Whether privatization in Egypt provides economic stimulus or is just a form of crony enrichment?

Knowledge Resources researcher Mukai Jaison asks whether privatization in Egypt provides economic stimulus or is just a form of crony enrichment. “Privatization can lead to natural monopoly, in which a company or a few companies dominate. Regulating such companies and ensuring that the public interest and not making profit is the objective can be difficult in a liberal economy. The government by selling its companies forfeits any future revenue from said company in the long term, since any profits generated go to shareholders. In this context, the government of Egypt should ensure that privatization is accompanied by policies that enable smaller firms to compete in the market and thus create employment.”