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International Relations and the Camp David Accords

In foreign relations Sadat also launched momentous change from the Nasser era. President Sadat shifted Egypt from a policy of confrontation with Israel to one of peaceful accommodation through negotiations. Following the Sinai Disengagement Agreements of 1974 and 1975, Sadat created a fresh opening for progress by his dramatic visit to Jerusalem in November 1977. This led to the invitation from President Jimmy Carter of the United States to President Sadat and Prime Minister Begin to enter trilateral negotiations at Camp David.

The outcome was the historic Camp David accords, signed by Egypt and Israel and witnessed by the US on September 17, 1978. The accords led to the March 26, 1979, signing of the Egypt–Israel peace treaty, by which Egypt regained control of the Sinai in May 1982. Throughout this period, US–Egyptian relations steadily improved, and Egypt became one of America's largest recipients of foreign aid. Sadat's willingness to break ranks by making peace with Israel earned him the enmity of most other Arab states, however.

From Sadat to Mubara

On October 6, 1981, President Sadat was assassinated by Islamic extremists. Hosni Mubarak, Vice President since 1975 and air force commander during the October 1973 war, was elected President later that month. He was subsequently confirmed by popular referendum for three more 6-year terms, most recently in September 2005. The results of the referenda are however of questionable validity as they, with the exception of the one conducted in September 2005, listed only Mubarak as the sole candidate. President Mubarak has immense control over Egypt. He is even considered by many to be an autocrat, though a moderate one. Mubarak has maintained Egypt's commitment to the Camp David peace process, while at the same time re-establishing Egypt's position as an Arab leader. Egypt was readmitted to the Arab League in 1989. Egypt also has played a moderating role in such international forums as the UN and the Nonaligned Movement.

Since 1991, Mubarak has undertaken an ambitious domestic economic reform program to reduce the size of the public sector and expand the role of the private sector. There has been less progress in political reform. The November 2000 People's Assembly elections saw 34 members of the opposition win seats in the 454-seat assembly, facing a clear majority of 388 ultimately affiliated with the ruling National Democratic Party (NDP). The opposition parties have been weak and divided and are not yet credible alternatives to the NDP. The Muslim Brotherhood, founded in Egypt in 1928, remains an illegal organization and may not be recognized as a political party (current Egyptian law prohibits the formation of political parties based on religion). Members are known publicly and openly speak their views, although they do not explicitly identify themselves as members of the organization. Members of the Brotherhood have been elected to the People's Assembly and local councils as independents. The Egyptian political opposition also includes groups and popular movements such as Kifaya, although they seem less organized and therefore more vulnerable to crack-downs.

A dramatic drop in support for Mubarak and his domestic economic reform program increased with surfacing news about his son Alaa being extremely corrupt and favoured in government tenders and privatization. As Alaa started getting out of the picture by 2000, Mubarak’s second son Gamal started rising in the National Democratic Party and succeeded in getting a newer generation of neo-liberals into the party and eventually the government. Gamal Mubarak branched out with a few colleagues to set up Medinvest Associates Ltd., which manages a private equity fund, and to do some corporate finance consultancy work.[1]. A corporate finance consultancy firm headed by the President's own son also raises questions of corruption, influence peddeling and political power-brokerage, the same type of accusations leveled against his brother Alaa. Due to Gamal's increasing visibility and influence, rumours about him being groomed for the presidency became common. Nevertheless, this was publicly denied by the president several times. Moreover, although some of the public generally likes Gamal Mubarak as a person, many believe that his succession would mean a hereditary pseudo-monarchy

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