Working Papers

The Potential Impact of Recent Industrial Policy Changes in Egypt on the Environment

Publication Number: ECESWP137-E

August, 2008

Author : Abla Abdel-Latif

Type : Working Papers

This working paper explores the general impact of industrial policy formulation in Egypt on the environment in the period from the 1970s to the end of the 1990s. The aim is to pinpoint the inconsistencies between the industrial and environmental policies in Egypt and ones within industrial policies themselves; to explore the impact of some of the most recent industrial policy changes on the environment (from 1997 to 2007); and finally to offer policy recommendations on how to strike a balance between industrial development objectives on one hand and environmental protection on the other hand drawing on other countries’ experiences. The study reveals that the relation between industry and the environment in Egypt has evolved over the years from phase one (prior to 1994): a one-player scenario with industrial institutions and policies focusing on industrial growth irrespective of environmental impact; to phase two (1994-2003): a two-player scenario where environmental institutions and policies try to mitigate the negative impact of industrial growth and expansion on the environment. From 2004 to date, Egypt has taken some positive steps forward but not enough to allow its entry into phases three and four where the industrial and environmental camps become mutually reinforcing, jointly acting to achieve the objectives of industrial growth without jeopardizing the environment.