The Rationale Behind the Creation and Diffusion of Independent Regulatory Agencies: The Case of the Telecommunications Sector in Egypt

The creation and diffusion of Independent ^{1 1}Three different meanings of the regulatory state have been identified by Jordana and Levi-Faur (2004): the minimal, the prudent, and the overambitious meaning. The minimal meaning refers to the regulatory state as a field of study grouping scholars from different disciplines. The prudent meaning emphasises the tendency of modern states to use power and authority. An overambitious notion, the regulatory state developed to replace other state forms such as the welfare, developmental, and stabilisation state. Regulatory Agencies (IRAs) was greatly investigated in the context of the developed countries, particularly in Europe. Many scholars have provided different theories to explain the logic behind the formation and the spread of such agencies. These theories are important but not sufficient to explain the same phenomenon in the context of the developing countries wherein socio-economic and political environments are different. Adopting an institutional framework of analysis, and based on an in-depth qualitative documentary analysis and interviews with different stakeholders, this article investigates the creation and diffusion of the IRAs in Egypt particularly in the telecommunication sector. The findings show that the creation of the IRAs in the Egyptian telecommunications sector represents a rational response to the external isomorphic pressures exerted by international agency and can be explained on functional and practical grounds rather than any other factors of democratic governance or political uncertainties.