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The business of government
Published in Al-Ahram Weekly on 22 - 07 - 2004

Is an entrepreneurial family history and experience in managing a private business an asset or a liability for a new cabinet minister? Yasser Sobhi searches for answers
We are not just talking about businessmen from well-to-do families: we are talking about board members and CEOs of multinational companies and banks in Egypt, who are members of the National Democratic Party and who have been chosen as members of the new cabinet.
Indeed, the newly appointed ministers have become the centre of a harsh debate on whether businessmen are fit to play a leading political role, work in the interests of the poor and not only the rich and if they can succeed in building a strong and well-defined wall between the public and their private interests.
There is no doubt that some had to think twice about accepting their new positions. Like for instance Rashid Mohamed Rashid, CEO and member of the international board of Uniliver Egypt -- now minister of industry and foreign trade -- and Ahmed El-Maghrabi CEO of French tourism group Accor -- now minister of tourism, who are the first well- known businessmen to join the cabinet in recent history. These two ministers, in particular, are now the subject of close scrutiny.
"They represent a sign of hope," said Mahmoud El-Kaissi, president of the Franco-Egyptian Businessmen's Association. "It's a very positive choice; they're outstanding reputable businessmen. They know better than most the hurdles to be overcome within their sectors, the common problems faced by all firms and also by the economy," he said. "They have not been contaminated by the bureaucratic administrative system, so they can best deliver and make a difference. However, they have to prove in a short time that the economy can emerge from its present low."
But not everyone agrees with El-Kaissi. Opposition parties and the media reacted harshly to their appointments. The leftist party press lead this condemnation of the appointments, with many other newspapers accusing the National Democratic Party of going too far. Three parliament members have suggested drafting a new law that would explicitly prohibit the fusion of private business and public office and would force candidates to reveal information about their assets before joining the government. Both ministers have declared they would not be involved in the day-to-day running of their businesses.
"Those are legitimate queries. They have to hold a position where there is no conflict of interests," says Mohamed Kamal, professor of political science at Cairo University and active member of the NDP.
Kamal explains, however, that there is no need to fear that private interests could affect reform policies. "All members of the government are committed to applying NDP policies and the president's directives, which ensure that economic reforms will not negatively affect the poor," he said.
A private sector mentality is much needed in the government, he said. "Public entities need the private sector mentality in management to improve and modernise, as the bureaucratic tradition has become the main obstacle for development," Kamal added.
According to El-Kaissi, both ministers Rashid and El- Maghrabi are risking their businesses and reputation by accepting their new jobs. "There is no doubt that their own businesses will be negatively affected," he said. "They will have to delegate their work to others. Moreover, any bad decisions they make will always be remembered."


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