16 - 22 May 2002
Issue No.586
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Al-Ahram Weekly Online 16 - 22 May 2002 Issue No.586 |
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In business, for business
Could business associations in Egypt contribute more to the Egyptian economy? Sherine Nasr investigates
Across the developed world, trade associations, non-profit business organisations and trade unions contribute strongly to national economies. In the United States of America, for example, they account for 11 per cent of gross domestic product and flourish alongside traditional incorporated firms.
The situation in Egypt couldn't be more different.
"In the USA, there are at least a thousand new associations established each year. Existing associations bring $50 billion to the economy and contribute $1 billion in taxes," points out Michael Olson, president of the American Society of Association Executives (ASAE), a nonprofit professional society of 25,000 executives who manage leading trade, professional and philanthropic organisations worldwide.
In Egypt, by contrast, business associations suffer from limited capacity and credibility. Unlike Olson, Mohsen Abu Seif, director of Egypt's NGO Service Centre, a consultancy to NGOs, speaks of obstacles not opportunities. "Business associations, a fast growing sub-set of NGOs in Egypt, suffer from small membership bases. Their governance and management functions are weak. Their services to members are undeveloped, and they operate in isolation from sources of financial and technical support," he argues.
Tellingly, Abu Seif adds that business associations' links with decision-makers are tenuous. "In order to make good on their potential contribution to economic competitiveness, they must address these constraints," he says.
For sheer number of bodies, Egypt is certainly not lacking. Over 15,000 nonprofit organisations cater to every conceivable social and economic need. Up to 140 business and professional associations serve doctors, lawyers, executives and others. There are even 138 advocacy organisations, according to the latest report by the New Civil Atlas. But when it comes to efficiency, and ability to contribute effectively to the economy, these grand figures collapse.
The Business Associations Strengthening Activity (BASA) programme was set up to remedy these deficiencies. BASA, a USAID- funded programme, managed by the NGO Service Centre, provides technical assistance and advice to business associations. BASA's aim is to build the capacity of business associations to serve and represent their members.
This week, BASA held its first conference, entitled "The Role of Business Associations in Economic Enhancement." The conference set out to identify the challenges facing Egyptian business associations in the 21st century.
"Business associations can play an important role in the economy by advocating an improved investment climate, setting industry standards, promoting skills and workforce development and providing information," argues Abu Seif.
To help them on their way, BASA programmes, which include training courses in advocacy, governance and management, as well as bespoke courses, are open to all of Egypt's NGOs. Financial help is also available. "Starting mid-2002, BASA will offer a small number of grants and technical assistance to business associations wishing to undertake advocacy activities or develop member services such as networking with other business associations," says Nevine Hamdan, the centre's public affairs specialist.
BASA grants will be awarded in open competition and the grant criteria and application procedures made public at the time. Hamdan adds, "Selected business associations will also receive technical assistance to build their institutional capacity in governance, financial and operational management." The idea is that good practice will percolate through to other NGOs, turning them from the sclerotic brutes they now are into the lean and useful organisations they could be. And perhaps then they could start to contribute to the economy: to the tune of 11 per cent.
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