Egypt

K

Communications

Egypt’s press, publishing, and media facilities are the largest and most developed in the Arab world. Much of the press was taken over by the government soon after the revolution of 1952, when the daily newspaper Al Ahram became the regime's principal mouthpiece. Party and private newspapers are permitted but are subject to censorship. The government controls the national radio and television services, as well as the basic telephone system. Foreign companies have installed cellular telephone networks and operate private payphone systems.

L

Foreign Trade

Before the revolution of 1952, Egypt’s foreign trade consisted mainly of exports of raw materials, particularly long-staple cotton, and imports of manufactured goods. After the revolution, the regime pursued a policy of discouraging imports by using high tariff barriers to protect its growing industries. It also brought most of the country’s commerce under government control. More liberal policies were introduced in the 1970s. However, it was only in the 1990s that steps were taken to open up parts of the Egyptian market to foreign competition. There was also a new emphasis on exports. Apart from exports of crude petroleum and refined petroleum products, this policy has not alleviated trade imbalances. In 2003 exports were sold for $6.2 billion while imports cost $10.9 billion. As a result, the country runs a trade deficit. Part of this deficit is offset by the money Egypt earns from tourism, Suez Canal tolls, and remittances from Egyptians working abroad.

Petroleum and petroleum products contribute roughly 40 percent of Egypt’s export earnings, although the percentage changes from year to year. Other exports include textile yarn and fabrics, fruits and vegetables, clothing and accessories, and aluminum products. The principal imports are machinery and transportation equipment; basic manufactures, particularly iron, steel, and paper; food products, primarily cereals; and chemicals. The United States is Egypt’s main trading partner, followed by Italy, Germany, and France.

M

Currency and Banking

Egypt's currency is the Egyptian pound, consisting of 100 piastres (5.80 Egyptian pounds equal U.S.$1; 2005 average). The Central Bank was created in 1961, when all the country's private banks were nationalized. Several specialized state-owned banks were also set up. Foreign banks were allowed to reenter the country as joint ventures with Egyptian investors in 1974 after having been forced to leave during the nationalization period. In the late 1990s the government agreed to partially privatize Egypt’s four giant state-owned banks. More than 80 domestic and foreign banks operate in the country.

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Roger Owen contributed the Economy section of this article.

VI

Government

Egypt was a constitutional monarchy from 1923 to 1952, when military officers seized control of the government. Although Egypt became a republic in 1953, it essentially remained a military dictatorship dominated by a single political party. In 1978 a multiparty political system was instituted.

Egypt is governed under a constitution that was approved by a national referendum in 1971. The constitution, which was amended in 1977, 1980, 2005, and 2007 provides for an Arab socialist state with Islam as the official religion. It also stresses social solidarity, equal opportunity, and popular control of production.

Political power is concentrated primarily in the presidency. Since 1952 Egypt’s presidents have risen from the military, which holds considerable authority in the government. The orientation and policies of the government have shifted considerably with changes in the presidency. In May 2005 voters approved a constitutional amendment that allowed for multiparty presidential elections by secret ballot. Previously, the president was selected by the legislature and approved by a yes or no referendum. Under the terms of the amendment, any registered political party could participate in the first direct presidential election, which was held in September 2005. In future presidential balloting, however, only candidates belonging to political parties that make up at least 5 percent of the legislature, or independent candidates with the backing of at least 65 members of the lower house, are eligible to run.

In 2007 another referendum on constitutional changes approved greater powers for the Egyptian president. The changes gave the president the power to dissolve Egypt’s bicameral legislature without holding a referendum, limit the role of judges in monitoring elections, and suspend civil rights protections in cases that the president determines are associated with terrorism. The referendum also reconfirmed the existing ban on political parties based on religion, a prohibition that is aimed at the popular Muslim Brotherhood. Opposition groups and human rights organizations said the outcome of the referendum was affected by widespread vote fraud. The government said the referendum passed overwhelmingly with more than 75 percent approval and a voter turnout of about 10 million people.

A

Executive

The head of state is the president of the republic, who is elected by secret ballot for a six-year term. The president, who may serve unlimited consecutive terms, dominates the government. This official may decree emergency measures in the interests of the state, but the constitution stipulates that the president must obtain consent for any such decree by a popular referendum within 60 days. However, a state of emergency that has been in effect since 1981 has set aside the requirement of popular approval for presidential decrees. The president has the power to formulate general state policy and supervise its execution. This official can dissolve the legislature, declare war after approval by the legislature, ratify treaties, commute penalties, suspend civil rights protections in cases associated with terrorism, and order plebiscites.

The president names a prime minister and a council of ministers, or cabinet. Most ministers serve as the executive officers of the government’s various departments, including those dealing with foreign affairs, internal order, social affairs, justice, agriculture, commerce, industry, and education. Some ministers also hold the title of deputy prime minister. Egyptian cabinets help set government policy, but key decisions are often made by the president in consultation with a few close advisers, most of whom are former cabinet ministers or high-ranking military officers.

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