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April 6 Youth Movement: Non-violence in Egypt

First published on VICE UK on April 9th

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On Saturday, the Egyptian activist group, April 6 Youth Movement (A6YM), marked their fifth anniversary with a “Day of Rage” against President Mohamed Morsi. The non-violent grassroots movement officially formed two months after helping to orchestrate a general strike in the industrial city of Al-Mahalla Al-Kubra in the spring of 2008, when – in search of better pay and working conditions – the group implored workers to stay at home on April the 6th instead of go to work. I’m sure you’ll know that’s generally how strikes work, but there was a specific reasoning behind the A6YM’s method.

Mohamed Adel is one of the four founders of the A6YM and was one of the more prominent voices in the lead up to the general strike five years ago. “People were afraid of protesting at the time – it’s dangerous and the thought was, ‘What could it possibly achieve?’” Mohamed told me. ”Our message was to just stay at home, as it’s a simple and safe act [of civil disobedience].”

Since its inception, the A6YM has made extensive use of social media and pamphleteering to spread awareness among what, to begin with, was a mostly apathetic, apolitical youth. In an A6YM YouTube video, co-founder Ahmed Maher explains, “We were continuously trying to reach people in university, in cafes and in social clubs – the youth who weren’t interested in politics.”

During the revolution two years ago, the A6YM were an instrumental force in organising and rallying people to help swell numbers into the critical mass that eventually toppled Mubarak. Today, according to Adel, they have around 15,000 “direct members” and command a base of over 100,000 supporters, with around half a million people following both their Facebook and Twitter accounts.

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The group’s strictly non-violent role in the revolution was rewarded with a nomination for the Nobel Peace Prize in 2011. And the date of the sixth of April was chosen in homage to the day in 1930 that Mahatma Gandhi’s Salt March started to achieve what it had set out to do: bring a peaceful end to British rule in India. So their dedication to peace is clearly pretty important. The group’s symbol, a raised fist, is “shared with non-violent movements in Russia, Georgia, Serbia, South Africa and so on”, explains Adel. “Our message is ‘We will have revolutionary change without the use of violence.’ It shows that we’re united and strong.”

During the most recent Egyptian presidential elections, the A6YM threw their weight behind Mohamed Morsi, if only to avoid the appointment of Ahmed Shafiq, Mubarak’s Prime Minister and a man considered to be a stale remnant of his rule. Now, after not even a year in office, the group consider Morsi to be their primary focus. “We asked the people to vote for Morsi, but if this first few months were an exam, he has failed – nothing has changed,” says Adel. “He’s not working to the goals of the revolution, but to the goals of the Muslim Brotherhood.”

The idea that the Muslim Brotherhood controls the Presidency, who in turn control the police and courtrooms, is deemed a poorly kept secret to most Egyptians, while the separation of powers in Egypt is considered a farce that few continue to entertain.

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For their fifth anniversary, the A6YM organised four marches to set off from four separate suburbs of Cairo, which would all end up meeting outside Cairo’s High Court. A number of other parties and movements joined the marches, including the parties of opposition leaders Hamdeen Sabahi (the National Salvation Front) and Mohamed ElBaradei (the Constitution Party).

The turnout for the marches was smaller than anticipated, but those present remained in good voice. Chants of, “Down with the rule of the Supreme Guide” (the Muslim Brotherhood) rang out all around the march, backed up by the constant banging of drums. The demonstrators also chanted for Gaber “Jika” Salah, an A6YM member considered to be the first martyr of Morsi’s tenure after he was killed in November last year.

Men and women handed out flyers that read, “There is no bread, there is no freedom, there is no justice, there is no dignity. The people want the downfall of the regime.” They mocked the Ministry of Interior and the current government, referring to them as “sheep” while holding aloft handfuls of Egyptian berseem clover, a plant used to feed cattle.

