Looking at the production chains from the uneven and combined development perspective: the Egyptian Qualified Industrial Zones Agreement

Abstract

In the neoliberal era, the export-oriented industrialisation strategy has been promoted for its potential to transform the industry into an engine of growth for the rest of the economy. For this purpose, all developing economies are encouraged to join supply chains in order to upgrade their position in the hierarchical division of labour in the world economy. On the other hand, this has always been a thorny issue for the Southern economies. This paper investigates the Qualified Industrial Zones (QIZs) Agreement concluded between Egypt, Israel and the United States in 2004, critically analysing the outputs of the export-oriented industrialisation model. In its analysis, the study relies on dialogues between the production chain literature and the uneven and combined development perspective. In this context, it claims that the factors endogenous to global capitalism, like low wages and massive labour reserves, play an important role in determining Egypt’s role in the Agreement. Likewise, participating in production chains does have a further polarising effect on global inequalities. Accordingly, the Agreement charges Egypt in line with its position in the global economy, and the Egyptian textile industry articulates to the world market as a source of cheap labour.