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Barry Lando

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Egyptian Military: State Within a State

Posted: 11/26/11 05:15 PM ET

On Friday, Washington added its voice to Egyptians demanding that the Egyptian military give way to civilian rule. It's instructive, however, to consider why the Egyptian brass are so reluctant.

Their resistance stems not just from a fear of an ultimate takeover by radical Muslims. There is also the fact that real civilian rule could spell an end to the system of massive military corruption and patronage that has gone on for decades in Egypt, a system that has given the military unimpeded control over a huge sector of the Egyptian economy: "a state within a state" as a well-informed Egyptian friend of mine puts it.

That's the state that's now being challenged.

For years, Egypt's top military ranks have enjoyed a pampered existence in sprawling developments such as Cairo's Nasr City, where officers are housed in spacious, subsidized condominiums. They enjoy other amenities the average Egyptian can only dream of, such as nurseries, bonuses, new cars, schools and military consumer cooperatives featuring domestic and imported products at discount prices. In other areas, top officers are able to buy luxurious apartments on generous credit for 10 percent of what those apartments are actually worth.

But we're not just talking about sensational official perks. Many of Egypt's brass are notoriously corrupt. Vast swathes of military land, for instance, were sold by the generals to finance some major urban developments near Cairo -- with little if any accounting.

Other choice military property ran on the Nile Delta and Red Sea coast boasted idyllic beaches, and exquisite coral reefs. In return for turning the land over to private developers, military officers became key shareholders in a slew of gleaming new tourist developments.

The reason Egypt's military became so involved in non-military activities was because, after peace was signed with Israel in 1975, the military lost much of its raison d'etre, as did its military factories. The problem, though, was how to keep those factories going and employ the hundreds of thousands of young men who would otherwise flood the domestic market?

The answer was the military would also produce for the civilian market. Thus the generals came to preside over 16 enormous factories that turn out not just weapons, but an array of domestic products from dishwashers to heaters, clothing, doors, stationary pharmaceutical products, and microscopes. Most of these products are sold to military personnel through discount military stores, but large amount are also sold commercially.

The military also builds highways, housing developments, hotels, power lines, sewers, bridges, schools, telephone exchanges, often in murky arrangements with civilian companies.

The military are also Egypt's largest farmers, running a vast network of dairy farms, milk processing facilities, cattle feed lots, poultry farms, fish farms. They've plenty left from their huge output to sell to civilians through a sprawling distribution network.

The justification for all this non-military activity is that the military are just naturally more efficient that civilians. Hard not to be "more efficient" when you are able to employ thousands of poorly paid military recruits for labor.

Many civilian businessmen complain that competing with the military is like trying to compete with the Mafia. And upon retiring, top military officers are often rewarded with plum positions running everything from factories and industries to charities.

Whatever the number, Robert Springborg, who has written extensively on Egypt, says officers in the Egyptian military are making "billions and billions and billions" of dollars."

But there's no way to know how efficient or inefficient the military are, nor how much money their vast enterprises make, nor how many millions or billions get skimmed off since the military's operations are off the nation's books. No real published accountings. No oversight. Just as there is no civilian oversight of the entire military budget, and that's the way the current military regime have said they aim to keep things

Of course none of the above is a surprise to U.S. officials who dole out some 1.3 billion dollars a year in military aid to the Egyptian Army, and hope that sum and the neat weapons it provides will keep the army in line. [One of the most detailed studies of the military's non-military activities was done by a U.S. military researcher at Fort Leavenworth.]

A perceptive look into all this comes via a 2008 U.S.diplomatic cable released by WikiLeaks. The writer in the U.S. Embassy in Cairo ticked off the various businesses the military was involved in, and considered how the military might react if Egypt's then president, Hosni Mubarak, were to lose power.

The military would almost certainly go along with a successor, the cable's author wrote, as long as that successor didn't interfere in the military's business arrangements. But, the cable continued, "in a messier succession scenario, it becomes more difficult to predict the military's actions."

Thus, the messier scenario today.

 

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On Friday, Washington added its voice to Egyptians demanding that the Egyptian military give way to civilian rule. It's instructive, however, to consider why the Egyptian brass are so reluctant. Thei...
On Friday, Washington added its voice to Egyptians demanding that the Egyptian military give way to civilian rule. It's instructive, however, to consider why the Egyptian brass are so reluctant. Thei...
 
