Economy of Egypt and the environment
In the late 1970s, President Anwar Sadat initiated neoliberal policies in Egypt. Following Sadat's assassination in 1981, President Hosni Mubarak came to power and continued the economic liberalization of Egypt.[1]
Impact of neoliberal policies
In 1991, these neoliberal reforms unfolded through the Economic Reform and Structural Adjustment Programme (ERSAP), a structural adjustment agreement signed between Mubarak, the International Monetary Fund, and the World Bank.[2] Under the ERSAP, the new, economic policies in Egypt intended to free the economy from government regulation and allow individuals and corporations to regulate the economy based on their self-interests and the free market.[3]
Privatization
As a result of the limited government role, many public sector companies were privatized. By 2005, the government sold 209 out of a total of 314 public companies to the private sector with financial support from
Impact on agriculture
Neoliberal reforms also affected the agricultural sector in Egypt. Before neoliberalism was implemented, the government protected small farmers from losing their land by giving these farmers and their families certain property rights to their plots of land. In the event of eviction, farmers had the right to be compensated for half of the land's value.
Consequently, government subsidies that supported farmers disappeared and high taxes were put on staple foods produced by local farmers. Farmers had to compete with a growing foreign, industry of agricultural businesses in Egypt, and most lost their livelihoods. Egyptian agriculture transitioned toward an export-oriented production in which entrepreneurs bought arable land from the Egyptian government at low costs. This export-led agriculture benefitted the wealthy in Egypt and foreign companies, while displacing farmers and making it difficult for the poor to buy food due to high food prices in the market. A short documentary, "Pity The Nation", in 2008 portrayed the effect of neoliberal policies on farmers in Mahalla al-Kobra.[6]
Egypt's agricultural sector is dependent on modern energy sources, such as liquified natural gas, petrochemicals, and petroleum fuels. Natural gas reserves in Egypt have increased from 36 to 37 trillion cubic feet, nearly doubling its production since 2003. Natural gas supports the development of many petrochemical and fertilizer plants as well as provides electricity in Egypt.[7] The petrochemical industry uses natural gas as fuel in order to produce ammonia and urea. In 2009, the petrochemical industry consumed approximately 4.8 billion cubic meters.[8]
From 1999 to 2010, approximately 176 foreign energy companies invested in Egypt's abundant, fuel resources.
Fertilizer companies
The Egyptian military has taken away property rights of local farmers' land in order to build energy and fertilizer plants. The farmers and their families lost their main source of income and many are unemployed. As of June 2013, unemployment rates in Egypt are over 13%.[9] By reallocating land from farmers and the public toward private foreign or state-owned businesses, the government is increasing economic inequality between the wealthy and poor.[6]
EAgrium Fertilizer Complex in Damietta
A major port city along the
In 2006, the Egyptian Agrium Nitrogen Products Company (EAgrium), a Canadian-based petrochemical company, planned to build a large fertilizer complex in
A strong opposition of Damiettans formed against EAgrium, which included an eclectic coalition of Egyptians in different social classes and jobs. Lawyers, businessmen, parliamentary members, farmers, professors at universities, and members of volunteer organizations or unions were a part of this coalition.[10] Some observers suggested that the local Damiettan officials in the coalition against EAgrium were opposed to the project due to a disagreement between the Damietta Governor Fathy El-Baradie and the central government, and that El-Baradie initiated the campaign against the building of this fertilizer complex.[13] The opposition used a diverse range of protesting strategies including non-violent acts such as strikes, sit-ins, petitions, and road blocking.[10]
The success of this campaign may be attributed to evoking the emotions of Damiettans by increasing their fear of the potential dangerous health effects of the plant, gaining the support from tourism developers in
Idku protests against British Petroleum
The governate of
When the
Nuclear power plant in El Dabaa
On November 7, 2013, the Interim President of Egypt,
In 2006, Gamal Mubarak, the son of President Hosni Mubarak, announced that the nuclear power plant will be built in El Dabaa at the fourth National Democratic Party conference. After Gamal Mubarak's news release, a strong opposition formed against him. The opposition included businessmen who claimed that Mubarak's nuclear project would hinder their investment in tourism near El Dabaa.
In June 2009, the Egyptian Nuclear Plant Authority signed a $160 million contract for 8 years with the Australian Worley Parsons corporation in which this company would help
Prior to Mansour's announcement, the city of
See also
References
- ^ a b "The Arab Revolt against Neoliberalism". Center for Social Justice. 2011. Retrieved 2014-02-26.
- ^ "Aspects of the Economic Reform and Structural Adjustment Program". Social Research Center. 2004. Retrieved 2014-04-30.
- .
- ^ "Egyptian Protests: Falling wages, High Prices, Failure of an Export-oriented economy". The Bullet. 2008. Retrieved 2014-04-26.
- ^ "Egypt: A revolution against neoliberalism?". AlJazeera. 2011. Retrieved 2014-02-26.
- ^ a b c d "Effect of Neoliberal Policies on Farmers and the Food Price Crisis in Egypt". Jadaliyya. 2011. Retrieved 2014-04-30.
- ^ a b "Egypt's Generals and Transnational Capital". Middle East Research and Information Project. 2012. Retrieved 2014-04-30.
- ^ a b c "A Review of Natural Gas Markets and Key Players: Egypt" (PDF). Cedigaz Insights. 2010. Archived from the original (PDF) on 2014-07-14. Retrieved 2014-04-30.
- ^ "Egypt Overview". The World Bank. 2014. Retrieved 2014-02-26.
- ^ a b c d e "Damietta Mobilizes for Its Environment". Middle East Research and Information Project. 2009. Retrieved 2014-02-26.
- ^ "Mining for Fish: Privatization of the "Commons" along Egypt's Northern Coastline". Middle East Report. 2000. Retrieved 2014-04-13.
- ^ "Eagrium Urea and Ammonia Terminal, Damietta Port, Egypt". Cullen Grummitt & Roe. 2014. Archived from the original on 2014-04-03. Retrieved 2014-04-13.
- ^ a b c "Five years on, Dameitta's Agrium controversy reignites". Mubasher. 2011. Retrieved 2014-04-13.[permanent dead link]
- ^ "Angered Damietta citizens reject Cabinet decision to suspend construction in polluting factory". Ahram Online. 2011. Retrieved 2014-02-26.
- ^ "Idku - a neglected town stands up against environmental degradation". Egyptian Initiative for Personal Rights. 2013. Retrieved 2014-04-13.
- ^ "BP project in Idku raises environmental concerns". 2011. Retrieved 2014-04-13.
- ^ "Northern Alexandria Gas Project begins production in 2016: Head of EGAS". 2014. Retrieved 2014-04-13.
- ^ "Mansour revives plan for nuclear power plant on Egyptian coast". Ahram Online. 2013. Retrieved 2014-04-13.
- ^ "Dabaa nuclear project awaits Parliament". Egypt Independent. 2013. Retrieved 2014-04-13.
- ^ "Army regains control of nuclear plant construction site". 2013. Retrieved 2014-04-13.