Entrepreneurship
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Black Markets and Militants: Informal Networks in the Middle East and Africa

Khalid Mustafa Medani joins ARD to discuss his recently released book, Black Markets and Militants Informal Networks in the Middle East and Africa (Cambridge University Press, 2021).

Understanding the political and socio-economic factors which give rise to youth recruitment into militant organizations is at the heart of grasping some of the most important issues that affect the contemporary Middle East and Africa. In this book, Medani explains why youth are attracted to militant organizations, examining the specific role economic globalization, in the form of outmigration and expatriate remittance inflows, plays in determining how and why militant activists emerge. The study challenges existing accounts that rely primarily on ideology to explain militant recruitment.

Based on extensive fieldwork, Medani offers an in-depth analysis of the impact of globalization, neoliberal reforms, and informal economic networks as a conduit for the rise and evolution of moderate and militant Islamist movements and as an avenue central to the often violent enterprise of state-building and state formation. In an original contribution to the study of Islamist and ethnic politics more broadly, he thereby shows the importance of understanding when and under what conditions religious rather than other forms of identity become politically salient in the context of changes in local conditions.

ABOUT THE SPEAKER 

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Khalid Medani
Dr. Khalid Mustafa Medani is currently associate professor of political science and Islamic Studies at McGill University, and he has also taught at Oberlin College and Stanford University. Dr. Medani received a B.A. in Development Studies from Brown University, an M.A. in Development Studies from the Center for Contemporary Arab Studies at Georgetown University, and a Ph.D. in Political Science from the University of California, Berkeley. His research focuses on the political economy of Islamic and Ethnic Politics in Africa and the Middle East.

Dr. Medani is the author of Black Markets and Militants: Informal Networks in the Middle East and Africa (Cambridge University Press, 2021) and he is presently completing another book manuscript on the causes and consequences of Sudan’s 2018 popular uprising and the prospects and obstacles for Democracy in that country. In addition, he has published extensively on civil conflict with a special focus on the armed conflicts in Sudan and Somalia. His work has appeared in Political Science and Politics (PS), the Journal of Democracy, the Journal of North African StudiesCurrent HistoryMiddle East ReportReview of African Political EconomyArab Studies Quarterly, and the UCLA Journal of Islamic Law.

Dr. Medani is a previous recipient of a Carnegie Scholar on Islam award from the Carnegie Corporation of New York (2007-2009) and in 2020-2021 he received a fellowship from the Woodrow Wilson International Center for Scholars to conduct research on his current book manuscript on the democratic transition in Sudan.

This event is co-sponsored by the Abbasi Program in Islamic Studies and the Center for African Studies at Stanford University.

Hesham Sallam

Online via Zoom

Khalid Mustafa Medani Associate Professor of Political Science and Islamic Studies McGill University
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Arab Reform and Democracy Program
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In a webinar dated June 8, 2020, American University in Cairo Scholar Amr Adly presented findings from his new book Cleft Capitalism: The Social Origins of Failed Market Making in Egypt (Stanford University Press, 2020). Egypt has undergone significant economic liberalization under the auspices of the International Monetary Fund, the World Bank, USAID, and the European Commission. Yet after more than four decades of economic reform, the Egyptian economy still fails to meet popular expectations for inclusive growth, better standards of living, and high-quality employment. While many analysts point to cronyism and corruption, this study finds the root causes of this stagnation in the underlying social and political conditions of economic development. It offers a new explanation for why market-based development can fail to meet expectations: small businesses in Egypt are not growing into medium and larger businesses. The practical outcome of this missing middle syndrome is the continuous erosion of the economic and social privileges once enjoyed by the middle classes and unionized labor, without creating enough winners from market making. This in turn set the stage for alienation, discontent, and, finally, revolt. With this book, Adly uncovers both an institutional explanation for Egypt's failed market making, and sheds light on the key factors of arrested economic development across the Global South.