The marches passed by potentially incendiary places without incident, and police presence throughout the march was surprisingly low. By early evening, the separate marches converged on the High Court – by now numbering in the thousands – and continued their chanting. Protesters called for the release of detained activists, including several A6YM members, and chanted against the General Prosecutor, who they accused of politically charged rulings.

A few people set off flares and the drums began to beat louder, but there was never the slightest sense that it would escalate into a riot. Then, at around 7PM, police from inside the High Court turned up, ostensibly worried the protesters would storm the building, and fired birdshot and tear gas into the crowds. The crowd dispersed and Central Security Force armoured personnel carriers (APCs) arrived, bringing with them many more paramilitaries ready to help the police goad the peaceful protesters.

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The clashes that ensued followed the now customary back and forth between protesters and police, with the sirens of the APCs one again providing the soundtrack.

Fady, an 18-year-old medical student, said, “Do you see this? This is what happens when you protest peacefully.” Below us, men in civil attire suddenly started to attack the protesters, firing Roman candles directly at them, the fireworks exploding at head height. “Plain clothes policemen,” explained Fady, shaking his head.

The official Ministry of Health figures put the number of injured by 10PM at 18, but it’s pretty safe to assume that the actual figure was somewhat higher by the time the fighting stopped several hours later.

The A6YM released a statement late on Saturday on their official Facebook page that chastised the Ministry of Interior, which they accused of “prostituting” itself out for every regime. Stating their intention to carry on fighting for a better Egypt, they wrote, “We completely reject these unjustified and repressive attacks on peaceful demonstrations… and we insist that we will continue with our non-violent methods in overthrowing this oppressive regime.”

 

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Egypt: Nationwide Protests Leave Dozens Dead

Originally Published on VICE, 28/01/2013 – Photos by Amanda Mustard (@mustardphoto)

On 25th January 2011 – coinciding with “National Police Day” – thousands of Egyptians flocked to the Ministry of Interior in central Cairo in protest of widespread police brutality. Eighteen days later, 846 people had died, over 6,000 more were injured and Egypt’s longest serving president, the authoritarian Hosni Mubarak, had abdicated his post.

Two years later and Egypt has its first democratically elected, non-military leader since King Farouk was overthrown in 1952. The president now has a maximum tenure of two four-year terms. The infamousemergency law has been terminated. Egypt has a newly elected upper house of parliament, a new constitution and parliamentary elections for a lower house due in the upcoming months.

Yet for all that, the goals of the revolution have yet to be achieved: economic stagnation persists, unemployment has increased, military trials of civilians continue and the new constitution meant to enshrine civil liberties remains hugely contentious.

These remain serious affronts to millions of Egyptians. For the anniversary of the revolution, 16 parties and movements held marches in each governorate while maintaining a rejection of the anniversary as a day of celebration. The ruling Muslim Brotherhood and its supporters would not even venture into Tahrir Square – “the symbol of the revolution” – for the day, highlighting the current political polarisation.

Tens of thousands packed Tahrir as the old chants of “Down with the regime” and “Bread, freedom, social justice” rang out alongside newer ones of “Leave Morsi!” and “Gika” (the first martyr of Morsi’s tenure). Meanwhile, several marches from around Cairo advanced towards Tahrir shortly after Friday prayers, amassing huge numbers along the way.

In the heart of Tahrir, the atmosphere remained relaxed and non-celebratory as tens of thousands slowly packed the square. The numbers were smaller than last year, but the sense of purpose for those in the square remained resolute. “The revolution didn’t end with Mubarak leaving,” says Mohamed Nawaz, a young protester in Tahrir, “it only ends when we get what is due to us: bread, freedom and social justice.”

On the outskirts, clashes between protesters and the Central Security Forces (CSF) continued in a volley of stones and tear gas.

The injured from the area were brought to a nearby makeshift field hospital in Qasr El Dobara Church. Inside, a small group of doctors and volunteers helped to treat the wounded – over 100 people in less than six hours. One man was escorted in with around 30 small, bloodied holes in his torso and face, “It’s just birdshot,” he sighed nonchalantly.

