A Transnational Study on The Economic Liberation in Egypt during The Presidency of Anwar Sadat in 1970-1982

Abstract

The Arab Republic of Egypt has become of the most influential countries in the Middle East Region and Africa. Unsurprisingly, external parties were interested to interfere in this country. As the Cold War raged, a series of conflicts arose, creating the dynamics in the Middles East countries. The conflicts that arose had an enormous effect on the economy of the countries. Many earlier studies have discussed the conflict and its impact and the rivalry of the two blocs of power fighting for influence in Egypt. However, what remains unexplored and draws only little attention among the researchers is how these forces affect the countries like Egypt to become 'competitive arenas'. This study analyzes and explains the influence of the United States in Egypt, specifically in terms of increasing economic liberalization after the Camp David agreement. The results indicated that Camp David accelerated the economic liberalization that Egypt had started in 1974. The increase in economic liberalization in Egypt was mainly driven by the foreign aid provided by the United States as its transnational tool. The strongest evidence of increasing economic liberalization in Egypt is the open-door policy for foreign investment and product exports to Egypt. The Egyptian government had no longer absolute power in regulating the market. Meanwhile, the impact of increasing economic liberalization on society is seen in the consumption and demand for American products. American fast-food companies such as KFC and McDonald's were welcomed among the Egyptian people.