Around the time of the food riots, President Sadat instituted
a new economic policy for Egypt that was meant to improve
the country’s standard of living and give it some footing on the
international economic stage. It was called the infitah, mean-
ing “opening”—Egypt’s doors would now be opened to foreign
investment. Up to that time, almost all of Egypt’s industries
were state-run. They produced few export goods and few con-
sumer products that Egyptians wanted to buy. The open door
was supposed to change that, inviting international businesses
to take advantage of Egypt’s abundant and well-trained work-
force to manufacture products for foreign and local consump-
tion. So far, infitah has resulted in only modest progress. There
are consumer goods—almost any convenience of modern life
can be purchased in Egypt today—but most are imported. The
hoped-for emergence of a dynamic, private manufacturing sec-
tor has not taken place. Many foreign businesses are put off by
the risks of investing in the volatile Middle East, by the red tape
involved in setting up shop in Egypt, and by the kickbacks that,
although not legal, have to be paid for things to work properly.