Unlike several of its neighbours, the Arab world’s most populous nation has thankfully succeeded in regaining its political, security and social equilibrium following years of turmoil. Egypt is on the right track and with wise governance could emerge as a regional success story.
Often forgotten is that during the period from 1926 to 1953, Egyptians were among the richest, most educated and progressive Arabs. Cairo was the cleanest and most beautiful city on the planet. Egypt’s coffers were overflowing.
At one time, the guinea was made of 7.43 grams of gold and the dollar bought a mere 25 piastres. In the 1940s, the Egyptian stock exchange was the world’s fourth largest.
Egypt loaned the equivalent of $29 billion to Britain during the First World War and the US requested Egypt to give financial aid to European countries. Egypt was a land to which Greeks, Italians and Armenians, among others, gravitated seeking often menial employment. Working in Egypt was seen as a dream job. Unemployment never exceeded two per cent.
Ethiopia and Uganda sought union with Egypt. In 1862, Japan sent a mission to Egypt to learn how their country could emulate its success.
As evidenced from black and white movies produced during the Egyptian cinema’s Golden Age and archived Path newsreels, cosmopolitan Alexandria was dubbed the region’s Cote d’Azur; its port was a hub for European cruise lines en route to India and Singapore. Royal princes were students in the city’s illustrious Victoria College.
Fashion designers used to show their new collections in Cairo before Paris. Taxis were luxurious American Cadillacs.
In those days, the country was renowned for producing the finest cottons and for constructing the world’s first solar station.
Egypt’s former president Gamal Abdel Nasser was prominent among the army officers who gave Egyptians their independence from Britain and his nationalist pan-Arab fervour served as an inspiration to
Arabs everywhere. His intention to improve the lives of the poor was worthy but sadly many of his socialist economic initiatives were misguided. Wars with Israel also contributed to the depletion of Cairo’s finances.
Egyptians are feeling the pinch due to rising prices but they can look forward with confidence. I have visited Cairo on numerous occasions over the past year. It is chaotic and traffic-jammed but it remains one of my favourite cities presenting every facet of life in the raw. Whatever their station, whatever their personal burdens, Egyptians always manage a smile and a joke.
Rather than bemoan the fact that their country did not become a European clone overnight or hasten to apply for US visas, young Egyptians should roll up their sleeves. Like a mother newly released from intensive care, their country needs their energy, their enterprise, their innovation and, yes, their love.
The United Arab Emirates was not produced from a magician’s hat. We built it together brick by brick on a strong foundation of unity, belief and hope. With patience and a stable government, there is nothing preventing Egyptians from doing the same or to be more precise bathing their country in good fortune once again.
It has been an uphill battle, but today the country is back on a positive trajectory; its shattered economy is slowly but surely improving. For example, this month its foreign reserves reached a six-year high of $28.5bn.
The flotation of the Egyptian pound has resulted in inflation but on the upside has attracted substantial foreign investment that leapt by “39 per cent in the first half of the current fiscal year” according to Reuters.
A newly passed investment law is designed to incentivise foreign investors by offering major tax discounts and the availability of free zones exempt from taxes and duties.
The good news is that Egypt’s energy woes are over. British Ambassador to Egypt John Casson announced that British Petroleum is set to invest $13bn to “make Egypt the new energy superpower”.
At the end of this year, the massive Zohr Mediterranean gas field discovered by the Italian company Eni is scheduled to begin production when the country is expected to transition from an energy importer to an exporter.
For sure there is much still to be done. Parallel to its spending on infrastructure, the government should invest in its human capital, particularly in the areas of education and medical care, which are, as the President has acknowledged, below standard.
Most crucially, the pervasive culture of corruption and cronyism which exists from top to bottom must be abolished. All citizens should enjoy equal opportunities according to their talents and should not have to pay bribes.