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41. Financing Loss and Damage at Scale: Toward a Mosaic Approach

Author:
Michael Franczak
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
The historic decision on loss and damage (L&D) at the 2022 UN Climate Change Conference (COP27) calls for a new fund and funding arrangements focused on addressing L&D. It also tasks a Transitional Committee to prepare recommendations on the new fund and funding arrangements for adoption at the 2023 UN Climate Change Conference (COP28) in Dubai. This decision reflects a recognition that existing funding arrangements are grossly inadequate to address the escalating scale of L&D. Addressing L&D will require both enhancing these existing arrangements and creating a new fund and funding arrangements, forming a mosaic of solutions across countries, institutions, and markets. This paper aims to aid the Transitional Committee and other stakeholders by providing an initial sketch of that mosaic. First, it examines existing arrangements, modalities, and sources of funding for addressing L&D from UN humanitarian agencies, multilateral development banks and international financial institutions, and insurance and bond markets. Second, it proposes reforms to existing arrangements that would address key finance gaps and bottlenecks. Third, it identifies elements of a new L&D fund that would complement existing arrangements and make use of innovative finance (including levies and bond issuances) to operate at scale. With roughly six months left until COP28, the Transitional Committee will need to work efficiently to achieve its mandate, which includes determining the fund’s institutional arrangements, modalities, structure, governance, sources of funding, and coordination and complementarity with existing funding arrangements. To this end, the paper recommends that it should: Begin securing financing before COP28, particularly innovative financing, which takes longer to secure than traditional donor contributions; Consult with the private sector to determine its role, including in the use of insurance mechanisms and risk pools, frontloading, and connections between L&D and jobs; Determine the form and role of triggers, including for slow-onset events; Consider how to address noneconomic losses, including displacement and forced migration; and Identify the actions, mechanisms, and institutions required to operationalize the fund, including an internal or external coordination mechanism.
Topic:
Climate Change, Development, United Nations, and Finance
Political Geography:
Global Focus

42. Global Inequality in Well‐​Being Has Decreased across Many Dimensions: Introducing the Inequality of Human Progress Index

Author:
Chelsea Follett and Vincent Geloso
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The world has seen dramatic, global human progress across a broad range of indicators in recent decades, but have those gains been widely shared? The Inequality of Human Progress Index (IHPI) measures relative gaps in global development. It surveys international inequality across a greater number of dimensions than any prior index. By analyzing inequality in a multidimensional way, the IHPI takes inequality more seriously than those indexes that focus on income inequality alone. The IHPI considers material well‐​being and seven additional metrics: lifespan, infant mortality, adequate nutrition, environmental safety, access to opportunity (as measured by education), access to information (as measured by internet access), and political freedom. Across all but two of those dimensions, the world has become more equal since 1990. Globalization and market liberalization over the past few decades have not only raised absolute living standards but also reduced overall inequality.
Topic:
Development, Inequality, Economy, and Well-Being
Political Geography:
Global Focus

43. Southeast Asia Aid Map - Key Findings Report

Author:
Alexandre Dayant, Grace Stanhope, and Roland Rajah
Publication Date:
06-2023
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Official development finance plays an important role in financing Southeast Asia’s development, equivalent to around 10% of total government development spending in the region. China is Southeast Asia’s single largest development partner and leads infrastructure financing. Yet, implementation problems have seen the scale of China’s financing decline in recent years. Traditional development partners collectively still dominate development financing in Southeast Asia at 80% of the total. The multilateral development banks lead the way, followed by Japan, Europe, and South Korea. The United States and Australia are mid-sized players. India and the Middle East have become notable sources of non-traditional development finance, with the Islamic Development Bank playing an important role. Climate development finance is increasing, but Southeast Asia will need more support if it is to transition towards resilient, low-carbon development. Intraregional development cooperation is growing, but only makes up a small part of development finance in Southeast Asia.
Topic:
Climate Change, Development, Humanitarian Aid, Finance, and Economy
Political Geography:
Asia and Southeast Asia

