American aid to Egypt, 1975-96: Peace without development

Middle East Policy

Volumn 4, Issue 4, 1996, Pages 36-49

  Sullivan, Denis J ^a,b  

^a NORTHEASTERN UNIVERSITY   (United States)

^b HARVARD UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0030524402     PISSN: 10611924     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1475-4967.1996.tb00236.x     Document Type: Review

References (60)

1. See op-ed by Bob Dole, "To Help New Democracies, Cut Aid to Israel, 4 Others" The New York Times, January 16, 1990. Together, aid programs in Egypt and Israel consume over one-third of the entire U.S. foreign aid budget. In some years this figure has been as high as 40 percent.
2. Amy Kaslow, "Dole's Bombshell: Shift for Foreign Aid?" Christian Science Monitor, January 25, 1990, p. 1.
3. See the introduction to this volume for an elaboration of these calls for reform.
4. U.S. Department of State, "U.S. Egyptian Partnership for Economic Growth and Development: Fact Sheet," February 20, 1996 (mimeo). In addition to joint committees discussing economic policy, trade, investment, external finance, technology transfer, sustainable development, the environment, education and human-resource development, the partnership consists of a Presidents' Council of private-sector executives who meet twice a year to advise the two governments on ways to remove barriers to private-sector growth and coordination.
5. President Mubarak spoke at a joint news conference with Vice President Al Gore in Cairo in March 1995. See "U.S. aid to Egypt may be reduced," Financial Times, March 21, 1995, p. 4.
6. Ted Clark, "U.S. Holds Back on Foreign Aid," National Public Radio, Weekend Edition, Sunday, June 23, 1996. Transcript 1181-10.
7. See op-ed by Roy Prosterman, "Egypt a Model for U.S. Aid to Other Lands," The Wall Street Journal, January 6, 1989; Denis J. Sullivan, "Bureaucratic Politics in Development Assistance: The Failure of American Aid in Egypt," Administration & Society, vol. 23, no. 1 (May 1991), pp. 29-53; William Schmidt, "A Deluge of Foreign Assistance Fails to Revive Egypt's Stricken Economy," The New York Times, October 17, 1993, p. 10; John Lancaster, "U.S. Aid has yet to lift most Egyptians," The Washington Post, April 5, 1995, p. A1.
8. See op-ed by Roy Prosterman, "Egypt a Model for U.S. Aid to Other Lands," The Wall Street Journal, January 6, 1989; Denis J. Sullivan, "Bureaucratic Politics in Development Assistance: The Failure of American Aid in Egypt," Administration & Society, vol. 23, no. 1 (May 1991), pp. 29-53; William Schmidt, "A Deluge of Foreign Assistance Fails to Revive Egypt's Stricken Economy," The New York Times, October 17, 1993, p. 10; John Lancaster, "U.S. Aid has yet to lift most Egyptians," The Washington Post, April 5, 1995, p. A1.
9. See op-ed by Roy Prosterman, "Egypt a Model for U.S. Aid to Other Lands," The Wall Street Journal, January 6, 1989; Denis J. Sullivan, "Bureaucratic Politics in Development Assistance: The Failure of American Aid in Egypt," Administration & Society, vol. 23, no. 1 (May 1991), pp. 29-53; William Schmidt, "A Deluge of Foreign Assistance Fails to Revive Egypt's Stricken Economy," The New York Times, October 17, 1993, p. 10; John Lancaster, "U.S. Aid has yet to lift most Egyptians," The Washington Post, April 5, 1995, p. A1.
10. See op-ed by Roy Prosterman, "Egypt a Model for U.S. Aid to Other Lands," The Wall Street Journal, January 6, 1989; Denis J. Sullivan, "Bureaucratic Politics in Development Assistance: The Failure of American Aid in Egypt," Administration & Society, vol. 23, no. 1 (May 1991), pp. 29-53; William Schmidt, "A Deluge of Foreign Assistance Fails to Revive Egypt's Stricken Economy," The New York Times, October 17, 1993, p. 10; John Lancaster, "U.S. Aid has yet to lift most Egyptians," The Washington Post, April 5, 1995, p. A1.
11. In early 1995, AID had at least 40 active projects to manage in Egypt; over 95 projects had already been completed by that time.
12. Remarks of J. Brian Atwood at the Middle East Policy Ccuncil panel discussion "U.S. Development Assistance to the Middle East: Critical Perspectives," February 27, 1996 (see proceedings, P. 1).
13. World Development Report, 1984.
14. Egypt, Economist Intelligence Unit Country Report, 2nd Quarter 1996, p. 3.
15. The ratio of interest and principal payments due compared to export receipts for a given year.
16. Some of it is due to the quality of Egyptian products, the access to markets, and government policies and dominance of the economy.
17. "Report on Economic Conditions in Egypt, 1994-95". USAID, Cairo, February 1996, p. 4.