 
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HUFFPOST SUPER USER
Robert Frank
My last name is FRANK so thats what I am..
09:05 AM on 11/28/2011
it also seems like its this way in so many countries this one included..we need a worldwide revolution to get rid of the powers that be that keep the factories of war going and the paranoia fed...the international banks who profit from perpetual war are a good place to start
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HUFFPOST SUPER USER
Robert Frank
My last name is FRANK so thats what I am..
09:02 AM on 11/28/2011
wow.....sounds just like the corruption, fraud, and waste that goes on at the pentagon
02:06 AM on 11/28/2011
"....after peace was signed with Israel in 1975..."
Erm... Sadat didn't go to Jerusalem until 1977. The Camp David Peace Treaty was signed in 1979, not 1975.
03:23 PM on 11/27/2011
Interesting article. It's possible we're looking at a Chile after pinochet situation. But, that may be premature.

Kevin Chamow
06:07 AM on 11/27/2011
Not only do ex-military officers take positions in industry, but the section heads of every government department (not to mention provincial governors) are ex-military too. Even the more unlikely ones such as the Ministry of State for Environmental Affairs house ex-generals (well they never really become ex).

Nothing gets done in Egypt without military signing off, and getting its cut. Whether that's setting up an international restaurant chain, building a bridge or developing land.

In a way all that the revolution in Egypt has achieved so far was to remove the cabinet formed of major business owners and the head of the army (Mubarak). The true power in the country has not changed.
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08:42 PM on 11/26/2011
The headline could also be: American Military: A State Within a State. Just sayin.
07:24 PM on 11/26/2011
Well it's theoretically plausible that the army implodes dragging the whole economy with it. Like in the Soviet Union after 1991. What emerged afterwards was the Oligarchs. Life for some Russians is better than it was. For some it's worse and for a few it's GREAT! Maybe that's what will happen in Egypt. For the vast majority of Egyptians life can't get much worse. I mean that numerically they're already on the bottom. The middle class what there was is trying to get out of the country. That's going to leave a few super wealthy and the mudlings on the bottom.
06:53 PM on 11/26/2011
I'm sure the author knows that the Muslim Brotherhood will more than likely end up @ the helm of the new govn't. Aren't they radical muslims? Oh I mean Islamists?

1.)Also the international financial institutions blame the military for the state of Egypt's current failing economy. Keep in mind the military is Mubarek's peeps.

2.) Plus the military's new wave of violence against civilians indicates that they really aint tryna give up their power - now that's efficiency

Perhaps Washington should mull these things ove with some Egyptian activists like Hossam Baghat. who is working w/ the UN for similar reasons. - I'm just saying

http://101africa.blogspot.com/2011/11/new-egypt-old-military.html
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realitytrumpsbull
Two 'alves of coconut!
05:47 PM on 11/26/2011
How different is Egypt from the United States, anymore? This writer is pointing fingers at Egypt, but...what about our own massive, nigh-incalculable military budget? Haven't we about gotten to the point where the military IS 'the government', basically? If not, we're not far from it, anymore.
01:50 AM on 11/27/2011
I agree completely! I think this is where the author has been only half honest in the analysis. The crucial line to note is:

"Of course none of the above is a surprise to U.S. officials who dole out some 1.3 billion dollars a year in military aid to the Egyptian Army, and hope that sum and the neat weapons it provides will keep the army in line. "

What exactly is this "line" that the army is supposed to keep within? Here is where the real role of the U.S> aid budget to the Egyptian Military becomes clear. Egypt's military dictatorship has for the last 30 years been one of the bedrocks of U.S. geostrategic power in the region - economic and political. By keeping the army in charge they can forestall any democratization that may challenge the balance in the Arab world. Who else are pillars of U.S. interests? The oil regimes. If Egypt, being the most important Arab country shifts towards democratic rule, the grounds on which the sheikdoms stand will tremble. And with that the settler colonialist enterprise called Israel will also crumble. So now the U.S. is asking for the army to step aside - but you don't have to hold your breath for them to ask NATO to intervene as they did in Libya. The U.S. does not want a democratic Egypt.
02:32 PM on 11/27/2011
I can't say that there ain't truth within that statement. If the U.S.has no economic interest in you. The less they will interfere....look at Somalia they damn near had to beg. I'm just saying