Abstract:
The overall performance of Egypt's agricultural exports since 1973 has been extremely problematic. Although certain export crops, principally citrus fruits, have performed relatively well, in general, long-term export trends have been dismal. Several factors have contributed to the weak performance of agricultural exports. Each of the ensuing problems could have been resolved, however, if government policy had been aimed at removing impediments to private enterprise in the spheres of agricultural production and agricultural exports. Despite persistent government rhetoric about 'infitah', official programmes since the early 1970s have continued to affect agriculture adversely, effectively impeding dramatic improvement in the export performance of each of Egypt's main export crops (cotton, rice, onions, garlic, potatoes, tomatoes, and citrus fruit exports are discussed in this article). Removing all government restrictions on private production and private exports, including government intervention in the foreign exchange market, would have raised prices for growers of internationally tradeable crops where domestic prices invariably have been lower than international prices. Higher prices for farmers would have stimulated export-oriented production, curtailed domestic consumption, and forced inefficient exporters who could not pay the higher prices to exit the export market. Notes, ref.
