Cluster-based development in Egypt: A study of external shocks to the leather and medicinal and aromatic plant sectors

The Egyptian government has prioritized the idea of cluster-based development-that is, the geographic concentration of specialized firms, such as in this case, those producing similar or related products. The establishment of such clusters, however, presents significant challenges, bottlenecks, and...

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Main Authors: Abdelaziz, Fatma, Abdelghany, Nancy, Ellis, Mia, William, Amy, Zhang, Xiaobo
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2021
Subjects:
Online Access:https://hdl.handle.net/10568/143775
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author Abdelaziz, Fatma
Abdelghany, Nancy
Ellis, Mia
William, Amy
Zhang, Xiaobo
author_browse Abdelaziz, Fatma
Abdelghany, Nancy
Ellis, Mia
William, Amy
Zhang, Xiaobo
author_facet Abdelaziz, Fatma
Abdelghany, Nancy
Ellis, Mia
William, Amy
Zhang, Xiaobo
author_sort Abdelaziz, Fatma
collection Repository of Agricultural Research Outputs (CGSpace)
description The Egyptian government has prioritized the idea of cluster-based development-that is, the geographic concentration of specialized firms, such as in this case, those producing similar or related products. The establishment of such clusters, however, presents significant challenges, bottlenecks, and obstacles. Based on primary field work, this paper focuses on two case studies of the impacts of shocks on business clusters. The first study involved the relocation of an established leather cluster from Cairo to a newly created industrial park, Robbiki Leather City, which was promoted by Egypt’s Ministry of Trade and Industry. Although the relocation partly solved the existing issues of water contamination, new challenges emerged relating to increased production and transportation costs, and unforeseen impacts on the community. The second study assessed the short-term impact of the COVID-19 pandemic on a business cluster producing medicinal and aromatic plants. Overall the MAPs sector was resilient to the outbreak and there are opportunities to offset any negative impacts of the pandemic by taking advantage of new markets for Egyptian MAPs stemming from supply disruptions in other countries; increased global demand for MAPs due to their pharmacological and health properties; and increased international demand for organically grown MAPs. Findings indicate that it is essential for governments to develop responses to the challenges-and especially barriers-to the development of business clusters, while simultaneously supporting and creating incentives for the cooperation, entrepreneurship, and collective action needed for business clusters to thrive and grow. As anticipated, challenges and obstacles-whether overarching or in response to shocks-are unique to specific sectors, contexts, and times, and hence need to be dealt with as an ongoing facilitation process.
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spelling CGSpace1437752025-11-06T07:20:53Z Cluster-based development in Egypt: A study of external shocks to the leather and medicinal and aromatic plant sectors Abdelaziz, Fatma Abdelghany, Nancy Ellis, Mia William, Amy Zhang, Xiaobo economic shock pharmaceutical industry policies economic development covid-19 leather industry capacity development trade The Egyptian government has prioritized the idea of cluster-based development-that is, the geographic concentration of specialized firms, such as in this case, those producing similar or related products. The establishment of such clusters, however, presents significant challenges, bottlenecks, and obstacles. Based on primary field work, this paper focuses on two case studies of the impacts of shocks on business clusters. The first study involved the relocation of an established leather cluster from Cairo to a newly created industrial park, Robbiki Leather City, which was promoted by Egypt’s Ministry of Trade and Industry. Although the relocation partly solved the existing issues of water contamination, new challenges emerged relating to increased production and transportation costs, and unforeseen impacts on the community. The second study assessed the short-term impact of the COVID-19 pandemic on a business cluster producing medicinal and aromatic plants. Overall the MAPs sector was resilient to the outbreak and there are opportunities to offset any negative impacts of the pandemic by taking advantage of new markets for Egyptian MAPs stemming from supply disruptions in other countries; increased global demand for MAPs due to their pharmacological and health properties; and increased international demand for organically grown MAPs. Findings indicate that it is essential for governments to develop responses to the challenges-and especially barriers-to the development of business clusters, while simultaneously supporting and creating incentives for the cooperation, entrepreneurship, and collective action needed for business clusters to thrive and grow. As anticipated, challenges and obstacles-whether overarching or in response to shocks-are unique to specific sectors, contexts, and times, and hence need to be dealt with as an ongoing facilitation process. 2021-12-31 2024-05-22T12:16:47Z 2024-05-22T12:16:47Z Working Paper https://hdl.handle.net/10568/143775 en https://doi.org/10.2499/p15738coll2.134942 Open Access application/pdf International Food Policy Research Institute Abdelaziz, Fatma; Abdelghany, Nancy; Ellis, Mia; William, Amy; and Zhang, Xiaobo. 2021. Cluster-based development in Egypt: A study of external shocks to the leather and medicinal and aromatic plant sectors. MENA RP Working Paper 37. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.134948.
spellingShingle economic shock
pharmaceutical industry
policies
economic development
covid-19
leather industry
capacity development
trade
Abdelaziz, Fatma
Abdelghany, Nancy
Ellis, Mia
William, Amy
Zhang, Xiaobo
Cluster-based development in Egypt: A study of external shocks to the leather and medicinal and aromatic plant sectors
title Cluster-based development in Egypt: A study of external shocks to the leather and medicinal and aromatic plant sectors
title_full Cluster-based development in Egypt: A study of external shocks to the leather and medicinal and aromatic plant sectors
title_fullStr Cluster-based development in Egypt: A study of external shocks to the leather and medicinal and aromatic plant sectors
title_full_unstemmed Cluster-based development in Egypt: A study of external shocks to the leather and medicinal and aromatic plant sectors
title_short Cluster-based development in Egypt: A study of external shocks to the leather and medicinal and aromatic plant sectors
title_sort cluster based development in egypt a study of external shocks to the leather and medicinal and aromatic plant sectors
topic economic shock
pharmaceutical industry
policies
economic development
covid-19
leather industry
capacity development
trade
url https://hdl.handle.net/10568/143775
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