A. Launch of privatization of Egyptian SOEs
i. Privatization process and its impact in Egyptian textile and clothing industry
The Egyptian textile and clothing industry has been of vital significance to the Egyptian economy, as the entire production process from the cultivation of cotton to the production of yarns, fabrics and garments are performed domestically. According to El-Haddad, in 2008 the industry produced 26.4% of industrial production, LE 33.5 billion of total value added (MOED 2008), and approximately 10% of the country’s exports (El-Haddad 2010:2). In addition to this, the industry represents the largest single employer with over 400,000 workers, which may help alleviate the growing unemployment problem in Egypt.
Despite the significance of this industry to the Egyptian economy, the open door and economic structural reform policies ultimately took a toll on the fate and performance of the textile and clothing industry. The privatization process of the textile and clothing industry led to a negative impact on the booming industry in Egypt. Two factors predominately affected the specific industry: the termination of subsidies and the liberalization of cotton trade of 1994 as part of the Economic Reform and Structural Adjustment Program of 1991. Rising costs and liberalization of trade of such a vital industry in Egypt led to an effect on government subsidy policy, legal reform and unemployment. ii. Impact of privatization on subsidies, legal reform and unemployment
Subsidies:
The process of privatization in the Egyptian textile and clothing industry contributed to a series of consolidated events that conformed the fate and performance of the industry. In the 1980s, the government terminated the subsidy to clothing...
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Fabric that came from Europe costed as much as the equivalent to the garment itself. It became less expensive to make your own fabric than to buy it. “Producing one’s own clothes . . . meant weavin...
“Sweatshops Are the Norm in the Global Apparel Industry. We’re Standing up to Change That.” International Labor Rights Forum. N.p., n.d. Web. 6 Feb. 2014. .
How did imperialism manage to bring both disaster and success to Egypt? The morals of imperialism are mixed; it all depends on perspective. It brought along famines, heavy taxes, and many others to Egypt. On the other hand, it opened up trade routes from Britain to Asia and India, formed a steady supply of cotton for Britain, etc. (period6-5imperialism10.wikispaces.com, Egypt) In the beginning, Egypt actually tried to modernize itself, as an attempt to ward off European dominance (Modern World History, 354), but debts and other financial problems drove it into Britain’s arms. So how was Egypt affected by this? As a result of imperialism, Egypt received aid on some of the current problems, but were faced with many more new ones.
Each day, millions of people of all ages in developing countries suffer in factories all over the world while making the clothes that we buy and wear everyday.
... its prices (Trefis Team, 2013). Moreover, petroleum price have a significant impact on its gross margin, as petroleum is one of a raw material of apparel product. In the past few years, the company had to face with the high oil price because of global economic that decreased its gross margin (Trefis Team, 2014).
When America's cotton is sent to China, it is made into T-shirts in the sweatshops of China by laborers working 12-hour days and being paid subsistence wages. When the finished T-shirts re-enter the U.S., they are protected by the government through subsidies, tariffs, taxes, and protectionist policies that ensure that these foreign products will not provide too much competition to American-made shirts. Government regulations control how many T-shirt can be imported from various countrie...
...reasing trade liberalization. This includes policies such as tarrif reductions, which have lead to expansions of many economic sectors, which in turn have reduced inequality for urban and rural skilled men, as well as for women (gender inequality) and has seen increased employment opportunites for women. However, the success of such policies in reducing inequality had its limitations, as at the same time there has been an increase in inequality for unskilled men and for skilled women in rural areas (Chahir & Zaki 2012). It can be said that such trade liberalization policies are partially responsible for Egypt’s declining income inequality as the expansion of certain sectors has reduced gender inequality and inequality between rural and urban areas, while increasing inequality for men who are unskilled and skilled women in rural areas.
The strengths of the book come from its’ accessibility. The book is easy to follow and provides readers with a great deal of information about the production of mass-manufactured clothing. As well as brings awareness to its’ many issues which we inadvertently take part in when we purchase such products. The book is well written and thoroughly researched but does have its’ share of weaknesses.
While the price of cotton textiles decreased by 90%, the output had grown to cover the demand at affordable prices. Now, cotton will be gotten from Brazil, Egypt, southern United Sates and all this meant a...
The economic situation of Egypt before its colonization was quite good. The working and owning class maintained the industrial aspect while the upper class maintained the government and political prospect. Through the colonization of Egypt, Britain gained control of the Suez Canal, a major part of the world trade routes. With this advantage, Britain decided to heavily tax the ships which passed through. This brought mass amounts of money of which the Egyptians never saw. Instead of going to maintain Egypt or even the Suez Canal itself, the money went straight to the British government as profit. Finally, the news that Britain had colonized Egypt and was using it as a "profitable business" reached the public. Immediately, the Egyptians began to leave the country. The British had to act quickly, for they knew that without the Egyptians to maintain the land and canal, the profit would be lost.
Fashion in the 21th century is a big business, as its production employs millions of people and generates billions of dollars in revenue. Fashion has for the past century been, and is still today, used as an indicator of social change and progress, as it changes with the social norms of the society and the political changes of the world (Finkelstein 3).
According to Sapru R.K. (2008) p370-371 the traditional ideal of public administration which inclined to be firm and bureaucratic was based on processes instead of outcomes and on setting procedures to follow instead of focusing on results. This paradigm can be regarded as an administration under formal control of the political control, constructed on a firmly ranked model of bureaucracy, run by permanent and neutral public servants, driven only by public concern. In emerging nations the administration was true bureaucracy meaning government by officers. In this perspective Smith (1996) p235-6 perceived that“the bureaucracy controls and manages the means of production through the government. It increases chances for bureaucratic careers by the creation of public figures,demanding public managers, marketing boards.
Textile production and consumption is an increasingly global affair as production continues to shift to developing countries. Developing countries have seen an explosion in the growth of their textile exports, and for many countries textiles are a significant portion of their total exports. In response to increasing competition from low-value imports from developing countries, industry leaders in developed countries have made significant capital investments in order to increase productivity and move into advanced market sectors.
Thesis: From the 18th century to present time, the jean industry remains one of the largest, most influential clothing markets.
From 2005 the textile segment has been made up of 2 companies, transforming raw materials into fabrics, from spinning to finishing and ennobling. Handicraft product quality and technological research development characterize this business segment which works with internationally recognized names of the apparel and fashion industry.