Egypt has much to learn from Russia's economic turnaround, writes Ibrahim Nafie President Mubarak's recent visit to Romania and Russia marks the beginning of a concentrated focus on the home front. As we in Egypt aspire to nothing less than a full-scale national revival, I believe that the recent development experiences of Romania and Russia offer much we can draw on in terms of the processes and attitudes needed to bring this about. Romania is instructive because of the success it has achieved in meeting most of the political, economic and social standards required for admittance to the EU, scheduled for 2007. However, here I would like to concentrate on Russia, which has experienced something akin to a miracle when one considers the deterioration that had afflicted virtually every aspect of life in that country. Following the breakup of the Soviet Union Russia was plunged into an unprecedented state of chaos. Domestic security collapsed as corruption, violence and organised crime soared. Standards of living dropped so sharply that famine struck many areas and people took to the street to protest the lack of basics. Virtually overnight thousands of Russia's finest minds had to scramble for the most menial jobs while much of the nation's youth fled abroad in search of subsistence, not infrequently in fields that brought shame on the sons and daughters of that great power that for four decades stood proudly as the second pole in the global order. International companies hastened to take advantage of Russia's pitiable circumstances, engaging Russian scientific, technological and military experts at paltry wages, while a number of countries circled like vultures, waiting for an opportune moment to devour a piece of the moribund empire. But then Vladimir Putin succeeded in producing a complete turnaround. His approach was to face the explosive problems head on and to devise carefully constructed programmes to overcome them. Simultaneously, he reasserted the authority of the state sufficiently to restore discipline to government and order to the streets. During his first four year term in office President Putin also succeeded in injecting new blood into the Russian economy and in creating a climate conducive to foreign investment. The result was an annual economic growth rate that climbed to 7.1 per cent last year and a balance of trade surplus of $48 billion, enabling Putin to predict with confidence that his country would be able to pay off it $160 billion foreign debt within the next four years. The effects of Putin's achievements are visible. The visitor to Moscow today cannot help but to remark at the extent to which the city has shed its former despondency. Streets are clean and orderly, store shelves are brimming with goods and produce, dozens of world famous fashion designers and automobile manufacturers have opened branches here and, most importantly, the smiles have returned to people's faces. Nevertheless, this is not a portrait of unsustainable rampant consumerism, to which the $48 billion trade surplus mentioned above is testimony. Rather, it signifies that the Russian people have now begun to reap the fruits of a revived economy that is beginning to find its place again in the international market. Once Russia achieves this, it will also regain its political clout, because it already possesses the other essential ingredient for international power and prestige: military might. The lessons to be gleaned from the Russian experience do not end here. Perhaps the most salient point to understand at this half-way stage in Russia's economic and political recovery is that, in spite of the considerable progress it has achieved, its leadership's feet remain firmly planted on ground. Vladimir Putin frankly admits that there are still many problems, shortcomings and challenges to overcome. These he outlined with considerable candour in his state-of-the-union address, along with his vision and aspirations for the future. Delivered on 26 May -- two days before President Mubarak's arrival in Moscow -- this was Putin's first speech since his landslide reelection to a second term in office. Putin vowed to build a prosperous, modern state. His goals, he said, were to achieve a high standard of living, a mature democracy and developed civil society, and to strengthen Russia's position in the world. I was particularly struck by the emphasis he placed on social priorities. He pledged to build new housing for the young and to make it easier for youth to purchase homes through the provision of long-term loans and through further deregulation of the real estate market. He promised to introduce student loans and other such measures in order to open the avenues to higher education and to create more job opportunities for graduates. He further pledged to enhance health care services, to strengthen controls on the use of natural resources, and to modernise the nation's transportation and communications. Putin did not shrink from admitting that 30 million Russians still lived below the poverty line and that among these were thousands of professionals who have not received their salaries for a year. Or that inflation remained dangerously high. He vowed to fight the inflation rates and stated that his goal this year was to reduce inflation to 10 per cent. In the same address Putin stressed that he would continue to support the Russian armed forces, which he cited as one of his highest priorities. In the opinion of the Russian president maintaining a powerful military is integral to his nation's long range economic and political interests. As he put it: "We need to make safe our country from any kind of military or political pressure, and from any potential outside aggression. In this respect, the modernisation of our armed forces remains a most important task. This includes the equipping of strategic and nuclear forces with the most up-to-date strategic weapons systems." In tandem, Putin pledged to pursue a foreign policy that promoted stability within the former USSR and beyond, and furthered Russian trade interests. He added that Russia had succeeded in developing a foreign policy that was dynamic, pragmatic and commensurate with the nation's goals and capacities. Prime among his foreign policy objectives was to continue to promote and develop cooperation within the independent commonwealth league and the Euro-Asian economic group. Cooperation within a regional framework, he said, was fundamental to the process of consolidating security and stability, which were the two indispensable conditions for sustained progress and development. "Dynamic," "pragmatic," "realistic" -- these are keywords our domestic and foreign policy architects should strive to bear in mind. As I read through Vladimir Putin's speech, I could not help but feel he was also addressing our needs in Egypt. There is much in common between the circumstances here and in Russia, which is all the more reason we should devote closer examination to the turnabout Russia has achieved over the past four years. True, Egypt has never plummeted to that depth of chaotic collapse that characterised Russia in the aftermath of the break-up of the Soviet Union, but it is also true that the regional and international position of Egypt, like that of the Soviet Union, is far from commensurate to its enormous natural and human potential. Perhaps we should take heart from the general rule, of which Russia is a case in point, that when a people sees that their nation has declined to a certain critical point, they are galvanised into collective action in support of a comprehensive programme for national revival, after which they soon reap the fruits of their endeavours. We in Egypt, I believe, have reached such a point, and I also believe that the Egyptian people have begun to perceive the need to respond to the challenge. If we want Egypt to occupy the place it deserves regionally and internationally, we must start at home by building solid and orderly foundations for progress and development in all areas of life. By no means am I suggesting that we recoil from the world around us or wash our hands of the perils facing other countries in this region. Rather, by a focus on home I mean that we must give priority to the process of national revival and towards this end we must capitalise on our foreign relations or, in other words, adopt a foreign policy that is both dynamic and pragmatic. Egypt has made considerable progress in the process of development and modernisation. We have made numerous inroads in providing a better life for the average citizen, progress which can be tangibly felt in transport, communications and other infrastructure; in health, education and other social services; and in the growth of the industrial and agricultural sectors. However, this is not enough to place Egypt firmly on the path to a true national revival, especially in view of the fact, which we must be frank enough with ourselves to admit, that there are certain areas in our social and economic life that have suffered an element of decline, as has our regional and international status. It is, thus, more urgent than ever to initiate a thorough reform process and to choose those individuals with the dedication, integrity and credibility to spearhead this process. Egypt has had enough of "smooth operating" and "street cunning". We need true professionals willing to work by and to promote the rules of honesty, transparency and accountability. Above all, however, each and every one of us needs to do his or her part in the advancement of the programme for national revival. As citizens sharing the same aspirations for our country we must summon the resolve to work together and acknowledge that our rights come with duties. In addition, regardless of how competent and dedicated the members of our government are, they cannot succeed in implementing an ambitious development plan without the assistance of the private sector. The government has given no end of encouragement and support to the private sector and it will continue to do so without hesitation. But now is the time for the private sector to begin to help itself and, in so doing, help the nation fulfil its aspirations. Like all other segments of society, the private sector must summon a spirit of patriotism and take an active and effective part in the programmes for a comprehensive national revival.
