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The Egyptian Military in Politics and the Economy: Recent History and Current Transition Status

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The Egyptian Military in Politics and the Economy: Recent History and Current Transition Status CMI INSIGHT October 2013 No 2 The Egyptian military in politics and the economy: Recent history and current transition status The Egyptian military has been playing a decisive role in national politics since the eruption of the 2011 uprisings. The Supreme Council of Armed Forces (SCAF) governed the country from February 2011 until June 2012. They worked closely with the elected civilian President Morsi of the Muslim Brothers. In June 2013, supported by mass protests and in collaboration with youth movements, the military overthrew president Morsi. The future of the democratic transition in Egypt is closely linked to General Abd al- Fattah al-Sisi, the current Minister of Defence. He was instrumental in forming the current transitional government, and hold key roles in drafting the new constitution and organizing subsequent elections. This CMI Insight explores recent historical episodes that inform the extensive political leverage that the military enjoys in Egyptian politics. ARMY, POLITICS, AND BUSINESS (1980- 2011) Dr. Zeinab Abul-Magd The militarisation of the Egyptian state and Guest researcher economy began six decades ago. In 1952, a military coup led by a group of young Farouk, and kicked out the British. This officers brought down the monarch, King the charismatic and popular Gamal Abd coup installed the first military president, al-Nasser (1954-1970), who formed an Egyptian military in Tahrir Square. Photo: Nefissa administrativeArab socialist regimeand economic in which positions. military1 Naguib. officers occupied the most important Mubarak in the course of thirty years, passed Two other military presidents succeeded after Egypt signed the Camp David peace attemptedNasser: Anwar to “demilitarise” Sadat (1970-1981) the Egyptian and through three different phases. In the 1980s, Hosni Mubarak (1981-2011. Sadat Thetreaty Ministry of 1979 of Defence with Israel,created thean economicmilitary makingstate by thesignificantly army focus reducing more onthe affairs number of switched its attention to economic activities. of army2 Mubarak officers brought in government back the positions, military publicarm called infrastructure the “National projects Service and producedProducts leaderswar. to create economic enterprises and Organisation” (NSPO), which contributed to occupyinfluence high-level on Egyptian administrative society allowing positions its in the government.3 cheap civil goods for the middle and lower classes. The second phase was in the 1990s. The militarised state that evolved under IMFMubarak and World applied Bank’s a full-fledgedrequirements, economic and the liberalisation plan in accordance with the This CMI Insight is a publication from the project Everyday Maneuvers: Military - Civilian Relations in Latin-America and the Middle East. The project explores the historical, cultural and political ties between military actors and civilians. CMI INSIGHT October 2013 No 2 The egyptian military in politics and the economy: Recent history and current transition status military expanded their production of civil goods and of the commercial transportation system. The position of unauditedservices. The special military autonomous established status new companies,in competition built the head of the Suez Canal was always reserved for the new factories, cultivated vast farms that had untaxed, maritimeretired military and land chief transport of staff. public The heads sector of companies. the Red Sea6 ports were retired generals, as were the managers of the with the expanding private sector and the privatised Despite Mubarak’s attempts to co-opt the military through especiallypublic sector. retired Finally, generals the thirdand colonels,phase was occupied during high the administrativelast ten years ofpositions Mubarak’s in reign,the bureaucracy when army andofficers, the of Gamal Mubarak’s economic “Washington Consensus” reforms.privileges They to retired silently officers, resented they his still privatisation did not approve plans. military businesses. Mubarak gave public sector and further expanded theirA distinct profitable class of military Two 2008 Wikileaks cables emerged tothe get officers them tosuch accept administrative the planned administrators and managers Defence,which indicated and the that Egyptian Field Marshalmilitary successionand economic of his son,influence Gamal Mubarak,in order Tantawi, the former Minister of 4 grew in the bureaucracy, the liberalisation because it undermined were largely critical of the economic Underwho has Mubarak no military three background. major military public sector, and the military state control. Margaret Scobey, a enterprises, and they received non-military manufacturing and former US ambassador to Egypt servicesbodies were engaged in profitable their pensions from military threatstated, to“The its militaryeconomic views position, the andG.O.E.’s therefore privatization generally efforts opposes as a : the National Service sources in addition to high economic reforms. We see the Products Organization (NSPO), the military’s role in the economy as Ministry of Military Production salaries from the government. specialises(MOMP), and in civilianthe Arab manufacturing, Organization market reform by increasing direct for Industrialization (AOI). NSPO a force that generally stifles free plants. 