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THE EYE OF THE STORM
These are turbulent times worldwide, as terrorism
tests foreign and domestic policies and the commitment of democratic
societies to freedom and human rights. Egypt is in the eye of the
storm and entering a new phase in its political history. The first
openly contested presidential elections will have far-reaching impacts
and introduce a new set of options and responsibilities for citizens
and politicians alike. Egypt’s political reform is directly
linked to the economic reform we undertook over a decade ago; indeed,
democratic and economic reform are two sides of the same coin. Both
rely for their success on the quality of interaction between government,
private sector, citizens and civil society, with accountability
and trust as the essential features of these relationships.
When we speak of a free market economy, we don’t mean a free-for-all,
without rules or guidelines. On the contrary, an open market economy
demands a level playing ground, and laws to foster competition while
benefiting and protecting the consumer. Egypt is seeking a new balance
between the private sector’s interests and those of government
and citizens. Adherence to good practice will determine our success
as a society as well as the sustainability of the private sector’s
efforts.
The task before us is to create a culture that assimilates and advances
both political and economic freedoms: a flourishing private sector
that is not exploitative, a citizenry that has a voice, a free press
that is not abusive, legislative bodies that are efficient and fair,
and authorities whose power and performance is debated and approved
by the people. The answer is institutional reform, to decentralize
government and enable a system of accountability to operate. Every
sector – administrative, legislative, judicial, health and
education – is implicated. The goal is an efficient system
of government capable of serving the nation’s interests, one
of which is a strong economy.
Although people tend to see the role of government in an open market
system as less important than its role in a centrally planned one,
this is not the case. The role is different – not less; the
state becomes a regulator instead of a producer. This shift, the
changing role of government, is at the heart of Egypt’s institutional
reform. It requires creating new administrative bodies and restructuring
existing ones. In a democratic and open market economic system both
the economic and political aspects of society function at maximum
potential. On a governmental level this means answerability to the
people and the legitimacy of power through popular elections. A
democratic system recognizes the importance of citizens’ trust
and support, because they have the ultimate power to change a system
that doesn’t work.
A centrally planned government may have the virtue of simplicity,
but its major weakness is that it distances the state from the people.
It rules by command. Appointed officials may fail to do their jobs
with relatively few consequences; elected officials can’t afford
to disappoint their constituencies.
Accountability – in business as in government – requires
measuring people’s performance, rewarding those that meet their
goals, and replacing those who fail to do so. The people judge their
government’s performance in a democratic system by their votes.
Likewise, the government ensures that the rule of law is equitably
enforced on every level of society. This system of interrelated
checks and balances where no one is free of accountability or above
the law, reduces the chances for corruption, while increasing efficiency.
When everyone moves together in the right direction – when
relationships are balanced – society advances and succeeds.
A market economy is more complex than a centrally planned one. It
widens the playing field and therefore requires more rules, more
efficient supervision, more transparency and communication, closer
assessments of performance, more feedback between all parties involved.
The bottom line is you either do a good job or you’re out,
so that someone better suited can take your place. It may sound
harsh, but with the right checks and balances, a society becomes
more productive and people prosper.
In earlier columns I’ve spoken of the new social contract being
forged between the state and the people. The amendment of Article
76 was a first step towards the goal of a democratic society. The
elections taking place this month, and the upcoming parliamentary
elections, will challenge all interested parties to act responsibly.
In democracies, leaders represent and are therefore answerable to
the people who elect them. These issues of accountability, of participatory
government, a government “of the people, for the people and
by the people” have entered Egypt’s public discourse in
a big way, arguably for the first time. I believe that the process
of economic reform will gain impetus from the accelerated debate
over political reform that we are seeing today, and that our society,
as a whole, will be the better for it.
TAHER HELMY
President, AmCham Egypt
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