Economy focus for cabinet change

A limited cabinet reshuffle is intended to upgrade and streamline efforts to reactivate the nation's stagnant economy, reports Nevine Khalil.
On 21 November, President Hosni Mubarak decreed a limited cabinet reshuffle, involving the economic group of ministers mainly, in an effort to revive the national economy, which suffered major losses as a result of the 11 September attacks on the United States and the subsequent war against terrorism.
Most significantly, Youssef Boutros Ghali, minister of economy and foreign trade, was given the foreign trade portfolio following the abolition of the Ministry of Economy. The action was said to be aimed at giving a major boost to exports, as well as affirming the independence of the Central Bank, whose activities, until now, were supervised by the Ministry of Economy.
Minister of Electricity Ali El-Seidi was moved to the industry portfolio; El- Seidi was replaced by Hassan Younes, chairman of the Holding Company for Electricity; Osman Mohamed Osman, director of the National Planning Institute, was appointed minister of planning; Mamdouh Tadros, hitherto under- secretary at the ministry of agriculture, became state minister for the environment, replacing Nadia Makram Ebeid; and finally Fayza Abul-Naga, head of Egypt's mission at the UN Geneva headquarters, was appointed state minister for foreign affairs.
After swearing in the six ministers last Thursday, Mubarak chaired a full cabinet meeting on Saturday to outline his expectations from the reshuffled government. In the 90-minute meeting, Mubarak said the reshuffle was intended to inject new blood into the government, and to "come up with new ideas" to better serve Egypt's effort to emerge from the recession. The abolition of the Ministry of Economy and creation of an independent ministry of foreign trade is aimed at focusing government efforts on increasing exports. "Giving a boost to exports is a matter of life or death for Egypt," Mubarak said.
The post of state minister for foreign affairs -- which had been non-existent for years -- was reinstated and assigned the duties of the Ministry for International Cooperation. The move, Mubarak explained, aimed to streamline contacts with foreign countries for better coordination and administration. He argued that international economic cooperation is based on contacts with Egyptian embassies around the world and, therefore, is best supervised by the Foreign Ministry.
Mubarak also declared that starting 1 January, he will be meeting periodically and separately with all ministers to review their respective activities and plans. He urged cabinet ministers adopt "a team spirit," encourage democratic discourse, make only "realistic" public statements, give priority to economic interests and be considerate to the needs and capabilities of average people.
Hours after announcing the cabinet shuffle on 21 November, Mubarak told journalists on his way back from Saudi Arabia that he does not decide on any form of change except after ascertaining that the incumbent official had abused his post or cannot "contribute" or achieve more. He added that Egypt's political will is firmly behind improving the economic situation, increasing exports and promoting cooperation in the field of investment and development.
Mubarak also stressed that "everyone should realise that in order to overcome the major crisis we are facing, and in light of the difficult conditions on the world scene, a united effort by the people and government is required." He urged Egyptians to help revive the economy by spending their money inside the country, not abroad. "Those people who vacation in Nice and Cannes, others who choose to fly on foreign carriers, or import ice cream and yoghurt, are harming the national economy," said Mubarak. Banks were instructed not to finance consumer projects. Mubarak also opposed foreign loans and the import of luxury goods. "The right thing to do is rational and balanced spending," stressed Mubarak.
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