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Hossam el-Hamalawy

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Hossam el-Hamalawy

Tag: neoliberalism

Mubarak’s Egypt: Will the dam burst?

Posted on 12/09/200809/02/2021 By 3arabawy

From the Economist:

Today, a blinkered visitor might choose to see nothing of Egypt but posh beach resorts and gleaming factories, and hear of little but strong economic growth and a stable, secular government committed to reform. In the Smart Village, a campuslike technology park on Cairo’s western outskirts, construction cranes glint in the mirrored glass of office blocks bearing multinational logos such as Microsoft, Oracle and Vodafone, as well as those of fast-expanding home-grown IT firms. Beyond its perimeter, past a strip of hypermarkets, fast-food outlets and car dealerships, stretch thousands of acres of new suburbs, complete with gated communities, golf courses and private schools. Twenty years ago, the highway that stretches 200km from there to Alexandria ran through empty desert. Lush fields now line the entire crowded, six-lane route, many planted with drip-irrigated garden crops for lucrative European markets.
But remove the blinkers, and the flood of impressions could be starkly different. A glance down one of the narrow, rubbish-strewn alleyways of brick tenements where half of Cairo’s people actually live may reveal a crowd of head-scarved housewives pushing and cursing in an early-morning queue for government-subsidised bread. Such daily humiliations are punctuated by bigger tragedies which, all too often, prove to be the consequence of government negligence. Earlier this month a cliff collapsed on the eastern edge of the capital, hurling giant boulders into a warren of flimsy slum dwellings that had been erected, illegally, in defiance of dire warnings that the site was unsafe. The rockfall buried dozens, perhaps hundreds, of residents alive. Locals complain that long-promised alternative housing had been given to friends and relations of government officials, rather than the needy.
The fact is that most of Egypt’s 75m people struggle to get by, their ambitions thwarted by rising prices, appalling state schools, capricious judges, a plodding and corrupt bureaucracy and a cronyist regime that pretends democracy but in fact crushes all challengers and excludes all participation. The visitor might well conclude that by damming up the normal flow of politics, Egypt’s rulers risk bringing on a deluge. Given rising resentment against the government and a generation-long resurgence of religious feeling, and given the simple fact that Hosni Mubarak, Egypt’s president of the past 27 years, is now 80 years old with no clear successor, it takes little imagination to conjure up an Islamic-tinged revolution sweeping away the autocratic state created in the wake of Egypt’s last big dynastic upheaval, the officers’ coup of July 1952 that overthrew King Farouk. Considering Egypt’s position as the most populous, politically weighty and geographically pivotal Arab state, the ripples could spread wider, too, upsetting the region’s already fragile power structure.
Such visions seem to be common these days. A recent book in English carries the subtitle “The Land of the Pharaohs on the Brink of Revolution”. Another, in Arabic, simply titled “The Final Days”, sports a scowling caricature of President Mubarak on its cover. “This regime is clinically dead and we merely await its funeral,” writes the author, Hamdi Qandil, a prominent Egyptian journalist and critic of the regime. “All paths for peaceful and gradual change are blocked,” he concludes. “The only course left is civil disobedience.”
Many Egyptians appear to have adopted this advice of late. Spontaneous protests have erupted with alarming regularity, ranging from factory strikes to land disputes to urban riots over food prices that have risen even faster than the current, unnerving overall inflation rate of 23%. So far such outbursts have remained disjointed and localised, allowing the government to parry them with a mix of carrots and sticks. Brutal policing has silenced some activists. Wage increases—such as a 30% rise for government workers in May—and a promised widening of state subsidies for essential goods have soothed a few tempers. Yet the common refrain in Cairo salons is of how similar the mood is to the pre-revolutionary atmosphere of 1952.
Then, as now, the gap between a very rich few and the teeming mass of have-nots seemed to yawn ever wider. Then, 2,000 vast estates occupied half of Egypt’s fertile land, while millions of illiterate peasants toiled as sharecroppers. Today, 44% of Egyptians still count as poor or extremely poor, with some 2.6m people so destitute that their entire income cannot cover basic food needs, let alone other expenses. Yet ranks of private jets clutter Cairo’s airport. The flower arrangements at a recent posh wedding, where whisky flowed and the gowns fluttered in from Paris and Milan, were reputed to have cost $60,000 in a country where the average wage is less than $100 a month.