44. Assessing Community Sensitivity to Cross-Border Security in Ghana

Author:
Mawusi Yaw Dumenu, Newton Yaw Norviewu, Balaarah Abdulai, and Nana Kwabena Aborampah Mensah
Publication Date:
03-2023
Content Type:
Research Paper
Institution:
Ghana Center for Democratic Development
Abstract:
Strengthening the integrity of Ghana’s borders is essential for the welfare of the nation and its people. National efforts to prevent illegal cross-border activities, including illicit goods, persons and activities require full involvement of all Ghanaians, especially those living in border areas. This has become even more important considering the regional insecurity posed by terrorist groups and violent extremists. It is therefore imperative that residents be sensitized to potential threats associated with irregular cross-border activities that have a potential to facilitate activities of criminal gangs such as terrorists and violent extremist groups. Furthermore, as violent extremism and terrorist activities have become more prevalent in the West African sub-region it is crucial that these threats are considered when examining the functionality of Ghana’s border security. In an effort to improve awareness among border communities, the Center initiated the project entitled “Enhancing citizen participation in border security”. As part of the project strategies, a baseline survey was conducted within selected border communities to assess the level of awareness regarding border-related threats and gather information on the relationship between border residents and security agencies. The baseline survey was intended to inform the direction and interventions of the broader project. Both border residents and staff of some security agencies were interviewed in each of the 10 regions within where Ghana’s land borders are located. The findings of this survey are contained in this report.
Topic:
Security, Development, Terrorism, Borders, Smuggling, and Survey
Political Geography:
Africa and Ghana

45. Institutionalizing Downward Accountability: The Bangladesh Experience

Author:
Shaheen Anam
Publication Date:
02-2023
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
In this issue briefing, Shaheen Anam, Executive Director at Manusher Jonno Foundation, explores the challenges of institutionalizing downward accountability and assesses how such difficulties are projected in development projects of various sizes. Anam argues that effective bottom-up planning requires expertise of stakeholders, strong political will from above, and most importantly, active participation of the local community. Through a Bangladesh case study, Anam offers a successful example of the civil society taking advantage of social accountability tools to channel its voice and improve the transparency of the authorities.
Topic:
Civil Society, Development, Government, Accountability, Institutions, and Transparency
Political Geography:
Bangladesh and South Asia

46. One Thing It Lacks: South Korea’s North Korea Policy in 2023 National Security Strategy

Author:
Yang Gyu Kim
Publication Date:
06-2023
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
Yang Gyu Kim, Principal Researcher at the East Asia Institute, conducts a critical analysis of the new National Security Strategy published on June 7, 2023 and offers policy recommendations for the ROK government’s DPRK policy outlined in the document. While Kim identifies with the National Security Office’s emphasis on strengthening deterrence measures against growing DPRK nuclear and missile threats, he highlights that South Korean countermeasures create a feedback loop that affects North Korea’s threat perception. The author, therefore, points out the limits of the current 3D (Deterrence, Dissuasion, Dialogue) approach and recommends including a “Development” strategy to encourage Pyongyang to envision an alternative future path of prosperity and voluntarily take the denuclearization path.
Topic:
Development, National Security, Deterrence, Dialogue, and Threat Perception
Political Geography:
Asia, South Korea, and North Korea

47. North Korea’s Space Development: The Gap Between Ideal and Reality

Author:
Cheol-wun Jang
Publication Date:
05-2023
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
Cheol-wun Jang, a research fellow at the Korea Institute for National Unification, emphasizes that while North Korea has made significant strides in long-range ballistic missiles, it has not been successful in the area of artificial satellites. Up until now, Pyongyang has had limited engagement in exchanges with major advanced countries involved in space development. Dr. Jang predicts that North Korea is expected to continue its independent pursuit of space development, which will hinder the country’s progress in the satellite sector in the near future.
Topic:
Development, Nuclear Weapons, Space, Kim Jong-un, and Militarization
Political Geography:
Asia and North Korea

