So why is Egypt building a new capital city right next to Cairo?

A model of the proposed city (we're assuming the web address won't loom quite so large on the finished article). Image: Getty.

According to the highly reliable source that is Wikipedia, Egypt has had 29 capital cities over the past 5,000 years. The incumbent, Cairo, has been in place since 950 AD, so, in the scheme of things, it was due a change-up. 

Perhaps that's why, last week at an economic development conference, the Egyptian government announced it was planning a giant new building project to the east of Cairo. The new city, which could eventually cover 700 km sq, doesn't currently have a name, and is being referred to simply as "The Capital" (we're really hoping this is a Hunger Games reference).

If all goes to plan, the city will serve as the new administrative and financial capital of Egypt. Amazingly, the ministry claims that development could be finished within five to seven years, and construction on the road that will link the two cities has already begun. 

You could be forgiven for being a little confused as to why a country would shift its capital of over a thousand years 50km to the east, seemingly for the hell of it. Here are a few reasons the project looks so appealing to the Egyptian government . 

Cairo is full

The population of Cairo's larger metropolitan area is nearing 20m, and, as a result, it's one of the most congested cities on earth: the World Bank estimated in 2010 that traffic costs amount to about 4 per cent of Egypt's entire GDP

In this sense, the new development could be seen as an extension of the old city, to cut down on overpopulation and congestion. The housing ministry claims the capital could house up to 7m people; the initial plans include 1.1m residences, 1,250 mosques and churches, and 663 hospitals. That said, "New Cairo", a relatively new development to the east, was built for millions of residents, but is still only home to a few hundred thousand.

Still, Cairo's population is expected to double over the next 40 years, so a new satellite city does make some kind of sense. But why move the country's capital too? 

The president wants to make a statement

Abdel Fattah el-Sisi was elected president in June 2014, and subsequently told the Egyptian people to prepare for the "hard work phase" in their country's recent history, to help the country's economy recover from the effects of the 2011 revolution. That revolution played out in old Cairo, and centred on Tahrir square, the site of many of Cairo's current administrative buildings. 

Mubarak, Egyptian president between 1981 and 2011, actually tried to build a new capital too during his own tenure, but that project failed. If Sisi can succeed, and physically move the government away from the ghosts of the revolution to boot, it'll show he can overcome Egypt's previous setbacks and political tensions and move the country – and, hopefully, its economy – forward. 

Image: Getty.

The Egyptian governemnt may not have to pay for it

The government has hired a Dubai-based real estate investment fund, headed by Emirati Mohamed Alabbar, the man behind the Burj Khalifa, to raise funds for the project and build it. By the end of last week's conference, around $12bn had been pledged by Gulf-based investors, which is over a quarter of the total (that's if the project stays within budget, of course).

The Egyptian people must be hoping for big foreign investment, too: Sisi has already cut food and energy subsidies and raised fuel prices to help the country's ailing economy, which has led some to criticise the announcement of a grand new city project while Egypt's poorest go hungry. 

The Suez canal is getting wider

Another important factor is the city's location: it will lie between Cairo and the Suez Canal, with its profitable trade routes. Under a new expansion project, the Egyptian government is expanding the canal, to allow boats to sail in both directions at once (it goes both directions at the moment, but along most of its length its only wide enough to go one way at once), potentially doubling the trade revenue generated. 

Here's the planned location, a short hop from both New Cairo and El Shorouk city (the two blobs just to the north of the new capital). 

This will bring the city much closer to the canal,  using up what is at present just a stretch of desert: 

It's been done before

...though not particularly successfully. Malaysia moved parts of its central governemnt from Kuala Lumpur to the newly built Putrahaya in 1999, while in 2005 the Burmese government shifted from Yangon to the brand new city of Naypyidaw (though that city is reportedly still half empty). Egypt, meanwhile, has built over 20 "new towns" over the past half century, most of which are still very sparsely populated. Looks like President Sisi has a real job on his hands. 

 
 
 
 

After Brexit, the case for more powerful local government in England will become stronger than ever

Not an ITV crime drama, but the key to a brighter future. Image: Getty.

