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The most important economic problems of the Arab Republic of Egypt
Reports
were issued for economic growth in Egypt, whether domestic or
international misleading, where she focused on Tribute growth rates in
absolute terms, without touch on two things very important; first is the
sources of this growth, which was mostly marginal or rents, in While
the declining relative importance of the productive base, whether
industrial or agricultural of the Egyptian economy clearly, so that
became Egypt currently lacks the production base commensurate with the
resources you have, especially human resource. He drew the
former regime much attention to the service sectors and sectors is
produced, and was attention to housing luxury, and the development of
beaches and building resorts at the time were imported by Egypt much of
the consumer goods, machinery and equipment and food, which is reflected
in the huge deficit in the balance of trade.
The second thing is the distribution of this growth, or rather benefited from this growth? This
was growth at the expense of justice assumed in the distribution of
income among groups Aldkhalah different, down status of the middle class
and that they constitute the majority of the Egyptian people when he
received the former regime of governance, and became the gap between
groups Aldkhalah high and the poor and very wide, has been recognized by
international institutions such as the Fund International Monetary that
reports on economic growth in Egypt were not accurate, because it
focused on the rates of growth in absolute terms, without taking into
account the distribution criteria or considerations of justice resulting
from this growth.
Due
to lack of productive base lived Egypt, and still, long periods spread
where inflationary pressures are widely, and that helped to deepen weak
revenue base of the State and that caused the deficit continues to the
state budget, which was be funded partly through version new cash, which
fueling inflationary pressures. Given the exceptional
circumstances experienced by Egypt currently expected to deepen the
pressure more in the next stage
Of
the most serious challenges facing Egypt now and in the future is the
high unemployment rates, for many reasons such as lack of appropriate
education strategy current labor market requirements, particularly
university education, on the other hand, the investment operations that
are currently in the Egyptian economy does not create enough jobs for
new entrants to the labor market, was supposed to focus on investment
strategies-intensive activities to the work item. A large
number of new entrants to the labor market from all sources currently
serving long periods in the case of unemployment in search of work who
do not find often, and in front of these pressures forced many young
people to either emigration or accept jobs that do not conform with the
qualifications and skills, or work in the informal sector of the
Egyptian economy, which represents a huge waste of resources spent by
the state on the rehabilitation operations. The problem
faced by the policy maker in Egypt is that the proportion of young
people is extremely high, and year after year increase, new entrants to
the labor market, and all the process of creating the post of additional
require the need to spend an investment depends on what it is called in
the economy labs marginal capital / labor , any level of capital
expenditure required to create additional jobs. Taking into
account the current levels of unemployment, dealing with the problem of
unemployment in the future will require the need for massive investment
exceed the capabilities of the Egyptian economy is, no doubt that the
stability of Egypt's economic future will require the need to create a
sufficient number of productive jobs for millions of unemployed now, and
entrants new to the labor market, no doubt that this will not be an
easy task, and requires an integrated drawing up plans for development
in the various productive sectors in the Egyptian economy, accompanied
by effective policies to attract foreign investments in the intensive
industries to the work item.
Level
financial Egypt faces another challenge associated with elevated
deficit in the general budget, which in some cases up to 9% of GDP, a
very high percentage, and impose on Egypt, in light of weak tax base by
resorting to borrowing, both domestic and or external, no doubt that the
continuation of this deficit an increasingly means that the current
growth in public debt, whether local or foreign will not be sustainable,
and is expected to tend the deficit upward clearly in the period after
the revolution, before that Egypt is working to raise revenue and
rationalizing public expenditure in order to control the growth in its
general budget. Despite the tax structure intensive very
adopted by Egypt now, but the revenue tax is low in general, does not
exceed 15% of GDP, which in this way less than the levels achieved in
most of the developed world, including the developed and developing,
which reflects The fact that taxes, the intensity, do not get, and that
there is tax evasion practiced widely in the State by financiers and
with the help of the government apparatus, which imposes and gets the
tax, and the tax system is not efficient and effective appropriate.
On
the other hand facing Egypt traditionally deficit continues and
aggravated in the balance of payments, particularly in the trade balance
(exports of goods and merchandise imports), there is a lack of foreign
exchange earnings from exports to cover the needs of Egypt's imports
from abroad. Although the balance of invisible transactions
(exports and imports of services) in surplus, but this surplus,
unfortunately not enough to cover the gap of imports in the trade
balance, so Egypt resort to borrowing on an ongoing basis to cover the
deficit in the balance of payments.
Facing
the business environment in Egypt a serious obstacle is the widespread
corruption widely and became a negative impact on resource allocation
processes and how they are distributed among the various parties in the
state, as corruption has become threatening investors' appetite for
investment in Egypt, especially foreign investment. The
reports issued by Transparency International to decline arrangement MIB
in the fight against corruption, no doubt that the most important
challenges facing Egypt in the future is how to earn battle against
rampant corruption deeply throughout the state administrative apparatus,
especially with the low level of salaries obtained workers in the state
and ignore the former regime for these real ongoing basis and not work
hard to improve the conditions of these workers, since the workers in
the state they should measure a living somehow, it has spread bribery
and other forms of corruption on a massive scale.
Finally
is poor infrastructure and deteriorating level of one of the most
dangerous challenges facing Egypt in order to push production levels and
competitiveness, Vqtaat such as health, education, water, electricity,
roads, transportation, telecommunications, airports and ports ... Etc.,
need to improve their massive upgradation very low now, and that put
Egypt at the center of low as receptor for foreign investment or a
provider of services in particular tourism services, but I doubt that
Egypt needs to invest in its infrastructure with a low level, a task
will require budgets Huge may not post Egypt fulfilled self at the
moment, and you will need Egypt to help the international financial
institutions and regional to raise their ability to invest in
infrastructure needed for growth, and not will remain weak
infrastructure in the Egyptian economy the most important constraints on
its progress and growth and higher levels of competitiveness
These are the main
problems facing Egypt now, there's no doubt that there are other issues
pressing, such as widespread poverty, and the spread of a culture of
profiteering and earning quick and spread bureaucratic and centralized
decision-making and other problems that shackle the Egyptian economy and
prevent its launch forward to become Egypt among the countries emerging
in the world, such as Malaysia, North Korea, and that at least Egypt
for these countries in terms of resources and capabilities, but the
fundamental problem facing the Egyptian economy is in bad routing
process and management of resources.
