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360 pages, ebook
First published November 18, 2019
Lack of profitability might be understandable for military products that are not primarily intended for export,but the only reason that the Egyptian defense industry has survived low levels of productivity, utilization of capacity, and technological innovation in its civilian output of goods and services is that its losses and hidden costs are transferred to the state treasury, reducing its marginal costs of capital to a minimum. This is not for any lack of genuine manufacturing capability and technical skills, but for the wider political economy within which the sector operates, and which allows its leaders to disregard the need for meaningful cost-benefit analysis.
Officer networks, and the loyalty scheme that binds them to the incumbent administration, will have to be dismantled if any Egyptian government is ever to exercise effective economic management and attain sustainable development