48. The Impact of the Ukrainian-Russian War on Rwanda

Author:
Jonathan R. Beloff
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
The current Ukrainian-Russian war has far greater-reaching effects than what is typically reported in much of the international news media. The war has significantly impacted African development, which was already harmed during the global Covid-19 pandemic. With the pandemic seemingly over, African nations such as Rwanda hoped for increased economic development. However, the current war in Ukraine sparked increased fuel and food prices throughout the continent, which has impacted expected growth rates. This article reviews the war’s impact on the central African nation of Rwanda. It illustrates Rwandan anger about the economic implications of the war and the frustration from the nation’s inability to stop its effects.
Topic:
Development, Economics, Pandemic, COVID-19, and Russia-Ukraine War
Political Geography:
Africa, Russia, Europe, Ukraine, and Rwanda

49. China, climate change and the energy transition

Author:
Professor Xu Yi-Chong
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
This report surveys China’s enormous energy transition to renewables. It begins by sketching the energy challenges China faces and its climate-change-related energy policies, in the context of the global geopolitics of the energy transformation. Next the report focuses on conventional energy sources (oil and natural gas), followed by electricity, and energy technologies. Although the report is intended primarily to survey developments to date, it concludes with some brief observations about the considerable energy challenges China faces in the years ahead.
Topic:
Security, Climate Change, Development, Energy Policy, and Energy Transition
Political Geography:
China and Asia

50. The political economy of energy production in post-independence Tanzania: A review

Author:
Japhace Poncian and Rasmus Hundsbæk Pedersen
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In Tanzania, energy production is a matter of great political significance. Despite government commitment to promote non-hydro renewable energy, like solar and wind deployment, so far has been limited. Large, non-hydro, renewable projects have not yet attracted adequate government interest to get implemented. This new DIIS Working Paper suggests that the prioritisation of different sources of energy has been influenced by major shifts in the country’s broader development policy priorities. Access to electricity has in turn been scaled up. These developments point to the importance of political economy factors influencing energy sector development in Tanzania. The paper examines how such factors have influenced government energy source choice and, more importantly, how renewable energy has featured in Tanzania’s energy politics since independence. The paper is based on a review of existing academic and grey literature on energy sector development, reform, and politics throughout the period from independence in 1961 to 2021.
Topic:
Development, Political Economy, Renewable Energy, Independence, and Energy
Political Geography:
Africa and Tanzania

51. Climate change adaptation relevance of Tanzania’s national budget

Author:
Noah Pauline, Peter Rogers, Edmund Mabhuye, Beatrice Sumari, Lucas Katera, Jamal Msami, Per Tidemand, and Esbern Friis-Hansen
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In Tanzania, climate change adaptation is financed by international development assistance and by nationally generated revenue. While international development assistance is registered by OECD and climate change adaptation relevance tagged by donors, the proportion of the nationally generated revenue that is climate change adaptation relevant is unknown. This DIIS Working Paper analyses the climate change adaptation relevance of the national budget (from 2014 to 2022), using the same methodology applied in a previous study (Yanda et al., 2013). The study further assesses the degree to which climate change adaptation financed is devolved to local government. The study finds that a disproportionately high proportion of climate adaptation finance is used at central government levels due to priorities being established at the ministry level. Moreover, the study finds that local governments lack discretion over climate change adaptation finance due to the country’s highly centralised policies, practices and procedures. Qualitative fieldwork indicates that nearly all climate change adaptation finance accessed by local governments comes with a central government tag (directive) on how to use it.
Topic:
Climate Change, Development, Environment, Poverty, Budget, and Inequality
Political Geography:
Africa and Tanzania

