Economic Liberalization and Privatization: Egypt and Hungary

Abstract In this paper the background and recent economic reforms in Hungary and Egypt are compared. Economic liberalization policies, the development of legal and institutional infrastructure for the private sector, and divestiture of public enterprises are analyzed. The paper argues that most of Egypt's privatization and much of Hungary's has come through the relaxation of government interference in the private sector. Unemployment is identified as a major social problem affecting structural reform efforts. The conclusion is that divestiture of public enterprises should not be the exclusive, or even main, concern of government policy or external advice. Arabic Abstract: