Activities in Egypt

1) Expansion of urban and agricultural areas (spatial expansion)

TSpatial expansion (expansion of residential areas) has become the top-priority issue for the achievement of sustainable development in Egypt. The population of approx. 70 million is currently increasing at the rate of 2% per year. To reduce such demographic pressure, the aim is to expand economic activities limited to areas in and around the Nile Delta to the Sinai Peninsula and the southern Nile Valley and create new agricultural areas there in order to raise the food self-sufficiency ratio and absorb a workforce of low-income agricultural workers, the unemployed, new school graduates, etc.

2) Response to globalization and regional economic integration

With entry into the WTO in 1995, the coming into effect of the Partnership with the EU from 2004 (aimed at FTA with the EU by 2015), etc., revision of domestic laws including the labor law and the bank law is advancing. However, there are still many issues such as delays in the establishment of a legal system for conflict resolution and delays in enforcement methods even if laws are established. The issues are stabilization of the macro economy, mobilization of domestic savings and improvement of the investment and business climate for direct foreign investment expansion.

3) Market-oriented economic reform and development of competitive industries

Inward-looking trade policies were implemented for a long time in Egypt, and exchange liberalization/interest deregulation, trade liberalization, privatization and price decontrol (elimination and reduction of subsidies) only started with the economic reform and structural adjustment program in 1991. In the face of international competition in open markets, the issues are introduction of new technologies to make it possible to advance into international markets, development of skilled workers who meet the needs of the labor market, development of competitive private companies combined with transfer of foreign management resources, and improvement of modern infrastructures including ports/harbors, transportation and electric power.

4) Promotion of employment

Employment is a serious problem for young people and women. From the standpoint of supply, the key issues are provision of technical education and development of skilled workers to satisfy the needs of the rapidly-growing domestic and international labor markets. From the standpoint of demand, in view of sustainability, the issue is to create employment in the private sector by further industrial development through promotion of direct foreign investment and exports.

5) Promotion of small and medium enterprises and tiny businesses

Because a large majority of economic units in Egypt are small and medium enterprises and informal sectors with a small number of employees, the issue is to transform such informal sectors into formal sectors and promote small and medium enterprises and tiny businesses through lending of funds, vocational training, etc. to raise the level of Egypt’s economic base.

6) Agricultural and rural development and improvement of food self-efficiency

The agricultural industry takes up approx. 30% of the working population, but the majorities are poor people who work on small-scale farms. Thus, the issues are rural development and improvement of agricultural productivity through basic social infrastructure investment to increase the income of agricultural workers and improve their living standards. Another issue is to improve the irrigation system to effectively utilize limited water resources.

7) Development of tourist industry as driving force of economy

Egypt is rich in tourism and energy resources. These sectors, which are an important source of foreign currency, bring exchange stability and serve as a driving force of the economy. As it is assumed that one million tourists directly or indirectly increase the number of jobs by 300,000, the issues are improvement of the capabilities of people engaged in tourism, and sustainable tourism development with due consideration for protection of the natural environment and cultural heritage.

8) Poverty reduction measures

Social development in Egypt still lags behind and its improvement is a very important issue for the stability of Egyptian society. In spite of economic growth, a wide group of people have been left behind and there is growing expansion in income disparity (especially in Upper Egypt). It is important to implement policies which shed light on low-income groups and the weak, while promoting sustainable development.

9) Environmental measures

The issues are response to growing environmental problems arising from the advancement of economic growth, and to the deteriorating living environment in densely-populated urban areas and deprived areas (continuous improvement of water supply and sewerage systems). It is also important to solve the worsening traffic jams and air pollution from the viewpoint of human security.