Sectoral Transformations in Neo-Patrimonial Rentier States: Tourism Development and State Policy in Egypt
AbstractThis article challenges claims that liberalising 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 liberalisation 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 liberalisation 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.
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Bibliographic InfoPaper provided by GIGA German Institute of Global and Area Studies in its series GIGA Working Paper Series with number 61.
Length: 29 pages
Date of creation: Nov 2007
Date of revision:
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Find related papers by JEL classification:
- H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
This paper has been announced in the following NEP Reports:
- NEP-AFR-2007-12-15 (Africa)
- NEP-ALL-2007-12-15 (All new papers)
- NEP-CWA-2007-12-15 (Central & Western Asia)
- NEP-TUR-2007-12-15 (Tourism Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Adams, Richard H., 2000. "Self-targeted subsidies - the distributional impact of the Egyptian food subsidy system," Policy Research Working Paper Series, The World Bank 2322, The World Bank.
- Krueger, Anne O, 1990.
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American Economic Association, vol. 4(3), pages 9-23, Summer.
- Balassa, Bela, 1982. "Structural adjustment policies in developing economies," World Development, Elsevier, Elsevier, vol. 10(1), pages 23-38, January.
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