Privatization in Egypt and Tunisia: Liberal Outcomes and/or Liberal Policies?

Abstract

At a superficial level, Tunisia and Egypt appear to have experienced similar developmental paths in the years since independence. Early socialist experiments, which entailed significant reliance on the public sector, failed to produce the required economic growth and were replaced with economic liberalization and structural adjustment. By comparing the privatization processes in the two countries, the author illustrates the relative success of the Tunisian approach to such reforms compared to that of Egypt. He argues that Tunisia has benefited from the proactive role of the state in managing both the reforms and the economy. By contrast, Egypt's relative failures can be attributed to the politicization and decentralization of economic decision-making.