Gamal Mubarak highlights recent political reforms

AmCham Egypt held its 23rd Annual General Meeting ( AGM ) at the Four Seasons Hotel- Nile Plaza on May 29 with guest speaker Gamal Mubarak, head of the National Democratic Party (NDP) Policy Secretariat.

Speaking before 750 members, guests and journalists, AmCham treasurer Yasser El Mallawany presented AmCham's 2004 financial statement, giving it a clear bill of health. El Mallawany noted that AmCham continued to increase its revenue generating ability "to sustain its exclusive goal in promoting business."

AmCham Executive Director Hisham Fahmy then took the stage to recognize the outstanding performance of staff members with over 15 years experience at the Chamber. He applauded the efforts of Chief Messenger Salah Salah, Assistant Chief Messenger Saad El Deen Mahgoub, AmCham Deputy Executive Directors Sylvia Menassa and Mohamed Amin Hemimy, and Membership Services Manager Dahlia Younis.

AmCham President Taher Helmy shared highlights from the AmCham Board of Governors' report for 2004. Reflecting on a year of achievements, he cited a long list of distinguished guest speakers, monthly luncheons, seminars, committee meetings, reports and missions to the US .

Helmy highlighted the successful passing of a motion to amend AmCham's constitution to reflect a more practical and democratic voting system for the Chamber. "Last year we promised to reinforce the democratic process and improve the election procedures by amending the American Chamber constitution," he said. "I want to thank you for approving the amendments to cancel the proxy system once and for all and replace it with the absentee ballot."

Helmy then introduced the main speaker, Gamal Mubarak, who took the podium to discuss recent developments in the nation's political reform process. He highlighted the May 25 referendum, which approved an amendment to Article 76 of the Constitution to allow - for the first time in Egypt - multi-candidate presidential elections.

"For the first time in Egypt 's political history, and as a result of a constitutional amendment approved by a majority of the electorate in a public referendum, direct elections for the office of the president will be held this September," he said. The multi-candidate presidential elections will be closely followed by general elections for the lower house of parliament.

"The amendment to Article 76 was not done in a vacuum, but as part of an overall vision for political reform," he asserted. "While it opened the door for political parties to compete for the highest office in the land, the legislative changes, taken together, provide for a level playing field in which all political parties will have an equal opportunity to engage in fair competition. It is a prescription for political dynamism, rather than a perpetuation of the political status quo."

He said that during the coming months, Egyptian citizens would be called upon to decide their own future, "freely exercising their constitutional right to elect their representatives. And precisely because they are about the future, the coming elections should be a choice between different visions for that future."

Mubarak explained that the NDP has worked diligently to develop a vision for the future that seeks to better society through responsible action based on dialogue with all actors in society. "Perhaps even more difficult than articulating a vision, is translating it into a realistic program of action. This is where the element of leadership becomes critical," he said. "For it is only with resolute leadership that we can confront the tough choices and the difficult decisions that inevitably arise out of any serious program of change."

Mubarak described vision without workable policies as rhetoric, and policy in the absence of vision as incoherent. He recognized that people are free to differ with policy, but said to disagree without proposing realistic alternatives "does not constitute responsible opposition, but only political opportunism."

He then began a discussion on the NDP agenda to be presented to the electorate in the fall. He explained that the party would seek to build on the significant changes in Egypt 's political, economic and social landscape over the past decades. Acknowledging that the country still has a long way to go in the process of political reform, Mubarak expressed the conviction that " Egypt 's political future should be one of greater political competition."

"We have succeeded over the years to institutionalize a pluralist political system," he said. "Now we must inject it with a greater degree of competition to enhance its effectiveness."

According to Mubarak, improving effectiveness was one of the major considerations behind the amendment of Article 76. The article allowed all existing political parties to present their candidates, without restrictions or conditions, for this year's presidential elections. He noted, however, that for future presidential elections, political parties are required to hold 5 percent of the seats in parliament as a prerequisite for fielding candidates. "This was in no ways meant as a barrier to political parties, but rather as an incentive for them to seriously compete in elections," he explained.

Moving on to the topic of governance, Mubarak stated that "success will depend on the structures of government that must translate policy into concrete reality." Highlighting the critical role of the institutions of governance, he emphasized that "no program of reform, therefore, can be complete in the absence of a serious agenda addressing the issues of good governance."

Central to this endeavor, Mubarak elaborated, will be efforts to restructure civil service to better accommodate society's needs and increase efficiency in executing government policy. "But while we work to enhance the performance of government at the central level, our efforts cannot succeed unless they are complemented by a renewed focus on local government. As we look forward, we must realize that the functions of governance have become too complex, the stake-holders too many, and the requirements of society too dynamic, to be undertaken by central government alone."

Discussing the link between democratization and economic growth, Mubarak made clear that competition will be the organizing principle of the economic reform agenda. He explained that achieving this goal will require building the institutional and regulatory framework for a successful market economy. "However, the task of market regulation will not be restricted solely to formal government bodies. Increasingly, non-governmental organizations will assume a greater share of such oversight responsibility."

In addition, Mubarak noted that efforts will be made to complete the macro-economic reform agenda and to open the door to private sector participation in key sectors. "This new focus on asset management policy will be a critical element in attracting greater foreign direct investment. Here our policy will also rely on a different approach as we shift from a reliance on tax incentives, which are now being phased out, to a focus on improving the overall business environment," he said.

Shifting to social reform, Mubarak noted that "the core of our social reform program has and continues to be a fair and accessible safety net that caters to the underprivileged in our society." He then proceeded to outline the reform efforts being undertaken to meet the changing requirements of society.

In closing, Mubarak addressed leaders of the business community directly, asking them to accept responsibility for shaping that future. "It is only through such participation that we can guarantee success in such an endeavor. The greater the scope of political participation, the more society itself becomes the true custodian of change. Participation thus becomes the key guarantor ensuring the irreversibility of reform."

He explained the biggest challenge of any governing party is to strike a fine balance between responsible policy, and the demands of politics. "It entails great challenge; for change hardly comes without its costs. Very often, the costs are immediate, while the benefits are delayed."

Mubarak then proceeded to answer questions from the audience on the health of political competition, transparency in the electoral process, voter registration, education reform and Egypt-US relations.

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