06.11.2015

Institutskolloquium: Constraints to Economic Growth in Egypt: Why Micro and Small Enterprises (MSEs) can’t play their Role

Dr. Markus Loewe, Senior Researcher at the German Development Institute

INSTITUTSKOLLOQUIUM

Wednesday, 11th November 2015, 16:00 c.t., Room 124, IfP

The Egyptian economy has grown significantly in the decade preceding 2011 but the growth was neither pro-poor nor sustainable. It was due to favourable external conditions producing rent-income rather than an increase in productivity. And today, this practice continues under President Sisi. One reason for the lack of innovation and structural change in Egypt is the so-called ‘missing middle phenomenon’ Egypt has several rather profitable large private companies and hundreds of thousands of micro and small enterprises but just a few medium-size companies, which tend to be the main engines of employment-creation, innovation and export diversification all over the world. The question is thus why there are not more micro and small enterprises upgrading into the segment of medium-sized companies and thereby spoiling Egypt’s growth, employment creation, poverty reduction and export orientation.

<link http: www.die-gdi.de markus-loewe external-link-new-window external link in new>Dr. Markus Loewe is Senior Researcher at the German Development Institute (DIE) and works in the department for ‘Sustainable economical and social development’. He has been heading the research projects ‘Pro-poor growth in India and Brazil‘, ‘Social effects of the global financial crisis’ and ‘Political economy of inclusive growth’ at his institute. Since 2006 he has been coordinator of the research initiative at DIE on states in the MENA region.