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Al-Ahram Weekly 26 Aug. - 1 Sep. 1999 Issue No. 444 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 26 Aug. - 1 Sep. 1999 Issue No. 444
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Focus Culture Features Profile Travel Living Sports People Time Out Chronicles Cartoons Letters Reaping the fruits of progress
By Ibrahim Nafie
Egypt has made considerable economic progress during President Mubarak's rule, particularly in the past decade. The president's belief that economic development is the greatest challenge facing Egypt, and the linchpin of other challenges in various domains, including foreign policy, national security and the quality of life of its citizens, has proven correct.
By opting for economic reform and long-term projects that will affect the lives of Egyptians many years hence, Mubarak chose the hard way. He solicited the people's participation by sharing the economic concerns of their country. Dismissing short-term projects that look good but address symptoms, not causes, he opted for radical long-term solutions. At the same time, he was careful that economic reform not be too harsh on low-income groups, since human beings are the end and means of all development.
Economic growth rates rose by some five per cent over four consecutive years. Financial and monetary conditions remained stable and promised sustained improvement, classing Egypt among the world's top 25 emerging economies. Our country has become a haven for investors, whose activities in turn had a marked effect in improving standards of living.
The coming stage holds another challenge. This is the stage in which the dividends of the reforms and the giant projects must be optimised. Egypt's potential is still largely untapped, and it may be argued that the efforts made over past years have not yet produced all their potential benefits. Our commodity exports are still low, due to inadequate price and quality controls, a situation that may become critical when the time comes to fulfill our commitments under trade liberalisation agreements.
Improving competitiveness will be the goal of economic reform and development in the coming stage. We need to increase the competitiveness of our exports on world markets, and to establish an edge over other emerging economies to attract foreign capital and investments.
Establishing a competitive advantage requires extensive planning and effort at this critical time, but improving the competitiveness of the Egyptian economy will reflect positively and rapidly on the quality of life. Efforts to improve competitiveness must not be restricted to the economy alone. Reform must affect all of society.
The societies we are striving to compete with have achieved great scientific progress. In these economies, knowledge is the motor of economic growth. The importance of natural resources is regressing. Human beings able to utilise knowledge to maximise available resources and generate more knowledge have become a more valuable asset. Today, we need new applications for science and technology, and innovative solutions to humanity's problems.
Egypt has no shortage of human resources. But while these can be an asset, provided they are educated and skilled, human resources can also be a liability if much of the population is illiterate or incapable of putting science and technology to practical use. Illiteracy is still estimated at near 40 per cent of the population. A large portion of the population remains unable to benefit from the scientific revolution, or even to use technology in their productive activities, let alone make their own contribution to the progress of science.
Despite the huge investment in education, manifested in the new schools that are dotting the villages and cities of Egypt, we need teaching methods that encourage creativity and innovation. Obsolete methods of learning that depend on memorisation and dictation must be discarded, and independent thought encouraged.
While education officials are persuaded of the need for such a change of policy, we still need to develop the tools to put it into action. We need to sensitise teachers to apply this policy in their daily practice. Surveys worldwide indicate that teachers tend to use the system used when they were students, rather than the techniques they learned during their university years. They believe their education made them good citizens, and is therefore good enough for the new generation. Not only are plans to re-train teachers necessary, therefore; their way of life and their needs must also be examined, and stock taken of possible obstacles hampering their vision of modern science and teaching methods.
Since science and technology are the backbone of economic development in the world today, Egypt must make advances soon. Development experiences in the newly industrialised countries have shown that the state has a role in this respect. State institutions must encourage investment in production and technology-intensive projects (particularly in information and communications).
The legal system seems to be another challenge to development. Egypt's economic development strategy is market-oriented. The market economy, as a system of free interaction between producers and consumers, is like any free interaction: it must be controlled by laws. The market has proven effective in optimising the distribution of resources and developing a system of reward and punishment that is an incentive to work. Still, the state now has a greater role in addressing distortions resulting from the market system. This role must include monitoring market mechanisms, and eliminating distortions caused by monopolies, speculation and corruption. It is the rule of law that guarantees absolute justice and equality. Transparency, accountability and the elimination of corruption are prerequisites for the sound functioning of the market. Reforming the judicial system could guarantee the rapid administration of justice and enhance the capabilities of monitoring and control authorities. Such measures will lead to improved economic performance, and eliminate the corruption and distortions that often accompany rapid economic growth.
Egypt does not aim at growth alone, but at overall development. Society is our resource base and the driving force of development. With the foundations already established during Mubarak's rule, Egypt will gear its efforts in the coming stage to the wider vistas of development.
