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The 454-member Majlis al-Sha’ab
(People’s Assembly), which
functions as the legislature,
nominates the President; the
nomination is endorsed by
popular referendum. The
president, who serves a six-year
term, has executive power and
appoints one or more Vice
Presidents, a Prime Minister and
a Council of Ministers. The
Majlis al-Sha’ab is elected
for a five-year term. There is
also a 210-member advisory
assembly, the Majlis ash-Shura.
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On taking power in 1952, President Nasser
quickly instituted a
Soviet-style command economy
that was closed to Western
investment. After
Nasser’s death, his successor, Anwar Sadat,
gradually dismantled the
existing system in favor of a
policy of infitah
(openness) towards investment.
Egypt’s
economy underwent rapid growth
during the 1970s with the swift
expansion of the oil industry,
tourism and the
Suez Canal. During the 1990s, stern fiscal
policies, agreed with the IMF
and World Bank, and further
market-oriented measures brought
the Egyptian economy to its
current condition. As of mid
2004, annual growth had fallen
to 3%, inflation was about 14%,
while official unemployment was
10% (although there is
considerable under-employment).
Egypt’s
major industries are textiles,
fertilizers, rubber products and
cement. There are also steel
production works and several
vehicle assembly plants. The
main crops are cotton, rice,
wheat, sugar, maize and a range
of fruit and vegetables.
Expansion of the tourist sector
has been briefly hampered by the
terrorist activities of Islamic
fundamentalists. Agriculture,
which relies on irrigation from
the
Nile, employs one-third of the working population. Foreign
aid, especially from the
USA, is an important source of
government funds.
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