52. Inclusion and exclusion in Somali drought emergency assistance

Author:
Ahmed Musa
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
When drought or other emergencies strike in the Somali regions, the first responders are Somalis themselves, not the international humanitarian system. Based on family, kinship and more distant social ties, Somalis mobilise and deliver various forms of emergency assistance to the affected communities. Yet, mechanisms of inclusion and exclusion vary significantly, pending on the closeness of social ties, the power relations between local and international actors, and the number and forms of intermediaries. In this new DIIS Working Paper, Ahmed M. Musa, examines such local and transnational humanitarian practices and the mechanisms of inclusion and inclusion that they entail. Focusing on instances of drought in Somaliland, Musa argues that emergency assistance based on close social ties observes the overall humanitarian principle of impartiality. There are challenges, however, particularly when the social ties are more distant, as in the case of government-led or international responses. This may be mitigated, Musa shows, by the social contract of reciprocity between givers and recipients of assistance, going hand in hand with social sanctions where people abstain from helping those in need. Familiarity is thus central for impartial and inclusive access to emergency assistance, rather than an obstacle. The paper is an output from the Diaspora Humanitarianism in Complex Crises (D-Hum) research project in which Musa was a postdoc between 2020 and 2022. D-Hum analyses how Somali diaspora actors and their local counterparts mobilise, channel and deliver humanitarian assistance to Somalia and Somaliland during complex humanitarian crises. The project is funded by the Danish Consultative Research Committee for Development Research (FFU). Share on FacebookShare on TwitterShare on LinkedInSend link to page with mailPrint page
Topic:
Climate Change, Development, Environment, Migration, Poverty, Natural Resources, Inequality, Conflict, Borders, and Peace
Political Geography:
Africa and Somalia

53. Security professionals are changing how humanitarian organisations operate

Author:
Jethro Norman
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The International Committee of the Red Cross (ICRC) created the first position solely dedicated to security in 1991, but for the next decade it was rare for humanitarian organisations to embed security professionals. After the 2003 Canal Hotel bombing in Baghdad in which the UN’s special representative in Iraq was killed, the United Nations Department of Safety and Security (UNDSS) was established. However, attacks on aid workers increased throughout the 2000s in countries such as Afghanistan, Iraq and Somalia. Humanitarian organisations invested more in their security in response to these threats, as well as changing norms around humanitarian liability. In 2015, in a landmark ruling, an aid worker successfully sued the Norwegian Refugee Council (NRC) for gross negligence. In response, donors implemented increasingly stringent insurance protocols, and the demand for humanitarian security professionals continued to grow. Today, virtually every international humanitarian organisation operating in an insecure region employs an international security professional, typically from a western military, police or private security background. Insights from long-term fieldwork with security contractors and aid workers in Sub-Saharan Africa (including Somalia, Kenya, South Sudan and Tanzania) shows that this has resulted in friction between the two groups, especially in relation to access and liability. In recent years, several developments have streng- thened the authority of security professionals over humanitarian staff. First, digital technologies have been increasingly used for information gathering, monitoring of staff and remote management. Second, as humanitarian security has become more structured and coordinated, new international organisations have emerged whose sole purpose is to provide security services to humanitarian clients. Whilst sometimes registered as non-profits, their function is not dissimilar to commercial private security companies, raising important questions about how the information they gather may be used beyond humanitarian purposes.
Topic:
Security, Development, Humanitarian Aid, and Humanitarian Organizations
Political Geography:
Global Focus

54. Climate change, mobility and human trafficking in Ethiopia

Author:
Ninna Nyberg Sørensen
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Throughout history, demographic, economic, political, religious, and environmental developments have resulted in Ethiopian mobility, mainly within the country or neighbouring region, but also further afield. Although Ethiopia’s current migration rate is only about half of the sub-Saharan average of 2%, the combined effects of poverty, population growth, conflict, and climate change have led to a recent growth in international migration. Women make up half of these flows. Proximity to the Middle East has facilitated women’s migration for domestic work while simultaneously raised concern over human trafficking violations. International Human Rights and anti-trafficking organisations predict that the negative effects of climate change will increase the vulnerability to trafficking in persons, forced labour, sexual exploitation, and debt bondage. This policy brief draws on research carried out under the auspices of the collaborative ‘Governing Climate Migration’ (GCM) research programme to further explore how climate change, migration and human trafficking may interlink. It questions routine applications of the human trafficking label to irregular Ethiopian migrant domestic workers and suggests replacing it with a migration-trafficking continuum approach that takes life before, during and after migration into account.
Topic:
Climate Change, Development, Migration, Borders, Risk, and Human Trafficking
Political Geography:
Africa and Ethiopia

