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Globalization Challenges to Egypt’s Production SectorsPhase III started in 1994 and includedprivatization of government-owned land andcompanies, and opportunities for furtherprivate investment, especially in thedevelopment of new land. The governmentremains responsible for research andinfrastructure facilities for agriculturalextension.The Impact on Crop MixLiberalization of agricultural prices and freecropping patterns had a significant effect onland allocation between crops and onproductivity per feddan due to priceincentives. Table (3.1) indicates better foodsecurity for the rural population between1991 and 1997. The increase in productiontook place for all cereals, including wheat,rice, maize and sorghums. Wheatproduction increased from 2 million tons in1983 to almost 6 million tons in 1997. Otherfood crops also showed a strong upwardtrend: vegetables, fruits and roots and tubersgrew during the same period from 6.4, 4.4and 1.3 million tons to 9.9, 7.4 and 3 milliontons respectively.After APR, the pattern of crop rotationchanged and cash crops became dominant.As is shown in Table (3.2), the agriculturallabor force was 4.48 million before APR,representing 37.2 per cent of the total laborforce. However, during Phase I of APR theagricultural labor force increased by only1.71 per cent while the total labor force inEgypt registered an increase of 5.97 percent. This means that other economicsectors were attracting more labor.. Thisbecame even clearer in Phase II, when theagricultural labor force grew by only 0.89per cent while the total labor force growthrate was 10.75 per cent.Table (3.1)Growth in Agricultural & Food Production in EgyptAgricultural ProductionAgricultural ProductionFood productionFood productionTotalPer CapitaTotalPer Capita1989-1991=1001989-1991=1001989-1991=1001989-1991=1001991104.2102.0104.4102.21997130.6114.1132.1115.4The increase in production resulted fromcrop intensification, correction of prices infavor of food crops, and an increase inproductivity per feddan due to technologytransfer, especially the spread of improvedvarieties, and to intensification andstreamlining of agricultural research andextension. Further, the implementation ofAPR resulted in an increase in the croppedarea from 11.2 million feddans to about 12.5million feddans.1982-19851986-19891990-19931994-1998Table (3.2)Agricultural Labor Force (1982-1998)Total LaborForce 000s12045127651413815850Agricultural Labor Force000s %of total448045574598480437.235.732.530.3% Change from previous periodin Agricultural Labor—1.710.891.12% Change from previousperiod in Total Labor—5.9710.753.02Impact on EmploymentAfter the liberalization measures, increasedemployment opportunities were opened tothe labor force as an outcome of agriculturalintensification. There are two types of laborin the agricultural sector; skilled andunskilled. Skilled labor works in specificoperations that require qualifications andexpertise, such as in machinery andhorticulture, and these specializationsnormally offer permanent jobs. Unskilledlabor works in manual operations, such asplanting, hoeing, and weeding. Unskilledworkers are easy to replace and their jobsare mostly temporary.Recent cross-national and inter-temporalstudies of growth show that in low andmiddle-income countries the direct andindirect effects of agricultural growthaccount for the bulk of job creation andpoverty reduction. In Egypt, an agriculturalgrowth rate of 4.9 per cent would besufficient to meet the rapidly growingdomestic demand for horticulture andlivestock, leaving a portion for export. Thisrate of growth can be achieved withfavorable and efficient institutional changes.Agriculturally-driven non-agriculturalactivities (ADNA) could expand, andconsequently increase wages and thedemand for labor in rural areas.Egypt Human Development Report 2000/2001 - 43