 

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This event is co-sponsored by the Arab Studies Institute

ABSTRACT

This talk is based on the speaker's new book Cleft Capitalism: The Social Origins of Failed Market Making in Egypt (Stanford University Press, 2020). Egypt has undergone significant economic liberalization under the auspices of the International Monetary Fund, the World Bank, USAID, and the European Commission. Yet after more than four decades of economic reform, the Egyptian economy still fails to meet popular expectations for inclusive growth, better standards of living, and high-quality employment. While many analysts point to cronyism and corruption, this study finds the root causes of this stagnation in the underlying social and political conditions of economic development. It offers a new explanation for why market-based development can fail to meet expectations: small businesses in Egypt are not growing into medium and larger businesses. The practical outcome of this missing middle syndrome is the continuous erosion of the economic and social privileges once enjoyed by the middle classes and unionized labor, without creating enough winners from market making. This in turn set the stage for alienation, discontent, and, finally, revolt. With this book, Adly uncovers both an institutional explanation for Egypt's failed market making, and sheds light on the key factors of arrested economic development across the Global South.

SPEAKER BIO

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Amr Adly is an assistant professor in the department of political science at The American University in Cairo. He worked as a non-resident scholar at the Carnegie Middle East Center. He has also worked as a project manager at the Center on Democracy, Development, and the Rule of Law at Stanford University, where he was a postdoctoral fellow. Adly received his Ph.D. from the European University Institute in Florence. He is also author of Cleft Capitalism: The Social Origins of Egypt’s Failed Market Making (Stanford University Press, 2020) and State Reform and Development in the Middle East: The Cases of Turkey and Egypt (Routledge, 2012). He has been published in a number of peer-reviewed journals, including Geo-forum, Business and Politics, Turkish Studies, and Middle Eastern Studies. Adly is also a frequent contributor to print and online news sources.

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Arab Reform and Democracy Program
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Under the title “Political Contestation and New Social Forces in the Middle East and North Africa,” the Program on Arab Reform and Democracy convened its 2018 annual conference on April 27 and 28 at Stanford University. Bringing together a diverse group of scholars from across several disciplines, the conference examined how dynamics of governance and modes of political participation have evolved in recent years in light of the resurgence of authoritarian trends throughout the region.

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Delivering the opening remarks of the conference, Freeman Spogli Institute (FSI) and Hoover Institution Senior Fellow Larry Diamond reflected on the state of struggle for political change in the Middle East and North Africa (MENA) region. In a panel titled “Youth, Culture, and Expressions of Resistance,” FSI Scholar Ayca Alemdaroglu discussed strategies the Turkish state has pursued to preempt and contain dissent among youth. Adel Iskandar, Assistant Professor of Communications at Simon Fraser University, explained the various ways through which Egyptian youth employ social media to express political dissent. Yasemin Ipek, Assistant Professor of Global Affairs at George Mason University, unpacked the phenomenon of “entrepreneurial activism” among Lebanese youth and discussed its role in cross-sectarian mobilization.

The conference’s second panel, tilted “Situating Gender in the Law and the Economy,” featured Texas Christian University Historian Hanan Hammad, who assessed the achievements of the movement to fight gender-based violence in Egypt. Focusing on Gulf Cooperation Council states, Alessandra Gonzales, a Visiting Postdoctoral Fellow at the Stanford Institute for Economic Policy Research, analyzed the differences in female executive hiring practices across local and foreign firms. Stanford University Political Scientist and FSI Senior Fellow Lisa Blaydes presented findings from her research on women’s attitudes toward Female Genital Mutilation (FGM) in Egypt.

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Speaking on a panel titled “Social Movements and Visions for Change,” Free University of Berlin Scholar Dina El-Sharnouby discussed the 2011 revolutionary movement in Egypt and the visions for social change it espouses in the contemporary moment. Oklahoma City University Political Scientist Mohamed Daadaoui analyzed the Moroccan regime’s strategies of control following the Arab Uprisings and their impact on various opposition actors. Nora Doaiji, a PhD Student in History at Harvard University, shared findings from her research examining the challenges confronting the women’s movement in Saudi Arabia.

