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Egypt’s Social Capital and Arab Economic Integrationand the publicity given to their activitiesprovides important support for their causes.While the financial support some of thesegroups receive from their counterparts in theNorth enables them to pursue and expandtheir activities, it has occasionally createdantagonisms and difficulties with theauthorities.Thus, the impact of globalization on socialcapital in the countries of the South is notwithout its problems. Many groups arelimited to small numbers of highly educatedpeople, and rely on foreign funding. Thismay actually reduce the likelihood ofstriking roots within their own communitiesand thus accumulating a larger stock ofsocial capital. It is feared that foreignfunding could be accompanied by a newtype of dependency relationship betweenorganizations of the North and theorganizations receiving their assistance in theSouth. The adversaries of such organizationscould stigmatize them as ‘agents of foreignpowers’, thus further distancing theseorganizations from their own citizens. If thishappens, foreign funding may paradoxicallybecome a cause of the slow accumulation ofsocial capital.To summarize, in assessing the state ofsocial capital in Egypt, three importantconsiderations should be taken into account.These are the mixed character of Egyptianculture, the rapid transition to a marketeconomy since the mid 1970s, and theincreasing openness of Egyptian societyunder the process of globalization toexternal influences. Ties of solidarity basedon primordial loyalties such as commonbirthplace, religion, and extended familyhave not disappeared, but they cannotalways survive the move away from villagesor the change in occupation, or the processof social mobility. Such ties have comeincreasingly under attack with the acceleratedexpansion of the market economy since themid-1970s, as a result of the adoption of theOpen Door Policy in 1974 and the massmigration of Egyptians to seek moreremunerative jobs, especially in theoil-producing Arab countries.The process of modernization has broughtwith it opportunities for new forms ofsolidarity. The programmed cohesion of thetraditional community is being replaced bythe organic solidarity of a modernizingsociety. Political parties, civic societies,trade unions and syndicates, provide newframeworks for people to come together onthe basis of political affiliation, occupationor simply social and intellectual interests.Traditional ties do not disappear in thismodern setting, but they become just onebasis for interaction in these organizationsalongside ideology, political stance orcommon interest.Globalization and Egyptian SocialCapitalOn the positive side, globalization has createdfavorable conditions for the accumulation ofnew social capital in Egypt. It has offeredEgyptians novel ideas that have translatedinto collective efforts ranging from thedefense of human rights to the protection ofthe environment, and a new impetus toencourage the private sector. New ideashave led to the establishment of organizationswhich have attracted a considerable numberof the Egyptian intellectual and businesselite, and have quickly become among themost active organizations of an emergingcivil society.In the area of human rights, no less thanfifteen organizations have come into beingin Egypt since the mid-1980s and havesucceeding in making human rights a publicissue. Several societies concerned with theprotection of the environment were alsoestablished during the same period.Business groups, formed since the late1970s, have become influential actors in thedecision-making process, and are supportedby research centers, think-tanks and institutesthat disseminate ideas favorable to theexpansion of the private sector and a morehospitable climate for foreign directinvestment (FDI).The process of globalization has empoweredorganizations of an emerging civil society,thus strengthening the social capital theyembody. The ties of solidarity which linksome of these organizations with globalmovements that share the same ideas haveenabled organizations, notably human rightsadvocates to survive in a hostile politicalenvironment, withstanding pressure fromthe government, and even the harassmentand persecution of their members.The process ofglobalization hasempoweredorganizations of anemerging civilsociety, thusstrengthening thesocial capital theyembody.Egypt Human Development Report 2000/2001 - 109