Arab corporatism

Abstract EN

This paper argues that the modern economic systems of Egypt and Tunisia can best be characterized as corporatist economic systems, rather than socialist or capitalist systems.

The emergence of corporatist political regimes in Egypt and Tunisia has its roots in 'free market reforms' which were supposed to transform these economies from socialist economies to free market capitalist economies.

Instead of ushering in free markets, these reforms instituted closed unfree markets characterized by restrictions on entry and competition, close links between the ruling regime and favored firms and extensive government support for these firms under the rhetoric of development.

This corporatist system emerged because of, and in turn strengthened, an omnipresent police state and an unaccountable rentier government dependent on foreigners, not citizens, for its financing.

Real economic reform in Egypt and Tunisia is dependent on dismantling these corporatist regimes, and not on changing the people in charge of them.