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International Journal of Economics, Commerce and Research (IJECR) ISSN 2250-0006 Vol. 3, Issue 3, Aug 2013, 21-42 © TJPRC Pvt. Ltd. ECONOMICS OF PROSTITUTION IN THE WORLD AND ITS IMPLICATIONS WITH REFERENCE TO EGYPT EZZAT MOLOUK KENAWY Faculty of Commerce, Department of Economic, Kafr El-Sheikh University, Egypt ABSTRACT The globalization of capitalism and new liberal policies has led to the spread of prostitution markets that quite widely subject to the organized crime gangs that contradict with the norm, religion and good ethics. This is not attributed to the reason that prostitution is outlawed or comes under the prohibition circle. Egypt is not isolated from other world countries as it is affected by the international and regional changes that contribute to the production and trade of this phenomenon. The research problem dwells on the raising the overlooked hidden side of economic globalization and new liberal policies that transfer man into a commodity that has monetary and consuming value sold and bought at the human trade markets with the purpose of sex exploitation (prostitution) or what is known as tourist marriage phenomenon. The research significance dwells on breaking the silence that shrouds this phenomenon and face the reality with mechanisms that prevent this phenomenon exacerbation in the future. The research aims to identify the world sex markets according to the supply and demand theory; then reveal mechanisms that control the sex industry under the market value and organized crime. It aims as well to identify the spread extent of this phenomenon, its social and economic reasons at the world level in general. It also aims to identify the size of sex industry in Egypt; showing the affecting factors behind this phenomenon increase in the light of the results of the fieldwork study on a sample of some female interviewees working in the sex industry in Egypt. The study provides suitable suggestions to curb this phenomenon exacerbation in the future. KEYWORDS: Prostitution Markets, Sex Industry, Supply and Demand Theory, Interviewees’ Sample, Egypt INTRODUCTION The organized crime has increased with market liberalization under the economic globalization to play a fundamental role in the global economy. The globalization of capitalism and new liberal policies has led to the spread of prostitution markets that quite widely subject to the organized crime gangs that contradict with the norm, religion and good ethics. This is not attributed to the reason that prostitution is outlawed or comes under the prohibition circle. Whether in the countries that consider prostitution is outlawed like (Tunisia, Germany, The Netherlands) or in the countries in which prostitution houses are owned by the state (Turkey and Indonesia), or in the countries that recognize prostitution as a vital industry for the national economy (Thailand and the Philippines), the role of organizes crime gangs remains fundamental in organizing the prostitution markets since violence is the decisive factor in producing the sex industry (Patricia Green,2010). Egypt is not isolated from other world countries as it is affected by the international and regional changes that contribute to the production and trade of this phenomenon. This trade differs from a country to another, as there is a transit country to other countries, there are destination countries of this trade and there are origin countries of it. Egypt is considered as a transit and destination country of sex trade. Therefore, it is necessary to study the dichotomies, reasons and effects of this phenomenon in order to curb its exacerbation in the future through focusing on only two forms of this phenomenon, namely tourist marriage of women in line of human trade and sex exploitation and prostitution. 22 Ezzat Molouk Kenawy The Research Problem It dwells on the raising the overlooked hidden side of economic globalization and new liberal policies that transfer man into a commodity that has monetary and consuming value sold and bought at the human trade markets with the purpose of sex exploitation (prostitution) or what is known as tourist marriage phenomenon. The official institutions, authorities and governments often keep silent towards it despite this phenomenon increase year after another. In addition to the defect of government social assurance that does not include the poorest women; so as avoid them getting indulged in this phenomenon and the marginalizing women role without getting them fully involved in the society. This matter contradicts with the customs, traditions and the rules of Islam particularly in Egypt. The research significance dwells on breaking the silence that shrouds this phenomenon and face the reality with mechanisms that prevent this phenomenon exacerbation in the future through opening new horizons of further research for those researchers interested in this phenomenon. Research Objectives The research aims to identify the world sex markets according to the supply and demand theory; then