55. Existing Dispute: Does the new budget set the stage for a fresh phase of conflict in Iraq?

Author:
FARAS
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
On 12 June, 2023, Iraq's Council of Representatives approved a three-year budget (2023-2025) of 198.9 trillion dinars (USD 153 billion), including the budget for Iraq's Kurdistan region. This came around three months after the government filed the draft budget, making it the largest in Iraqi history.
Topic:
Development, Oil, Budget, Domestic Politics, Public Spending, and Parliament
Political Geography:
Iraq, Middle East, and Kurdistan Region of Iraq (KRI)

56. Evolution of Multidimensional Energy Poverty Risk in Bolivia from 2005 to 2019

Author:
Javier Aliaga Lordemann and Sergio Mansilla
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
“Energy poverty” is a multidimensional concept that reflects the need to achieve a variety of wellbeing outcomes, which has been scarcely studied and used in public policy agendas. Considering that the literature on energy poverty is still incipient in Bolivia, this paper’s objective is to generate evidence about energy poverty evolution in the country, approximating measures of incidence (risk) and severity for the period 2005-2019. The methodological approach follows the one proposed by Alkire & Foster (2011), with five equally weighted dimensions (energy expenditure, lighting, cooking fuel and indoor pollution, food equipment, and education and communication) and using different cut-off options, at the urban and rural levels. Also, Multidimensional Energy Poverty results are compared with a Principal Component Analysis (PCA) based weight structure as a robustness exercise. Results show that the risk of being energy poor in Bolivia has decreased, but not structurally. Also, intensity has decreased in both urban and rural areas, but rural energy poor households continue to show at least 50% of deprivation in all dimensions evaluated.
Topic:
Development, Poverty, Rural, and Energy
Political Geography:
South America and Bolivia

57. The crisis of representation in the Kurdistan Region of Iraq

Author:
Erwin van Veen
Publication Date:
04-2023
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Any discussion about democratization starts with a discussion about representation because the latter is a necessary – but insufficient condition – for the former. How and by whom are policy preferences of citizens identified, aggregated and articulated in public debate and public decision-making? Does this happen in part or in full, for all citizens or just some? Assessing the ‘state of representation’ provides a lens for examining the democratic potential of a particular structure of power. At least four dimensions matter: the level of citizens’ political awareness, the diversity of the ecology of social organisations that help identify citizen policy preferences, the depth of existing communal identity and mutual trust, as well as the nature of intermediaries that identify and nurture political talent. This paper applies the concept of representation to the Kurdistan Region of Iraq (KRI) and takes stock of its potential for improvement. It finds that all four dimensions of representation are in a poor state in the KRI at present. This manifests itself in, for example, low turnout rates, high levels of disenchantment with the ruling elite and growing polarization within and between political parties. The KRI remains a long way from being governed in a representative fashion, let alone in a democratic one. The region’s transition from totalitarian control, guerrilla-style rebellion and internal strife to a more stable, modern and representative polity was stymied by the emergence of family parties as key power brokers. Their capture of the Kurdistan Regional Government was largely enabled by the appropriation of unearned rents, especially from hydrocarbon sales, and maintained by armed groups linked to political parties. A process of de-representation has ensued. But the Barzani and Talabani family conglomerates that run the KRI face declining levels of public confidence and growing economic problems today. If Western countries wish to improve the state of representation in the KRI in this context, they will have to consider conditioning their engagement on improvements in the quality of governance, leveraging the importance of their presence to the high wire act that the Kurdish Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK) perform to balance Iran, Turkey and Baghdad. Practically, this can be done by a coordinated diplomatic strategy that: a) engages the KDP and PUK leadership in a strategic conversation that clarifies how the extent of future Western presence, diplomatic attention and trade/investment are linked with the quality of representation; b) provides long-term support for locally-led civil society development; and c) pushes for limited but real Peshmerga reform in exchange for greater support.
Topic:
Democratization, Development, and Representation
Political Geography:
Iraq, Middle East, and Kurdistan Region of Iraq (KRI)

