Copyright by Rachel Anne Sternfeld 2014 The Dissertation Committee for Rachel Anne Sternfeld Certifies that this is the approved version of the following dissertation: Political Coalitions and Media Policy: A Study of Egyptian Newspapers Committee: Jason Brownlee, Supervisor Zachary Elkins Robert Moser Daniel Brinks Esther Raizen Political Coalitions and Media Policy: A Study of Egyptian Newspapers by Rachel Anne Sternfeld, B.A.; M.S.; M.A. Dissertation Presented to the Faculty of the Graduate School of The University of Texas at Austin in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy The University of Texas at Austin August 2014 Dedication For Robert, who challenged us to contemplate difficult questions. Acknowledgements My dissertation would not be possible without the financial, intellectual and emotional support from myriad groups and individuals. The following are simply the highlights and not an exhaustive list of the thanks that are due. I am indebted to various entities at the University of Texas for providing the funding necessary for my graduate work. The Department of Government provided support for my coursework, awarded me a McDonald Fellowship that supported six months of fieldwork, and trusted me to instruct undergraduates as I wrote the dissertation. The Center for Middle Eastern Studies awarded me FLAS grants that covered two years of coursework and sent me to Damascus in the summers of 2008 and 2010. Beyond the University of Texas, the Center for Arabic Study Abroad (CASA) enabled me to spend a full calendar year in Cairo advancing my Arabic skills so I could conduct research without a translator. Professor Clement Henry, Chair of the Political Science Department at the American University in Cairo, ensured my access to the AUC campus and library during my fieldwork. Many many Egyptians aided me as I navigated life in Cairo. I appreciate them all. A few of my linguistic and cultural interlocutors deserve special mention. Ahmed Serag was a voice of reason. Mohammad Elewa let me argue; one time he even let me pontificate on an internet radio broadcast. Ahmed Farag is always ready with support, in the face of everything from tough passages in Arabic to housing crises. Hoda continues to guide me through moments of cultural misunderstanding, as well as providing inspiration and friendship. Mohsen was my window into Egyptian newspapers and my v first Egyptian friend in Cairo, thanks in large part to our shared enjoyment of evening walks and bouza. I also owe considerable debts of gratitude to the Americans who helped me stave off bouts of homesickness and kept me on track, academically. Zina (and Lara) filled our home with a love of life and cupcakes. My academic uncles were always available to talk about political science and the challenges of fieldwork. Jon and Ian made sure we ate well, drank well, and, most importantly, that we laughed. Meir & Suzie rounded out my academic community in Cairo; they opened their home and made all feel welcome. Back in Austin there were many people who made life and school more enjoyable. Matt carved the way for the JB disciples and Steven joined me on my first foray into tear gas and other adventures. The BT writing group kept me on task and reminded me to enjoy life beyond Batts. In Kate we found a deeply compassionate taskmaster. Abby told us why our research is important and why we as people are important, too. Ilana is the glue that made it possible. The faculty and staff of the Government Department are incredibly supportive. Everyone who guided me through the degree was unfailingly generous with their time and encouraging of my academic pursuits. Special mention must be made of Robert Moser who as Graduate Advisor, Department Chair and committee member was always prepared to go above and beyond to help me when I stumbled. I am immensely grateful to Jason Brownlee, my advisor, for his support and encouragement through the ups and downs of these past seven years. Of course, none of my successes would be possible without the unending love, encouragement and aid of my family, especially my parents Nancy and John Sternfeld. vi Political Coalitions and Media Policy: A Study of Egyptian Newspapers Rachel Anne Sternfeld, Ph.D. The University of Texas at Austin, 2014 Supervisor: Jason Brownlee Abstract: This dissertation asks: Why do autocrats expand the freedoms enjoyed by their domestic media outlets when it would seem to be against their interests to do so? Some research suggests that private capital investments and other non-state sources of revenue are crucial to expanding the bounds of media discourse. I argue that private money alone cannot produce such developments, instead, increased press freedom can be observed when the economic reforms create the opportunity for a new class of entrepreneurs, interested in funding media ventures, to enter government. From this position they may push for opportunities to expand the media environment. Hosni Mubarak’s presidency in Egypt provides a useful lens to study changes in press freedom under autocracy. The introduction of private capital into the Egyptian newspaper industry in two recent decades resulted in different levels of press freedom. In the 1990s press freedom was unaffected by the influx of private money into this sector, but there was a marked increase in press freedom in the 2000s when a wave of new privately-owned dailies joined their state-owned counterparts on Egyptian newsstands. The introduction of economic reforms, especially privatization of state industries, created vii the opportunities for the expanded class of entrepreneurs to enter politics and the economic incentives to increase the freedom of the press. The dissertation expands our existing understandings of the political and economic context under which economic liberalizations can lead to political liberalizations. It suggests that political science can improve its understanding of these dynamics by considering individual political liberalizations, rather than just democratization, when seeking to understand the impact of economic reforms. viii Table of Contents List of Tables ......................................................................................................... xi List of Figures ....................................................................................................... xii List of Illustrations ............................................................................................... xiii Chapter 1: Introduction and Argument ...................................................................1 Description of Cases .......................................................................................5 Literature Review..........................................................................................10 Lack of nuance in study of press & regime type .................................11 Drawing insights from the literature on elections in autocracies .........12 Drawing insights from the literature on economic liberalization ........15 Theory ...........................................................................................................18 Conclusion ....................................................................................................21 Chapter 2: Historical Context ...............................................................................25 History of the Egyptian Press .......................................................................26 The Free Officers' Revolution: A Critical Juncture ......................................27 Nasser and the economy ......................................................................28 Nasser and the press .............................................................................30 Infitah and Pluralism: Sadat's Path to Power ................................................31 Infitah: an economic opening...............................................................32 Pluralism: parties and politics ..............................................................34 Sadat's Legacy ...............................................................................................38 Conclusion ....................................................................................................41 Chapter 3: The Failed Experiment: Newspaper privatization and state push back, the 1990s .............................................................................................................43 War, Foreign Aid & Structural Adjustment ..................................................44 Economic struggles ..............................................................................45 Adopting economic reform ..................................................................47 ix The Cyprus Loophole: Foreign Licenses, Free-Economic Zones and Private Newspapers ..........................................................................................49 Crackdown on Press Freedom and Civil Society ..........................................54 Tightening legal constraints on the press .............................................57 Chapter 4: Expansion of Press Freedom: Businessmen and their Newspapers , the 2000s .............................................................................................................63 Politicization of the "Businessman" Class ....................................................64 Early economic and political gains, 1989-1998 ...................................65 The return and