reveal mechanisms that control the sex industry under the market value and organized crime. It aims as well to identify the spread extent of this phenomenon, its social and economic reasons at the world level in general. It also aims to identify the size of sex industry in Egypt; showing the affecting factors behind this phenomenon increase in the light of the results of the fieldwork study on a sample of some female interviewees working in the sex industry in Egypt. The study provides suitable suggestions to curb this phenomenon exacerbation in the future. Research Approach This is the first research of its kind in Egypt that handles the sex trade or prostitution from a social and economic perspective. It is a very complicated issue and highly sensitive as well. Its data collection can be impossible due to circumstances related to the suitable Egyptian society in terms of norms and traditions. The study has relied on the descriptive quantitative economic analysis technique to describe and analyze the development and reasons behind this phenomenon. The study has used the social survey technique through conducting confidential personal interviews of a deliberately selected sample of (20) prostitutes working in hotels and night clubs at Al-Haram Street and the Nile Cornish in Giza. Each interview is conducted in full confidentiality according to the wishes of the interviewees and their employers. The results of data collected from the interviewees sample are obtained by using a statistical technique. The interviews were conducted during the period of 1st February till 1st May 2013. The researcher has relied on this phenomenon data on the descriptive aspects only on the statistical and fieldwork studies conducted by other independent researchers or other UN affiliated researches on a group of countries where this phenomenon spreads. Research Plan The research is divided into the following five parts: First: The theoretical framework of sex markets according to the supply and demand theory. Second: The world development of sex industry size and its reasons. Third: The sex industry size development in Egypt and its reasons. Fourth: Results analysis of the interviewees’ sample in Egypt. Economics of Prostitution in the World and its Implications with Reference to Egypt 23 Fifth: Research findings and recommendations. FIRST: THE THEORETICAL FRAMEWORK OF SEX MARKETS ACCORDING TO THE SUPPLY AND DEMAND THEORY Like the market for any commodity or service, the illicit commercial sex market is a function of supply and demand. Wherever demand occurs, supply and distribution emerge. The sex industry is lucrative and it has expanded rapidly in worldwide within the past few decades. For the men and women working in the sex trade, prostitution provides a way for people of low education to earn a high salary (Shrage, Laurie,2010). For the different countries, Sex tourism is the major source of foreign exchange and is vital to world’s economy. Unfortunately, only within the past three decades has the world governments given much attention to the social costs, such as the spread of HIV and the growth in human trafficking that the sex industry creates (World AIDS Campaign,2010 and CATW,2006). Sexual economy referred to the resources men offer to women in order to acquire sex. In this sense, the heterosexual community is considered as a marketplace where sex is bought and sold. Where in the sex economy men are the buyers, and women are the sellers (Griswold, Michael,2011). The decisions made regarding sex between a man and a woman may be influenced by the market conditions. As with all economic principles, price is determined by supply and demand, product variety, complicity among sellers, competition between sellers as well as other factors will all determine the price of sex. Becker Gary (1976) was the first theorist to define human behavior in terms of economics. There are four main assumptions to his definition. First, an individual’s behavior is interrelated in a market system in which individual choices are determined by cost and benefit in the framework of stable preferences. Second, scarce desirable resources are assigned by shifts in price and other influences on the market. Third, those that sell goods and services will compete with one another, and fourth people want to maximize their outcomes. This theory is used in a cultural sense to analyze the behavior of individuals as it is shaped by the market (Becker, Gary S.,1976). The interaction between a man and a woman through the evaluation of cost and benefit to each is referred to as Social Exchange Theory. If each one gains more than it loses in an interaction, the exchange will continue. Therefore, the main crux of the social exchange theory is the assumption that in every social interaction each person gives and gains something from the other, which is what constitutes the exchange. The broader market as well as individual preferences will determine the value of the gain and exchange process.
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