Erica Pelman is a spiritually-driven woman. She is founder and director of “In Shifra’s Arms” (ISA), an organization that offers aid to pregnant Jewish women of all religious backgrounds practically, financially and emotionally. Its arms are open to any pregnant woman in need whether single, divorced, separated, or from a financially-strapped family. “Presently, we are […]

Gerstenfeld-032715

Many so-called “humanitarian NGOs” frequently abuse Israel by applying false moral equivalencies

Israeli history now has its version of “Dewey Defeats Truman” with headlines from 2 anti-Bibi papers

In God’s plan why was it necessary that Moses be raised by Pharaoh, away from his own family&people?

In their zechus may we all come to appreciate that life is a fleeting gift and resolve to spend every precious moment of it as if it were the last.

In any event, Mr. Netanyahu after the election sought to soften his statement on Palestinian statehood and apologized for what he conceded were remarks that “offended some Israeli citizens and offended members of the Israeli Arab community.”

A worthy idea any way you look at it.

There is something quite distinctive about the biblical approach to time.

The Waqf kept control of the Temple Mount due to Dayan’s “magnanimity in victory” after 6 Day war

The event promotes “1 state” solution (end of Israel as a Jewish State), BDS, lawfare against Israel

I rescued you?! You’re doing me a favor letting me help you!

“Tzedakah tatzil mi-mavet: Charity saves from death”; No death & a tax break? Where do I sign up?

More Articles from Daniel Pipes
Egyptian president Abdel Fattah el-Sisi, former Field Marshal and Minister of Defense

Sisi:”The religious nature of the Middle East creates challenges for the governing authorities.”

The British Library

Daniel Pipes’s websites cannot be accessed through the British Library’s system. Why? Intolerance.

Special Ops used to be about capturing or killing enemies; now it’s about shaping public opinion.

I do not want Barack Obama to pardon Pollard.

As U.S. credibility and stature diminish, the president and his secretaries of state and defense engage in eloquent denial.

BBC: Gaza militants launch missiles at Tel Aviv in 1st rocket attack on Israeli capital since 1991 Gulf War.

In general, the regions these days hosts unchanging, repetitious and dreary news.

Oman will grant Iran a strategic location on a mountain overlooking the whole gulf region.

Printed from: http://www.jewishpress.com/blogs/the-lions-den-daniel-pipes/fixing-egypts-economy-no-more-military-macaroni/2013/07/31/

Scan this QR code to visit this page online: