Issue No. 593
Economy
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4 - 10 July 2002 Issue No. 593 Economy |
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| Published in Cairo by AL-AHRAM established in 1875 | Recommend this page | ||
'A two-way street'
The minister of state for foreign affairs addressed the intricacies of the donor-recipient relationship in her discussion with the German business community in Egypt, Soha Abdelaty reports
On 24 June, minister of state for foreign affairs, Fayza Abul-Naga, met with members of the German-Arab Chamber of Industry and Commerce to discuss the government's strategy on official development assistance (ODA). However, the minister began the meeting by contesting the terminology used to describe donor- recipient relationships. "I want to change the term 'donor'," Abul-Naga said. "It's a two-way street... international cooperation is about mutual interest," she continued. Instead, she preferred the term "partners in development".
Abul-Naga continued by detailing the Egyptian government's position on international cooperation. This can be summed up in three points, she said. Firstly, "to enhance interaction between donors and creditors, maximising the benefit Egypt derives from development assistance". Secondly, social factors should be given special attention. Finally, the Egyptian government would like to use ODA to ensure a smooth transition from being aid recipients to trade exporters and investors.
To fulfil these objectives, the government has outlined a set of policies, she added. Egypt hopes to keep its external debt burden between $1.2 billion to $1.5 billion annually.
Egyptian officials are also working on developing a strategy whereby debt could be converted into local currency. The minister cited a past agreement with Italy where this policy had been a success. On discussing the areas that loans are directed at, Abul- Naga said "towards projects that generate economic return and can bear the debt servicing fee". Specifically, "preference is given to loans or grants that are associated with technology transfer or environmental conservation," she added.
Abul-Naga also told her audience that, since taking office last November, she has worked on "making the most out of economic assistance in the context of development objectives and priorities". Achieving this goal will require the restructuring and modernisation of the international cooperation sector, she said. This has been done by adding new departments to the ministry and redefining departmental duties. This includes a department to follow up on projects from inception until implementation. Another department will be created to encourage dialogue between international and local private sectors. A third department will have the sole responsibility of coordinating NGO activity with civil society. Finally, the minister said she intended to set up a legal department, with a professional translation section. "This will assist in accelerating the currently lengthy ratification process," she stated. She also intends to upgrade the human resources bureau, providing additional training and skills for staff. "I hope to build on a good existing base, modernise it, and achieve better governance and transparency," she summed up. "I hope to convey a message to the public and our partners that contributions received are efficiently handled," she added.
Abul-Naga concluded her discussion by outlining the main features of the Egyptian-German development relationship. She emphasised that over the past three decades, Germany has been one of Egypt's major "development partners", providing Egypt with loans totalling $2.6 billion and grants of $0.6 billion.
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