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Today devout Muslims believe that Islam defines one's relationship to God, to other Muslims, and to non-Muslims. They also believe that there can be no dichotomy between the sacred and the secular. Many devout Muslims say that Egypt's governments have been secularist and even antireligious since the early 1920s. Politically organized Muslims who seek to purge the country of its secular policies are referred to as "Islamists."

Egypt operates under a multi-party semi-presidential system where the executive power is divided between the President and the Prime Minister. Egypt holds regular presidential and parliamentary elections. The last Presidential Election was held in 1999 and is scheduled to be held in October 2005. However, there is expressed concern from international human rights observers concerning freedom of speech and government interference in local elections.

Egypt's foreign policy operates along a non-aligned level. Factors such as population size, historical events, military strength, diplomatic expertise and a strategic geographical position give Egypt extensive political influence in the Middle East and Northern Africa, and within the Nonaligned Movement as a whole. Cairo has been a crossroads of Arab commerce and culture for millennia, and its intellectual and Islamic institutions are at the center of the region's social and cultural development.

Egypt played an important role in the negotiations leading to the Madrid Peace Conference in 1991, which, under United States and Russian sponsorship, brought together all parties in the region to discuss Middle East peace. This support has continued to the present, with President Hosni Mubarak often intervening personally to promote peace negotiations. In 1996, he hosted the Sharm El-Sheikh "Summit of the Peacemakers" attended by President Bill Clinton and other world leaders. In 2000, he hosted two summits at Sharm El-Sheikh and one at Taba in an effort to resume the Camp David negotiations suspended in July of 2000, and in June 2003, Mubarak hosted President George W. Bush for another summit on Middle East peace process.

Parliament meets for one nine-month session each year: under special circumstances the President of the Republic can call an additional session. Even though the powers of the Parliament have increased since the 1980 Amendments of the Constitution, the Parliament remains to lack the powers to balance the excessive powers of the President.

Mummies have been an object of intense interest in the West since archaeologists began finding them in large numbers. 19th century aristocrats would often entertain themselves by buying mummies, having them unwrapped, and holding observation sessions. These sessions destroyed several mummies, because the exposure to the air caused them to desintegrate.

One of the reasons so little is known about the Library is that it was lost centuries after its creation. All that is left of many of the volumes are tantalizing titles that hint at all the history lost due to the building's destruction. Few events in ancient history are as controversial as the destruction of the Library, as the historical record is both contradictory and incomplete. Its destruction has been attributed by some authors to, among others, Julius Caesar, Augustus Caesar, and Catholic zealots during the purge of the Arian heresy. Not surprisingly, the Great Library became a symbol of knowledge itself, and its destruction was attributed to those who were portrayed as ignorant barbarians, often for purely political reasons.

Egypt's vast and rich literature constitutes an important cultural element in the life of the country and in the Arab world as a whole. Egyptian novelists and poets were among the first to experiment with modern styles of Arabic literature, and the forms they developed have been widely imitated. Egyptian novelist Naguib Mahfouz was the first Arab to win the Nobel Prize in Literature. Egyptian books and films are available throughout the Middle East.

In the last quarter of the 20th century, Egyptian music was a way to communicate social and class issues. One popular modern pop singer is Amr Diab.

Modern Egypt is ted by Arabs, who have multiple distinct forms in common and divergent styles across North Africa and the Middle East. Arab musical tradition is usually said to have begun in the 7th century in Syria during the Umayyad dynasty. Early Arab music was derived from Byzantine, Indian and Persian forms, which were themselves very influenced by earlier Greek and Semitic music. In the 10th century, Al-Farabi translated Aristotle's Problems (and Themistius' commentary on them), Euclid's Elements of Music and Ptolemy's Harmonics into Arabic. These works, foundations of Western music, became the basis for Arabic musical theory.

Disruptive social changes and Sadat's relative tolerance toward political parties contributed to the rapid growth of Islamic groups in the 1970s. On university campuses, for example, Sadat initially viewed the rise of Islamic associations (Gama'at Islamiya) as a counterbalance to leftist influence among students. The Gama'at Islamiya spread quite rapidly on campuses and won up to one-third of all student union elections. These victories provided a platform from which the associations campaigned for Islamic dress, the veiling of women, and the segregation of classes by gender. Secular university administrators opposed these goals. In 1979 Sadat sought to diminish the influence of the associations through a law that transferred most of the authority of the student unions to professors and administrators. During the 1980s, however, Islamists gradually penetrated college faculties. At Asyut University, which was the scene of some of the most intense clashes between Islamists and their opponents (including security forces, secularists, and Copts), the president and other top administrators--who were Islamists--supported Gama'at Islamiya demands to end mixed-sex classes and to reduce total female enrollment.

Though considered a low-income country, Egypt has a thriving media and arts industry, with more than 30 satellite channels and more than 100 motion pictures produced a year. To bolster its media industry, especially with the keen competition from the Persian Gulf states and Lebanon, it has built a large media city that it has promoted as the "Hollywood of the East". Egypt has the only opera house amongst Arab countries.

A series of International Monetary Fund arrangements, coupled with massive external debt relief resulting from Egypt's participation in the Gulf War coalition, helped Egypt improve its macroeconomic performance during the 1990s. Through sound fiscal and monetary policies, Cairo tamed inflation, slashed budget deficits, and built up foreign reserves. Although the pace of structural reforms, such as privatization and new business legislation, has been slower than the IMF envisioned, Egypt's steps toward a more market-oriented economy have prompted increased foreign investment. Lower combined hard currency inflows - from tourism, worker remittances, oil revenues, and Suez Canal tolls - in 1998 and the first half of 1999 resulted in pressure on the Egyptian pound and sporadic dollar shortages, but external payments were not in crisis. Despite ample reserves, the Central Bank did not provide sufficient hard currency to commercial banks and Cairo restricted imports for a short period; these developments confirmed to some investors and currency traders that government financial operations lack sufficient coordination and openness. Monetary pressures have since eased, however, with the continued oil price recovery starting in mid-1999 and a moderate rebound in tourism. Increased gas exports are a major plus factor in future growth.