What are the main steps Egypt must take to strengthen its economy?
In the short term, Egypt must restore security and send the right message to the private sector to encourage optimism. The interim government must lay the groundwork for a new partnership with the private sector that encourages investors to engage in providing new services and utilities under the supervision of the government.
The government must adopt a more participatory and transparent decision-making process, including making budget information and other related financial operations public. Moreover, it needs to ensure the availability of funds for small and medium enterprises by providing guarantees to commercial banks for a limited period of time. Lastly, the government must set clearly priorities to ease the transitional period and channel foreign grants and loans toward needed infrastructure and housing projects for the poor.
About the International Economics Program
The Carnegie International Economics Program monitors and analyzes short- and long-term trends in the global economy, including macroeconomic developments, trade, commodities, and capital flows, drawing out their policy implications. The current focus of the program is the global financial crisis and its related policy issues. The program also examines the ramifications of the rising weight of developing countries in the global economy among other areas of research.