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This report is the major output of the HumanDevelopment Project, executed by the Institute ofNational Planning (INP) under the projectdocument EGYØ96Ø012 of technical co-operationwith the United Nations Development Programme(UNDP)Copyright © 2001by The Institute of National PlanningNasr City, Cairo, EgyptAll rights reserved. No part of this publication may be reproduced, stored in a retrieval system ortransmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise,without prior permission of The Institute of National Planning.Printed in the Arab Republic of EgyptCommercial press-Kalyop-EGYPT
PrefaceAt this sensitive time in our history, wherethe last few months have been witnessing sodramatic international events, one needsonly to refer to the 11th of September andthe events in Palestine to underline thedifferent faces globalization may take.While some would restrict globalization tothe economic aspects, and more specificallyto the liberalization of investment and tradeand the worldwide impact of rapid andincessant change in information andtechnology, globalization, in fact, goesbeyond these aspects to encompass alsosocial, political, and cultural aspects.The allure of globalization, especiallyduring the last decade, has tempted some toargue that the role of the national state isregressing. This is true if we limit this roleto direct involvement in investment andproduction, but seeing this role in acomprehensive way suggests that it changesfrom direct to indirect management of thenational economy. Moreover, this role willcontinue to be of prime importance so longas human development objectives are notintegrally achieved and whereas regionaland international conflicts are threateningpeoples of the world.The main justification for supporting themove towards globalization lies in the gainsthat it offers to the world through benefitingfrom trade liberalization, specialization andinternal division of labor. On the other hand,some people think that these gains willaccrue only to the developed industrialcountries at a cost incurred by developingcountries; so that the rich will become richerand the poor will become poorer. There arealso those who oppose globalization withinthe industrial countries, especially amongthe environment guardians and the labortrade unions. In the developing countries,some people fear the negative impact ofglobalization on culture and the nationalidentity, among other threats.All this indicates that we are living in acontinuously changing world. People areusually afraid of what is new, magnifying itsnegative effects without perhapsinvestigating its positive impact. I think thatthe best approach is to tame the newglobalization wave and use it for the benefitof humanity.It is possible for Egypt, and otherdeveloping countries, to achieve gains fromglobalization; derived essentially fromwidening the scope of the market within theframework of economic liberalization, gainsfrom the ongoing technological revolutionin information, communication, andproduction techniques; gains from capitalmovement and foreign direct investment.These gains would, hopefully, translate intohigher economic growth and improve jobopportunities and favorably impacts on thecountries’ balance of payments.Moreover, we must all work to ensure thatglobalization achieves two main objectives:equitable income distribution at theinternational level between developed anddeveloping countries while preserving thevariety of cultures leading, thus, to thedevelopment of the whole mankind; andinternal equitable income distributionespecially in developing countries.This Report, which is the sixth EHDR, isdevoted to tackling the issue of howglobalization interacts with humandevelopment in Egypt. The 1999 HDR of theUNDP has also focussed on the same issue butwith reference to the international community.Both reports might be seen as a response to theglobalization tide. This response highlights theopportunities and the threats that globalizationinvolves from the viewpoint of humandevelopment. Needless to say that theobjective is to help people and policy makerstake advantage of the opportunities and takeguard against the threats.Targeting this objective, the present Reportmoves from the conceptualization ofglobalization and the opportunities andthreats it involves to a sort of assessment ofthe Egyptians’ economic well-being in aglobalized world. Then, the Report examinesthe challenges to which Egypt’s sectors ofproduction are exposed through globalization.To what extent globalization impacts uponenvironment and potentialities of sustainabledevelopment in Egypt is a major question theReport addresses, besides its concern withshowing where Egypt stands in a technologyand information led globalization. The Reportalso deals with the status and potentialities ofEgypt’s human capital under globalization.Finally, it assesses the stock of Egypt’s socialcapital and tries to establish a link between itsdevelopment and the Arab EconomicIntegration.Indeed, globalization calls for theparticipation of all actors including theinternational, regional, and nationalinstitutions, private as well as public,governmental or non-governmental. Withglobalization, we all need to recruit anddevelop the available resources to meet thechallenges it imposes to all of us.Prof. Dr. Osman Mohamed OsmanMinister of PlanningandChairman of Board of DirectorsInstitute of National Planning
Page 2 and 3: The Digital Divide is a problem tha
Page 6 and 7: AcknowledgementsThe Team of the Rep
Page 8 and 9: Table of ContentsExecutive Summary
Page 10 and 11: Energy Consumption 68Agriculture 69
Page 12 and 13: 2.4 Health and Education 332.5 Poli
Page 14 and 15: AbbreviationsADNAADPAIAPRARCB2CBABC
Page 16 and 17: Executive SummaryI - Globalization
Page 18 and 19: Executive Summarythe main source of
Page 20 and 21: Executive Summaryfertilizers, pesti
Page 22 and 23: Executive Summarythe Egyptian labor
Page 24 and 25: Chapter OneGlobalization and Human
Page 26 and 27: Globalization and Human Development
Page 40 and 41: Chapter TwoThe Economic Well Being
Page 42 and 43: The Economic Well Being of Egyptian
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The Economic Well Being of Egyptian
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The Economic Well Being of Egyptian
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Globalization Challenges to Egypt
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The Environment and Sustainable Dev
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Chapter FiveEgypt’s Position inTe
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Egypt’s Position in Technology an
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Chapter SixGlobalization and Human
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Globalization and Human CapitalOf t
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Globalization and Human CapitalOne
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Globalization and Human CapitalThe
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Globalization and Human CapitalEmpl
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Chapter SevenEgypt’s Social Capit
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Egypt’s Social Capital and Arab E
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Technical Notesand Sources of DataH
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Technical Notes and Sources of Data
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Bibliography◆ Abdallah, H. (1996)
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BibliographyOECD Development Centre
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BibliographyNational policies in a
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Bibliography◆ Springborg,Robert (
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Governorate IndicatorsG.10 Health p
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Governorate IndicatorsG.18 Demograp
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