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A promise is a promise
Published in Al-Ahram Weekly on 23 - 03 - 2006

The government's recent policy statement comes under close expert scrutiny. Mona El-Fiqi listens in
Some 3,500 new schools, 1,000 factories, one million feddans and one half a million housing units are but some of the promised services the government says it will deliver over the coming six years. This is according to its recently- announced policy statement. However, several non-governmental organisations allege that the government has made flowery promises ignoring many aspects deemed important by the ordinary Egyptian citizen.
The latter view-point was recently aired at a one-day seminar organised by the Alliance for Arab Women, the Third World Forum and the Association of Former International Civil Servants.
Experts blamed the government for placing great emphasis on achievements realised over the past 18 months, and making many promises which it is not apparent that it can actually deliver.
Ibrahim El-Essawi, professor of economics at Cairo University said that while the government's statement sets economic and social development as important goals, it does not make clear the means by which this will be realised.
One of the reasons that helped improve economic performance, El-Essawi says, is the increase in international oil prices which was reflected in exports revenues, but which was not a result of actual growth in the economy.
The figures, which do denote the real state of the Egyptian economy, El-Essawi said, are the industrial sector's share in total GDP which has fallen to 19 per cent, going down to the levels of 1969. El-Essawi added that the unemployment rate has also doubled from five per cent during the 1980s to 10 per cent in 2005.
The government statement cites the proceeds accrued from privatisation as denoting growth in the investment sector. But, said El-Essawi, privatisation proceeds simply denote the transfer of ownership of some projects from the public to the private sector.
Experts also criticized the government's boasting that privatisation proceeds attained LE16.5 billion over the past 18 months. This sizeable sum, which exceeds by five times the proceeds accrued in the four previous years, implies that the government regards the privatisation process as an aim in itself, El-Essawi said. He lambasted the fact that privatisation is taking place "regardless of considerations like selling price or if the sectors undergoing privatisation are strategic"; the latter, according to El-Essawi, would necessitate a slowing down of divestiture of their assets.
El-Essawi also cited a recent World Bank study which indicates that selling the public sector is not the only choice available to developing countries' governments. Reform is also a viable option to be seriously considered.
The government statement asserted that attracting foreign direct investments would lead to economic improvement. Here El-Essawi argued that unless the local market attains the momentum for growth on its own, it will not be able to attract foreign direct investments seeking profit in already flourishing markets.
El-Essawi recommended that the government depend on national capabilities in order to attain sustainable development bolstered by increasing the savings rates and decreasing domestic consumption.
Another topic raised was that of housing which, according to Abu Zeid Rageh, former chairman of the National Centre for Housing Research, is constantly growing while not being met with the needed measures on the part of the government.
At a time when Egypt's population has increased from 20 million in 1952 to 73 million in 2005 and is expected to reach 93 million in 2020, existing cities and villages can absorb nor more than 12 million people. Rageh questioned if the government has a plan capable of helping resolve this ever- growing problem. He said that although "people suffer just to obtain housing, with 18 per cent of the population living in inhumane conditions, the government's statement gives no clear vision and provides no appropriate solutions to the housing crisis."
Rageh described the national housing system as "faulty" and said that 80 per cent of newly-built real estate is offered for sale, while only 20 per cent is available for rent. Another problem is prices which, for new apartments, are relatively high compared to other developing countries.
Rageh added that owning an apartment would deplete the average- income family of all of its resources within only 11 years.
"The half a million units promised by the government are not enough" Rageh asserted.
From 1996 to 2005, marriage contracts have averaged at 600,000 annually, he said. "Assuming that 50 per cent only of newly-weds are in need of the government housing, at least 250,000 apartments will be needed every year, apart from another 50,000 approximately to replace old houses which collapse annually. This is at a time when the government can only provide 85,000 apartments a year."
Turning to education, Mona Makram Ebeid, a professor of political science at the American university in Cairo said that the educational system is in urgent need of comprehensive reform. Ebeid argued that the government statement simplified the current problems faced by the school system, by announcing that 3,500 new schools will be established over the coming six years.
"There is more to addressing the problem than just building new schools." Ebeid gave the example of Siwa Oasis which currently boasts 24 schools "but has only three teachers". While the government promises that it will provide LE75 million to establish 150 projects for developing higher technological and scientific education in 90 faculties, the figure is still a "moderate" one, Ebeid said.
Finally, the very concept of social solidarity as expressed in the government's policy statement also came under criticism. "The concept of solidarity has not been carefully developed in the government's plan," Fatma Khafagi, member of the Alliance for Arab Women said. She added that the government's obsolete perception of social solidarity should evolve to become one of citizenship rights. "Poor people have the right to live a proper life," Khafagi said. "Citizenship rights do not only mean providing pensions for old and poor people but, as well, providing education, health care and job opportunities." Khafagi added that an efficient solidarity system should include cash transfer for aged and handicapped citizens, as well as jobs for those who are young and healthy.
Those attending also expressed the view that public participation must be increased through NGOs and Muslim and Christian civil society organisations, given that the People's Assembly "does not sufficiently express the citizens' will".


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