Abstract
The chapter investigates recent experiments of the state-led development approach in Brazil and Egypt in the light of their most recent difficulties. The comparative study applies an institutional and political economy approach to highlight similarities and differences: Brazil’s pro-poor and inclusive development model evolving after the millennium is contrasted with the lack of pro-poor stance and inclusive approach in Egypt.
The new governments in the two countries also seem to be heading into the opposite economic policy directions while in Brazil the new Temer government has announced market-oriented reforms and aims to significantly cut back the role of state in economic development, the Sisi government in Egypt has strengthened its commitment to the state-led developmentalist approach (while heavily relying on old practices and institutional ties).
This chapter was written in the framework of the research project “From developmental states to new protectionism: changing repertoire of state interventions to promote development in an unfolding new world order” (FK_124573), supported by the National Research, Development and Innovation Office (NKFIH) in Hungary.
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Notes
- 1.
I have argued elsewhere (Ricz 2016b, 2017) that the Nasserist developmental experience can be analysed through the lenses of the developmental-state approach; even though it differs somewhat from the classic developmental-state model, it still largely corresponds to the original DS definition formulated by Chalmers Johnson (1982).
- 2.
In fact, the main driving force behind the democratisation process in Brazil was the failure of the old developmentalist model, which was incontrovertibly confirmed by the debt crisis; the military rule thus lost its political legitimacy, which led to important changes in the political, economic, and social spheres.
- 3.
Even though social discontent had been on the rise since the turn of the millennium, it became an organised phenomenon on the national level in the electoral year of 2005.
- 4.
The “Mensalão” (2005–) and “Petrobras” (2014–) scandals are the most-cited cases.
- 5.
On the 29th of January, 2011, amid Mubarak’s struggle for political survival, Omar Suleiman was finally appointed to the long-vacant vice presidency, though this did nothing to slow down the protests which culminated in the revolution.
- 6.
With significant ups and downs, however; for example, the electoral year of 2005 and the constitutional amendments of 2007 were interpreted by numerous analysts as the first signs of political liberalisation; the elections of 2010, and the intensification of repression which preceded it, showed how illusory these views were (Csicsmann 2017, p. 94).
- 7.
It is interesting to note that after the opening up of the Egyptian economy in the early 1980s, it was well integrated into the world economy, with exports reaching 33 per cent of GDP and imports reaching 48 per cent; after all the “liberalisation reforms” of the 1990s, exports barely reached 15 per cent of GDP in 1999 and imports 23 per cent. As Henry and Springborg put it (2001, p. 142), Egypt was in fact de-globalising.
- 8.
Numerous examples illustrate how in the absence of the rule of law, transparency, and accountability, political ties and relationships began to dominate Egypt’s economic life as early as the 1990s; this trend became “chronically dominant” after 2004 (Adly 2013, p. 96). El-Naggar (2009, p. 46) described the privatisation of the Egyptian American Bank rather spectacularly: it was an “unholy marriage between the state and business that is characteristic of the current regime”.
- 9.
Morsi and the Muslim Brotherhood have strengthened the Islamist line in policy-making and everyday life (with restrictions on the freedom of assembly and freedom of speech), and this, together with growing economic and social problems, has led to ever-increasing level of discontent among large parts of Egyptian society. A huge demonstration gathered in June of 2013; al-Sisi, backed by the Armed Forces (SCAF), managed to remove Morsi and the Muslim Brotherhood from power. Perceptions and interpretations of these most recent political events are still controversial; they have been called everything from a military coup to a second revolution.
- 10.
While Egypt has traditionally been highly exposed to external factors (such as changes in oil and food prices, tourist traffic, remittances, and regional political changes), the case of Brazil is perhaps even more complex. Brazil can still be considered a relatively closed economy, as its exports-to-GDP ratio is barely 13 per cent. Taking this into account, I have argued elsewhere (Ricz and Nagy 2016) that changes in its external context and important internal constraints to economic development have both contributed to Brazil’s most recent economic crisis.
- 11.
The website of the conference: http://www.egyptthefuture.com/
- 12.
- 13.
There are some initiatives to decrease or tackle social tension, such as the attempt, supported by the World Bank, to create a social net to help the poorest, or the Egyptian Central Bank’s initiative to support lending to small and medium-sized enterprises in rural areas; these efforts have produced mixed results, however.
- 14.
It is worth noting that Michel Temer’s first political step after Dilma Rousseff was impeached and removed from power in May of 2016 was to assemble a new (at that time, interim) cabinet, which was made up exclusively of elderly white men with rather conservative views. This move attracted intense criticism, as Brazil is a very diverse and mixed country, ethnically and culturally; many social groups did not feel they were represented by an all-white, all-male cabinet for which no one had voted. Many social groups and movements questioned the legitimacy of such a government.
- 15.
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Ricz, J. (2019). New Developmental Experiments in Two Emerging Economies: Lessons from Brazil and Egypt. In: Gerőcs, T., Szanyi, M. (eds) Market Liberalism and Economic Patriotism in the Capitalist World-System. International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-05186-0_10
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