Rethinking the Role of the State: Institutional Alternatives

Author(s): Mona El Garf
Publication Number: ECES-WP104-A


This paper discusses alternative institutional mechanisms for reducing state intervention in economic affairs and strengthening its regulatory and oversight role. It first explores the rationale for rethinking the role of the state, by assessing the economic cost of maintaining the status quo, and analyzing the relation between reducing state intervention and economic growth. It then reviews the alternative mechanisms in light of international experience and the main challenges that face reform efforts in this respect. Finally, the paper focuses on Egypt in an attempt to identify the mechanism that both suits the current phase of economic reform and achieves the desired impact on economic growth and development.