Egypt is presently confronting many economic challenges, which the government is trying hard to solve. Regardless of the type of economic policies the government adopts, the debate among economists concerning which policies to apply will continue. However, when it comes to single-mindedly using present and future “reservoirs” to establish new megaprojects that will supposedly yield substantial returns in the far future, the government needs to be open to debate: What if our megaprojects don’t yield the returns anticipated by the state?
Culturally, Egyptians tend to be obsessed with a single idea, believing that this one concept will solve our problems permanently. Eventually, a few years later, we realize that we were wrong, but our egotism prevents us from comprehending our faults and pushes us to engage in a new obsession. The state’s tapping into Egyptian religious endowments funds (after having drawn on literally all our other national resources and international funds) should lead us to question whether the economy is all about expanding the government’s expenditure.
The Egyptian state is currently obsessed with the idea of expanding the nation’s hardware, exemplified by the development of our physical infrastructure (new cities, roads and tunnels). The State expends these efforts but completely neglects to identify suitable software applications that will eventually work to maximize the returns on these projects by formulating incentivizing policies designed to encourage the private sector to expand its businesses (assuming that the state does not have the capacity to play both roles).
The state has been concerned with the fact that a few corrupt businessmen used to manipulate the Egyptian economy prior to the Jan. 25, 2011, revolution, which is a valid concern. It has therefore been working to replace the private sector’s “economy engine” with its governmental tactics and apparatus. This approach, combined with the government’s development of economic policies that serve to expand its role, has resulted in the substantial growth of government projects and a marked shrinking of the private sector. Read More …