AmCham hosted a special dinner on April 16 at the J.W. Marriott Hotel with John Chambers, president and CEO of Cisco Systems.

Following a brief speech by AmCham president Taher Helmy, Egypt’s minister of communications and information technology, Tarek Kamel, explained the history of Cisco Systems in Egypt and the role the multinational IT Company has played in the development of the country’s ICT and education sectors.

“ Egypt’s strategic partnership with Cisco Systems over the past seven years has grown in a very positive way,” Kamel said. He noted that Cisco has an impressive track record of education initiatives in Egypt, having cooperated with the Ministry of Communications & Information Technology (MCIT) in the launch of the e-learning competency center at the Smart Village in 2004, as well as the establishment of two regional Cisco network academies and work on the first African super-academy.

Kamel applauded Cisco’s commitment to Egypt’s development in general and education sector in particular. “Learning is certainly a prerequisite for a strong work force that can drive Egypt’s economy,” he said. “In this respect, Cisco has recently become a true partner in Egypt’s education initiative, which is being launched in Sharm Al Sheikh next month... [and] is the start of the global education initiative of the World Economic Forum in Davos. Indeed, it reflects a new cornerstone in our strategic partnership.”

Chambers began his speech by discussing how change is a driving force for growth and how the Internet has leveled the playing field across sectors and markets worldwide. “Today’s world is unequal in many ways in terms of opportunities and I believe that the Internet, along with education, is the equalizer in life. They have changed government, society and standards of living in ways we are just beginning to understand,” he said.

He said he expects 30 to 50 percent of US growth to be in emerging markets, which is a radical shift since just a few years ago when American companies made all their profits in the top 20 economies. “But it really speaks to how the Internet and education have leveled things on a global basis and where the opportunities are in societies that participate – not just in a select few, but all societies,” he said. “The good news is that markets are becoming more level; the bad news is that markets are becoming more level, so that it all depends on how fast you move.”

Circulating among the attendees, Chambers shared his perceptions on the region’s IT sector. He noted that IT industries in the Middle East and North Africa region are experiencing rapid growth, and IT development appears to be a major factor in Egypt’s 6-percent GDP growth. “We see twice the pace of new applications and new ideas in this region than we do in the rest of the world,” he said, attributing this surge to the courage of business and government leaders.

The Cisco head stressed the importance of investing in IT, noting that higher capital spending results in higher growth. “[There is] a one-to-one correlation between business value in a country and GDP growth. The great news is, I think your GDP is going to go well above 5 percent and probably about 6 percent and I’m going to set the goals for my team appropriately based on those expectations.”

Moreover, he stressed the importance of identifying market transitions and acting on them, even if it requires difficult adjustments. “If we look at where we’re going, we begin to look at those countries that will lead. It starts with an ability to identify market transitions and to create an innovative society that is willing to adjust to change even it makes each of us as individuals or business leaders uncomfortable,” he said.

The education system, Chambers argued, is the “heart” of change, and without long-term planning in this vital sector real change cannot occur. “One of the most exciting things I see happening in your country is a realistic view on education – a view that you’ve really got to start working with your children in the first, second and third grade. That’s 20 years before [the results] come to bear, and [you feel the] benefit.”

Likewise, the reforms Egypt has undertaken should be viewed in the long term. The Cisco chief pointed out that it takes three to five years for the effects of change to be felt, so “by the time employees, citizens or the media realize you’ve got it right, it’s already done... It’s the willingness to make these decisions not today, but three to five years ago, that counts.”

But change is not simply about tossing money at problems, Chambers stressed. “If all you do is build infrastructure and invest in IT then you will be disappointed. If you don’t change the process, whether it’s the health care process, education, government, social services or business process... you only get about one-fifth or one-tenth the results,” he said. “[ Egypt] has a chance to make a real difference, but you have to have the courage to change.”

At the end of the presentation, AmCham presented Mr. Chambers with honorary Chamber membership.