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Research Agenda

Phase 2: 2005-10
Programme 1:
Public Action & Private Investment
Programme 2:
Collective Action Around Service Delivery
Programme 3:
State Capacity

Phase 1: 2000-05

Programme 1:
Financing the State

Programme 2:
Mobilising Public Action

Programme 3:
Co-Producing Public Services

Public Action and Private Investment

Project: 'Constructing Common Interests between Policymakers and Private Investors in Egypt'

Questions and findings

How can governments achieve substantial increases in productive private investment?  ‘Improve the investment climate!’ is the dominant advice.  However, national-level investment climate approaches have been criticized for not giving adequate attention to context and feasibility.  This project experiments with an approach which addresses these concerns by focusing on sectors and on the relationships between policy makers and investors.  After setting out a framework for using this approach, the project then examines whether it can explain the considerable inter-sectoral and inter-temporal differences in investment in Egypt. 

The research shows that where public-private relationships are based on common interest, obstacles to investment and growth are more likely to be removed.   The risk of abuse of such public-private interaction is acknowledged but in the examined sectors they have been effective transitional arrangements for enhancing investment and growth and for inducing a new dynamic. The project also examines where such growth alliances come from, how they evolve over time, how they work and in what circumstances they do good rather than harm.


Abla Abdel-Latif and Hubert Schmitz (September 2010), State Business Relations and Investment in Egypt, Research Report 61, IDS, 2009

Abla Abdel-Latif and Hubert Schmitz (September 2010),`The Politics of Investment and Growth in Egypt: Experimenting with a New Approach'. Working Paper 546, Economic Research Forum, Cairo, 2010

Abla Abdel-Latif and Hubert Schmitz (forthcoming 2010), Growth Alliances – Insights from Egypt, Business and Politics, December 2010


Abla Abdel-Latif, Professor of Economics at the American University of Cairo and Fellow of the Economic Research Forum in Cairo [email protected]

Hubert Schmitz, Professorial Fellow of the Institute of Development Studies, University of Sussex, and Convenor of the Research Programme ‘Public Action and Private Investment’ [email protected]

Related Research
Hela Yousfi and John Humphrey (2008), The Investment Climate in Egypt: Institutions or Relationships as Conditions for Sustainable Reform – An Ethnographic Approach, Agence Française de Développement Working Paper 66: France


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