18. The official rate has varied from 9 to 11 percent (1993-1995) but most analysts favor the rate that is double what the government of Egypt claims. See "Report on Economic Conditions in Egypt, 1994-95." USAID, Cairo, February 1996, p. 6.
19. Al-Ahram Weekly, December 10-16, 1992, p. 4.
20. Richard Adams, "Growth without Development in Rural Egypt: A Local-level Study of Institutional and Social Change." Ph.D. dissertation, University of California-Berkeley, 1981, p. 2.
21. This assessment of Ganzouri is based on interviews with AID and World Bank officials over the past 10 years.
22. See Dirk Vandewalle, "Egypt and its Western Creditors," Middle East Review, 20 (Spring 1988); Alan Richards, "The Political Economy of Dilatory Reform" (Cairo, 1990, mimeo); Hans Lofgren, "Economic Policy in Egypt: A Breakdown in Reform Resistance?" International Journal of Middle East Studies, vol. 25, no. 3 (August 1993); and Denis J. Sullivan, "The Political Economy of Reform in Egypt," International Journal of Middle East Studies, vol. 22, no. 3 (August 1990).
23. See Dirk Vandewalle, "Egypt and its Western Creditors," Middle East Review, 20 (Spring 1988); Alan Richards, "The Political Economy of Dilatory Reform" (Cairo, 1990, mimeo); Hans Lofgren, "Economic Policy in Egypt: A Breakdown in Reform Resistance?" International Journal of Middle East Studies, vol. 25, no. 3 (August 1993); and Denis J. Sullivan, "The Political Economy of Reform in Egypt," International Journal of Middle East Studies, vol. 22, no. 3 (August 1990).
24. See Dirk Vandewalle, "Egypt and its Western Creditors," Middle East Review, 20 (Spring 1988); Alan Richards, "The Political Economy of Dilatory Reform" (Cairo, 1990, mimeo); Hans Lofgren, "Economic Policy in Egypt: A Breakdown in Reform Resistance?" International Journal of Middle East Studies, vol. 25, no. 3 (August 1993); and Denis J. Sullivan, "The Political Economy of Reform in Egypt," International Journal of Middle East Studies, vol. 22, no. 3 (August 1990).
25. See Dirk Vandewalle, "Egypt and its Western Creditors," Middle East Review, 20 (Spring 1988); Alan Richards, "The Political Economy of Dilatory Reform" (Cairo, 1990, mimeo); Hans Lofgren, "Economic Policy in Egypt: A Breakdown in Reform Resistance?" International Journal of Middle East Studies, vol. 25, no. 3 (August 1993); and Denis J. Sullivan, "The Political Economy of Reform in Egypt," International Journal of Middle East Studies, vol. 22, no. 3 (August 1990).
26. Some of this data has been previously published and analyzed in two of my earlier works: "The Political Economy of Reform in Egypt," International Journal of Middle East Studies, 22, p. 3 (August 1990); and "Bureaucracy & Foreign Aid in Egypt: The Primacy of Politics," in Ibrahim Oweiss (ed.) Political Economy of Contemporary Egypt. Washington, DC: Center for Contemporary Arab Studies, 1990.
27. Some of this data has been previously published and analyzed in two of my earlier works: "The Political Economy of Reform in Egypt," International Journal of Middle East Studies, 22, p. 3 (August 1990); and "Bureaucracy & Foreign Aid in Egypt: The Primacy of Politics," in Ibrahim Oweiss (ed.) Political Economy of Contemporary Egypt. Washington, DC: Center for Contemporary Arab Studies, 1990.
28. See especially Samir Radwan, "ishtirakiyya 'am ra'sumaliyya" [Socialism or Capitalism?], al-ahram al-iqtisadi, October 11, 1984, for an assessment of the early arguments of this ongoing debate within Egypt.
29. See especially N. Ayubi, Bureaucracy and Politics in Contemporary Egypt, (Oxford University Press, 1980); M. Crozier, The Bureaucratic Phenomenon, (University of Chicago Press, 1964).
30. See especially N. Ayubi, Bureaucracy and Politics in Contemporary Egypt, (Oxford University Press, 1980); M. Crozier, The Bureaucratic Phenomenon, (University of Chicago Press, 1964).
31. Ayubi, 1980, p. 51.
32. Max Weber, The Theory of Social & Economic Organization, translated by A. R. Henderson and T. Parsons (London: William Hodge, 1947), p. 315.
33. Ayubi, 1980, p. 80.
34. Interview with head of non-governmental organization (NGO) in al-Minia, Egypt, October 28, 1986.
35. Interview with USAID official, Cairo, December 3, 1986.
36. See Robert Dahl (1957) "The Concept of Power," Behavioral Science II (July 1957) pp. 201-215.
37. Ayubi, 1980, p. 43.
38. Ibid, p. 38.
39. Notable exceptions to this norm include the consistently effective and efficient Suez Canal Authority as well as the High Dam Authority.
40. See Denis J. Sullivan, Private Voluntary Organizations in Egypt: Islamic Development, Private Initiative, and State Control (Gainesville: University of Florida Press, 1994).
