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Article: Privatisation programme lumbers slowly on: Egypt's privatisation programme, initiated in 1991, aimed at the privatisation of over 300 public sector firms. Simon Brindle reports from Cairo on the achievements and impact of a decade of privatisation and the road ahead. (Egypt).
- Article from:
- The Middle East
- Article date:
- April 1, 2003
- Author:
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Following the revolution of 1952, the Egyptian government began to play a more active role in the country's economy. Beginning with the establishment of iron and steel, cement and construction companies and the nationalisation of the Suez Canal and several privately owned companies; the public sector quickly established its dominance. For the next 30 years public sector firms accounted for between 80% and 90% of investment and around 37% of annual GDP. By 1990, although public sector firms were showing a profit of Egyptian pounds ([pounds sterling] E) 1.2bn, accumulated losses amounted to E2.4bn [pounds sterling]. Far more worrying was the fact that their accumulated debts ...