Discussion Paper 13/2013 Industrial Policy in Egypt 2004–2011 Markus Loewe Industrial Policy in Egypt 2004–2011 Markus Loewe Bonn 2013 Discussion Paper / Deutsches Institut für Entwicklungspolitik ISSN 1860-0441 The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data is available in the Internet at http://dnb.d-nb.de. ISBN 978-3-88985-616-6 Markus Loewe, Department "Competitiveness and Social Development", German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), Bonn E-Mail:
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[email protected] www.die-gdi.de Contents Abbreviations Summary 1 1 Introduction 3 2 Industrial policies in developing countries – a conceptual framework 5 3 The context of industrial policy-making in Egypt from 2004 to 2011 9 3.1 Framework conditions for economic development 9 3.2 Main challenges for industrial transformation 13 3.3 The history of industrial policy from 1952 to 2004 17 3.4 The political constellation between 2004 and 2011 26 4 Strategies and instruments of industrial policies in Egypt from 2004 to 2011 30 4.1 General economic policy reforms 30 4.2 The ‘Egypt Industrial Development Strategy’ of the Ministry for Trade and Industry 31 4.3 Micro- and small enterprise promotion by the Social Fund for Development 39 4.4 The Ministry of Investment and the General Authority for Investment and Free Zones 40 4.5 Strengths and