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

Uganda Court Annuls Anti-Gay Law

Court says law was passed in parliament without enough members present for a full quorum More

Multimedia Thailand Makes Efforts to Improve Conditions for Migrant Laborers

In Thailand, its not uncommon for parents to bring their children to work; one company, in-collaboration with other organizations, address safety concerns More

In Indonesia, Jihad Video Raises Concern

Video calls on Indonesians to join Islamic State of Iraq and the Levant, ISIL 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.
In Thailand, Some Efforts to Improve Conditions For Migrant Laborersi
X
Steve Herman
August 01, 2014 6:22 PM
Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video In Thailand, Some Efforts to Improve Conditions For Migrant Laborers

Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video Public Raises its Voice on Power Plant Pollution

In the United States, proposed rules to cut pollution from the nation’s 600 coal-fired power plants are generating a heated debate. The U.S. Environmental Protection Agency, charged with writing and implementing the plan, has already received 300,000 written comments. As VOA’s Rosanne Skirble reports, another 1,600 people are lining up this week at EPA headquarters and at satellite offices around the country to give their testimony in person.
Video

Video Information War Rages Alongside Real One in Ukraine

The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict in Gaza, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities. Probably the most important destination is the local bakery. VOA’s Scott Bobb reports from Gaza City.
Video

Video China Investigates Powerful Former Security Chief

The public in China is welcoming the Communist Party's decision to investigate one of the country's once most powerful politicians, former domestic security chief Zhou Yongkang. Analysts say the move by President Xi Jinping is not only an effort to win more support for the party, but an essential step to furthering much needed economic reforms and removing those who would stand in the way of change. VOA's Bill Ide has more from Beijing.
Video

Video US-Funded Program Offers Honduran Children Alternative to Illegal Immigration

President Obama and Central American leaders recently agreed to come up with a plan to address poverty and crime in the region that is fueling the surge of young migrants trying to illegally enter the United States. VOA’s Brian Padden looks at one such program in Honduras - funded in part by the United States - which gives street kids not only food and safety but a chance for a better life without, crossing the border.
Video

Video 'Fab Lab' Igniting Revolution in Kenya

The University of Nairobi’s Science and Technology Park is banking on 3-D prototyping to spark a manufacturing revolution in the country. Lenny Ruvaga has more for from Nairobi's so-called “FabLab” for VOA.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.