The American University in Cairo
School of Humanities and Social Sciences
American Democracy Assistance in Egypt:
Understanding Neoliberalism in
Decentralization and Democratic Governance
A Thesis Submitted to
The Department of Political Science
For the Degree of Masters of Arts
By
Ahmed Badawi
Under the supervision of Dr.
Mustapha Kamal Al Sayyid
January/ 2012
The American University in Cairo
AMERICAN DEMOCRACY ASSISTANCE IN
EGYPT: UNDERSTANDING
NEOLIBERALISM IN
DECENTRALIZATION AND DEMOCRATIC
GOVERNANCE
A Thesis submitted by
Ahmed Badawi
To the Department of Political Science
January 2012
In partial fulfillment of the requirements for
The degree of Master of Arts
Has been approved by
Dr. Mustapha Kamal Al Sayyid
Thesis Committee Adviser____________________________________________
Affiliation _________________________________________________________
Dr. Ibrahim Elnur
Thesis Committee Reader ____________________________________________
Affiliation _________________________________________________________
Dr. Nadine Sika
Thesis Committee Reader ____________________________________________
Affiliation ________________________________________________________
__________________
Dept. Chair
__________
__________________
Date
Dean of HUSS
____________
Date
To my parents, Hanaa Salah and Hossam El Din Badawi, whose patience and
support made this possible.
TABLE OF CONTENTS
ACKNOWLEDGEMENTS…………………………………………………………iii
LIST OF ABBREVIATIONS ………………………………………………………vi
ABSTRACT………………………………………………………………………...vii
EPILOGUE………………………………………………………………………….ix
Chapter
1. INTRODUCTION ……………………………………………………………….1
Research Problem………………………………...………………………….….……12
Research Questions……………………………...…………………….…….….…….12
Hypothesis/Thesis Statement………………………………………………………....13
Methodology………………………………………….………………………….…...13
Objectives…………………………………...………………………………………..14
Materials…………………………………...………………………………………....15
Literature Review…………………………………………………………………….18
2. AMERICAN DEMOCRACY PROMOTION AND IMPACT ON DOMESTIC
POLICIES : A CRITICAL APPROACH…………………………...…………..25
Origins of Democracy Promotion…………………………………………………….27
Why the US Promotes Democracy…………………………………………………...31
The Rise of the Washington Consensus and Neoliberalism……………………….....37
Decentralization and Neoliberalism…………………………………………………..38
The Neoliberal Dilemma for Democracy……………………………….……………42
Neoliberalism in Egypt……………………………………………………………….46
Forms of Democracy Promotion and Democracy Assistance…….…………….……52
Critiques of Democracy Assistance and Varying Priorities- The Case of Egypt…….55
“Our Way or the Highway” – The Limited Scope of American Democracy
Promotion……………………………………………………………………………57
Security and Stability Over Democracy……………………………………………...61
Possibilities of Evaluating and Assessing Democracy Assistance…………………...66
The Logical Framework Approach and Management
for Results/Results Based Management in Democratic Governance……...………….68
The Limitations of LFA and RBM in Democratic Governance
Programming……………………………………………………………………….…71
American Democracy Assistance in the Arab World –
Quantitatively Lacking………………………………………………………………..74
3. HISTORY OF LOCAL GOVERNMENT AND DECENTRALIZATION IN
EGYPT: DONORS STRUGGLE WITH GOVERNMENT…..……………….….83
Historical Origins of Local Government from the Pharaohs to British Rule…….…...85
iv
Local Government under Nasser……………………………….…………..…….…..89
Local Government under Sadat……………………………….……………………...92
Local Government under Mubarak………………………………………………......96
Defining Decentralization…………………………………….……………….…….106
Levels and Forms of Decentralization……………………….………………...……110
History of Decentralization in Egypt………………………….……………….……113
Sample Decentralization Initiatives in Egypt…………………………….…….…...117
The National Program for Integrated Development – Shorouk Program….…….….118
Municipal Initiatives in Strategic Recovery (MISR) ………….…………….……...121
4. CASE STUDY: UNITED STATES AGENCY FOR INTERNATIONAL
DEVELOPMENT FUNDED EGYPTIAN DECENTRALIZATION
INITIATIVE…………………………………………………………………...132
EDI Background, Objectives and Activities…………………………………………..134
EDI Case Study Analysis……………………………………………………….……..137
5. CONCLUDING REMARKS...………………………………………………..166
6. BIBLIOGRAPHY……………………………………………………………..178
7. APPENDICES…………………………………………………………………187
v
LIST OF ABBREVIATIONS:
CIDA
Canadian International Development Agency
DANIDA
Danish International Development Agency
DFID
Department for International Development
EDI
Egyptian Decentralization Initiative
IDRC
International Development Research Center
IFIs