The fourth panel of the conference, “The Economy, the State, and New Social Actors,” featured George Washington University Associate Professor of Geography Mona Atia, who presented on territorial restructuring and the politics governing poverty in Morocco. Amr Adly, an Assistant Professor of Political Science at the American University in Cairo, analyzed the relationship between the state and big business in Egypt after the 2013 military coup. Rice University Professor of Economics Mahmoud El-Gamal shared findings from his research on the economic determinants of democratization and de-democratization trends in Egypt during the past decade.

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The final panel focused on the international and regional dimensions of the struggle for political change in the Arab world, and featured Hicham Alaoui, a Research Fellow at Harvard University’s Weatherhead Center for International Affairs, Georgetown University Political Scientist Daniel Brumberg, and Nancy Okail, the Executive Director of the Tahrir Institute for Middle East Policy.

The conference included a special session featuring former fellows of the American Middle Eastern Network at Stanford (AMENDS), an organization dedicated to promoting understanding around the Middle East, and supporting young leaders working to ignite concrete social and economic development in the region. AMENDS affiliates from five different MENA countries shared with the Stanford community their experiences in working toward social change in their respective countries.

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Please note: Registration for the conference is open only to Stanford University affiliates. A valid SUNet ID is required to register.

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DAY 1: Friday, April 27

 

8:30-9:00 a.m.    Breakfast

 

9:00-9:15 a.m.    Introductory Remarks

 

9:15-11:00 a.m.  Panel 1: Youth, Culture, and Expressions of Resistance

Ayca Alemdaroglu, Stanford University

“Affective Pedagogies: Governing Youth in the Times of Dissent in Turkey”

Adel Iskandar, Simon Fraser University

“Uprisings Upended: Arab Youth Between Dissociation, Disenchantment, and Desecration”

Yasemin Ipek, Stanford University

“Imagining Social Change after the Syrian Civil War: Entrepreneurial Activism and Cross-Sectarian Political Mobilization in Lebanon”

Chair: Hicham Alaoui, Harvard University

 

11:00-11:15 a.m. Coffee Break

 

11:15-1:00 p.m.  Panel 2: Situating Gender in the Law and the Economy

Hanan Hammad, Texas Christian University 

“Democracy from the Gender Edge”

Alessandra Gonzalez, Stanford University

“Do Source or Host Country Practices Dominate in Female Executive Hiring? Evidence from Firms in the GCC Countries”

Ibtesam Al Atiyat, St. Olaf College

“Repealing Rape Article 308: The Missed Opportunity to Women’s Emancipation in Jordan”

Chair: Joel Beinin, Stanford University

 

1:00-2:00 p.m.    Lunch

 

2:00-3:45 p.m.    Panel 3: Social Movements and Visions for Change

Dina El-Sharnouby, Freie Universität Berlin 

“The 2011 Revolutionary Movement in Egypt and Youth’s Socio-Political Imaginaries of Transformation and Change”

Mohamed Daadaoui, Oklahoma City University 

It’s Good to Be the King, or Is It? Protest Movements, the “refo-lutionary” promise of PJD Islamists and the King’s Dilemma in Morocco”

Nora Doaiji, Yale University

“After Saudi Women’s Driving: What Happens When A Marginal Movement Is Centered by the State”

Chair: Amr Hamzawy, Stanford University

 

DAY 2: Saturday April 28

 

8:30-9:00 a.m.    Breakfast

 

9:00-10:45 a.m.  Panel 4: The Economy, the State and New Social Actors

Mona Atia, The George Washington University 

“Territorial Restructuring and the Politics of Governing Poverty in Morocco”

Amr Adly, European University Institute

“Egypt's Shattered Oligarchy and Big Business Autonomy”

Mahmoud El-Gamal, Rice University 

“Egyptian Economic and De-Democratization Trends”

Chair: Lisa Blaydes, Stanford University

 

10:45-11:00 a.m. Coffee Break

 

11:00-12:30 p.m. Panel 5: Social Change and International and Regional Dynamics

Hicham Alaoui, Harvard University

"Geopolitical Myths and Realities under Neo-Authoritarianism"

Daniel Brumberg, Georgetown University 

“The Roots and Impact of Democracy Resistance and Autocracy Promotion in the Arab World”

Nancy Okail, The Tahrir Institute for Middle East Policy

"Political Reform, Security, and U.S. Middle East Policy"

Chair: Larry Diamond, Stanford University

 


 

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The event will be held at Stanford University. The exact location will be shared via e-mail with registered participants a week prior to the conference. Please read registration instructions below.