He had been a part of a march that had attempted to get into a Muslim Brotherhood building on the nearby Talat Harb Street before clashing with security. Members of the march stated that the clashes were instigated by a small group of men dressed all in black – apparently the new Black Bloc group.

As darkness fell in Tahrir, reports emerged of accounts of brutal sexual assault – something that’s been occurring with alarming frequency over the past two years. The group “Operation Anti Sexual Harassment” reported that there were 19 cases of mob sexual assaults with at least six needing medical attention.

Meanwhile in the city of Suez, eight protesters and a CSF conscript were killed in clashes with security forces from the Governorate headquarters, which had been set ablaze during the fighting. Head of the Doctor’s syndicate, Mohamed Salama, said the deaths were the result of birdshot and live ammo. At the funeral processions the next day, thousands marched through the streets shouting “Revenge!”

As the anniversary came to a close, the Ministry of Health reported that nationwide protests had seen more than ten deaths and hundreds of injuries.

The next day marked the trial verdict of the 73 defendants of the Port Said Stadium massacre. With momentum from the anniversary still strong, it seems inconceivable that the judiciary could have chosen such a politically charged time to release such an important announcement.

On February 1st, 2012 following an Egyptian Premier League football match between Port Said’s Masry football club and Cairo’s Al Ahly football club, supporter’s of Masry invaded the pitch and attacked the away fans: over 1000 people were injured and 74 died, including 72 Al Ahly fans. Descriptions of people being thrown from the stands or beaten to death resonated around Egypt.

In the aftermath of the country’s worst football disaster, reports trickled out indicating the massacre was more than just another example of football hooliganism at work. It’s widely believed that the security officials at the time – military and police – played a major part in the massacre, with reports of security leaving their posts, locking supporters inside the stadium and the apparent use of “Baltageya” (hired thugs) suggesting that the massacre had a dark political undertone to it.

The interim ruling power at the time, the Supreme Council of the Armed Forces (SCAF), may have created the chaos in the hope of gaining public opinion for “greater security”, thus giving them greater influence in the long run. If that was their plan, it failed miserably.

Ultras Ahlawy, the hardcore supporters of the Al Ahly football club, had been a constituent element of the revolution. However, it was only really after the disaster that the Ultras became truly involved in the fight against the establishment, amassing thousands in a short space of time and channelling all their effort into the political sphere.

In the run up to the verdict announcement, graffiti saying “1-26: Justice or Chaos” sprung up on the walls of Cairo – the date of the verdict with a barefaced threat to the judiciary and government.

Shortly after 10AM on the Saturday morning, the Port Said Criminal Court made their announcement: 21 Masry fans were handed the death sentence, while the remaining 52 defendants had their verdicts postponed until March 9th.

The response was immediate. In Cairo, the Ultras celebrated, while in Port Said, people became distraught, then angry. While the Ultras were setting off flares and fireworks, gun battles were raging in Port Said.

The Ultras Ahlawy Facebook page released a statement that read, “Today was the start of justice, but not in its entirety.” Ahmed, a young Ultra in Cairo, described how, “Today is justice, I am so happy,” before being joined by a friend and singing a song that included the words “Fuck you, Port Saidis.”

It’s hard for the residents of Port Said to see the verdicts as anything other than highly politicised; nine security officials among the defendants had their verdicts postponed, while 21 of their own were sentenced to death. Hundreds of angry and armed residents stormed the jail where some of the accused were held in an attempt to free them. The fierce fighting that followed necessitated the arrival of the army. At the time of writing, there have been reports of at least 30 deaths and 300 injuries.

On Sunday 27th, tens of thousands marched through the city’s streets for the funeral procession of those killed the day before, only to then have unidentified gunmen fire upon them. Al Jazeera showed harrowing footage of the procession shortly after the attack – people running away or frantically scouring the buildings in hopes of spotting the gunmen.

