LOS ANGELES, C A(Catholic Online) - Khaled Fahmy, head of history at the American University in Cairo describes it as a "grey economy, in the sense that we know very little of them, they are not subject to any Parliamentary scrutiny, the Egyptian government auditing office has no control or knowledge of them."

The Egyptian military has created an industrial complex that is well oiled and well funded, producing over 35 factories and companies. The military produces everything from flat-screen televisions to pasta to refrigerators to cars.

The military also owns restaurants and football grounds. The majority of the labor is provided by conscripts paid below the average wage. And it is not just manufactured goods: the military provide services, such as the management of gas stations and retail outlets.

The Egyptian military also are huge land owners. A quick drive through Nasr City in Cairo reveals much prime real estate that lies in military hands.

Soldiers live in their own villages. The army has become a separate entity untouchable by the state with an unaudited economy.

The Egyptian military consists of almost half a million conscripts that have not fought a war since 1973 and are well funded. These soldiers need to be placated and controlled.

Fahmy says that under Mubarak, a tight lid was kept on his officer corps because of the deep and historic anxiety of a coup. After all, it was a coup in 1952 which brought the army to power in the first place.

"Mubarak made sure his high brass was loyal to him and he made sure his mid-ranking officers were put under tight control and one way to do this was to force them into retirement when they get to the age of 50, then the question is what do you do with all these retired officers?"

It's estimated that up to 250,000 officers were retired under the 30 years of Mubarak's presidency, which is a huge number of men and families that needed to be placated. One way was to open up prospects of employment for them after retirement.

Under Nasser, ex-army officers would be rewarded by being given ministerial positions or positions in the provincial governorates.

Under Sadat and Mubarak, would reward army officers by inserting them into this empire and service industry, and reward police officers with political positions.

The military's economy, like its political dealings is more under the spotlight than ever before. On a grassroots level, groups like April 6 are starting a campaign to boycott army-made products.

"Just like we're trying to bring them down politically, now we're also trying to do it economically and redistribute the wealth to the people," member Salem Mahmoud says.

© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.

However, the boycott is still at an infant stage, and unlikely to get much traction amongst the majority of the population.

Many agree that if Egypt is going to be a true democracy, some of the military's business dealings and its privileges such as subsidies and tax breaks will need to be questioned.

© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.