Cleft Capitalism: The Social Origins of Failed Market Making in Egypt

Description

Egypt has undergone significant economic liberalization under the auspices of the International Monetary Fund, the World Bank, USAID, and the European Commission. Yet after more than four decades of economic reform, the Egyptian economy still fails to meet popular expectations for inclusive growth, better standards of living, and high-quality employment. While many analysts point to cronyism and corruption, Amr Adly finds the root causes of this stagnation in the underlying social and political conditions of economic development. Cleft Capitalism offers a new explanation for why market-based development can fail to meet expectations: small businesses in Egypt are not growing into medium and larger businesses. The practical outcome of this missing middle syndrome is the continuous erosion of the economic and social privileges once enjoyed by the middle classes and unionized labor, without creating enough winners from market making. This in turn set the stage for alienation, discontent, and, finally, revolt. With this book, Adly uncovers both an institutional explanation for Egypt's failed market making, and sheds light on the key factors of arrested economic development across the Global South. Dedication Contents List of Figures List of Tables Acknowledgments Acronyms 1 SUCCESSFUL TRANSITION TO FAILED CAPITALISM 2 BEYOND CRONYISM 3 EGYPT’S CLEFT CAPITALISM 4 THE ORIGINS OF CLEFT CAPITALISM 5 HOW CLEFT CAPITALISM CAME ABOUT 6 EGYPT’S BANKING SYSTEM: AN EXCLUSIVE CLUB 7 EGYPT’S DESERT LAND: ABUNDANT YET SCARCE 8 BALADI CAPITALISM 9 DANDY CAPITALISM EPILOGUE Notes Bibliography Index