Sectoral Transformations in Neo-Patrimonial Rentier States: Tourism Development and State Policy in Egypt

GIGA Working Paper No. 61

30 Pages Posted: 4 Dec 2007 Last revised: 16 Aug 2012

See all articles by Thomas Richter

Thomas Richter

German Institute of Global and Area Studies (GIGA)

Christian Steiner

Johannes Gutenberg-University, Centre for Research on the Arab World

Date Written: November 1, 2007

Abstract

This article challenges claims that liberalizing state regulated markets in developing countries may induce lasting economic development. The analysis of the rise of tourism in Egypt during the last three decades suggests that the effects of liberalization and structural adjustment are constrained by the neo-patrimonial character of the Egyptian political system. Since the decline of oil rent revenues during the 1980s tourism development was the optimal strategy to compensate for the resulting fiscal losses. Increasing tourism revenues have helped in coping with macroeconomic imbalances and in avoiding more costly adjustment of traditional economic sectors. Additionally, they provided the private elite with opportunities to generate large profits. Therefore, sectoral transformations due to economic liberalization in neo-patrimonial Rentier states should be described as a process, which has led to the diversification of external rent revenues, rather than to a general downsizing of the Rentier character of the economy.

Keywords: Egypt, rentier state, economic liberalisation, economic development, tourism

JEL Classification: H27, L83, O11, P26

Suggested Citation

Richter, Thomas and Steiner, Christian, Sectoral Transformations in Neo-Patrimonial Rentier States: Tourism Development and State Policy in Egypt (November 1, 2007). GIGA Working Paper No. 61, Available at SSRN: https://ssrn.com/abstract=1050061 or http://dx.doi.org/10.2139/ssrn.1050061

Thomas Richter (Contact Author)

German Institute of Global and Area Studies (GIGA) ( email )

Neuer Jungfernstieg 21
Hamburg, DE D-20354
Germany

Christian Steiner

Johannes Gutenberg-University, Centre for Research on the Arab World ( email )

Department of Geography
Mainz, 55099
Germany
+49 6131 3924764 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
253
Abstract Views
1,858
rank
154,867
PlumX Metrics