Egypt: Why The Next Revolution Must Be An Economic One.
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,] [g]uaranteeing 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).”