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Arab Reform and Democracy Program
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As part of the Arab Reform and Democracy Program's speaker series, Executive Director of the Mediterranean Development Initiative Ghazi Ben Ahmed examined the challenge of youth alienation in the context of the Tunisian transition. Social and economic grievances of Tunisian youth played a major role in igniting the uprising in Tunisia, and more generally, the so-called Arab Spring. Despite a successful political transition in the country, progress on addressing youth grievances has been slow in light of deteriorating living conditions, rampant corruption, and rising unemployment. These realities continue to pose a serious challenge to the prospects of building a sustainable democracy in Tunisia. Based on data gathered from meetings with a diverse group of 500 young Tunisians, this talk will shed light on youth’s perceived and actual exclusion from social, economic, and political opportunities. In doing so it will provide a critical assessment of the underlying causes of youth alienation in the country and prospects for greater political, social and economic inclusion.

 

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In a recent report, CDDRL Postdoctoral Fellow Amr Adly, with the support of the Center for International Private Enterprise, provides insight on post-revolution entrepreneurship in Egypt and Tunisia. He suggests that in order to advance their economies, governments must carry out comprehensive reforms that provide greater accessibility to formal institutional structures for the broadest base of private sector enterprises, namely, small business owners, rural enterprises, and female entrepreneurs.
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Ongoing upheaval in Egypt and Tunisia since the 2011 revolutions indicates high levels of dissatisfaction with the political order, and expresses a deep desire for a drastic remodeling of the economic system. Well-educated young men and women still find themselves marginalized and excluded from the political and economic order in their countries. Their initial demands for freedom and social justice have hitherto gone unheeded. At the heart of the ongoing political turmoil lies the demand for a sweeping socio-economic reform that may eventually create an economy that offers inclusive-growth, higher levels of productivity and competitiveness, and more job creation. However, unless certain complex and long-term questions are tackled, it is unlikely that political reform will lead to the creation of stable democracies.

Entrepreneurship is one of the most dynamic approaches to socio-economic transformation and development. It is intimately related to private sector development, micro, small, and medium-sized enterprise policies, job creation, innovation, and competitiveness. However, unlike the study of static policy and of regulatory areas or institutions and structures, analyzing the entrepreneurship ecosystem captures a picture in motion. Tackling the question of entrepreneurship links micro-level analysis that touches upon direct barriers to entry and growth with macro-level analysis that attempts to explain the lack of dynamism, low productivity, undercapitalization and the weak prospects of growth of the broadest base of the private sector in the region. Moreover, it may provide a way out of the spiral of failed development in which Egypt and Tunisia have been caught for decades.

This report wishes to answer two questions: Why has private entrepreneurship in Egypt and Tunisia remained that underdeveloped despite decades of economic liberalization and private sector-friendly incentives and reforms? And how can the entrepreneurship ecosystem in the two countries develop to meet the high expectations of the people of having a productive and just socio-economic order? 

See the following link to view the feature service article from the two sponsoring institutions: http://www.cipe.org/publications/detail/understanding-entrepreneurship-ecosystem-tunisia-and-egypt

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Center on Democracy, Development, and the Rule of Law and the Center for International Private Enterprise
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Amr Adly
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Why has private entrepreneurship in Egypt and Tunisia remained underdeveloped despite decades of economic liberalization and private sector-friendly incentives and reforms? And how can the entrepreneurship ecosystem in the two countries develop in order to meet the people’s high expectations of having a productive and just socio-economic order? These are the research questions that will be addressed by the CIPE/Stanford upcoming joint report "Reforming entrepreneurship ecosystems in post-revolutionary Egypt and Tunisia. This feature service article sets the stage for the answering of these questions by critically engaging with the conventional wisdom we have on MENA and by developing a concept of entrepreneurship that best fits the post-revolutionary contexts of Egypt and Tunisia.

