Governance, Accountability and Stakeholders in Egypt

This semester I am teaching a class at the American University in Cairo called "Governance, Accountability, and Stakeholder Negotiation. It is a masters level class in public policy. It is a lot of fun, and we have been doing a lot of reading on how to improve governance in the Middle East and Africa. For example, we have read the Ibrahim Index as well as the World Bank MENA governance News and Notes.

This week, we were very lucky to have a special guest. Dr. Samer Soliman came and spoke to our class. He is the author of an important book just published by Stanford University Press. The book is titled The Autumn of Dictatorship: Fiscal Crisis and Political Change Under Mubarak.  In this book, Dr. Soliman evaluates the Egyptian budget to get lessons about allocation patterns, and the character of the authoritarian Egyptian state.

Here are some of his comments (paraphrased) on governance and accountability.

Accountability

The main issue of the Army is the budget. The second issue is that the Army has an economic empire. The military empire is off budget. If you examine the details of the Egyptian budget, you will not see it, but the evidence is all around us. One concern for the transition is that the Egyptian military is trying to prevent the new president from having power over the budget. 

It will likely take a while to move the military to its proper place in society. In Spain, the transition to democracy took 15 years. Currently in Egypt, we are operating under an interim constitution. At the moment, there is no article in the constitution that has a popular monitoring of the budget.  

We need an army, and we need a state. There has actually been a long term weakening of the Army since Sadat. The Nasser regime was really a military regime. This is less true today. In Iraq under Saddam, there was no distance at all between the regime and the state. This is also true of Syria today. In Egypt, there is some distance. The military is not divided along sectarian lines, like the Syrian military. It is important to get the military budget into the state budget. Right now, there is a lack of civilian control of the budget. 

Taxation plays an important role in accountability. Taxation in Egypt is currently corrupt and inefficient. Democracy facilitates the task of taxation because it enhances popular legitimacy. We also need progressive taxation. 


Stakeholders


With regard to stakeholders under the Mubarak Regime, there were no real political parties. There were just pressure groups. The opposition parties had no chance to rule. New political parties are emerging. In the future, we will have real political parties in Egypt. Syndicates will be much more important. There was no real syndicate life under the old regime. The syndicates can play an important role as an instrument of bargaining and problem solving. Many social groups in Egypt do not have real power. The Egyptian diaspora is important. Civil society will be more important in the new period. The SCAF is pushing the diaspora aside because they are dangerous. They are a huge asset in terms of their money, their knowledge, and their connections. 


Elections

It is not correct that the SCAF will be appointing all 100 members of the task force to write the constitution. Rather, they will set the criteria of how people for the task force are selected. The parliamentary elections will be in November. Then, there will hopefully be presidential elections, although it is vague. The constitution should be drafted within 6 months after the presidential elections. There is no guarantee that the constitutional drafting will be finished in the transition period. 


Egyptian Social Democratic Party

The party I belong to is the SDP. It is objectively, the best party in Egypt, and you should join it. {laughter}. We respect the market economy, but we also believe in a welfare state, and we support social justice. Our party is based on the assumption that economic development needs to create opportunities for the poor, but still be based on the market. We want to give people the instruments and means to defend their rights. It is creative conciliation between the market, and social democracy. 

The plot thickens

Egyptian politics gets more and more dramatic. On Sunday, the SCAF approved new amendments to the elections law. As a result, two thirds of constituencies will be allocated according to the list-based system, and one third according to the single-winner system. Further, the SCAF has reduced the number of seats in the People's Assembly from 508 to 498.

As a colleague explained to me yesterday, having one third single-winner system makes electoral districts bigger. So, if 1/2 of the candidates are under a single-winner system, then the 80 million people of Egypt will elect 249 members of the People's Assembly via a list, and 249 via single-member districts. If 1/3 of the candidates are under a single-winner system, then the 80 million people of Egypt will elect 166 people as individual candidates. That means that the electoral districts will be divided among 166 candidates. The electoral districts will be larger, which will favor established, wealthy, well-known candidates, (NDP and MB) and disadvantage candidates from new parties.

Further, this mysterious workers and farmers requirement was explained to me. To be named a "worker" or a "farmer" you have to get a certificate which acknowledges you as such from the Egyptian government. This is essentially a back door way of favoring local notables, people like the sherif, or omda, or people from wealthy families.

My colleague is Samer Soliman, of the Social Democratic Party of Egypt. 

Egyptian Social Democratic Party

According to Al Masry Al Youm today, "Under Mubarak, all candidates ran as individuals in an electoral system which critics argued ensured solid majorities for the NDP." (Ahmed Zaki Osman, "Military seeking to hamstring parliament through elections law amendments," Al Masry Al Youm, September 27, 2011) Thus, the list based system is a partial victory for new parties.

Around eight political parties established by members of the former regime have been granted legal status.

Confusion over electoral districts

Dear readers

I would be lying if I said I understood all the fine points of Egyptian election laws, but Allah knows I am trying!

Again, on September 21, 2011, Assistant Defense Minister Mamdough Shahin announced that the parliamentary elections will be held as scheduled, under a mixed system of 50 percent list-based and 50 percent single-winner candidacies. People's Assembly elections will be held separately from those of the Shura Council. The People's Assembly elections will be held at the end of November over three stages of two weeks each. 

Somehow, Egyptian law as recently passed by the SCAF requires that 50 percent of parliament should be made up of farmers and workers. I like this sentiment. I think it is great. But as an academic, I wonder who decides exactly who is a farmer or a worker? Who makes the decision? What is the test? Are we looking for small farmers, fellaheen, or will anyone with land under cultivation do? This creates a post-modernist dilemma for me? In whose hands does the decisionmaking lie?

Further, there is unhappiness over electoral districts. There is a military backed electoral law regarding the mapping of electoral districts. Many parties are unhappy with it, including Egypt Freedom, Egyptian Social Democratic Party, Free Egyptians and Wasat party. The law, apparently, seems to help the old NDP. Once I understand what the law actually says, I will be sure to let you know.

The 25 January Revolution Youth Coalition as well as the Muslim Brotherhood-led Democratic Alliance for Egypt may announce their lists of candidates before the parliamentary poll scheduled for November.

Adel al Morsy, head of the Military Judicial Authority, has announced that the State of Emergency will continue until June 30, 2012.