Exactly who was behind this attack remains unknown, but it provoked yet more clashes with the security forces. At the day’s end, Ahram Online reported that five people had been killed and 436 injured: live ammunition, birdshot and tear gas responsible for most of the injuries and deaths.

President Morsi appeared on state TV late last night to invite the leaders of the opposition for a dialogue, announced a state of emergency and a curfew of 9PM to 6AM for the cities of Ismailia, Suez and Port Said, set to last 30 days. HRW Egypt Director Heba Morayef tweeted, “Curfew is one thing but giving the police emergency law powers is really just an invitation to more abuse.”

With so much death in such a short time frame and this sudden antagonising emergency ruling, the prospect of this period of violence dying down soon seems unlikely. But unless these revolutionary protesters present a meaningful and feasible proposal to the Muslim Brotherhood, mental and physical fatigue will inevitably set in and the status quo will surely remain for the near future.

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Tensions Over Egypt’s Referendum Results

First published in the New Internationalist on December 24, 2012

On the evening of 22 December 2012, Egypt watched the primary results begin to trickle in after the divisive voting process of its constitutional referendum. Early figures indicate the ‘yes’ vote,  in support of the new charter, received around 64 per cent of the final result.  Only 3 of Egypt’s 27 governorates came out as ‘no’ victories, one of which was Cairo.

The referendum had been staggered over two consecutive Saturdays after a large number of judges refused to supervise the voting process in protest at President Mohamed Morsi’s 22 November Constitutional Decrees. They claimed Morsi’s self designated ‘immunity’ to them was an affront to the independence of their judicial branch of power.

Egypt’s provisional constitution mandates that members of the judiciary must oversee referendums and elections. The lack of judicial administration was a major worry for the president as it threatened any result’s legitimacy, but eventually 8,800 judges agreed to supervise.

Nonetheless, there have been accusations of voting improprieties during both rounds of the referendum: from vote rigging, to delays in opening polling stations, to absent judges.

The umbrella opposition group, the National Salvation Front (NSF), claimed to have witnessed ‘unprecedented rigging’ , including 750 violations across all 10 governorates in the first round. The National Council for Human Rights (NCHR) referred some 350 complaints from the first round to the Supreme Electoral Commission.

Despite the questions raised, the result itself will come as little surprise to most.  The opposition forces have long been divided on how to approach this referendum and perhaps it was this discord that cost them.

The ideologically inclined were pushing for a boycott on what they see as a wholly illegitimate process, whilst the more pragmatic implored a vote no. Even the NSF were unable to decide where they stood until just three days before the first round of the referendum, when they finally called on the people of Egypt to vote no.

Early reports on turnout indicate around 32 to34 per cent of the electorate, the numbers are incredibly low. To put this into perspective, the UK’s lethargic ‘Alternative Vote’ referendum in 2011 managed to get 42 per cent of the electorate to take part.

Political ennui and fatigue are sure to have contributed somewhat to Egypt’s poor turnout, but once you consider the ubiquity of the constitution in local media and the heated discussions that always seem to arise once the topic is brought up, it seems implausible to put too much weight on apathy.

The problem is that, by definition, boycotts are impossible to tally up, thus the extent to which this may have affected the final results are unknowable, especially given that thre were debates within the opposition about strategies right up until the final day’s voting.

An Egyptian man who wished to remain anonymous stated, ‘If you boycotted this referendum, then don’t come crying to us [the ‘no’ voters] about the state of this country… What do you achieve by boycotting? Nothing! You had to vote no to confront Morsi’. The man has been camping in Tahrir Square for the past three weeks and proudly states he will stay there and protest ‘until I die’ if necessary.

For now, the Muslim Brotherhood and Mohamed Morsi have the opportunity to capitalize on this victory.  They need to desperately turn their attention to softening the rhetoric, halting the ridiculous talk of conspiratorial coups and in so doing, hopefully slow the expanding disparity between the two sides.

