Al-Ahram Weekly | Economy

		Al-Ahram Weekly On-line 28 Dec. 2000 - 3 Jan. 2001 Issue No.514
Published in Cairo by AL-AHRAM established in 1875		Current issue \| Previous issue \| Site map

Egypt-2001
By Aziza Sami
In the year 2001, Egypt will compete with the world's up-and-coming powers; it will swiftly develop the economy of the future -- one that is knowledge-based and digital. Through proper economic administration, it will solve the problems arising from overpopulation and whip bureaucracy and production structures into shape.
It goes without saying that making such a dream a reality overnight is Utopian. What is less often said outright, is that the need for thoroughgoing changes to the economy is not the stuff of Utopian dreams, but rather an imperative that must be put at the top of the government's agenda.
The Organisation for Economic Cooperation and Development (OECD) predicts that the current economic trend is towards an unprecedented recovery for Asian economies, while the US and Europe will remain strong. As for countries in Africa and the Middle East -- especially those that are not OPEC members, such as Egypt -- the projections for future growth are less optimistic. Highlighted among the main restraining fetters are endemic impediments to productivity.
The Egyptian economic agenda must transcend "reform" -- with its limited objectives of privatisation, stabilisation and structural adjustment. Instead, reform must be seen as only a means to achieving the pressing goal of enabling the economy to function in the contemporary world.
And so in its blueprint for tomorrow, the government, which still charts the course for macroeconomic development, must establish a national plan to support the industrial use of technology and the Internet in a way that allows for fluid adaptation. Such plans should be made in concert with the private sector.
As these plans will have to be executed by a young -- and immense -- labour force still in the making, the educational system must undergo radical reform. Specialisations such as business administration, engineering and information technology (IT) need to be given priority so as to produce technicians in the real sense of the word: individuals who can precisely apply the results of scientific research.
A national employment conference, which would bring academics and businessmen together, should also be organised. This event would offer both the private sector and the state a chance to scout human resources. It is important that the state make use of such an opportunity because crippling bureaucracy is in urgent need of streamlining and a reorientation towards interacting positively with society.
The achievements in Egypt's IT arena highlight an area with considerable growth potential that the government should ensure is developed. Established through private initiative, Egypt's IT domain grew considerably with the development of several dot.coms. Implementation of credit policies to benefit young entrepreneurs and encourage venture capitalists to get involved are two practical ways the government can play a constructive role. IT technology can be utilised to advance development in remote rural areas, using models developed from the Indian success story.
As the government works towards making Egypt an up-and-coming power, it must guard against soliciting foreign direct investment at any cost. Thus it needs to stand firm against practices that pollute the environment, like those that have been sadly common in the flurry of projects in the cement sector during the past year and a half. Such activities give the impression that Egypt is being transformed into a dumping ground for operations that are unacceptable in more advanced economies -- from which investors hail -- because of long-term detrimental side-effects.
And for the sake of consistency, the government must not encourage such investments and then do an abrupt about-face, suddenly invoking "environmental criteria" to create a standstill in investors' projects. This happened last month with a joint Egyptian-French cement venture. The lesson therein is that greater clarity of vision is needed in our outlook on investment.
In the year 2001, therefore, the government must extend its thinking beyond current interests and realise that progress can only be attained when people participate and feel that they, too, have a vested interest in the way their country is developing.
Bring in the younger generations of the future before they become a dissipated force.

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