Elites are to blame for Egypt’s failed political structure


H A Hellyer
  • English
  • Arabic

Egypt
A sombre feeling overwhelms observers of Egypt's political situation. Many of them see Mohammed Morsi's ejection from the presidency in July as heralding the end of the country's political life. In contrast, supporters of the military see it as saving the nation.
But neither view is right. Egypt's political life was born almost three years ago but has suffered a series of crippling blows since then. The question is: will it be able to recover?
The January 2011 revolution was not popular. The uprising that led to the removal of Hosni Mubarak certainly was, but the revolution itself, as a set of values, was not. The revolution was the domain of a small group of people.
The revolutionary camp's significance did not lie in huge percentages of the population but in its ability to stimulate, provoke and remind. The revolution did not produce a political force capable of contesting elections at a significant level but it did manage to keep the revolution at the core of Egypt's public life.
Many condemn the revolutionaries for failing to build political parties that could change the face of politics.
Many revolutionaries entered existing parties, insisting on change from within. Others created new, smaller parties. And so there was no solid revolutionary bloc that could effectively push change through the ballot box.
This assessment misses two vital points. The first is that the Egyptian political system as inherited on February 11, 2011 required a thorough overhaul. That should have been provided on that same day by the military, which at the time had such monumental support that no other institution could have resisted.
Instead, the military made only some cosmetic changes, which led to stifling the revolution's momentum in favour of measures maintaining the status quo.
Such changes were never going to be sufficient – and, indeed, the crippling of the revolution began the next month when the army and the Islamist camp decided to move forward with the military's "road map".
The great irony of the new road map now being implemented is that if it had been followed starting in March of 2011, the political situation today might have been very different.
The second vital point is that while the revolutionary camp did not produce political parties that could change the system, neither did anyone else. Indeed, all other political forces failed abysmally in that endeavour.
Worse than that, they managed to discredit themselves tremendously in the eyes of the Egyptian public.
The Freedom and Justice Party (FJP) of the Muslim Brotherhood had managed to gain the confidence of two-thirds of Egyptian voters by February of 2012, although that figure had dropped to a low of just 19 per cent by June of this year.
The National Salvation Front (NSF), supposedly the focal point of opposition to the Brotherhood-led government, was formed in the aftermath of Mr Morsi's extralegal decree of November 2012.
As huge public protests against the decree spread, the NSF had a prime opportunity to capitalise as the public grew increasingly unhappy with Brotherhood rule.
The decree and the constitutional process that followed it were deeply destabilising. A competent opposition could have used this easy platform to campaign against the government and force it to back down.
Instead, the NSF could not mobilise more than 10 per cent of the population to vote against the constitutional referendum in December.
As far as the Egyptian population was concerned, the NSF failed in their duty as an opposition, just as the FJP failed in their duty as a governing party. The political class, as a whole, has failed to deliver a vision that could energise Egyptians.
When that is understood, it is easier to see why so many – perhaps the overwhelming majority – ran so quickly into the arms of the military. The Egyptian public has consistently regarded that institution positively, ever since the uprising period of January 2011.
Many Egyptians failed to be shocked, or to express any shock, over the August 14 death toll of several hundred people killed in the suppression of protests against the arrest of Mr Morsi.
Public opposition to the Brotherhood, disaffection with political parties, and a media campaign depicting the Brotherhood as terrorist insurgents all contributed to this complacency.
This can only be seen as yet another failure of the political elite. It has come to the point where politicians hardly matter, while the military can do no wrong.
The dynamism of Egyptian political public life has taken blow after blow since March 2011. Will that dynamism return? Will the revolution recover? In many ways the situation now is harder than it was three years ago, when Mr Mubarak ruled.
Yet, just as his system was unsustainable, so ultimately is any system that does not meet the demands of the Egyptian people. If those who control the new order wish to remain in control, sooner or later they may have to adjust to meet those demands. If they do not, there is likely to be consequences.
The question is not if the revolution will recover, but how long any Egyptian state can hope to survive with stability, if it does not uphold the dignity of citizens.
The revolution has already taught us some hard lessons about that.
Dr HA Hellyer is an associate of the Royal United Services Institute and the Brookings Institution
On Twitter: @hahellyer

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• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

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Born: Mukalla, Yemen, 1979

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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School counsellors on mental well-being

Schools counsellors in Abu Dhabi have put a number of provisions in place to help support pupils returning to the classroom next week.

Many children will resume in-person lessons for the first time in 10 months and parents previously raised concerns about the long-term effects of distance learning.

Schools leaders and counsellors said extra support will be offered to anyone that needs it. Additionally, heads of years will be on hand to offer advice or coping mechanisms to ease any concerns.

“Anxiety this time round has really spiralled, more so than from the first lockdown at the beginning of the pandemic,” said Priya Mitchell, counsellor at The British School Al Khubairat in Abu Dhabi.

“Some have got used to being at home don’t want to go back, while others are desperate to get back.

“We have seen an increase in depressive symptoms, especially with older pupils, and self-harm is starting younger.

“It is worrying and has taught us how important it is that we prioritise mental well-being.”

Ms Mitchell said she was liaising more with heads of year so they can support and offer advice to pupils if the demand is there.

The school will also carry out mental well-being checks so they can pick up on any behavioural patterns and put interventions in place to help pupils.

At Raha International School, the well-being team has provided parents with assessment surveys to see how they can support students at home to transition back to school.

“They have created a Well-being Resource Bank that parents have access to on information on various domains of mental health for students and families,” a team member said.

“Our pastoral team have been working with students to help ease the transition and reduce anxiety that [pupils] may experience after some have been nearly a year off campus.

"Special secondary tutorial classes have also focused on preparing students for their return; going over new guidelines, expectations and daily schedules.”

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DOB: 25/12/92
Marital status: Single
Education: Post-graduate diploma in UAE Diplomacy and External Affairs at the Emirates Diplomatic Academy in Abu Dhabi
Hobbies: I love fencing, I used to fence at the MK Fencing Academy but I want to start again. I also love reading and writing
Lifelong goal: My dream is to be a state minister

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End of free parking

- paid-for parking will be rolled across Abu Dhabi island on August 18

- drivers will have three working weeks leeway before fines are issued

- areas that are currently free to park - around Sheikh Zayed Bridge, Maqta Bridge, Mussaffah Bridge and the Corniche - will now require a ticket

- villa residents will need a permit to park outside their home. One vehicle is Dh800 and a second is Dh1,200. 

- The penalty for failing to pay for a ticket after 10 minutes will be Dh200

- Parking on a patch of sand will incur a fine of Dh300