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Why has the Egyptian state, which is more repressive and authoritarian than its Mexican counterpart been unable to overcome the opposition of a labor movement, that is smaller, less organized, and more repressed than the Mexican labor movement? Through agitation or the threat of agitation, Egyptian workers have been able to hinder the reform process, while the Mexican labor movement, which is larger and better organized was unable to resist privatization. The Egyptian state's low capacity and isolation is best understood by looking at the founding moment -- or incorporation period of each regime. The critical distinction between Mexican and Egyptian incorporation is that in Egypt, the labor movement was depoliticized and attached to the state bureaucracy, while in Mexico, workers were electorally mobilized into a political party. This difference would prove crucial during the reform process, because, social control in Mexico, exercised through the PRI, was more effective in coopting opponents and mobilizing urban constituencies for privatization than the control mechanisms of the Egyptian state bureaucracy.
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Redeploying the State
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Redeploying the State Corporatism, Neoliberalism, and Coalition Politics
Hishaam D. Aidi
redeploying the state Copyright © Hishaam D. Aidi, 2009. All rights reserved. First published in 2009 by PALGRAVE MACMILLAN® in the United States—a division of St. Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN-13: 978-0-230-61159-7 ISBN-10: 0-230-61159-1 Library of Congress Cataloging-in-Publication Data Aidi, Hishaam D. Redeploying the state : corporatism, neoliberalism, and coalition politics / Hishaam D. Aidi. p. cm. Includes bibliographical references and index. ISBN 0-230-61159-1 1. Privatization—Egypt. 2. Privatization—Mexico. 3. Corporate state— Egypt. 4. Corporate state—Mexico. I. Title. HD4343.A79 2008 338.962'05–dc22 2008021594 A catalogue record of the book is available from the British Library. Design by Scribe Inc. First edition: January 2009 10 9 8 7 6 5 4 3 2 1 Printed in the United States of America.
For Rachida, my mother
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Contents
Acknowledgments
ix
Acronyms and Glossary
xi
1
The Politics of Privatization
1
2
State Formation, Incorporation, Political Parties: Concepts and Theoretical Considerations
15
3
The Founding Moment: Elite Conflict, Coalition Formation, and Regime Consolidation
37
4
The Institutional Legacies of Incorporation: The Party-Labor Alliance on the Eve of Privatization
69
5
Privatization and the Populist-Distributive Alliance
83
6
Bureaucratic Reform and State-Business Relations
109
7
State-Labor Relations and Public Sector Reform
137
8
Shifting the State from Left to Right
167
9
Privatization and Exclusion
199
Notes
211
Index
243
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Acknowledgments
This book’s genesis lies in a graduate seminar, “State Reform in Latin America,” that I took with Robert Kaufman in the