EGYPTIAN REVOLUTION

Revolution a fight against austerity

by James Clark

Political observers in the West have attempted to characterize the Egyptian Revolution as simply a movement for political reform, but its roots may be traced to a decade of struggle against neoliberal policies that have impoverished the majority of Egyptian workers.

In the 1990s Egypt was the poster child for IMF-driven austerity measures, a process that began with Anwar Sadat’s infitah or “opening up” of the Egyptian economy in the 1970s, and that was accelerated by Hosni Mubarak’s full embrace of neoliberalism in the decades that followed. That process continues as the IMF, the World Bank and its Western backers attempt to impose a neoliberal future on post-Mubarak Egypt.

Loans

On June 5 Egypt announced it had secured a $3 billion-loan from the IMF, not long after G8 leaders promised up to $20 billion in aid and investment. Both deals came with strings attached—more privatization, deregulation and liberalization of Egypt’s economy—and represent an attempt to entrench neoliberal policies in the wake of Mubarak’s departure.

Despite the fact that these policies have been disastrous for Egyptian workers for the last 30 years, international financial institutions continue to endorse them. In the context of ongoing social upheaval, however, neoliberalism is being repackaged as the most effective way to guarantee Egypt’s transition to “democratic” governance.

By contrast, Egyptian workers seem to have a different view of democracy, one that is directly opposed to the neoliberal agenda: full employment with a national minimum wage, state-led spending on health and education, public subsidies for food and fuel, affordable housing for Egypt’s poor and working class, and the re-nationalization of recently privatized industries. These demands signal an intensification of the radicalization that has followed the fall of Mubarak, as well as the raised expectations that the revolution will provide Egyptians with a better life.

The ensuing conflict between the neoliberal vision of post-Mubarak Egypt and the vision shared by the overwhelming mass of Egyptian workers is becoming more apparent—both inside and outside of Egypt—and represents the central fault-line of struggle in the next phase of the revolution.

Public opinion

That struggle seems to have tilted towards Egyptian workers, following the surprise announcement on June 25 that Egypt’s interim government had decided to reject the IMF loan—just three weeks after intense negotiations to secure it. Egyptian finance minister Samir Radwan conceded that the move was, at least partly, in response to the “pressure of public opinion.” Since Mubarak’s ouster, Egyptians have widely condemned outside interference in their affairs, calling for the seizure of Mubarak’s vast personal wealth as the means to rebuild their economy and society.

But Radwan’s announcement does not necessarily represent a retreat from the neoliberal agenda, even if it is a concession to the strength of the Egyptian street. Instead, it could symbolize the implementation of neoliberal policies by other means: loans, aid and investment from throughout the Arab world. Saudi Arabia and other Gulf states are just as keen as the US and the IMF to curtail the radicalization underway among Egyptian workers and to impose on them the kind of policies that will extend—not reverse—Mubarak’s liberalization project. If they fail to do so, the momentum of the Arab Spring will not stop at Egypt’s borders, threatening to inspire and accelerate movements of resistance across the region.

The very real threat of wider resistance explains why Egypt’s ruling military council has attempted to outlaw strikes, protests and anything that threatens the country’s “recovery.” But the scale of strikes and protests remains too large to stop by decree—for the moment. In the weeks ahead, Egyptian workers will face increasing repression from the military as it struggles to contain the revolution, which makes their task of spreading resistance to every workplace possible all the more urgent.

It is here—where Egyptian workers work—that the next phase of the revolution will be won or lost, and where resistance to the neoliberal agenda has the greatest potential to win.