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Abstract:

The seminar session will present findings from a new study on the entrepreneurship ecosystem in post-revolutionary Egypt and Tunisia. The discussion will focus on the challenges facing entrepreneurs and would-be entrepreneurs in these countries and the MENA region, and will highlight the importance of reform of the legal and regulatory environment.

Speakers bio:

Lina Khatib is the co-founding Head of the Program on Arab Reform and Democracy at the Center on Democracy, Development, and the Rule of Law at Stanford University. She joined Stanford University in 2010 from the University of London where she was an Associate Professor. Her research is firmly interdisciplinary and focuses on the intersections of politics, media, and social factors in relation to the politics of the Middle East. She is also a consultant on Middle East politics and media and has published widely on topics such as new media and Islamism, US public diplomacy towards the Middle East, and political media and conflict in the Arab world, as well as on the political dynamics in Lebanon and Iran. She has an active interest in the link between track two dialogue and democratization policy. She is also a Research Associate at SOAS, University of London, and, from 2010-2012, was a Research Fellow at the USC Center on Public Diplomacy at the Annenberg School.

Amr Adly has a Ph.D. from the European University Institute-Florence, Department of political and social sciences (Date of completion: September 2010). His thesis topic was "The political economy of trade and industrialization in the post-liberalization period: Cases of Turkey and Egypt". The thesis was published by Routledge in December 2012 under the title of State Reform and Development in the Middle East: The Cases of Turkey and Egypt.

He has several other academic publications that have appeared in the Journal of Business and Politics, Turkish Studies, and Middle Eastern Studies, in addition to articles in several other periodicals and newspapers in English and Arabic.

Before joining Stanford, he worked as a senior researcher at the Egyptian Initiative for Personal Rights, heading the unit of social and economic rights, and at the Ministry of Foreign Affairs as a diplomat.

At Stanford, he is leading a research project on reforming the regulatory environment governing entrepreneurship after the Arab Spring in Egypt and Tunisia, which will result in policy papers as well as conferences in the two countries. 

Greg Simpson is Deputy Regional Director of the Middle East and North Africa division at the Center for International Private Enterprise (CIPE), where in addition to co-managing the division with the regional director, he also directly oversees CIPE’s sizeable Egypt portfolio. A veteran of the nongovernmental sector with eighteen years of experience in strengthening democratic institutions, Simpson came to CIPE from the U.S. online political firm New Media Communications, where he focused on developing and managing the company’s international initiatives. Prior to New Media, Simpson worked at the International Republican Institute (IRI), where he held three successive country director posts in the Balkans. There he directed assistance programs in political party development, political communications, local governance, grassroots organization and mobilization, civil society development, public opinion research, and election observation. During this time, Simpson advised and trained hundreds of political activists and elected officials, and directly advised two of the region’s presidents. Before joining IRI, Simpson held positions at the American Council of Young Political Leaders (ACYPL) and the Center for Civil Society in Southeastern Europe. He holds a B.A. in International Studies from American University in Washington, DC. Simpson currently resides in Alexandria, Virginia with his wife and two children. 

One of the four core institutes of the National Endowment for Democracy and an affiliate of the U.S. Chamber of Commerce, the Center for International Private Enterprise (CIPE) is a U.S. non-profit organization with the mission of strengthening democracy around the globe through private enterprise and market-oriented reform. CIPE has supported more than 1,300 initiatives in over 100 developing countries, involving the private sector in policy advocacy and institutional reform, improving governance, and building understanding of market-based democratic systems. CIPE provides management assistance, practical experience, and financial support to local organizations to strengthen their capacity to implement democratic and economic reforms.

Encina Ground Floor Conference Room

Lina Khatib Program Manager, Arab Reform and Democracy Moderator CDDRL
Amr Adly Postdoctoral Scholar Panelist CDDRL
Gregory Simpson Deputy Regional Director of the Middle East and North Africa division at the Center for International Private Enterprise Panelist CIPE
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