Morsi recently postponed the implementation of his economic reforms in order to run a ‘social dialogue’ but with the NSF having refused every invitation to a national dialogue so far, it seems like the divisions of the past month, between Morsi’s Islamist supporters and the secular and liberal opposition, is likely to continue.

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Hundreds of Thousands Protest Morsi Decree

First published in the New Internationalist

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On Thursday 22nd November 2012, Egypt’s President Morsi issued new constitutional declarations; then all hell broke loose.

The stock market plunged a staggering 9.57 percentage points by Sunday.  The fighting between the CSF (Central Security Forces) and protesters intensified.  Judges around Egypt have gone on strike.  22 Egyptian Rights Organisations unequivocally rejected the declarations in a joint statement.  18 political parties and groups called on Morsi to rescind the declarations. Yet more members of the constituent assembly resigned.  3 protesters have died.  Today, demonstrations swept through the governorates as hundreds of thousands of Egyptians made it clear that they were not indifferent to the matter.

Morsi’s declarations resulted in: the removal of the despised prosecutor general; the retrial of anyone convicted, from the revolution to his appointment as president, with regards to protester deaths; the immunity of the Shura council (upper house of parliament) from dissolution; the immunity of the constituent assembly from dissolution; the authority for the President to take any measures he sees fit in order to “preserve and safeguard the revolution”; and the immunity of any decree made by the President from any body, judicial or otherwise.

From a man that already held executive and absolute legislative authority, this attack on the judiciary has raised eyebrows and a fair few tempers too.  “The balance and separation of powers in Egypt has been utterly demolished” say 22 Egyptian Rights Organisations in a joint statement released Saturday.  They assert that Morsi has contravened the goal of the revolution – democratisation – and that the arrogation of these unparalleled powers portends a “bleak future for Egyptian rights and liberties”.

Morsi defended his decision by saying he would give the powers back once a constitution and people’s assembly (lower house of parliament) was in place.  In a statement he reiterated “the temporary nature of those measures, which are not intended to concentrate power, but to avoid…attempts to undermine democratically elected bodies and preserve the impartiality of the judiciary”.  Many were less than convinced.  Mohamed ElBaradei, Nobel Peace Prize recipient and head of the Constitution Party, cautioned that Morsi had appointed himself “Egypt’s new pharaoh”.

18 political opposition parties and groups joined together to form a “National Front” tasked with opposing the declarations.  Among their members is ElBaradei, and ex-presidential candidates Hamdeen Sabahi and Amr Moussa.  On Monday, they called on Morsi to annul the declaration and refuse to have any dialogue with him until he has done so.  The opposition parties called for a massive demonstration to be held in Tahrir Square today and the people have duly delivered with the square as full as it has ever been.

Tents were set up in the middle of Tahrir Square as soon as Morsi’s declarations were made with people promising a sit-in protest until the decision was overturned.  One of the first to arrive was 79 year-old Khaled Hamza a play writer and outspoken communist – Hamza spent 5 years in prison during Nasser and Sadat’s premiership due to his activism.  “Mohamed Morsi-Mubarak is a dictator now, but he has even more power than a dictator” said Hamza, his insistence on referring to Morsi as ‘Morsi-Mubarak’ emphasised this view.

Beside banners saying “Egypt for all Egyptians” (perhaps an allusion to the Islamist-heavy make up of the controversial Constituent Assembly) and while the crowd chanted “One Hand” Hamza explained the aura of unity he felt, “Today we are united in our anger at Morsi-Mubarak, nobody would care if I told them I am a communist now”.

By evening the Square was completely packed, chants of the initial revolution were now being directed at their incumbent president, “Down with the regime”.  But there were newer ones too “Morsi is Mubarak”, “Morsi is the new Pharaoh”.