International Financial Institutions
IMF
International Monetary Fund
LFA
Log Frame Approach
MISR
Municipal Initiatives for Strategic Recovery
MFR
Management for Results
NDP
National Democratic Party
NED
National Endowment for Democracy
POGAR
Program on Governance in the Arab Region
RBM
Results-Based Management
SIDA
Swedish International Development Agency
SO
Strategic Objective
UN
United Nations
UNDP
United Nations Development Program
USAID
United States Agency for International Development
vi
ABSTRACT:
The research effort revolves around American democracy assistance and
democracy promotion focusing on Egypt. The ideological underpinning under
investigation raises questions regarding foreign democracy assistance in
general, along with conditionality, governance, and our prospects for the
realization of much elusive democratic governance in the Arab world.
In reviewing decentralization in development and using the USAID funded
Egyptian Decentralization Initiative (EDI) as a case study, I intend to
demonstrate the inherent ideological conditionality at the heart of American
democracy promotion. While simultaneously extricating economic governance
from beyond the grasp of political institutions, neo-liberal economic
globalization has begun to take its toll on the democratic institutions of
participatory governance. Such a transformation is felt in the most consolidated
and developed of democracies. The very same democracies, under the stress and
strain of neo-liberal economic globalization, assist and advise “transitioning”
dictatorships and “semi-authoritarian” regimes claiming democratic aspirations.
However what is at the heart of doctrines of American democracy assistance,
the alleged “liberalization” pushed by USAID, is merely a political façade of a
ruthless economic diagnosis that holds no bearing for possibilities of democratic
self-determination and the realization of self-rule in a region that has yet to
experience governing its own.
vii
RESEARCH PROBLEM:
How can aid donor countries impact the policies in aid recipient countries,
despite resistance from the recipient governments? As such what impact does
American democracy assistance have on the Egyptian political landscape
particularly pertaining to the field of decentralization and local government? Is
this assistance geared towards the economic liberalization of Egypt, irrespective
of the democratization of Egyptian politics?
HYPOTHESIS/THESIS STATEMENT:
The main objective behind American democracy promotion/assistance efforts is
to institute/impose an economic - neoliberal market model – irrespective of
actual democratic politics and self-rule based on participatory politics of
democratic governance. The USAID funded Egyptian Decentralization
Initiative is the case study chosen to demonstrate this hypothesis.
viii
EPILOGUE:
It should be noted that this thesis was conducted prior to the mass popular
uprisings that have swept the region and been termed by some Western observers as
the “Arab Spring”. What has begun as a series of popular street protests, sit-ins and
strikes to demand basic freedoms and resulted in the ousting of former Tunisian and
Egyptian dictators Zein El Abidine Ben Ali and Mohamed Hosny Mubarak is
reshaping the region and possibly the world despite significant opposition from
within the Arab world and beyond. The role of the US throughout the course of
popular change that began in Tunisia is as riddled with double standards and biases
that serve their geostrategic interests. Particularly in the case of Egypt, the US
continued to support the regime over the people, the very regime it has spent billions
of dollars in military and economic aid to bolster, over the aspirations of millions of
Egyptians who took to the streets demanding their rights to freedom and social
justice. The US’s stance changed when it was clear that the Mubarak regime was
doomed to collapse. However, this is not necessarily out of a sudden change of heart,
but only time will tell and reveal the containment strategy adopted by the US to
adapt to a process of people driven change that has been unprecedented in the
region. The events that we are witnessing now do not detract from this research
effort as it raises critical questions regarding American democracy promotion and
democracy assistance or lack thereof. This type of development aid is not likely to
decrease in the near future, a fact that warrants more research and analysis on some
of the topics raised in this thesis.
ix