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Al-Ahram Weekly 25 Nov. - 1 Dec. 1999 Issue No. 457 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 25 Nov. - 1 Dec. 1999 Issue No. 457
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Features Profile Travel Living Sports People Time Out Chronicles Cartoons Letters G15 in Cairo
REPRESENTATIVES from the G15 nations met in Cairo this week to discuss ways of offsetting the negative impact of globalisation on developing countries. Timed just before the third WTO ministerial meeting begins in Seattle on 30 November, the gathering is part of a series convened by the group over the past twelve months with the aim of developing strategies to minimise the marginalisation of poor and developing nations.The meeting -- organised by the Egyptian Ministry of Foreign Affairs in concert with Cairo University's Centre for the Study of Developing Countries -- concentrated on development vis-a-vis transnational corporations, capital markets and trade.
The meeting ended with several recommendations intended to maximise the benefits and minimise the risks to developing countries of increased economic liberalisation.
Two other G15 meetings -- in concert with UNCTAD and the G15 Federation of Chambers of Commerce and Industry -- will be held over the next year, said Ambassador Mounir Zahran, advisor to the Minister for Foreign Affairs and President Hosni Mubarak's personal representative to the G15.
Egypt -- which currently heads the G15 -- is preparing for the group's tenth summit, scheduled to be held in Cairo in the first half of the year 2000.
E-bank prospects
BANKERS and businessmen are calling on the Central Bank of Egypt (CBE) to formulate the ground rules necessary before they can begin providing on-line services to their customers. But Mohamed Abu El-Oyoun, deputy governor of the CBE, has said that e-commerce regulations should be developed only after the banks have actually started providing electronic services.The recommendations made during a one-day conference entitled "E-Commerce and Banking" organised by the American Chamber of Commerce in Cairo, also included demands that the CBE streamline other banking sector operations, such as the settlement of cheques or accounts which can currently take as long as two weeks.
E-commerce is being increasingly advocated in Egypt with many people beleiving it may help assist exporters to overcome the traditional barrier of distance in accessing world markets. As a step in this direction a joint-statement on electronic commerce was signed between Egypt and the US last month, outlining the broad principles that should govern the development and use of e-commerce.
Market trading
THE CAPITAL Market Development Project (CMDP), a US Agency for International Development (USAID) project intended to facilitate the workings of the Egyptian Stock Market, celebrated its first anniversary last week.Over the past twelve months, the project has provided technical assistance to institutions working in the capital market and helped the Capital Market Authority design a settlement guarantee fund, a mechanism intended to accelerate market transactions by guaranteeing settlement.
CMDP, implemented by Chemonics International INC, also financed the electronic trading system to be used by the Stock Exchange. Over $1million worth of computer hardware will be installed this week.
The project's mandate, in addition to covering technical and legal aspects of the market, also includes increasing public awareness of market activity, to which end it has organised training sessions for reporters through the bi-monthly Capital Market Press Forum and instigated initiatives to upgrade the economic reports broadcast on television.
CMDP has also turned its attention to the bond market, providing consultancy advice to the Capital Market Authority on market regulation and, in cooperation with the US Treasury, training programmes for regulators, bankers, brokers and potential dealers in bonds.
"Our ultimate objective is to generate trust on the part of investors in the market... helping to minimise the risks of investing in the market by increasing transparency," said Barry Gray, head of the project, adding that the project is currently engaged in formulating disclosure rules for traded companies.
Though scheduled to continue operations until August 2001 under its original protocol, it is likely that the project will be extended for a further twelve months.
TIFA council
THE EGYPT-US Trade and Investment Framework Agreement (TIFA) was inaugurated in Cairo last week.The first TIFA Council meeting was jointly hosted by the Minister of Economy and Foreign Trade, Youssef Boutros Ghali, and US Trade Representative Charlene Barshefsky.
"Entering into a TIFA with Egypt marks the first step towards creating freer trade between our countries, and establishes the basis for stronger economic ties to bolster joint efforts at furthering peace in the region," said Barshefsky during the inauguration ceremony.
During the meeting, a range of bilateral trade and investment issues, including market access, intellectual property rights protection, government procurement and high-technology trade and investment were discussed.
According to the TIFA, signed in Washington on 1 July, 1999, the Council on Trade and Investment, comprising representatives from both governments, is expected to meet regularly to discuss specific trade and investment matters, promptly addressing any problems that might arise.
