Instability holds back Egyptian competitiveness
Political factors are the biggest problem facing Egyptian competitiveness, according to the World Economic Forum's annual Global Competitiveness report released on September 4.
Egypt's global competitiveness has continued to drop since the massive uprising that ousted former president Hosni Mubarak. Egypt ranked 118 out of 142 countries that the World Economic Forum included in it report.
The ranking was 11 spots lower in this year's Global Competitiveness Index compared to the previous year.
“Although resolving political friction needs to remain the priority as this report goes to print, many of the underlying factors that will be decisive about the sustainability of the country and the cohesion of the society over the medium to longer term are economic in nature,” the report said.
22.9% of those surveyed selected “policy instability” as the biggest problem facing business in Egypt, followed by “government instability/coups,” at 14.7 percent. Crime and theft, access to financing and corruption were the other categories in the top five issues facing respondents.
The report lists Egypt as an efficiency driven economy, but it also ranked below similar economies in most categories. Jordan and Tunisia also fall into this category.
Efficiency enhancers include higher education and training, efficiency in goods and labor markets, financial market development, technological readiness and market size.
It said Egypt has a large potential for growth, if it seizes on “the potential country's large market size and its proximity to key global markets.”
Egypt's subsidy regime was singled out in particular by the report, reform of which it said would strengthen the country's private sector and help create jobs.
More advanced economies are considered “innovation driven,” by the report. One promising factor was the availability of scientists.
The report’s section on Egypt was written in cooperation with The Egyptian Center for Economic Studies, an independent, non-profit think tank.
أخبار ذات صلة
Milking Juhayna for all it’s worth
Thabet may have been approached with a proposal to merge his factories with a state-led initiative.
The protection of competition: A suspended verdict
At times the Egyptian Competition Authority has played an active role in curbing monopolistic practices — but not always.
Have the IMF’s promises to Egyptians come true?
The IMF did not only promise growth, it also promised inclusive, job-rich growth.
Report: Political instability, poor access to finance hold back Egypt’s private sector
Political instability, poor access to finance and unreliable electricity are the top obstacles to Egyptian private sector companies.
Your support is the only way to ensure independent, progressive journalism survives.
You have a right to access accurate information, be stimulated by innovative and nuanced reporting, and be moved by compelling storytelling. Subscribe now to become part of the growing community of members who help us maintain our editorial independence.
Join us