News / Economy

High-powered Egypt Economic Team Heartens Investors

FILE - Traders work near the exchange bell at Egypt's Stock Exchange in Cairo, July 3, 2013.
FILE - Traders work near the exchange bell at Egypt's Stock Exchange in Cairo, July 3, 2013.
Reuters
Egypt's new military-backed administration has pleased investors by appointing experienced economic policy makers to a cabinet whose cohesion will be sorely tested in the coming months.
 
Over the past few days, trained economists and technocrats have been given key ministerial posts in the government that is replacing the administration of president Mohamed Morsi, deposed nearly two weeks ago in a move that polarized Egyptian society.
 
Taken together, they appear to form the country's most high-powered economic team since its February 2011 revolution ushered in a series of unstable cabinets which were chosen as much for ideology and political expediency as for expertise.
 
The new cabinet's credentials will not alone ensure that Egypt can overcome problems such as crumbling state finances, a big trade deficit and rising inflation - but the team's very existence may go some way to restoring business confidence.
 
“I think they are smart enough to deal with the new outcomes on the ground,” Mohamed Kotub, director of asset management at Naeem Financial Investments in Cairo, said of the new ministers.
 
He predicted the cabinet would focus on restoring public security, boosting tourism and luring foreign investment back to Egypt - key demands of the business community which many felt were ignored by Morsi's government.
 
The range of views it contains is aimed at allaying anger over the overthrow of the democratically elected Morsi, but could store up trouble as it considers how to tackle crippling subsidies and currency woes.
 
Technocrats
 
Morsi's cabinet was short of relevant experience. Two of his finance ministers, for example, had academic backgrounds studying Islamic economics - of limited immediate use in an economy where Islamic banking plays only a tiny role, and which is facing a balance of payments crisis.
 
Morsi's last finance minister, Fayyad Abdel Moneim, made his academic name researching subjects including “economic functionaries in the Islamic state at the time of the Prophet and the Righteous Caliphs”.
 
Also, post-revolution governments in Egypt had trouble attracting experienced technocrats because they feared being tainted by an unpopular ruling military council or by the Islamist ideology of the Muslim Brotherhood.
 
The new cabinet appears to have overcome this, including ministers who can speak the language of investors, foreign and local. Some also have administrative experience needed to push economic policies through a sluggish state bureaucracy.
 
New Prime Minister Hazem el-Beblawi, who is to steer Egypt until parliamentary elections planned in about six months, ran Egypt's Export Development Bank for 12 years and went on to work at regional economic agencies in the Middle East.
 
Ahmed Galal, managing director of the Cairo-based Economic Research Forum since 2007 and for 18 years a researcher at the World Bank, was appointed finance minister on Sunday.
 
Ziad Bahaa El-Din, who is a member of the leftist Egyptian Social Democratic Party, will be deputy prime minister; he has a doctorate in banking law from the London School of Economics and ran Egypt's investment authority between 2004 and 2007.
 
Egypt's interim authorities have not been able to ignore ideology and horse-trading in choosing their economic team. In an effort to reduce political tensions, they have had to take care to appear inclusive of a range of opinion.

You May Like

US Firms Concerned About China's New Cyber Regulations

New rules would require technology companies doing business in financial sector to hand over their source code, adopt Chinese encryption algorithms More

WHO Focus on Ebola Shifts to Ending Outbreak

Focus to be less on building facilities and more on efforts to find infected people, manage their cases, engage with communities and ensure proper burials More

US Scientist Who Conceived of Groundbreaking Laser Technology Dies

Charles Townes, Nobel laureate, laser co-creator paved way for other scientific discoveries: CDs, eye surgery, metal cutters to name a few technologies that rely on lasers More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Super Bowl Ads Compete for Eyes on TV, Webi
X
January 29, 2015 9:58 AM
Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Super Bowl Ads Compete for Eyes on TV, Web

Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Freedom on Decline Worldwide, Report Says

The state of global freedom declined for the ninth consecutive year in 2014, according to global watchdog Freedom House's annual report released Wednesday. VOA's William Gallo has more.
Video

Video As Ground Shifts, Obama Reviews Middle East Strategy

The death of Saudi Arabia’s king, the collapse of a U.S.-friendly government in Yemen and a problematic relationship with Israel’s leadership are presenting a new set of complications for the Obama administration and its Middle East policy. Not only is the U.S. leader dealing with adversaries in Iran, the Islamic State and al-Qaida, but he is now juggling trouble with traditional allies, as White House correspondent Luis Ramirez reports.
Video

Video MRI Seems to Help Diagnose Prostate Cancer, Preliminary Study Shows

Just as with mammography used to detect breast cancer, there's a lot of controversy about tests used to diagnose prostate cancer. Fortunately, a new study shows doctors may now have a more reliable way to diagnose prostate cancer for high risk patients. More from VOA's Carol Pearson.
Video

Video Smartphones About to Make Leap, Carry Basic Senses

Long distance communication contains mostly sounds and pictures. For now. But scientists in Britain say they are close to creating additions for our smartphones that will make it possible to send taste, smell and even a basic touch. VOA’s George Putic reports.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video Saved By a Mistake - an Auschwitz Survivor's Story

Dagmar Lieblova was 14 when she arrived at Auschwitz in December 1943, along with her entire Czech Jewish family. All of them were to die there, but she was able to leave after several months due to a bureaucratic mix-up which saved her life. Now 85, with three children and six grandchildren, she says she has a feeling of victory. This report by Ahmad Wadiei and Farin Assemi, of RFE/RL's Radio Farda is narrated by RFE’s Raymond Furlong.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid

World Currencies

EUR
USD
0.8815
JPY
USD
117.85
GBP
USD
0.6581
CAD
USD
1.2420
INR
USD
61.404

Rates may not be current.