Egypt felt the need to reform its socio economic as well as fiscal policies when the socialist model failed to deliver its purpose. Egypt felt that the economy would be able to perform better if there is a transition from the command economy to an economy which was market oriented.
Under the system of command economy, the role played by the public sector economy is more prominent. So, the government for once felt the need to give the upper hand to the private sector. It was reckoned that the if the implementation of new economic policies brought about Egypt economic reform that was positive, the economic set up would be greatly benefited.
The new policies would not only create new job opportunities but it would also pave the way for a healthy social platform. Some economists feel that the Egypt economic reform, even if they are successful should be restructured frequently depending on the conditions and need of the economy. Some economists feel that with the introduction of the following reforms, the country may perform better. The economy of Egypt is predominantly rent seeking. Comparative advantage of Egypt could be ascertained only if the country is more open to privatization as well as liberalization.
If Egypt economic reform can be such that all strata of people are benefited equally, it may to some extent nullify the ill effects of inequality, which certain economic reforms may have brought about. Egypt economic reform ought to be more transparent.
Given below are few drawbacks of the Egyptian economy and why the country needs few reforms. Majority of the policymakers are more worried about the money supply or money stock but the matters related to human resources are hardly taken into consideration. Other areas, which lack considerable attention include nutrition, health indicators as well as the issues related to development of skills. Since policies are usually prepared by the men, the contribution of the womenare usually not paid heed to as it is assumed that they do not make a healthy contribution to the national income.
Another reason why Egypt economic reform has to be worked out is the attitude of the Egyptian government and the International financial institution or the IFIs. It has been observed that the policy makers are ignorant of the rural sector. The various obstacles encountered by them is also not taken into account. It has been exceedingly observed that the various methods adopted by the rural people to acclimatize them to the various economic reforms are also not paid much heed to. To add to the already existing problems of the rural people, the government in Egypt has a tendency to confiscate tillable landed property of the peasants and replace it with landowners. Lastly, what is not taken into account are the following, which if given importance could have changed the course of Egypt economic reform for the better. The prevailing economic reform in the country may not be able to bring about sustainability in agricultural productivity and growth in the economy. The various issues related to the environment are also not taken into consideration, the current Egypt economic reform also encourages social inequality. In case the above are paid heed to it would not heal social differences.
Last Updated on : 26th June 2013