Fighting with the CSF has been constant in central Cairo since the 1-year anniversary of the Mohamed Mahmoud St clashes 8 days ago.  267 people have been detained in connection with the anniversary clashes and 3 have died during protests this last week.  Another large concrete wall has been erected – a not unusual sight in downtown Cairo – blocking off Kasr El Aini St. off Tahrir Square to stop the fighting; instead it has just moved to Simon Boulevard.

It’s very clear that Morsi has to deal with this soon, before it gets out of hand.  The masses are angry and the people are united.  They realise that even if Morsi is honestly trying to speed Egypt into a new era of freedom and democracy, using dictatorial powers seems a slightly perverse way to get there.

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Egyptian Solar Company – KarmSolar

Article first published in Atlantic Media’s Quartz magazine 

Photography by the incredible Amanda Mustard

The Nile and its waters have historically been the lifeblood of Egypt. The country’s population occupies just 5% of the land, almost all of it along the Nile. But Egypt’s scorching deserts beyond the Nile delta hide a bounty: vast groundwater resources, which have usually been deemed not worth tapping.

Recently some farmers have begun to move outwards into the western desert to exploit the vast expanses of land, using diesel-powered pumps to pull up the groundwater for their crops. Diesel is cheap (the government subsidizes it) and the pumps run 20 hours a day. But they are noisy and polluting, and transporting diesel to these remote areas is costly and hard. “A logistical error in providing the diesel could result in powerless pumps, and therefore the loss of entire crops,” explains Xavier Auclair, founder of KarmSolar.

Four years ago Auclair, an engineering graduate, was based in his home country of France working for a strategy consultancy. He did well financially and progressed rapidly up the company ladder. But a few years in he found himself sitting in a closed-door meeting with an investment firm. “600 people were to lose their jobs due to that meeting’s decisions,” he said. After the meeting he resigned, and spent the next four months sailing halfway across the world, eventually moving to Egypt and learning Arabic. In reaction to what he had seen at the job he left behind, he decided to use his engineering training to pursue a “more moral” line of work. He began investigating the potential of renewable energy products, and with Ahmed Zahran, a former colleague, he started Karm Solar.

KarmSolar hopes to persuade the farmers to swap their diesel for solar power. Egypt is considered a “sun belt” country, lying in an area that receives 1970-3200 kilowatt-hours per square meter (kWh/sq m) of solar energy each year. By comparison, India receives between 1600 and 2200 kWh/sq m per year. The photovoltaic cells convert the sun’s energy into an electric current. (A kilowatt-hour of electricity powers a standard 100-watt bulb for 10 hours, though in the conversion from solar energy to electricity some of the energy is lost.) This can then be stored in batteries or used to power the pumps.

Although Egypt has more than its share of hot sunny days, the majority of Egypt’s renewable-energy solutions have been in the fields of hydroelectricity (Aswan dam) or in wind turbines (the recently built 200 megawatt wind farm in the El Zayt Gulf on the Red Sea). In another country the government might have systems in place to help a company such as KarmSolar. But in Egypt “they are actually more of an obstacle to us,” said Auclair. “They are subsidizing their fossil fuels to such an extent that we are effectively being priced out of the competition. This is one reason why we are moving off grid.”

KarmSolar has been commissioned to create a proof-of-concept “model farm” within a larger farm in the western desert, over 200 miles from Cairo. KarmSolar and its architectural partner, Green Architecture & Urbanism, spent days in the desert looking for possible sites.  They want to design an area that would incorporate some 700 sq m of solar panels and a further 300 sq m for the buildings and workshop, to be built using locally procured materials.

Another partner of KarmSolar’s is WorldWater & Solar Technologies (WWST), a company based in Princeton, New Jersey, which is helping it improve its technology. As farms grow, technological hurdles appear.  If a farm requires more than 20kW of solar power for its pumps, the bigger batteries needed to store the energy become much more expensive to produce and maintain, thus pricing the energy out of the market.

