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Rantings of a Sandmonkey

Be forewarned: The writer of this blog is an extremely cynical, snarky, pro-US, secular, libertarian, disgruntled sandmonkey. If this is your cup of tea, please enjoy your stay here. If not, please sod off

Thursday, September 01, 2005

Economic reform in Egypt

An article, By Al Jazeera, shows why the economic model that Mubarak is proposing is not going to reduce Egypt's huge unemployment rate. Egypt needs to create an estimated 700,000 or so jobs each year for new entrants to the labour market, a target Mubarak has vowed to meet in his campaign speeches. Some economists say that even hitting 6% growth a year may only keep employment at current levels. The government says unemployment stands at about 10% but unofficial estimates are about twice that figure. One problem is that banks have a hefty chunk of their assets tied up in government debt - a third or more according to an estimate by investment bank EFG-Hermes. This locks up money that could be used to finance new businesses and create jobs. Thank you for saying it EFG, I have been saying it ever since I saw Egypt's Budget. The soloution is simple: Reduce size of Government to cut spending, start paying up the public debt, minimize government redtape on business creation and let the Investors invest and create the jobs that Egypt's economy needs to recover. It's not brain surgery people.


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