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Financial Sector

Privatization: A Key to Solving Egypt’s Economic Woes

Karim Badr El-Din's picture
Also available in: Français | العربية

Cairo Street

In 1991, Egypt launched the Economic Reform and Structural Transformation Program (ERSAP) to address dire economic conditions. The difficult financial situation forced the government to reschedule its public debt twice, in 1987 and 1991. The Egyptian reform program moved at a slow pace until 2003, when the government pushed for further liberalization of the economy. The government began by floating the rate of exchange of the Egyptian pound in 2003, followed by the implementation of a series of policies aiming at shifting Egypt from a centrally planned to a free market economy.

Leveraging Financial Inclusion to Promote Economic Development in Egypt

Also available in: العربية | Français

Leveraging Financial Inclusion to Promote Economic Development in Egypt - Photo: Arne Hoel

Egyptian policymakers are facing a significant challenge: how to address acute economic challenges while managing ongoing political and social transitions. Output in major sectors of the economy (construction, trade, and tourism) remain weak while foreign direct investment (FDI), once a core tenant of Egyptian growth, reached nearly zero in the second quarter of this year. The Egyptian unemployment rate, which traditionally hovered around 9.5 percent in the years preceding the revolution, has increased to 13.2 percent in the first quarter of 2013.

Egypt: Subsidy reform and social safety nets are 2 sides of same coin

Guest Blogger's picture

Egypt: Subsidy reform and social safety nets are 2 sides of same coin - Photo: Emad Abd El Hady

Egyptian writer and commentator Bassem Sabry talks to Hartwig Schafer, World Bank Director for Djibouti, Egypt and Yemen about the economic challenges facing Cairo.

Sabry: What do you think are the questions that are missing from the discussion on Egypt right now?

Schafer: I think the question is, what is the priority right now for Egypt? If we go back two and a half years, the revolution was basically the result of growing exclusion and inequality. And that is still, in my view, the top priority.

Engaging Egyptians Abroad for Investment: What Will it Take?

Stefanie Ridenour's picture

Engaging Egyptians Abroad for Investment: What Will it Take?

Following the ousting of Hosni Mubarak in 2011, many Egyptian expatriates turned towards their home country with a renewed sense of hope and desire to participate in the change process. As the political and economic transition is underway, many Egyptians abroad are looking for ways to engage in the transition period, and donors and development agencies are trying to effectively channel their efforts to contribute to development outcomes.

 

A Data-driven Perspective on Islamic Finance

Leora Klapper's picture
Also available in: العربية | Français

A Data-driven Perspective on Islamic Finance

To some, Sharia-compliant financial services offer a promising path towards expanding financial inclusion among Muslim adults. To others, these services – which avoid charging interest and seek to conform to Islamic principles of profit- and loss-sharing – do not address the root causes of financial exclusion. But most agree that there is a dearth of empirical research that measures the degree to which Muslims are using Sharia-compliant financial products, their demand for it, and the extent to which they refrain from using conventional financial systems. Without data and related analysis, policymakers and private sector leaders are often speculative in framing the role of Islamic finance within the financial inclusion agenda.

 

Will a return to political stability solve the economic problems in the Middle East and North Africa?

Elena Ianchovichina's picture
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Will a return to political stability solve the economic problems in the Middle East and North Africa?

In the three years since the Arab Awakening of late 2010, the Middle East and North Africa (MENA) has seen an increase in conflict and political instability, on the one hand, and a deteriorating economic situation, on the other.  Given the vicious cycle between economic hardship and conflict, it is natural to ask whether a return to political stability will restore prosperity in the region.

A Boost for Microfinance in the Arab World

Peter McConaghy's picture
Also available in: Français | العربية

A Boost for Microfinance in the Arab World

Microfinance – defined as the access to and usage of quality financial services, including savings, credit, insurance and money transfer systems - is crucial for low-income households to manage cash flows to finance day-to-day living, manage risks, invest productively, and respond to financial shocks.

The low levels of financial inclusion in the Middle East and North Africa region, however, have left many with limited access to any sort of financial services. This is especially true for certain groups such as women and young people. 

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