Egypt's dream of becoming a regional economic hub has landed on solid ground. Three days of talks and debate between leaders of large multinational companies and Egyptian officials in Sharm El-Sheikh have proved fruitful. The question now is not how much Egypt will get from the well-organised Economic Development Conference, but what Egypt will do with this windfall of foreign direct investment and funding commitments that were made by governments, institutions and companies. Egypt is facing a flood of foreign money, technology and expertise that has never been seen since Mohamed Ali and Khedive Ismael. This is a strong sign that there is trust in Egypt, and that despite the stalling recovery of the international economy, most governments, institutions and companies want to support Egypt. Say goodbye to terror and its sponsors. The Sharm El-Sheikh spirit has defeated fear. The question now is what will we do with this love, as expressed by the world, in real terms. The ball is now in our court and we must make the most of it. But one must touch upon some basic issues relevant to the Sharm El-Sheikh spirit, such as the political dimension of the conference and the connection between our aspirations and the will of the international community that has shown us the best of its support. BEATING TERRORISM: The main threat Egypt faced since July 2013 was the rise of terrorism. Terrorists, after becoming established in the north of Sinai, managed in few months to cross the Suez Canal, threatening Egyptians, military and civilians, in many governorates and cities, from Ismailiya to Frafrah Oasis and from Alexandria to Aswan. Scores of innocent people were killed and dozens of economic assets were destroyed, including electricity pylons, train carriages and private company outlets. The sponsors of the terror campaign against Egypt vowed to halt the smooth running of life and committed themselves to step up violence in order to stop the economic conference, or at least to derail it by making their news the main headlines in newspapers and news bulletins. They failed and looked isolated and humiliated, while Egypt was receiving representatives of the international community, one delegation after the other, debating with all of them in a very civilised manner its needs for the rebuilding of the economy and for the welfare of its people. The Egyptian government has received much more than it hoped for. The government was seeking funds of up to $12 billion. Surprisingly, it has received commitments totalling more than tenfold that amount! This was a very strong vote of confidence, with money, by the international community. In fact, this vote of confidence will reshape the view about Egypt everywhere in the world. As those who have the means would not put their money into a lost cause, others will now follow and try to catch up with them. Egypt is now a winner, rather than a failure. ADVANCING REFORM: Before the conference convened, the main questions were whether it would even be held and whether it would be successful. Days before 13 March, President Abdel-Fattah Al-Sisi announced a cabinet reshuffle in which the very powerful Interior Ministry lost its head and a new face was introduced to take over. Some other posts were either created (population and technical education) or filled with new, more energetic faces (agriculture, education, communication and culture). This drive for reform should continue. Those who prove to not be fit for responsibility should be removed while others who have the will and the courage should come forward. But make no mistake, reform is not about faces, it is about policies and politics. The real dilemma that Egypt is still facing and will have to overcome in a proper way and with proper speed is the Egyptian bureaucracy. The state organisation, the cycle of work and the mechanisms of implementation will have to change. But this is not an exclusive responsibility of the government. Political parties and civil society organisations will have to do their share of the job. They will have to engage positively with the government and society in order to deliver and respond to the aspirations of the people to live good quality lives in a free and open society ruled by law. This will also be the main responsibility of the forthcoming parliament. Throughout the three days of the conference we saw opportunities open up, one generating the other, following bold decisions to reform our energy policies and public finances. We have moved away from the rigid formula of pricing our purchases of oil and gas produced locally by our partners to a more flexible one that has encouraged those partners including BP, ENI and Danah to put more money in the pot and expand their operations to explore and exploit Egypt's vast reserves of oil and gas. So we made a successful move and will bring life to these resources. The engagement of the German giant Siemens in our power generation industry is a big plus in pushing investment in the electricity sector to a new level. Siemens is moving swiftly from traditional fuel to renewable resources, such as wind and solar. The German electric giant is also one of the main partners in the very ambitious DeserTec power project, linking European and North African electricity grids and enhancing electricity production using a network of solar power stations stretching from Morocco to the Egyptian Sahara. In fact, Egypt should become one of the main international players in that field. The initial investment of the DesteTec project in North Africa was estimated at about 50 billion euros more than 10 years ago. It could amount now to more than double that, taking into consideration the possibilities to expand wind and solar energy projects in Egypt and North Africa. The signing of initial agreements and memoranda of understanding is just a first step in a long process leading to the creation of new projects. These signed papers will be waiting to get activated inside the implementation pipeline. But to move on, Egypt must develop dynamic administrative machines that match those of foreign entities, whether multinationals, international institutions or states. The transformation of Egyptian administration is one of the main tasks in advancing needed and long overdue reform. THE CITIZEN'S ECONOMY: But the strong return of investors does not represent a real answer to the ills of everyday life for ordinary Egyptians; at least, it will not provide quick fixes or solutions. The flood of FDI in capital-intensive sectors, such as energy and electricity, will not provide enough jobs for the millions of young graduates who are looking for proper work. It will of course save the country from power cuts and provide electricity to poor houses, as well as to mansions and factories. That will make life better, but not better enough. Egypt officially has more than 3.7 unemployed people, most of them young graduates, each of whom hopes to start a family. The poverty rate has risen to unprecedented levels in the last decade. It is creeping up, now totalling more than 25 million Egyptians. Poverty turns their lives into a tale of humiliation, day after day. Those who live in slums or in cemeteries are suffering the most. They will not benefit much from the New Capital project, or from new housing compounds in and around new cities. The building of new highways will do very little to correct the lack of services and traffic congestion in Cairo and many other Egyptian cities. We have to admit that the responsibility here lies with the government or the state, not foreign investors. The government knows that. When ministers talk about “inclusive development” they surely understand that we don't need a “trickle-down effect.” It is a much more serious task to ensure that the fruits of growth and development are distributed fairly. That brings me to the last issue I'd like to raise, which is what I call “the citizen's economy.” Reforming the role of the state to make it more able to deliver economic, social and culture equal opportunities for its people is no less important than reforming public finances or enhancing competitiveness. In fact, recent studies have shown that inequality is as bad for the economy as a lack of investment. It seems to me that in some cases the government is deliberately trying to escape facing the real problems. Leaving an aged, dysfunctional capital behind to build a brand new one is just one of many examples. Building roads for cars rather than building an efficient network of railways is another. This is not to belittle the new project, but only to sound an alarm. The state has a serious responsibility to improve and change the citizen's economy for the better. Egyptians who are poorly educated, exhausted and suffering from serious health conditions will not evolve into the vibrant human assets that Egypt needs to regain its position as a regional power and perhaps why not? seek a place among international powers. Inequality is an issue the state must consider and take proper actions to remedy. One can comfortably say that Egypt is moving forward. The fear of terrorism is now behind us and the way forward is clear and has the support of the international community. Within the next few years Egypt must become the economic hub of Africa and the Middle East. Its geographic position, history and human and natural resources qualify the country to become, once more, one of the great pillars of civilisation. The ball is in our court. The writer is chairman of the Arab Organisation for Freedom of the Press.
