"Narrative Summit" Releases 2025 Recommendations to Cement Egypt's Position as a Global Tourism Destination    Egypt, S.Arabia step up trade ties through coordination council talks    Egypt reviews progress on $200m World Bank-funded waste management hub    Egypt urges Israel to accept Gaza deal amid intensifying fighting    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Reactionary not progressive: Egypt's economic policy
Published in Daily News Egypt on 01 - 04 - 2013

In a desperate move to save power, Egypt's international airport will close most of its runways for four hours each day from early June, Reuters has reported.
The airport is the latest casualty of Egypt's struggle to pay for fuel imports.
As if to soften the blow, Reuters quoted the civil aviation minister Wael al-Maadawi as saying: “The closure should not have any impact on air traffic as the airport has seen a dramatic reduction in flights, and runways had been kept open without being used."
“The decision came after detailed study on the rate of work that had witnessed a huge reduction (in traffic) in the past two years," he added.
So he's essentially saying it is OK to shut down the airport sometimes because tourism is down the drain anyway.
It's simply a poor and lazy excuse to ignore the real root of the problem, more frequent power cuts caused by shortages, which are in turn ultimately caused by delayed reform of energy subsidies.
But it is also a reflection of the Egyptian government's approach to the economy: reactionary in every way.
If a problem crops up, a plaster is swiftly administered. If it leaks, the patch is replaced or stuck on harder, and so on. In this case, closing the airport for a few hours each day is conceivable only because there is another problem, flights into Cairo have dramatically reduced because of the political situation.
It may be a short-term solution, relieving the government of more energy bills, but it is by no means sustainable.
Aside from actually making concrete moves to solve the energy crisis, shouldn't the government invest some time and money into improving the airport, a tourist and international investor's first impression of Cairo? At least, work on smaller aspects such as creating a managed system that would help allocate arriving passengers to a designated driver, saving passengers who have just touched down the hassle of haggling over fees with taxi drivers.
Instead, Egypt has decided to ignore the underlying problems that will plague most Egyptians this summer in chronic blackouts and also manage to limit arrivals into Cairo at a time when the country is desperate for hard currency.
Under Morsi, the government has repeatedly made these ad hoc decisions, which seemingly are not connected to one another and stray far from a long-term economic plan.
The biggest ad hoc decision that has come back to haunt President Morsi is, of course, the backflip on tax reforms in November when the president announced a broad spectrum of tax hikes in the early hours of the morning, only to rescind this the next day. That is now being used as ammunition against Morsi and has severely hurt any government efforts at economising.
At one point, Egypt also imposed a curfew on shops to save money, only to backtrack a week later. And most recently, the government raised customs on luxury imports in a basic manoeuvre that misses the point (i.e. the need to overhaul the tax collection system and widen the income tax base, discussed more here).
No, let alone any attempts to restructure the economy, Egypt still has no long-term economic plan and the government has fallen back on reactionary measures time and time again.
Morsi, whose presidential campaign was based on the Brotherhood's 20 year Renaissance Project, has failed to plan even a few days ahead.
Egypt should drop its shrill and reactionary approach to the economy, abstaining from shutting huge operations down when they cannot sustain them any longer, and look immediately to gradual reform using a progressive and transparent plan.


Clic here to read the story from its source.