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The Economic Well Being of Egyptians in a Globalized Worldused in factor analysis are averages for theyears 1986, 1990 and 1996 as given invarious issues of Egypt’s HumanDevelopment Report (EHDR). Factorloading is the correlation between theoriginal variable and the first factor.Variables with higher loadings areconsidered more important. Communalitiesshow the amount of variance in a variablethat is accounted for by the factor (orfactors). Large communalities indicate that alarge amount of the variance in a variablehas been captured by the factor solution.Coefficients are the weights given to eachvariable to construct the index (BHDI).All variables show high correlation with thefirst factor (loadings exceeding 75 per cent).Variables of female literacy, literacy rate, andpercentages of the poor and of the ultra poorhave the largest communalities (exceeding 90per cent), indicating that those variablesexplain most of the variability in theconstructed index. All coefficients have theright signs. Infant mortality rate, under fivemortality rate, percentage of the poor, and ofthe ultra poor and percentage of wages of thepoor out of total wages, have negativecoefficients, indicating negative correlationwith human development levels. Eachgovernorate is assigned a BHDI calculated asthe weighted sum of the above humandevelopment indicators, using the weightsshown in Table (2.1.1). The index has beenscaled to range from zero to 100.Annex table (2.1.2) presents BHDI and HDIfor each governorate. Comparisons betweengovernorate ranks with respect to bothindices are also shown. Higher ranksindicate lower levels of humandevelopment. The estimated rankcorrelation coefficient between the twoindices appeared to be very high (0.968).There were no differences in ranks fortwelve governorates, indicating consistentlevels of all human development indicators.In six governorates, ranks with respect toBHDR were smaller than those of HDI,pointing to better levels of the addedindicators (other than life expectancy,literacy rate, gross enrollment rate and GDPper capita). Aswan, Giza and Sohaggovernorates are the only governoratesexhibiting a deterioration of their relativeposition according to BHDI. This index willbe used in subsequent analysis, as it mayhave different implications than HDI forgovernorates where ranks, according to thetwo indices, do not coincide.Annex Table (2.1.1)Loadings, Communalities and Coefficients in the First FactorLife expectancyInfant mortality rateUnder five mortality rate% households with access to sanitationLiteracy rateGross enrollment rateFemale literacy rate% income of top and lowest quintiles% poor% ultra poor% wages of poor to total wagesParticipation rate in labour forceFemale participation rate in labour force% of professional in labour forceFemale to male labour forceGDP per capitaLoadings0.864-0.880-0.915-0.9050.9050.9570.7920.9630.806-0.958-0.952-0.9190.9120.8720.9360.9170.913Communalities0.7460.7750.8380.8190.9160.6270.9280.6490.9180.9060.8450.8320.7610.8760.8420.833Coefficients(Weights)0.069-0.062-0.0690.0710.0790.0650.0790.052-0.070-0.066-0.0740.0770.0730.0700.0760.076Annex Table (2.1.2)BHDI and HDI by Governorates and According to TanksValue of Index Rank According to: Differences in RanksBHDI HDI BHDI HDIUrban GovernoratesCairoAlexandriaPort SaidSuezLower EgyptDamiettaDakahliaSharkiaQaliubiaKafr-El-SheikhGharbiaMenufiaBeheraIsmailiaUpper EgyptGizaBeni-SuefFayoumMeniaAssiutSohagQenaAswanBorder Governorates86.6574.6799.4989.3461.6259.1146.9947.0446.4554.4143.5136.1263.1660.4119.5019.5014.0411.0614.8321.0038.1048.5179.271.581.680.465.765.560.559.757.564.759.556.870.470.153.152.551.350.652.656.565.170.034126812111391416571818212220171510341289121315111416561820212219171070000-2-10-2-2-200010-2001053Egypt Human Development Report 2000/2001 - 41
Chapter ThreeGlobalization Challenges to Egypt’sProduction SectorsGlobalizationchallenges to theEgyptian economy gobeyond itsexport/importrelations with othereconomies andmarkets.Globalization challenges to the Egyptianeconomy go beyond its export/importrelations with other economies and markets.Export-import relations are the outcome ofhow different sectors of the nationaleconomy face increasing competition andmarket openness, a ceaseless technologicalrevolution, intensified knowledge-basedproduction, and the techno - economicalliances led by Trans - NationalCorporations (TNCs). This chapter,however, is dedicated more specifically toexploring the impact of globalization onEgypt’s production sectors, focusing onagriculture, industry and the financialsector.Modernizing AgricultureAgriculture is an important sector of theEgyptian economy. It constitutes 19 per centof GNP, and plays a major role in foodsupply. Moreover, one third of the Egyptianlabor force is employed in agriculture andaround 50 per cent of the population live inrural areas. In spite of a decline inagricultural exports to total Egyptian exportsduring the last two decades, agriculturalproducts remain a potentially high anddynamic contributor to export growth.In the period 1955-80, government policieswere biased towards manufacturing andagainst agriculture. This was reflected ingovernment interventions that negativelyimpacted upon the growth of agriculturalproduction and its composition as well asproductivity and pricing in the sector. Thisresulted in serious problems, notably withregard vital issues such as food security, andheavy dependence on the import of essentialfoodstuffs, which in turn, aggravated thebalance of payments deficit. Consequently,the government launched an agriculturalreform program, well before the beginningof the ERSAP.However, reform has had to take placeunder serious constraints stemming fromlimited natural resources, especiallyirrigation water, and insufficient financialand physical capital for expanding cultivableland. Despite the far from negligible effortsto modernize the agricultural sector, there isstill a need for a major technological push toease many of these constraints. Whetherglobalization will help achieve thisobjective is a question that this sectionendeavors to answer by reviewing thereform measures, and by examining theprobable effects of globalization on thissector.Agricultural Sector ReformThe agricultural policy reform (APR) inEgypt has been carried out in three distinctphases:Phase I (1986-1989) included the adoptionof a number of measures dealing with priceand market controls. During this period,procurement quotas for ten crops wereabolished, input subsidies were reduced, andthe private sector was allowed to conductagricultural marketing and agribusiness.Private sector participation in agriculturalexport of some crops was also permitted.Phase II (1990-1994) witnessed: (a) theelimination of subsidies to agriculturalcredit and inputs; (b) the end ofprocurement quotas for all crops; (c) theprivatization of seed production for somemajor crops; and (d) the liberalization ofagricultural prices as well as of agriculturalland rent (Law 96 of 1992). Thus,deregulation and liberalization were themain features of this phase. Free marketmechanism replaced government interventionin allocating agricultural resources andinvestments and deciding the terms of tradebetween this sector and the rest of thenational economy.42 -Egypt Human Development Report 2000/2001
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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
Page 58 and 59: Globalization Challenges to Egypt
Page 80 and 81: The Environment and Sustainable Dev
Page 88: The Environment and Sustainable Dev
Page 93 and 94: Chapter FiveEgypt’s Position inTe
Page 95 and 96: Egypt’s Position in Technology an
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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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