For many cities and regions across the UK, Brexit carries profound risks. It seems highly likely to trigger a period of economic instability, as investors seek a better understanding of the on-the-ground realities of a post-EU Britain, as the pound responds to changing economic conditions and as new relationships are established in Europe and beyond.

Leaders of local authorities – already feeling the impact of a decade of austerity and sluggish growth – are worried about their futures under Brexit. In August, Plymouth City Council became the first to issue a legal challenge to the British government over Brexit, requesting information and analysis about possible impacts on the local area. And in October, the eight metropolitan mayors called for further devolution and increased funding under Brexit.

But do these local leaders have the capacity to bring about the changes necessary to deliver a better future for cities and regions? Our research from 2017 suggests that places in England too often lack the leadership they need to achieve a prosperous and secure future.

Odd one out

We compared local leadership in England with Finland, Germany, Italy, Australia and the USA, and found that England was – in some important respects – the odd nation out. When we asked local leaders how they would respond to either a major economic shock or opportunity, the pathway to effective action was far less certain and much less transparent than elsewhere.

For example, in England, local leaders said that they would work within networks of firms to develop complex strategies involving the public and private sectors on the ground, while also seeking central government support. By contrast, in Finland, Germany and Italy the relevant mayor would take charge, with support from their professional staff and central government.

There have been some shifts toward the European model, with the introduction of combined authorities and elected mayors in some parts of the UK from 2011. But according to the participants in our study, this move has added complexity and could reduce coordination in local government, as new ways of working had to be found when previously important roles, such as local authority chief executives and council leaders, were forced to concede some control.

Even so, the local leaders we interviewed also saw this move as adding to the legitimacy of local leadership, because the mayors are directly elected, as well as providing a focal point for community mobilisation and buy-in.

Yet there is a real gap between public expectations of mayors and their formal powers and authority in the UK. And since not all parts of England have mayors, it’s harder for elected leaders to assert their influence at a national level, share their experiences with others and find collective solutions to the problems in their cities.


An ad hoc approach

Local leaders in England have also found it difficult to build momentum and public support for devolved forms of governance. The private sector has a prominent role in local governance through their role on Local Enterprise Partnerships and through prominent business member organisations. Some of the participants in our research saw this as a strength, but they said it also brought uncertainty and ambiguity.

They felt that the reliance on interpersonal relationships between key people in the private and public sectors resulted in an ad hoc approach to local issues and initiatives. There was little learning from past experience, so every challenge required a bespoke approach. As a result, responses tended to be reactive rather than strategic, and short term rather than comprehensive or systematic.

As it stands, England’s local leaders do not seem to be in a good position to ensure a smooth transition through Brexit. National economic and political processes have a significant influence on the well-being of cities and regions in the UK, and Westminster holds its power tightly. In Europe and elsewhere, local leadership has a greater impact on local economic performance.

A new role

Brexit will reshape the UK economy and society, as well as how the nation is governed. There is a strong case to introduce mayors in other English cities and to allow them to take a greater role in political life. Elected mayors could, for example, have an important role working with central government to determine what powers might be repatriated to a local level, after Brexit. So far, they’ve had little opportunity to negotiate.

Mayors are also well placed to act as ambassadors for their local areas by developing strategic partnerships with elected leaders and business interests in Europe and beyond, effectively bypassing central government. Yet they currently lack the powers and prestige of their European counterparts.

There is also scope for elected mayors to influence national and global debates by acting as a united force to demand greater devolution after Brexit. But it’s clear that some elected mayors in England are in a better position to negotiate with central government than others, because of their public profile and perceptions of competence.

Greater devolution will be necessary to empower local leaders to look after the interests of their citizens, while the UK repositions itself in the global economy. Sharing power at the local level will be an important step to greater prosperity and political stability in the nation, after Brexit.

The Conversation

Sarah Ayres, Reader in Public Policy and Governance, University of Bristol and Andrew Beer, Dean, Research and Innovation, University of South Australia.

This article is republished from The Conversation under a Creative Commons license. Read the original article.