Egypt

This country economic memorandum focuses on areas where Egypt can consolidate its stabilization, build up long-term saving to sustain growth, and push for rapid growth... Show More + of non-oil exports. The CEM is in four volumes: a summary report, a main report, a working papers annex including background studies, and a statistical annex. Recommendations to integrate Egypt into the global economy include: (1) improving trade transportation; (2) simplifying customs procedures; (3) reorienting quality control for safety and health reasons; (4) incorporating private participation to maximize foreign direct investment and benefits; (5) creating a single, one-stop shop export promotion center; and (6) setting export targets followed by public education and promotional campaigns. Recommendations to increase domestic saving cover: (1) privatization and commercialization of public enterprises; (2) financial policy reform and financial institution development; (3) social insurance system (SIS) reform in the short-term by eliminating National Investment Bank access to SIS funds, raising the normal retirement age, adjusting pension benefits for inflation, with wage escalators, and reviewing contribution amounts; (4) Long-term SIS reform through installing a multipillar system consisting of fully-funded mandatory defined benefits and mandatory defined contributions which insure workers' earnings, and a voluntary scheme supplementing the two; (5) a consumption tax principle applied to contractual savings; (6) insurance sector reforms increasing competition through privatization; and (7) capital markets development to increase liquidity. Show Less -

This country economic memorandum focuses on areas where Egypt can consolidate its stabilization, build up long-term saving to sustain growth, and push for rapid growth... Show More + of non-oil exports. The CEM is in four volumes: a summary report, a main report, a working papers annex including background studies, and a statistical annex. Recommendations to integrate Egypt into the global economy include: (1) improving trade transportation; (2) simplifying customs procedures; (3) reorienting quality control for safety and health reasons; (4) incorporating private participation to maximize foreign direct investment and benefits; (5) creating a single, one-stop shop export promotion center; and (6) setting export targets followed by public education and promotional campaigns. Recommendations to increase domestic saving cover: (1) privatization and commercialization of public enterprises; (2) financial policy reform and financial institution development; (3) social insurance system (SIS) reform in the short-term by eliminating National Investment Bank access to SIS funds, raising the normal retirement age, adjusting pension benefits for inflation, with wage escalators, and reviewing contribution amounts; (4) Long-term SIS reform through installing a multipillar system consisting of fully-funded mandatory defined benefits and mandatory defined contributions which insure workers' earnings, and a voluntary scheme supplementing the two; (5) a consumption tax principle applied to contractual savings; (6) insurance sector reforms increasing competition through privatization; and (7) capital markets development to increase liquidity. Show Less -

This report presents the key findings and recommendations of a World Bank mission that visited Egypt from February 18 to March 6, 1992. The mission was invited by the... Show More + Government to review its medium-term investment program in the context of Egypt's Third Five-Year Plan (FY93-97). The main objectives of this report are to: (a) assess the public investment program within the context of the Third Five-Year Plan, examine its consistency within the overall macroeconomic framework of the Economic Reform and Structural Adjustment Program (ERSAP) and analyze budgetary and financing implications of the program; (b) identify and analyze the investment program's priorities and sectoral allocations; and (c) assemble a list of new and expansion projects with foreign financing requirements. The Bank's final recommendations have been based on sectoral priorities and on the estimated economic and financial rates of return for major projects and programs in the plan. Show Less -

This report analyzes the issues impairing the development of a competitive and sound financial system in Egypt and suggests a comprehensive and coherent program of financial... Show More + and tax-related policy reforms. This program aims at improving resource mobilization and allocation, in support of the implementation and sustainability of the ongoing structural adjustment efforts, while encouraging a private-sector-led growth strategy. The recommendations are directed at: (a) improving the policy environment; (ii) increasing the solvency and efficiency of financial intermediaries; (iii) increasing equity in the social insurance system; (iv) correcting labor market distortions; and (v) providing appropriate mechanisms to help develop a market economy. Volume I presents the executive summary and the policy environment; Volume II covers the analysis of financial intermediaries; and Volume III contains the statistical appendix and technical annexes. Show Less -

The primary objective of this report is to help the government continue the advances being achieved in laying the groundwork for improved economic performance and growth.... Show More + The government plans to take further steps before the end of 1993 to streamline and improve the efficiency of the regulatory environment for the business sector. The report assesses the need for actions in the regulatory and incentives environment which will encourage private sector-led investment, employment and growth in accordance with government policy, and thus complement the many reforms the government is implementing in the public enterprise sector. Emphasis is given to the manufacturing sector. Since policy reforms currently being implemented by the government are subjecting public industrial enterprises to many of the regulations facing the private sector, many of the report's recommendations will apply equally well to the public sector, and may therefore be viewed in the context of the business sector as a whole. The main focus of the report is on the regulatory areas affecting business enterprise decisions: whether to enter markets and invest in new projects or expand operations; how to design and carry out production and marketing operations efficiently and effectively; and, should the need arise, how to voluntarily or involuntarily close up operations. Show Less -