‘Historic’ verdict freezes government health insurance plans

Posted on 06/09/200831/03/2021 By 3arabawy

Sarah Carr brings us some good news about the fight against the privatization of the country’s health insurance system:

The Administrative Court halted government plans to place Egypt’s health insurance system under the control of a profit-making company, in a judgement issued on Thursday in what a rights advocate called a “historic” verdict.
The case was raised by the Egyptian Initiative for Personal Rights (EIPR) in April 2007.
The verdict forces the government to suspend implementation of its plans until a final verdict is issued.
“In this historic decision the judiciary stood by the public’s right to health, and stood in the path of a government plan aimed at gradually turning health into a profit-driven commodity,” EIPR director Hossam Bahgat said in a statement on Thursday.
In a briefing EIPR explained that in April 2007 a prime ministerial decision was issued which sought to create a holding company for health care and transfer the ownership of all health insurance clinics and hospitals to it.
EIPR’s case contended that in taking this decision the prime minister exceeded the powers given to him by turning public funds into privately-owned funds and transferring assets owned by a public body to companies.
About half of Egypt’s population are insured under the health insurance system.
EIPR suggested in the briefing that the plans also prevent a public body from offering health care to the beneficiaries of health insurance — as it is legally obliged to do by law — and transfers responsibility for tasks assigned to it by law, such as management of funds and employees, to the holding company’s board of administration.
This, the briefing explains, is in violation of Egyptian law which provides that the assets, tasks and competencies of a public body cannot be altered by prime ministerial decree.
In addition, EIPR warns that the cost of the plan to turn social health insurance into a profit-based enterprise would fall on the shoulders of health insurance beneficiaries: the fact that the holding company is profit-driven and has investment functions will add a profit margin to treatment and necessarily increase its cost.
In May 2007 over 20 Egyptian NGOs formed the Committee for the Defence of the Right to Health in order to challenge both the prime ministerial decision concerning the holding company and government plans to privatise health insurance.
Privatization, EIPR says, would mean “dealing with the right to health as a commodity which can be bought and sold for profit, rather than as a service the state is obliged to offer the public on at minimum cost.”
Dr Muhammad Hassan Khalil, a member of the Committee, told Daily News Egypt that the plan for the holding company is “complementary” to a draft law which would alter health insurance beneficiaries’ contributions to their treatment.
“The government has been trying to pass this draft law since January 2006, but has been unsuccessful because of opposition to it.
“The law means less services and more subscription fees, and forces those receiving treatment under health insurance to contribute about one third of the cost of treatment as well as forcing them to pay upfront at the time of receiving treatment,” Khalil explained.

Canal workers continue third day of protest

Posted on 05/09/200810/04/2015 By 3arabawy

Sarah Carr reports…

Workers in Ismailia on Wednesday continued a third day of protest against what they allege are government plans to close down the Canal Company for Ports and Large Projects.

Established in 1965, the company employs 2,000 people and undertakes sewage, electricity and infrastructure projects in the Suez Canal area.

Ashraf Abbas, a member of the Egyptian Workers and Trade Unions Watch’s Ismailia branch told Daily News Egypt that the workers have 15 demands, including wage parity with employees of the Suez Canal Authority (of which the Canal Company is a subsidiary).

Average wages range between LE 250 and LE 600 per month.

Muhammad Anwar, the head of the company’s trade union committee, told Daily News Egypt that the workers’ primary grievance is the decision by the National Authority for Drinking Water and Sewage, taken three weeks ago, to cancel 19 water station projects the Canal Company has held since 1990.

“The National Authority claims that it’s because we were late in fulfilling our obligations. Yes, we were late, but it’s the National Authority which is responsible. We spent years exchanging correspondence with them clarifying aspects of the project, and this is what caused the delay,” Anwar explained.

Anwar says that the decision to cancel the projects with the Canal Company was premeditated.
“It was planned. This is part of a scheme to destroy the Canal Company and place state-owned utilities under the control of an international cartel.

“This protest is not just to defend workers’ rights. We are also defending national security,” Anwar told Daily News Egypt.

Abbas told Daily News Egypt that in 1996 a decision was made to stop buying spare parts for the company’s equipment.

“Young people no longer receive training in the company, and in fact there are no workers under 40 employed in it. In addition, one quarter of the company’s workers are on short-term contracts. This is part of an eventual plan to privatize the Suez Canal,” he said.

He says that services provided by the company are already being contracted out to private contractors.

“The company has to pay for the difference between what the work actually costs and the rate charged by the contractors. As a result, it is making a loss.

“Contractors however who deal with the Canal Company come out millionaires, and individuals within the company’s administration also benefit from these contracts,” Abbas said.

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