Egypt: Why the Next Revolution Must Be an Economic One

March 4, 2011

In his article The Revolution Against Neoliberalism? Dr. Walter Armbrust, University Lecturer in Modern Middle East Studies at Oxford University, speculates about the next revolution in Egypt, the economic revolution, and whether it will succeed at all. Dr. Armbrust examines Egypt’s political economy during the Mubarak era, and finds a system that relied on cronyism and a misguided and corrupt neoliberal state, one where only the well-connected were able to thrive, and thrive they did. Armbrust is highly critical of the neoliberal economy, where the so-called free market trumps all other considerations of social policy and fairness.

The following is excerpted from his article at Jadaliyya.

“. . . the real problem with the regime was not necessarily that high-ranking members of the government were thieves in an ordinary sense. They did not necessarily steal directly from the treasury. Rather they were enriched through a conflation of politics and business under the guise of privatization. This was less a violation of the system than business as usual. Mubarak’s Egypt, in a nutshell, was a quintessential neoliberal state. . .[In the neoliberal state,] guaranteeing the sanctity of markets is supposed to be the limit of legitimate state functions, and state interventions should always be subordinate to markets. All human behavior, and not just the production of goods and services, can be reduced to market transactions. And the application of utopian neoliberalism in the real world leads to deformed societies as surely as the application of utopian communism did. . .

“The only people for whom Egyptian neoliberalism worked ‘by the book’ were the most vulnerable members of society, and their experience with neoliberalism was not a pretty picture. Organised labor was fiercely suppressed. The public education and the health care systems were gutted by a combination of neglect and privatization. Much of the population suffered stagnant or falling wages relative to inflation. Official unemployment was estimated at approximately 9.4% last year (and much higher for the youth who spearheaded the January 25th Revolution), and about 20% of the population is said to live below a poverty line defined as $2 per day per person.

A Neoliberal Fix Would Be a Tragedy For the Pro-Democracy Movement

“For the wealthy, the rules were very different. Egypt did not so much shrink its public sector, as neoliberal doctrine would have it, as it reallocated public resources for the benefit of a small and already affluent elite. Privatization provided windfalls for politically well-connected individuals who could purchase state-owned assets for much less than their market value, or monopolise rents from such diverse sources as tourism and foreign aid. Huge proportions of the profits made by companies that supplied basic construction materials like steel and cement came from government contracts, a proportion of which in turn were related to aid from foreign governments. . .

“The generals [now in charge] may well prefer a new round of neoliberal witchcraft. More privatization will simply free up assets and rents that only the politically connected (including the generals) can acquire. Fixing a failed neoliberal state by more stringent applications of neoliberalism could be the surest way for them to preserve their privileges.

“A neoliberal fix would, however, be a tragedy for the pro-democracy movement. The demands of the protesters were clear and largely political: remove the regime; end the emergency law; stop state torture; hold free and fair elections. But implicit in these demands from the beginning (and decisive by the end) was an expectation of greater social and economic justice.

“. . . If the January 25th revolution results in no more than a retrenchment of neoliberalism, or even its intensification, those millions will have been cheated. The rest of the world could be cheated as well. Egypt and Tunisia are the first nations to carry out successful revolutions against neoliberal regimes. Americans could learn from Egypt. Indeed, there are signs that they already are doing so. Wisconsin teachers protesting against their governor’s attempts to remove the right to collective bargaining have carried signs equating Mubarak with their governor. Egyptians might well say to America ‘uqbalak’ (may you be the next).”

Tahrir Square – Honeymoon Hotspot

February 6, 2011

Let me not to the marriage of true minds
Admit impediments; love is not love
Which alters when it alteration finds,
Or bends with the remover to remove.
O no, it is an ever-fixèd mark
That looks on tempests and is never shaken;
It is the star to every wand’ring bark
Whose worth’s unknown, although his height be taken.
Sonnet 116, William Shakespeare

The Ballad Of Ahmad and Mona.
Married yesterday in Tahrir  Square.
15,000+++ in attendance.


File under “People in Love Do the Strangest, and Bravest, Things”

Egyptian President Mubarak Serves Red Herring to Protesters

 February 6, 2011

Neither Logic Nor Reality.  Thursday night’s Christiane Amanpour interview of Egyptian President Hosni Mubarak gave us a revealing view of his reasoning about the popular uprising, then in its ninth day. The protests, suddenly rent with the violence of pro-Mubarak forces, brought the President out of hiding to comment. His key responses were to Amanpour’s question about his possible resignation: “If I resign today, there will be chaos. . . I was very unhappy about yesterday. I do not want to see Egyptians fighting each other. . . I don’t care what people say about me. Right now I care about my country.”

In 1927, U.S. Supreme Court Justice Louis Brandeis wrote, “The logic of words should yield to the logic of realities.” In his attempt to shift responsibility, President Mubarak’s comments abuse logic and ignore reality. In fact, it’s a verbal stunner, a soup of distortions that will find its way into the lexicon of modern Egyptian history.