One of the problems with working off the grid is that every water pump needs to be designed to suit the conditions where it will be used—variations in the wind and the depth of the water table, for instance, must be considered. WWST helped KarmSolar write software that designs the farms and makes projections of their efficiency, overheads and returns, so they can pitch to potential investors.

Changing a country’s established methods takes time.  Because the model farm is being built at a farm that already exists, Auclair is under no illusion that this first project will be everything he imagined. The pumps will still be using diesel power 60% of the time (due to restrictions, they can only use solar power on one well; the extra water required comes from diesel pumps). They will also be unable to implement a water-efficient, hydroponic “closed water system”; the rotary irrigation system that farmers are used to and prefer loses some ground water to evaporation.

The end goal is to one day create an entirely sustainable community off the grid. In the process Auclair hopes to create a cleaner, more sustainable Egypt by using the country’s massive quantities of land, groundwater, and sunlight, allowing farmers to be less tied to the crowded boundaries of the Nile.

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The Economics of Ramadan

This article first appeared in the New Statesman

Downtown Cairo is a boisterous place. The ubiquitous honks of the car horns and the ebullience of peoples on the street ensure that any form of silence exists only in the memory. However, for one month a year, every year, the streets go silent and the shops close for as long as the energy sapping sun stings the eyes. This is the holy month of Ramadan.

One of the five pillars of Islam, every Muslim should abstain from drinking, eating, smoking (as well as a few other things) between Fajr prayers in the early morning and Maghreb Prayers in the dusk. The Qur’an prescribes it as a way of learning self-restraint.

The eschewing of water and food, however, means that those observing the fast are also affecting their energy levels. Simply walking down the street, the vitality that would once overwhelm me is conspicuous by its absence. Those that are out languishing under the relentless Cairo sun reply to my salutations with a half-hearted wave where once I would have been invited into conversation.

In an effort to manage this problem, the Egyptian government reduces the work hours of private sector and bank workers. The reduction and/or adjustment of work hours during the month of Ramadan takes place in almost every Muslim-majority country. But whereas Malaysia and Indonesia generally practice a one-hour adjustment, one-hour reduction scheme, Egypt practices a two-hour reduction for private sector workers, a three-hour reduction for banks, as well as a one-hour reduction in their stock exchange trading hours.

This may well ameliorate the situation of fasting with the workers, but it also means that over the course of Ramadan, the private sector loses around 40 hours of operating time, the banks around 60 hours and the Egyptian stock exchange around 20 hours of trading time.

Strangely though, the effect of losing 20 hours worth of trading time on the Egyptian stock market is minimal, if anything (see graph).  Using data from the benchmark EGX30 index – which looks at the top 30 companies in terms of liquidity and activity – between the years 2000-2006 there is absolutely no correlation between the typical monthly percentage change in stock value and the percentage change in the month of Ramadan, but it does seem to suggest that the reduced trading times has increased the market’s volatility.

The fact that Egypt releases its GDP and growth statistics in quarterly format mean any attempt to scrutinise the Ramadan periods within them is futile. However, the latest data released by the Ministry of Planning and Ministry of Finance can be examined as it covers the period from 1 June to the present, which encapsulates most of this month of Ramadan, plus 19 days of non-fasting.  In that time, the total GDP change has been -4.1%, which correlates to a recent report by the Dinar Standard – a research and advisory firm that focuses on emerging Muslim economies – which gave an estimate of an average loss of 4% to GDPs in Muslim-majority countries.

In that report, it estimated that Egypt made a loss of nearly 8% in its monthly GDP due to it’s reduced Ramadan hours, which would result in a total loss of just over US$1.4bn for last year’s Ramadan period. The reduction of hours may be necessary exchange for worker morale, but for an economy that is already struggling to attain the considerable US$22.5bn needed to finance its deficit for this fiscal year, it’s a hefty trade-off.

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