58. Power and potential: The economics of Egyptian construction and ICT

Author:
Matteo Colombo
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Young Egyptians’ dissatisfaction with their employment prospects was a key driver of protests in 2011 and 2013. Since then, the country’s political authorities have worked hard to create job opportunities for young Egyptians by boosting growth in the construction sector (infrastructure and public works), among other things. Since the sector also generates substantial revenues for the country’s power elite, this has been a win-win strategy in the short-term. But overreliance on the construction sector has also created too many informal and unstable jobs that are a poor match for Egypt’s many well-educated graduates. Cairo’s growth strategy has not addressed some of the country’s long-standing economic problems, such as informality and a low overall employment rate. Giving the country’s promising ICT sector a boost similar to that of the construction sector to address such deficiencies and anticipate a looming debt crisis requires a paradigm shift with two elements. First, a deal between Egypt’s political authorities and the power elite that buys time in exchange for future rents. Second, facilitation of private sector dynamism through regulatory encouragement and public seed funding for new business activity.
Topic:
Development, Economics, Employment, and Construction
Political Geography:
Middle East and Egypt

59. Getting global development back on track: Focus and start at home

Author:
Erwin van Veen
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Since 2019, realisation of the Sustainable Development Goals (SDGs) has gone from patchy to off-track as a result of Covid-19, global price shocks caused by the war in Ukraine and accelerating climate change. About 100 million people were thrown back into extreme poverty and hundreds of millions more face reduced health, livelihood and income prospects for the rest of their lives. The climate change agenda also took a backseat. Long-term global effects will be profound in terms of growing migration flows, further climate degradation and, likely, more conflict, authoritarianism and populism. Putting global development back on track requires focusing on fewer priorities rather than the entire SDG agenda, namely those with the highest negative impact on developing countries: conflict, climate change and inequality. Addressing these problems primarily requires middle- and high-income countries to reduce their contribution to climate deterioration and inequality at home, and to increase their support for conflict resolution efforts elsewhere at a faster rate. While it may seem counterintuitive, the greatest development contributions that developed countries can make lie at home.
Topic:
Climate Change, Development, and Sustainable Development Goals
Political Geography:
Global Focus

60. Trading short-term gains for long-term costs: the Egyptian political economy under al-Sisi

Author:
Matteo Colombo
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Egypt’s political economy has been operating on the basis of three core principles over the last few decades. First, the country’s political authorities set strategic economic objectives in a top-down manner. Second, the power elite supports the political authorities and, in exchange, tightly supervises homegrown and foreign investment to generate revenues and job opportunities, as well as private benefits. Third, Egyptian citizens acquiesce, willingly or unwillingly, in this division of power that mostly benefits the political authorities and power elites in exchange for improvements in their livelihoods. Since 2014, President al-Sisi has held closely to these principles but relied increasingly on Egypt’s military networks (part of the power elite) to boost economic growth. This strategy has produced short-term gains – informal jobs and an array of consumer goods – at the expense of long-term economic prospects. In particular, the military’s economic influence has deepened some of Egypt’s structural problems: low productivity, inequality, informal unemployment and a suppressed private sector. This limits the future sustainability of the current economic model. Improving Egypt’s economic prospects requires reducing the role of the state – especially the military – in the economy in terms of decreasing the number of associated enterprises and lightening the regulatory framework. However, this is nearly impossible to realise in sectors in which the military already has a dominant profile, such as construction and extractives, because its support is essential for al-Sisi to maintain power. A more promising alternative for European policy makers to consider is influencing the Egyptian government to limit military influence in sectors with growth potential where the military is largely absent, such as manufacturing and Information and Communications Technology (ICT). A government strategy that prevents further military involvement in these sectors, crafts a regulatory framework conducive to private investment and invites foreign funding, can help Egypt realise greater economic growth and higher fiscal revenues.
Topic:
Development, Political Economy, Economy, and Abdel Fattah el-Sisi
Political Geography:
Middle East and Egypt