Egypt's Development in the Seventies

In the 1970s, under President Anwar Sadat, Egypt adopted a new approach to economic development, relying much more than previously on market mechanisms. The effects of this program are examined. The economic environment within which the program operates is described; it imposes significant limits on policymakers' options. Egypt's national accounts over the period reviewed are summarized, with attention to the balance of payments & to the following problem areas: investment & its productivity, the labor market & employment creation, income distribution, & inflation. Problems of macromanagement & exchange rates are also explored. The Egyptian economic system now suffers from a number of distortions that cannot easily be corrected by increased reliance on the market, since such reliance would threaten the interests of key groups within Egyptian society. 7 Tables. W. H. Stoddard.