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Survival of the most practical The outcome of war in Iraq and its greater implications are on everyone’s mind. It’s time for the business community to look to the future, to formulate not only our options but our expectations, and decide how we’ll respond to the courses of action chosen by governments regionally and in the West. Peace is essential, in Iraq and in Palestine, if reconstruction efforts are to be meaningful and translate into a better life for the beleaguered people of our region. As for those of us involved in international business and trade, our handling of post-war economic scenarios will determine our survival and the survival of those who rely on us for employment. As ever, AmCham Egypt’s role of mediator between government and private sectors on issues relating to the economy is vital. As we seek to shape an uncertain future, the public and private sectors must act together to facilitate the shared goal of strengthening Egypt’s economy. We’re well aware of the areas that have taken the biggest hits. Tourism, obviously, but there are other worrying trends, such as the dramatic decrease noted citywide in advertising sales – a barometer of diminished commercial activity. Nevertheless there are signs of hope. The Kraft acquisition announced last month is a reminder to the international community of Egypt’s viability as an investment base. But government decisions regarding foreign trade and investment must be consistent and reflect the need for greater openness if we are to move forward. The recent decree obliging businesses to convert 75 percent of their earnings into local currency presents new and unnecessary constraints that act as a deterrent to investment, at a time when policy should do all it can to encourage it. It’s fitting that Business Monthly dedicates this issue to the energy sector, not only because of the role of oil and gas in political and economic decisions, but as a means of assessing our ability to fuel Egypt’s growth. One of the possibilities is that gas resources can eventually satisfy foreign currency demands. Additionally, the possibility of an integrated electricity grid across North Africa that is discussed in this issue signals a framework for greater regional cooperation. Meanwhile, the United States congress recently approved an $80 billion post-war reconstruction package and Egypt is slated as a recipient of a portion of those finances as a kind of accelerated USAID. The business community should be involved in decisions regarding these funds, and in devising strategies to mitigate the damages resulting from war. Whatever our stance on the ethics of the Iraqi conflict and the ongoing struggle taking place on our eastern border, economic realities must be coolly addressed. At the end of the day, the fact remains that half a million first-time job applicants are looking for a place to work. Egypt’s future rests on how well we utilize their talents and energies, which are an even greater resource than Egypt’s oil and gas. In closing, I’d like to salute the members of
AmCham Egypt, whose unflagging support underlines the importance
of this organization’s mission. By serving the business community,
providing information to the public, and feedback to the government
regarding economic policy and the realities on the ground, we do
more than impact our investment environment. At the heart of all
business and trade, lie interaction, negotiation and dialogue. In
fact, doing business means communicating and opening new lines of
communication wherever possible. But business and trade can only
work between cooperative partners in an ambience of stability and
peace. We believe that the players in this conflict can act honorably
and in the best interest of their people to create such an ambiance.
If they do, the business community can optimize efforts to keep
the lines of communication open in order to realize Egypt’s
potential and offer its youth a better future. Mohamed Mansour |
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