Egyptian Parliament delivers major setback to reform

The reform momentum gained in Egypt in the past few years suffered a major setback Sunday as the Egyptian Parliament voted to extend the country’s “Emergency Laws,” effectively consolidating power for President Hosni Mubarak for another couple of years.

No reform measure was more anticipated than cancellation of the emergency laws, which permit indefinite detention without trial and hearings in civilian cases by military courts. They also prohibit gatherings of more than five people, limit speech on vague grounds (like damaging Egypt’s image) and restrict free association.

Despite the restrictions in the country, Egypt’s private sector has made significant gains in economic institutional reform, succeeding in advocating changes in tax laws, construction licensing fees, and other barriers to economic growth.  CIPE programs played a significant role in these changes, including a conference with then Minister of Finance Youssef Boutros Ghali in which he called for radical changes to the Egyptian tax code, changes which went into effect in July 2005.

In countries where oppressive regimes can seemingly suffocate political reform, the private sector must step up and and continue to push for reform of democratic, market-oriented institutions.  Egypt’s setback is not the end of the reform movement, but the road to a fully functional democracy just became a bit bumpier.

Published Date: April 30, 2006