A unique economic conference titled ‘The Investment Climate in Egypt’ was held in Cairo last Monday. What made it stand out was not just its theme but also the organisers and high-profile attendees, including Egypt’s Minister of Investment, the European Union ambassador, the World Bank’s regional director for the Middle East, ambassadors from 15 European countries, and the heads of 270 Egyptian and foreign companies. The event was organised by the Organisation for Economic Co-operation and Development (OECD), headquartered in Paris.
Before delving into the significance of this conference, it is worth considering the entities that traditionally played this role in Egypt. First in line is the International Monetary Fund (IMF), often dubbed the ‘dictator of development’. Established in 1946, right after the Second World War, its primary objective was to transfer the colonial legacy from the ageing European empires to the rising American cowboy. It succeeded in doing so, starting with its first move to peg European currencies to the US dollar, followed by a gradual expansion of economic influence over the developing world through financial aid—aid that exploited the poverty of nations and dragged them into even deeper debt.
Next comes the World Bank, the ‘master of recycled terminology’. Its officials have an uncanny ability to invent grandiose economic jargon whenever the institution’s reputation takes a hit. Its goals are no different from its twin, the IMF, but it is notorious for setting ‘development trends’. Initially, it operated under the concept of ‘conditionality’ for two decades, which led to accusations of injustice and bad faith. It then rebranded the same approach under the name ‘structural adjustment’ until around 2007. Following a string of scandals from the top down, the bank made yet another rhetorical shift, calling its new strategy ‘triggering’, claiming it would no longer impose policies on developing countries. Instead, nations would supposedly approach the bank voluntarily with their own development plans—plans that, of course, had to align with the bank’s policies. In reality, this was just a repackaged version of the previous strategies, only with the illusion of free choice.
As for USAID, the ‘cowboy broker’ that operates extensively in Egypt, it hardly needs an introduction. It has long been a favourite topic for journalists, particularly before April each year when negotiations over aid details take place. Its extreme conditionality has led to a deeply skewed trade balance, burdening Egypt with American imports disguised as ‘aid from the American people’—may they be blessed.
Against this backdrop, the significance of the recent conference becomes clear. Unlike the organisations that have long dictated economic policies in Egypt and the Middle East, the OECD has historically limited its involvement to Europe. However, the creation of a special unit focused on economic development projects in the Middle East—starting with Egypt and Morocco as test cases—marks a shift in global development dynamics. The fact that this organisation has now been given the green light to play a role in the region suggests that the world is entering a new phase of influence. This alone warrants scrutiny and concern over what the global powers have in store for smaller nations.
That said, there was a positive aspect to this shift, evident in the quality and objectivity of the research presented at the conference. Unlike the deceptive language of previous development agencies, the discussions were frank and unfiltered in assessing Egypt’s economic realities. At the same time, they did not dismiss the economy’s potential to weather the crisis. This was the first in a series of conferences aimed at creating an optimal investment climate in Egypt, beginning with a comprehensive ‘cross-sectional’ analysis—akin to dissecting a plant—examining every sector with a level of detail that left most attendees silent and hesitant to engage in discussion.
It appears that, after a long absence and the evident failures of the major development organisations, the Europeans have decided to return to the Middle East’s economic stage. Their exact intentions remain unclear, but according to the head of the OECD, the first comprehensive report on Egypt’s economy will be published in mid-November. Perhaps then, some of their motives will become clearer.
This article is originally published by AlBorsa in Arabic and later AI-translated by South Push.