Velvet Words, Burlap Meanings. Yet, on its first hearing, Mubarak arguably sounds resolute, steeped in affection for home and hearth. Likewise, newly minted Vice President Omar Suleiman later told Amanpour that “We always respect our president, respect our father, respect the guy who’s done as well for his country as President Mubarak has done.”  Indeed, there’s truth to Suleiman’s observation: Mubarak has a well-earned reputation for bravery in military service to Egypt; he did at some times – long past – listen to his people’s aspirations; he walked an unenviable path between Israeli mistrust and Islamic resentment. 

Now, though, Mubarak’s apparently sincere words fail to match the reality on the ground, and the regime’s part in it.  He’s ratified the harsher measures we saw on Wednesday, if not actually ordering them himself. He watched the attacks on journalists in the attempt to banish the press and isolate the protesters.  In these activities, the same enabling role is also true of Suleiman. Still and all, here they are avowing their love of all Egyptians. Where have they been the last 48 hours, the last 10 days?  Apparently not in Egypt.

It may be argued that Suleiman’s remarks about Mubarak are the wistful sentiments of a longtime colleague. Mubarak’s words and nonaction, though, throttle the truth and strongly suggest insincerity. Applying the “smell test” fails.  He’s “fed up” with the Presidency?  He just wishes that he could step down? About that, let’s note he’s been hard at work trying to deflate, discredit, and defeat the protesters for at least the past few days.  And to what purpose?  To ease his way out of the office he maintains he’s “fed up” with?  If that’s what he expected to convey during his Amanpour interview – and in his earlier speech to the nation as well – then he’s failed the “logic of realities.” If the reality on the ground is a guide, his tenure is finished (and Suleiman’s), unless he wants to be literally pushed out of office, or reduced to a dying figurehead with little or no power. He knows that. His best bet is to leave, to retirement on a Pharaoh’s pension in Sharm-el-Sheik. 

“Let Them Eat Red Herring” But let’s briefly accept that Mubarak truly is “fed up” with the presidency, then the only reason for holding onto power he’s advanced is his fear of the consequences of his leaving, his concern about “chaos.” This, however, is like throwing a coconut cream pie in a stranger’s face and then complaining that your victim’s anger has caused you emotional damage. 

Let’s face it, the chaos in Cairo, in largest part, was caused by Mubarak and his crony-heavy regime, both in an immediate and a long term sense.  Shifting the blame and changing the question is a shopworn tactic, politicians everywhere use it, it’s the screwdriver in the toolbox. We experienced it, for example, when the Bush II administration put the unprepared and inexperienced Michael Brown in charge of FEMA, and following Hurricane Katrina then asserted, “See, federal government programs don’t work!” Well, Bush and the government-hating GOP/Tea Party set it up to fail, there and elsewhere, to lend credence to their anti-governance rhetoric. A classic red herring. Given Mubarak’s record of late, particularly his collusion with the brute force that is called “pro-Mubarak,” his avowed affection for the people is, it appears, a red herring meant to fool Egyptians into sentimentally adjusting their emotions, and to buy time for Mubarak to retain his power. Hopefully, this red herring rots in the Middle Eastern sun.

SOS Egypt: Violence Begins, Thugs = Police

February 2, 2011

We are no longer sleeping atop a volcano.

“Thugs” = Police. This evening in Cairo a sleeping volcano erupted, spewing lava. Pro-government protesters broke the back of the past week of peaceful revolution with Molotov cocktails and men carrying whips atop camels. Presently, in Tahrir Square, anti-Mubarak demonstrators are surrounded by surging pro-Mubarak crowds, and unable to leave the square as the army stands by, presently motionless.  And then there’s this tweet a few minutes ago, as the Mubarak government tries to shift blame:

Breaking: #Egypt state TV accuses #MuslimBrotherhood of throwing fireballs at #Tahrir. CNN sees NO EVIDENCE of this.

“Thugs,” among the Egyptian people these days, means the state police and the secret security forces. It is very likely that the counter “demonstrators” are seeded with these thugs. Moreover, it is beyond any possible suspension of disbelief that this is a spontaneous outpouring of support for Mubarak. This gathering of weapons-toting thugs has been some time in the making and would have required the acquiescence of the secret police, who, after all, have proved themselves very adept at rooting out opposition parties and individuals.  This “demonstration” required exacting preparation.  And where was Mubarak? And, especially, where was Vice President Omar Suleiman? He’s not without interest here since he was the head of the Mukhabarat, or General Intelligence Directorate; Suleiman was Mubarak’s go-to man for spying, torturing, misinforming, and disrupting.

What Next?  Frankly, it’s an absurd exercise to speculate. “What next?” includes not only Egypt but the region, note the demonstrations in Jordan, the unease in Israel, and the stirrings in Yemen. Yet, one can be sure that Mubarak himself is the only one who can decide whether Egypt burns or heals. And even that is uncertain; the revolution genie is out of the bottle, yet, Egypt without Mubarak is rife for instability. Nevertheless, if Mubarak truly loves his country, as he affirmed in last night’s speech, then the time to leave is now.