Egypt: Successive Holding Structures
The focus of the development strategy of the Egyptian government since the 1952 revolution was growth through self-reliance and socialism. From 1961, the nationalization of private enterprise began and by 1965, all large establishments in agriculture, industry, trade and infrastructure were state-owned. To look after the 438 public enterprises which existed at this time, thirty nine General Organizations were created, under the aegis of sectoral ministries. The rationale for the General Organizations at this point was improved sectoral coordination and planning of industrial development. During the 1970s, there were some attempts at liberalization under an Open Door Policy and new laws were introduced to encourage private investment.1 Although most industry remained in the hands of the state, the government attempted to ease the strict and bureaucratic controls on public enterprises by abolishing the General Organizations in 1975 (Law 111) and placing the enterprises directly under the relevant ministries. A performance evaluation system was introduced at the same time to give greater autonomy to public enterprises.2
KeywordsCentral Bank Foreign Exchange Commercial Bank Private Enterprise Public Enterprise
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