Egyptian economic problems are challenges that necessitate mobilising the maximum response forces of Egyptian society at large. The situation makes it imperative that positive cultural values, key factors in economic development, be encouraged. These cultural values could markedly change the country's economic prospects. At different periods of history the Egyptian economy proved to be resilient, encountering a gamut of challenges and managing to overcome them. In the current situation, Egyptians are aware of challenges. Between the economic challenges and society's response, there should be official measures to direct all efforts to strengthen the future of the country and its people. It is crystal clear that culture and economic performance are linked. Any change in one will affect the other. In achieving development, not only are the ingredients of an economic nature important, such as the rule of law and an investor friendly-environment, technological innovation, investment in physical and human capital and the productivity thereof, but also intangible ingredients, such as cultural values. Development does not stand separate from culture. Sociologist Max Weber was among the first to discuss the relation between culture and development when he concluded that capitalism is a cultural phenomenon the roots of which are found in religion. Weber argued that Protestantism supported the emergence of capitalism by spreading a moral principle governing daily behaviour and encouraging economic activity. As we speak about culture and its required role in development in Egypt, it is necessary to define what is meant by culture. The United Nations Educational, Scientific, and Cultural Organisation (UNESCO) defines culture as “the whole complex of distinctive spiritual, material, intellectual, and emotional features that characterise a society or a social group. It includes not only the arts and literature, but also modes of life, the fundamental rights of human being, value systems, traditions and beliefs.” Economist David Well has specified certain elements that reflect how culture affects economic development. These elements include openness to new ideas, belief in the value of hard work, saving for the future, to what extent people trust in each other, and social capital and social capability. For Egypt, reconsidering value of hard work and saving for the future is of high importance. On hard work, both old and recent figures show that working hours per day for the typical Egyptian employee are low, and therefore have a negative effect on economic performance. As for saving for the future, figures reflect that the domestic saving rate in Egypt is at maximum 15 per cent, while the required rate for saving to have a positive impact ranges from 25 to 30 per cent on a sustained basis and over a long period. As for social capital and social capability, they need to be examined carefully. Social capital refers to social networks that emerge from doing things for one another — in other words, the glue that holds society together. A clear example of this is the Children Cancer Hospital Foundation, known as 57357, that was mostly built on Egyptian donations, even if limited. As for social capability, it refers to the social and cultural qualities that allow a country to take advantage of economic opportunities. Economist David Landes has said that Egypt's primary problem of development lies in its social and cultural incapability. Regardless of whether this statement is true or false, I lean towards accepting it, from the perspective that knowing a problem is the half of the solution, while denying it has the opposite effects. The phenomena of customs and tax evasion reflect the negative consequences of lacking cultural values that limit the capabilities of the state. These two sources of revenue are critical to the state budget. Recently published figures show that customs evasion ranges from LE25 billion to LE50 billion, while tax arrears range from LE60 billion to LE70 billion. These examples reflect two critical things: first, the lack of a culture of commitment from the citizens' side; and second, the lack state power. In Egypt, if we are serious about achieving sustainable development, we should maintain a list of positive values. This list includes, but is not restricted to, hard work, integrity, altruism, respect for the wishes of others, entrepreneurship, preserving environmental resources, rational consumption of water and electricity, openness to new ideas, respecting time, fulfilling commitments, maintaining public resources, respecting public morals, peace, cooperation, intolerance for corruption, condemning rapacity, and condemning monopoly among manufacturers and merchants. Both governmental institutions and elites are invited to create public awareness of the importance of cultural values to economic development. For government institutions, they can spread positives values through homes, kindergartens, schools, universities, mosques, churches, civil society, political parties, and the media. As for elites, I specifically mean true intellectuals and thinkers who are fully aware of society's problems and have a say in solving them. Egypt needs professional elites, not amateur ones. The elite I mean has certain qualifications: aspirations, a commitment to achievement, the capacity to perform a role that transforms Egypt from a traditional society to a sustainable and developed one, having the ability to change societal and individual incentives, values and behaviours, having the ability innovate, plan, and implement megaprojects. Elites and their conscious and moral commitments are central to development. The role of the intellectual elite in the United States during the Great Depression (1929–1942) reflects the importance of the role of intellectuals at critical stages of a nation's history. The intelligentsia condemned the prevailing egoism and individualism, and affirmed that an economy built upon acquisitiveness is socially, economically and psychologically destructive. Furthermore, the intelligentsia supported the values of community, justice, and cooperation. In conclusion, policymakers in Egypt should keep in mind the following fundamental issues: first, values are the critical base upon which Egyptian society rests; second, changing circumstances may generate values that were not experienced before, therefore, these new values should be adjusted in a manner that serves the public policy of the state; third, initiating development depends on knowing what produces development; fourth, social culture and economic policies should support economic development; and fifth, society's convictions, values and morals are a pattern of life and daily personal practice, not merely a set of vague principles. These fundamentals, along with investing in physical and human capital and innovation, are needed for sustainable development. Finally, the process of changing the culture of a society may not be easy but it is impossible. As economist David Landes has said, “If we learn anything from the history of economic development, it is that culture makes all the difference.” The writer is an international trade expert and PhD candidate at Cairo University.
