Edward Elgar Publishing Stabilization and Adjustment in Egypt: Reform or De-Industrialization

This book studies the impact of Egypt's Economic Reform and Structural Adjustment Programme (ERSAP), the effects of which have been of great interest to the international community. Organizations such as the World Bank and the IMF uphold the programme as a success story and example for other countries to follow. ERSAP also has its critics, however, who resent its tendency to downsize government and fear possible negative effects on growth and development. The author discusses these concerns along with those regarding the possible negative social effects of ERSAP. This vital and timely study analyses the impact of ERSAP at two distinct levels - macro- and microeconomic. At the macro level the effects of ERSAP on variables including interest and exchange rates, domestic public debt, trade balance, budget deficit and inflation are considered. At the micro level two industrial case studies are considered in detail: the aluminium industry, and the iron and steel industry. Both are energy intensive industries affected specifically by ERSAP's policy of raising energy prices towards parity with world prices. They are also usually considered essential to any serious industrialization process. This book will interest and inform practitioners, policymakers and scholars of economics, industrial economics, development economics and development studies. Review 'Professor Abdel-Khalek, an Egyptian economist with numerous high-quality publications to his credit, gives another example of fine scholarship with this volume . . . the book . . . deserves high marks. The author has done an excellent job pointing out the shortcomings of using monetary policies alone to achieve multiple targets . . . Abdel-Khalek's work should set the standard for current research.'