Interactions of economic and political change: The Egyptian case

Abstract

Partial indicators of economic change in Egypt suggest that the real rate of growth and the rate of inflation have been higher that official statistics. Investment and consumption have both grown rapidly. The private sector has responded strongly to new opportunities. Large-scale migration of Egyptian workers of all types to the Arab oil countries has reduced the unemployment rate substantially and created shortages of some types of labour. Economic changes have interacted with political changes which are characterized by a higher degree of participation and a slow and inconsistent movement toward liberalization. Economic interests and autonomous political groups generate pressures that are far more comprehensive than yet recognized.