Carnegie: IMF must push the Egyptian government to rationalize the military economy

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The Carnegie Middle East Center has called on the International Monetary Fund to adopt a strategy that pushes the Egyptian government to rationalize the military financial and economic apparatus, in line with the Fund’s general recommendations.

According to the report issued by the think tank, the essence of the required strategy lies in unambiguously defining the assets and the economic activities and regulations of the military to ensure their alignment with the rules and regulations of the civilian public sector. The report suggested placing the companies of the Ministry of Military Production, the Arab Organization for Industrialization, the Ministry of Defense, and the National Service Projects Organization under the supervision of civilian public authority, a public authority under the control of the military, or the Sovereign Wealth Fund.

The main ways to achieve this, according to the report, come by pushing more aggressively to achieve competitive neutrality, in the sense of providing a level playing field for public and private sector companies in terms of business laws, taxes, customs, access to finance, land and supply contracts. In addition to unifying the state budget by transferring the profits of the military to the state treasury. The report mentioned that the current laws grant effective military control over public desert lands, making it the absolute controller in determining the grounds that are suitable or not suitable for civil investment.