Egypt minister ties together political, economic growth

(From left) Moderator Tamara Wittes, Egyptian Minister for International Co-operation and Planning Amr Darrag,  US Deputy Assistant Secretary of State on Near Eastern Affairs Nazanin Ash and Bayt.com CEO Rabea Ataya at the forum.

By Hamza Jilani/Staff Reporter Panelists participating in yesterday’s ‘Democracy and Development’ plenary of the US-Islamic World 2013 Forum highlighted the importance of shared power and flexibility between the public and private sectors, agreeing that political and economic growth cannot develop on separate tracks, with a special focus on Egypt as the new democracy struggles to stabilise its economy. Newly-appointed Minister for International co-operation and planning of Egypt and panelist Amr Darrag, who was put at the forefront of the discussions in light of the criticised developments of his political party’s government, said that the transition from Hosni Mubarak’s regime into a new and stable democracy, however, can’t happen overnight. “Egypt’s new government might be facing criticism, but there are a lot of things that aren’t being fully understood or reported by the media,” he said.  “People want things to be better and they want things to be done now; but they have to understand this can’t happen overnight. Just because a government is in place of another doesn’t mean that it’s a new page.” Speaking on the difficulties being faced right now in the reshaping of Egypt into a better state on all levels, he added: “While Mubarak and his ruling circle have been removed, I’ve learned so far since being appointed as minister that their tools of corruption, while slowly being removed and rerouted, are still in place and run unfortunately much deeper and more complex than we all thought: it’s overwhelming. There is an enormous amount of pressure on us and so much fixing to do.” Rabea Ataya, CEO of Bayt.com that is widely regarded as the ‘LinkedIn’ and number one job site of the Middle East, said that based upon reviewing the trends of surveys conducted by the site across the region since 2007 which include the investigation of how the people in the workforce feels about where they are economically today and what are their expectations of the future, the two resulting trends follow each other. “But what’s interesting about Egypt is that, while the current situation’s findings are darker than it has ever been, the people are optimistic about the economic future,” he said. “They have the inherit desire to work for a better day: they aren’t just sitting there waiting for a handout - they are waiting for more control over their lives by becoming entrepreneurs rather than employees,” he said. “Entrepreneurships and SMEs, according to global research, are what create jobs and economic recovery and stability during times of recession and transition.” But in order for Egypt to achieve economic stability, he added, an ‘economic democracy’ needs to be put to practice where the government would have to move out of the way to allow for the establishment and growth of SMEs in the country by devising a more flexible and friendly investment and entrepreneurship environment, as opposed to a regulatory framework that tends to over-regulate and suffocate businesses. “Not only in Egypt but throughout the region there is an existential challenge for businesses,” he explained. “ When investors or start-ups go to register, for instance an online business, and you look for a field that doesn’t exist in a master listing – which is sometimes up to 20 years old – they risk the police knocking at their doors later on to shut them down for illegal operation.  It’s not just about starting up a business, but staying in business.” US deputy assistant secretary of state on near eastern affairs Nazanin Ash said that donor countries like the US and such institutions like the IMF look for partner governments who can agree on a deliver a consensus strategy on how funds will be spent towards a democracy and economic vitality with the limited funds that they have for support. “We need partners to make our limited funds go as far as they can,” she said, speaking in light of the IMF deal that is to reach Egypt in the coming weeks. “We can’t do what governments are supposed to do but there should be friendly legal and regulatory policies and platforms for economic and political growth. It’s about breaking open these formerly rigid and closed up political systems so that countries like Egypt can thrive through and past transition.”