A review of recent economic developments shows that Egypt is facing a slowdown in economic growth, a high external debt burden, and widening financial disequilibria.... Show More + While the Government has made substantial efforts since the fall of 1986, this report argues that adjustment and stabilization policies have to be substantially strengthened over the coming years to achieve satisfactory adjustment and growth. Measures will have to include a more active exchange rate policy, policies to stimulate private sector investments, the liberalization of foreign trade and of domestic prices, the reform of public enterprises, restrictive public finance management, cautious wage policies and restrictive monetary growth. Comprehensive domestic adjustment measures have to be supported through some form of substantial debt service reduction or equivalent increase in grant aid in order to reestablish the country's debt servicing capability. By spreading the implementation of the reform program over time and maintaining a satisfactory social safety net for the poorest segments of the population, major economic disruptions can be avoided and the standard of living of the poor can be largely protected during the adjustment period. While overall growth might be very slow up to end-FY91, it could exceed population growth thereafter, and the country's credit rating would be reestablished by the late 1990s. Show Less -

A review of recent economic developments shows that Egypt is facing a slowdown in economic growth, a high external debt burden, and widening financial disequilibria.... Show More + While the Government has made substantial efforts since the fall of 1986, this report argues that adjustment and stabilization policies have to be substantially strengthened over the coming years to achieve satisfactory adjustment and growth. Measures will have to include a more active exchange rate policy, policies to stimulate private sector investments, the liberalization of foreign trade and of domestic prices, the reform of public enterprises, restrictive public finance management, cautious wage policies and restrictive monetary growth. Comprehensive domestic adjustment measures have to be supported through some form of substantial debt service reduction or equivalent increase in grant aid in order to reestablish the country's debt servicing capability. By spreading the implementation of the reform program over time and maintaining a satisfactory social safety net for the poorest segments of the population, major economic disruptions can be avoided and the standard of living of the poor can be largely protected during the adjustment period. While overall growth might be very slow up to end-FY91, it could exceed population growth thereafter, and the country's credit rating would be reestablished by the late 1990s. Show Less -

The report shows that the decentralised public sector is a key contributor to Egypt's deteriorating economic situation. The finances of the decentralised public sector... Show More + are characterized by a large and growing overall deficit, low savings rate, a low and weakening financing rate of return and a high budgetary burden. Moreover, a large share of Egypt's bulging external debt belongs to the decentralised public sector. The disaggregation of the financial performance of these enterprises shows that those in industry, transport and power are the principal contributors to the picture. The report discusses individually some of the major enterprises and provides specific suggestions and recommendations on each one. A key conclusion of the report is that the weak financial picture of the public sector is partly due to internal, enterprise specific problems, but these have been less important than the constraints imposed by the overall policy framework, which is the primary focus of the Bank's dialogue with the country. Show Less -

This study examines in depth the major policy, administration and financial constraints, and formulates a program of appropriate actions for their resolution. The first... Show More + area covered involves analysis of the performance of manufactured exports and its relation to comparative advantage in Egyptian industry. The second analyzes the policy constraints impeding export performance. A number of simple initial measures to correct the policy bias against exports are proposed. The third area is a review of the institutional constraints with regard to export promotion and export finance and includes specific suggestions to strengthen the institutions involved. The fourth area reviews procedural/administrative and other constraints that hinder export growth. Next the study makes a preliminary assessment of the outlook for Egyptian exports in the medium term. The final topic is a review of the textiles and engineering industries with a view to analyzing their export performance and capabilities, major constraints to export expansion, medium-term export prospects and actions required to promote export expansion. Show Less -

This study examines in depth the major policy, administration and financial constraints, and formulates a program of appropriate actions for their resolution. The first... Show More + area covered involves analysis of the performance of manufactured exports and its relation to comparative advantage in Egyptian industry. The second analyzes the policy constraints impeding export performance. A number of simple initial measures to correct the policy bias against exports are proposed. The third area is a review of the institutional constraints with regard to export promotion and export finance and includes specific suggestions to strengthen the institutions involved. The fourth area reviews procedural/administrative and other constraints that hinder export growth. Next the study makes a preliminary assessment of the outlook for Egyptian exports in the medium term. The final topic is a review of the textiles and engineering industries with a view to analyzing their export performance and capabilities, major constraints to export expansion, medium-term export prospects and actions required to promote export expansion. Show Less -