Governance and Economic Development in Egypt: The Interlinkages
Abstract
This chapter aims to understand the link between governance and economic development in Egypt. It highlights controversies that exist in the empirical literature while discussing those interlinkages. It descriptively clarifies Egypt’s performance with respect to the World Governance Indicators (WGI) through the last three decades, and how high ranking in those indicators were often linked to declining growth performance. The analysis highlights the gap between de jure and de facto institutions, which has affected Egypt’s WGI scores and growth trajectory. The chapter also identifies key challenges to good governance, such as corruption and weak rule of law, and reviews government efforts to address these issues. It also sheds light on the potential reforms to enhance and develop the governance structure and institutional performance. The chapter recommends implementing continuous, inclusive, and balanced reforms that ensure consistency and cooperation across institutional areas. It highlights that institutional reform is a complex, time-consuming process requiring sustained resources and commitment to achieve its objectives