41. These interests might be to use one's office to gain economic power, either by working a second job in which this official can help his or her private employer by providing information available to him/her from his/her government position or by corruption, such as selling government licenses to a company hoping to import restricted merchandise.
42. "United States Economic Assistance to Egypt: Status Report," USAID, December 1994, p. 20.
43. Op. cit., Egypt, EIU, 1996, p. 26.
44. See Monte Palmer, Ali Leila and El Sayed Yassin, The Egyptian Bureaucracy (Syracuse University Press, 1988). Recommendations on education and training to reform the Egyptian bureaucracy are found in chapter 8.
45. These comments were related to me by someone present at the meeting.
46. Based on interviews conducted in 1986-87, 1990-91 and 1994.
47. "There is none." Interview with MOA official, Cairo, November 4, 1986.
48. Interview with MOA official, Cairo, November 9, 1986.
49. U.S. House of Representatives, "U.S. Mission and Office Operations: Egypt," Hearing before a subcommittee of the Committee on Government Operations, 96th Congress, February 11, 1980.
50. Interview with AID official on TDY [temporary duty] in Cairo Ocober 15, 1986. See also Hamied Ansari, Egypt: The Stalled Society (Albany: SUNY Press, 1986), especially chapter 8.
51. FY96 Congressional Funding Request for USAID's Egypt Programs, USAID Web site; also, mimeo from AID.
52. See Richard Barrett and Martin Whyte, "Dependency Theory and Taiwan: Analysis of a Deviant Case," American Journal of Sociology, vol. 87, no. 5 (1982); John Boli-Bennett, "Global Integration and the Universal Increase of State Dominance, 1910-70," in Albert Bergesen, ed., Studies of the Modern World System (New York: Academic Press, 1980); Peter Evans,Dependent Development: The Alliance of Multinational, State and Local Capital in Brazil (Princeton University Press, 1979).
53. See Richard Barrett and Martin Whyte, "Dependency Theory and Taiwan: Analysis of a Deviant Case," American Journal of Sociology, vol. 87, no. 5 (1982); John Boli-Bennett, "Global Integration and the Universal Increase of State Dominance, 1910-70," in Albert Bergesen, ed., Studies of the Modern World System (New York: Academic Press, 1980); Peter Evans,Dependent Development: The Alliance of Multinational, State and Local Capital in Brazil (Princeton University Press, 1979).
54. See Richard Barrett and Martin Whyte, "Dependency Theory and Taiwan: Analysis of a Deviant Case," American Journal of Sociology, vol. 87, no. 5 (1982); John Boli-Bennett, "Global Integration and the Universal Increase of State Dominance, 1910-70," in Albert Bergesen, ed., Studies of the Modern World System (New York: Academic Press, 1980); Peter Evans,Dependent Development: The Alliance of Multinational, State and Local Capital in Brazil (Princeton University Press, 1979).
55. See Robert Kaufman, "Industrial Change & Authoritarian Rule in Latin America," in David Collier, ed., The New Authoritarianism in Latin America (Princeton University Press, 1979). Also see Jyotirindra das Gupta, "A Season of Caesars: Emergency Regimes and Development Politics in Asia, Asian Survey, 18 (1978), who points out that emergency regimes in Asia are not necessary for economic development given that their achievements do not justify their existence.
56. See Robert Kaufman, "Industrial Change & Authoritarian Rule in Latin America," in David Collier, ed., The New Authoritarianism in Latin America (Princeton University Press, 1979). Also see Jyotirindra das Gupta, "A Season of Caesars: Emergency Regimes and Development Politics in Asia, Asian Survey, 18 (1978), who points out that emergency regimes in Asia are not necessary for economic development given that their achievements do not justify their existence.
57. Fouad Ajami, The Arab Predicament (Cambridge University Press, 1981); John Waterbury, The Egypt of Nasser and Sadat (Princeton University Press, 1983); and Marie-Christine Aulas "State and Ideology in Republican Egypt," in State and Ideology in the Middle East and Pakistan, F. Halliday and H. Alavi, eds. (New York: Monthly Review Press, 1988).
58. Fouad Ajami, The Arab Predicament (Cambridge University Press, 1981); John Waterbury, The Egypt of Nasser and Sadat (Princeton University Press, 1983); and Marie-Christine Aulas "State and Ideology in Republican Egypt," in State and Ideology in the Middle East and Pakistan, F. Halliday and H. Alavi, eds. (New York: Monthly Review Press, 1988).
59. Fouad Ajami, The Arab Predicament (Cambridge University Press, 1981); John Waterbury, The Egypt of Nasser and Sadat (Princeton University Press, 1983); and Marie-Christine Aulas "State and Ideology in Republican Egypt," in State and Ideology in the Middle East and Pakistan, F. Halliday and H. Alavi, eds. (New York: Monthly Review Press, 1988).
60. Ayubi, 1980, p. 54.