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Egypt’s Social Capital and Arab Economic Integrationparticularly from 1973-1980, contributed toan increase in demand from oil-exportingArab countries for all kinds of services,including administrative, financial andpersonal. In addition, the administrativesystem was expanded to provide health,education, social and all the other serviceprovisions of a welfare state without havingto burden citizens with high taxes. Thisnecessarily implied increased labormovement to these countries.As shown in Figure (7.2), most Egyptianworkers were attracted to Libya, the Gulfcountries and Iraq. Their number in the Gulfcountries decreased significantly in theaftermath of the Gulf War. However, therewere other factors feeding this trend:notably, the fall in oil prices; and the policyof substituting foreign labor by nationallabor.Egyptian labor movement to Arab countrieshas been characterized by the concentrationof labor (53.1 per cent) in productiveprofessions, whether in the industry,agriculture, construction or transportationsectors. Technical, scientific, and managerialprofessions come next with a share of 21.3per cent, while bureaucratic jobs representonly 3.6 per cent.However, a recent study suggests that theGulf War had harmful effects on unskilledand uneducated labor. For example, agriculturalworkers represented 18.5 per cent of totalworkers coming back from Iraq, whileproduction and transportation workersamounted to 55.6 per cent of the same total.It appears then that Arab-Egyptian relationshave contributed to achieving higherstandards of living, and more opportunitiesand choices for all, as well as thedevelopment of mutual understanding. It iscertain that the movement of Egyptian laborto Arab countries was significant factor,contributing to prosperity in the Arabworld. Egyptians working in Arab countrieshave accelerated the implementation ofeconomic and social development programsbecause of their qualifications, experience,low cost, and ability to train other workers.Labor movement has raised the standard of10000008000006000004000002000000Figure 7-2Estimates of Egyptians working in some Arab Countries12000001990 1991 1992 1993 1994 1996Saudia Kuwait Qatar Emirates Jordan Yemen Sudan Libyaliving of no less than an estimated 15 percent of the Egyptian population, supportedthe balance of payments, and has had amajor role in preserving the value of theEgyptian pound from further depreciation.In addition, the investments of Egyptiansworking abroad have helped narrow thesaving-investment gap and thereby contributedto economic growth in Egypt. However,with respect to trade, Egyptian exports haveso far failed to achieve an adequate share ofthe Arab market. This is evident in thereversal of the balance of payments in favorof several Arab countries such as SaudiArabia and Jordan.Finally, Arab economic cooperation is not asubstitute for globalization. On the contrary,it is believed that cooperation will increasethe opportunities for benefiting, bothsocially and economically, from globalization.Arab economiccooperation is not asubstitute forglobalization. On thecontrary, it is believedthat cooperation willincrease theopportunities forbenefiting, bothsocially andeconomically, fromglobalization.Egypt Human Development Report 2000/2001 - 115