TheWeekInCongress.com

Week Ending September 23, 2005

Egypt flag

EGYPT

The regularity and richness of the annual Nile River flood, coupled with semi-isolation provided by deserts to the east and west, allowed for the development of one of the world's great civilizations. A unified kingdom arose circa 3200 B.C. and a series of dynasties ruled in Egypt for the next three millennia. The last native dynasty fell to the Persians in 341 B.C., who in turn were replaced by the Greeks, Romans, and Byzantines. It was the Arabs who introduced Islam and the Arabic language in the 7th century and who ruled for the next six centuries. A local military caste, the Mamluks took control about 1250 and continued to govern after the conquest of Egypt by the Ottoman Turks in 1517. Following the completion of the Suez Canal in 1869, Egypt became an important world transportation hub, but also fell heavily into debt. Ostensibly to protect its investments, Britain seized control of Egypt's government in 1882, but nominal allegiance to the Ottoman Empire continued until 1914. Partially independent from the UK in 1922, Egypt acquired full sovereignty following World War II. The completion of the Aswan High Dam in 1971 and the resultant Lake Nasser have altered the time-honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population (the largest in the Arab world), limited arable land, and dependence on the Nile all continue to overtax resources and stress society. The government has struggled to ready the economy for the new millennium through economic reform and massive investment in communications and physical infrastructure.

LOCATION

Northern Africa, bordering the Mediterranean Sea, between Libya and the Gaza Strip, and the Red Sea north of Sudan, and includes the Asian Sinai Peninsula.

Slightly more than three times the size of New Mexico.

Controls Sinai Peninsula, only land bridge between Africa and remainder of Eastern Hemisphere; controls Suez Canal, a sea link between Indian Ocean and Mediterranean Sea; size, and juxtaposition to Israel, establish its major role in Middle Eastern geopolitics; dependence on upstream neighbors; dominance of Nile basin issues; prone to influxes of refugees.

POPULATION

77,505,756 (July 2005 est.)

Eastern Hamitic stock (Egyptians, Bedouins, and Berbers) 99%, Greek, Nubian, Armenian, other European (primarily Italian and French) 1%.

Muslim (mostly Sunni) 94%, Coptic Christian and other 6%.

NATURAL RESOURCES

Petroleum, natural gas, iron ore, phosphates, manganese, limestone, gypsum, talc, asbestos, lead, zinc.

NATURAL CHALLENGES

Periodic droughts; frequent earthquakes, flash floods, landslides; hot, driving windstorm called khamsin occurs in spring; dust storms, sandstorms.

agricultural land being lost to urbanization and windblown sands; increasing soil Salination below Aswan High Dam; desertification; oil pollution threatening coral reefs, beaches, and marine habitats; other water pollution from agricultural pesticides, raw sewage, and industrial effluents; very limited natural fresh water resources away from the Nile which is the only perennial water source; rapid growth in population overstraining the Nile and natural resources

GOVERNMENT AND POLITICS

Executive branch:

chief of state: President Mohammed Hosni MUBARAK (since 14 October 1981)
head of government: Prime Minister Ahmed NAZIF (since 9 July 2004)
cabinet: Cabinet appointed by the president
elections: president elected by popular vote for six-year term; note - a national referendum in May 2005 approved a constitutional amendment that changed the presidential election to a multicandidate popular vote; previously the president was nominated by the People's Assembly and the nomination was validated by a national, popular referendum; last referendum held 26 September 1999; next election under terms of constitutional amendment scheduled for 7 September 2005
election results: national referendum validated President MUBARAK's nomination by the People's Assembly to a fourth term

Legislative branch:

bicameral system consists of the People's Assembly or Majlis al-Sha'b (454 seats; 444 elected by popular vote, 10 appointed by the president; members serve five-year terms) and the Advisory Council or Majlis al-Shura - which functions only in a consultative role (264 seats; 176 elected by popular vote, 88 appointed by the president; members serve six-year terms; mid-term elections for half the members)
elections: People's Assembly - three-phase voting - last held 19 October, 29 October, 8 November 2000 (next to be held October-November 2005); Advisory Council - last held May-June 2004 (next to be held May-June 2007)
election results: People's Assembly - percent of vote by party - NA; seats by party - NDP 388, Tagammu 6, NWP 7, Nasserists 3, Al-Ahrar 1, independents 37 (2 seats determined by a later byelection, 10 seats appointed by President); Advisory Council - percent of vote by party - NA; seats by party - NA