40% of their production is geared to civilian skepticism regarding the neoliberal reforms is probably farming and services. MOMP owns eight manufacturing duegovernment to the potential involvement privatisation in the ofmarkets.” the military’s Tantawi’s vast of their production goes to civilian markets. The three economic empire.7 markets. AOI owns eleven factories and companies. 70% chemicals, luxury jeeps, butane gas cylinders, kitchen Under Mubarak, the military enjoyed great leverage in stoves,bodies homeproduce appliances, a wide variety gas pipelines, of goods: infant steel, incubators, cement, politics through its maintenance of a close relationship mineral water, pasta, olive oil and other foodstuffs. The militarywith the receivesUS and its$1.3 military-industrial billion dollars in complex.annual aid As frompart army owns a large number of gas stations, hotels, of the 1979 peace agreement with Israel, the Egyptian acrosswedding the halls, country. supermarkets,5 parking lots, domestic Financing (FMF) programme). This includes training of cleaning offices, transportation and shipping companies the U.S. (under the umbrella of the Foreign Military andEgyptian M1A1 officers Abraham in U.S. tanks. war colleges,The aid programmeand sales of weapons fostered At the government level, large numbers of retired officers to Egypt, such as F-16 fighter jets, Apache helicopters, andwere politically appointed appease to high-ranking them. A positionsdistinct class in many of military places in the state bureaucracy, as a way to financially reward close relationships between Egyptian8 generals and their the public sector, and the military enterprises, and counterparts in the Pentagon. theyadministrators received theirand managerspensions fromgrew militaryin the bureaucracy, sources in THE MILITARY-ISLAMIST ALLIANCE (FEBRUARY addition to high salaries from the government. Retired 2011- JUNE 2013) In February of 2011, after an eighteen-day sit-in, the areas in the north and south of the country, but they army generals and colonels were hired in numerous of Mubarak and the abortion of his son’s succession protesters in Tahrir Square celebrated the deposition preferred positions where authority and capital merged. immediately offered to run the country for a short six keyFor example,locations, on such the eve as oftourist-oriented 2011, 18 out of 27provinces provincial in monthplan. The transitional Supreme Councilperiod. ofIn the response, Armed Forcesthe Egyptian (SCAF) governors were retired army generals. These included masses chanted: “The army and the people are one hand,” DeltaUpper areas.Egypt, They all three also provincesserved as of governors’ the Suez Canal,chiefs-of- the two Sinai provinces, sometimes Alexandria, and major and state-owned media played the 1960s nationalentrenched songs itsof Nasser’scontrol era.over SCAF essential stayed state in power institutions, for a full includingyear and staff, directors of small towns, and heads of both wealthy thehalf media,until June the 2012. bureaucracy, During this the period, security SCAF apparatus, and naturaland poor gas districts and oil companies.in Cairo. The They state-owned also controlled oil sector parts was highly militarised, as retired generals ran many the judiciary. SCAF placed a large number of retired 2 The egyptian military in politics and the economy:Recent history and current transition status CMI INSIGHT October 2013 No 2 businesses. began Muslimofficers inBrotherhood government and positions, other Islamistand expanded organisations. military Brotherhood won the presidential elections, he was the SCAF also established close alliance with the forces.first civilian He saluted president the Egyptian of Egypt military since Nasser. and added, He “Only in the parliamentary and presidential elections, and his first national address by deeply thanking the armed14 theThrough military such maintained alliances, theand Islamistsprotected won the politicalthe majority and Days economic privileges that it had inherited from Mubarak’s Goda supplement knows how to much the loveConstitutional I have in my Declaration heart [for it].”that era. deprivedbefore Morsi he wasof any declared substantial the winner, authority
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