Dr. Ahmed M. Darwish Minister of State for Administrative Development

Egypt

Making Reform Happen

“Structural Priorities in Times of Crisis”

OECD - Paris(November 26th 2010)

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Overview

Egypt Reform IssuesImpact of Financial Crisis on EconomyEgypt Reform Main GoalsSample of Reform StepsDid it Pay Back?ChallengesConclusion

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More investment

more employment opportunities Prosperity for families

more budget resources (taxes) more budget allocation for social safety nets

Prosperity for families

Tools Good Governance = Efficient Effective Public Administration

+ Active Alert Civil Society

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Sample of Egypt’s Reform Steps

Investment Climate Restructuring of State Owned Enterprises

Non-banking Financial Services Sector Regulatory Framework for PPP

Trade and Customs

Taxes

Monetary and Exchange Rate Policy

Infrastructure Modernization

Legislative and Regulatory

Public Administration

Gender Equity

Constitutional

Fiscal Consolidation

Transparency and Integrity

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Did it Pay Back?

FDI

GDP Growth

Fiscal Deficit

Debt

Jobs

Industry

Exports

Tourism

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FDI Inflows

2003 2004 2005 2006 2007 2008 20090

2

4

6

8

10

12

14

0

2

4

6

8

10

12

14

0.9 0.5

4.4

5.7

8.5 8.1

4.3

FDI inflowsFDI, % of GDP

USD billion % of GDP

Fiscal Year

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% Change of Real GDP Growth

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Fiscal Deficit

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Total Debt

2001 2002 2003 2004 2005 2006 2007 2008 20090

10

20

30

40

50

60

70

80

90

100

Gross Domestic Public Debt

Gross Foriegn Public Debt

% GDP

Fiscal Year

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Unemployment Rate )%(

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Challenges

Population Growth

Fiscal Maneuvering

Social Safety Nets

Inflation

Food Pricing and Financial Crisis Timing

Work Force Profile and Labor Market Skills

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New School Enrollment (First Grade)

0

0.5

1

1.5

2

2.5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 … 2015

Millions

Fiscal Year

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Budget Composition (2010/2011)

24%

7%

23%

29%

8%10%

Wages and Compensation

Goods and Services (Op cost)

Loan Payments

Social Benefits

Other Expenses

Investment / Non- Financial Assets

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Subsidies (2008/2009)

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Conclusion

Local Solutions

Role of International Organizations

Good partnership

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Thank you … http://www.ad.gov.eg darwish@ad.gov.eg