Judicial branch:

Supreme Constitutional Court

Political parties and leaders:

Al-Ahrar Party [Helmi SALEM]; Nasserist Arab Democratic Party or Nasserists [Dia' al-din DAWUD]; National Democratic Party or NDP [Mohammed Hosni MUBARAK (governing party)]; National Progressive Unionist Grouping or Tagammu [Rifaat EL-SAID]; New Wafd Party or NWP [No'man GOMAA]
note: formation of political parties must be approved by the government

Political pressure groups and leaders:

despite a constitutional ban against religious-based parties, the technically illegal Muslim Brotherhood constitutes MUBARAK's potentially most significant political opposition; MUBARAK tolerated limited political activity by the Brotherhood for his first two terms, but moved more aggressively since then to block its influence; civic society groups are sanctioned, but constrained in practical terms; trade unions and professional associations are officially sanctioned

ECONOMICS

Lack of substantial progress on economic reform since the mid 1990s has limited foreign direct investment in Egypt and kept annual GDP growth in the range of 2%-3% in 2001-03. However, in 2004 Egypt implemented several measures to boost foreign direct investment. In September 2004, Egypt pushed through custom reforms, proposed income and corporate tax reforms, reduced energy subsidies, and privatized several enterprises. The budget deficit rose to an estimated 8% of GDP in 2004 compared to 6.1% of GDP the previous year, in part as a result of these reforms. Monetary pressures on an overvalued Egyptian pound led the government to float the currency in January 2003, leading to a sharp drop in its value and consequent inflationary pressure. In 2004, the Central Bank implemented measures to improve currency liquidity. Egypt reached record tourism levels, despite the Taba and Nuweiba bombings in September 2004. The development of an export market for natural gas is a bright spot for future growth prospects, but improvement in the capital-intensive hydrocarbons sector does little to reduce Egypt's persistent unemployment.

GDP - per capita: Purchasing power parity - $4,200 (2004 est.)

Budget:

revenues: $15.42 billion
expenditures: $20.76 billion, including capital expenditures of $2.7 billion (2004 est.)

Public debt:

102.7% of GDP (2004 est.)

Agriculture - products:

cotton, rice, corn, wheat, beans, fruits, vegetables; cattle, water buffalo, sheep, goats

Industries:

textiles, food processing, tourism, chemicals, hydrocarbons, construction, cement, metals

Oil - proved reserves:

2.7 billion bbl (2004 est.)

Natural gas - proved reserves:

1.264 trillion cu m (2004)

Exports - partners:

Italy 13.1%, US 11.6%, UK 7.5%, Germany 5.1%, Spain 4.5%, France 4.2% (2004)

Imports:

$19.21 billion f.o.b. (2004 est.)

Imports - commodities:

machinery and equipment, foodstuffs, chemicals, wood products, fuels

Imports - partners:

US 13.2%, Germany 7.2%, Italy 7.1%, France 6.1%, China 5.5%, UK 4.9%, Saudi Arabia 4.4% (2004)

Internet Service Providers (ISPs):

50 (2000)

Internet users:

4.2 million (2005)

CONFLICTS

Egypt and Sudan retain claims to administer the two triangular areas that extend north and south of the 1899 Treaty boundary along the 22nd Parallel, but have withdrawn their military presence; Egypt is developing the Hala'ib Triangle north of the Treaty line; since the attack on Taba and other Egyptian resort towns on the Red Sea in October 2004, Egypt vigilantly monitors the Sinai and borders with Israel and the Gaza Strip; Egypt does not extend domestic asylum to some 70,000 persons who identify as Palestinians but who largely lack UNRWA assistance and, until recently, UNHCR recognition as refugees.

OTHER CONSIDERATIONS

Transit point for Southwest Asian and Southeast Asian heroin and opium moving to Europe, Africa, and the US; transit stop for Nigerian couriers; concern as money-laundering site due to lax financial regulations and enforcement.

Images and data: USCIA August 30, 2005