The Center for International Private Enterprise (CIPE) and the Ahram Center for Political and Strategic Studies (ACPSS) organized the first national workshop under the Economic Platforms for Political Parties Program on June 10th, 2006 at the Ahram conference facilities in their main building in Cairo, Egypt. The three - session workshop included 6 papers prepared by a variety of Egyptian political and economic experts on the interrelatedness of the political and economic spheres through a review of the following topics: the historical perspective on political party alliances in Egypt, interest groups and economic transitions, the foundations for economic growth and the Egyptian case, poverty alleviation policies and their impact on the Egyptian economic transition, the role of institutions and the rule of law in economic legislation, and a display of various experiences of democratic transitions and economic reform.
Participation:
The registration forms show an attendance rate of over 80 participants (86) who were mostly from the media (43), political parties (13), economic federations and associations (7), researchers and academics (14). The participants from the media (mostly print media) were from a diverse range of publications including government, independent and opposition press.
Workshop Proceedings:
The workshop was divided into three sessions; where each session included the presentation of two papers and a discussion of the paper by an academic or an active member in Egyptian party politics. Following the paper presentations and comments by the panel, the participants were allowed to contribute and engage in the on-going debates.
One of the main findings of the workshop was the emphasis on the fact that there can be no genuine democratic development that can exist without relevant economic growth. The main question that was constantly brought up throughout the workshop was whether such a democratic development was achievable in an interventionist state and whether an economic transition to the market economy was supportive or conflictive of democratization?
Both these questions were constantly expressed by the participants as well as the general concern over political and economic reform. Despite the numerous reminders by the panel that this was not the sole focus of the workshop, such concerns were displayed throughout the day emphasizing the intricate and interrelated nature of both the political and economic spheres. Such a transitioning politico-economic system was clearly evident from the research topics presented whether in dealing with poverty alleviation policy or the legislative, political and legal dimensions of economic transitions.
Session One:
Moderated by Dr. Abdel Moneim Saeed, Director of ACPSS and member of the NDP policy committee, this session's papers revolved around the political dimensions of economic transitions. The first paper was prepared by Hussein Abdel Razeq, from the leftist Nationalist Progressive Unionist Party (Tagammu'), presented a paper on the history of political alliances and the difficulty of achieve intra party consensus on common agendas even in the cases of ideological inclinations. Abdel Razeq proposed a project which he termed the National Salvation Project - which depends on the common requirements of the similarly inclined parties in light of the serious challenges faced by Egypt. The project emphasized a pivotal role for the state in a comprehensive development program (despite its current weakness based on the growing perception that it is serving the elitist business classes over the mass populace). The goal of the project is to strengthen the comprehensive nature of state led development especially in the face of growing market forces, that have been characterized as unequal in their impact, individualistic and self-serving. The project also included combating corruption and the corrupt not necessarily through additional legislative measures but more in terms of mechanisms to activate such legislations. The proposed mechanisms included strengthening the capabilities and autonomies of monitoring agencies and the cooperation of the political leadership to reduce the neglect of these agencies and their efforts in the political sphere. The proposal also emphasized the importance of the role of the judiciary and the freedom of the press for its success. During the ensuing debates and discussions led by Ahmed Hassan, the General Secretary of the Nasserite Party, it was agreed that there should be more efficient service provisions for all with a more even and equal distribution. The discussions prompted some of the participants from the Muslim Brotherhood to mention that there was not necessarily a huge gap between the economic policy of the NDP and theirs except for the will to execute.
The second paper on Interest Groups and Economic Transitions prepared by Dr. Amany Kandil, Director of the Arab Network for Local Associations and Non-governmental organizations, focused more on the role of civil society actors and interest groups beyond the domain of political parties. The paper emphasized the importance of mapping the different economic interest groups, their priorities, roles, and highlighted the various areas for cooperation between the various groups. The paper acknowledged the differences between the various groups based on membership base, creation and history. The paper also discussed the different relationships these organizations with the institutions of transition within the state and their diverse experiences. Kandil's paper also discussed the current role for the business oriented - or businessmen - ministers or what has been termed bond between power/authority and wealth, and the impact this has had on the increased preference and unfair consideration given to one group over another. The discussions led by Fouad Thabet, President of the Federation for Economic Development Associations, also included the emphasis on the importance of cooperative associations/federations that was not mentioned in the working paper. He stressed the importance of these federations because of their large membership bases that range in the millions. He also noted the strict restrictions being imposed on the mobilization and activity of these organizations as a result of the current political situation in the country and explained that if interest groups were not able to influence or change the decision making process then they are futile.
Session Two:
The third paper prepared by Dr. Abdel Fatah El Gebally, Head of the Economics Unit at ACPSS and a consultant to the Ministry of Finance, examined the gradual transition of Egypt towards a market economy, the consequences of the transition and the future of the Egyptian economy. Despite a gradual liberalization and transition towards the market economy, Gebaly believed that although limited here have been successes and developments worth noting. He proposed the idea of the democratic market whereby the balance is stricken between market mechanism and the role of the state in identifying its developmental obligations. Based on the premise that economic growth depends on accumulation of material and human capital, efficient allocation of resources between the different sectors of society, and increased rates of production; then there exist roles for both the private sector and the state. The state is responsible for regulating the market mechanism in terms of ensuring the necessary investment climate, fostering competitiveness, and ensuring the availability of accurate information, etc.
Dr. Ibrahim El Eissawy, a consultant for the National Planning Institute, was critical of Gebaly's findings and argued for an alternative model based on an increased role for the state in light of more democratic participation, increased local savings rate, self dependency as an objective goal, just distribution, and an emphasis on regional cooperation and south-south dialogue. The consequent debates included the discussion revolved around the Egyptian economic transitions thus far.
The economic transition of the seventies and the gradual pace it has taken has led to an increased role for the private sector while limiting that of the public sector, which is become to be known as privatization. The debates focused mainly on the issue of privatization and its negative aspects. This resulted in the proposal of the democratic market model once again with clear roles for the state, the private sector and civil society.
The fourth paper on Poverty Alleviation and its Impact on Economic Transition in Egypt, presented by Dr. Manal Metwally, Associate Professor at the Faculty of Economics at Cairo University, examined the multidimensional nature of poverty in Egypt. The paper explained that there must be an understanding of the nature and causes of poverty beyond the figures. It stressed that there should be an equal support for the eradication of poverty that occurs simultaneously with our efforts towards economic transition. Identifying the causes of sustained poverty, formulating and executing policies for its eradication based on accurate information bases , clear governmental policy measures (identifying detailed government expenditure in that area) , continued support for the poor while identifying their needs are some of the recommendations of the paper. The discussions led by Dr. Sherif Delawer, Professor of Business Administration at the Arab Academy, also highlighted the nature of poverty of in Egypt from an economic perspective. The huge inequalities in terms of income distribution and the impossibility of maintaining the status quo if a genuine economic transition is to occur. The discussions further stressed the the imperativeness of considering the poor during the process of economic transition and exploring alternative aspects of aid such as Zakat and the role of civil society in combating poverty.
Session Three:
Dr. Hassan Abu Taleb, Deputy Director of the ACPSS and Editor of the Arab Strategic Report, commenced the third session with his paper on Democratic Transitions and Economic Reform - Various Experiences. Dr. Abu Taleb stressed the importance of strengthening political mechanisms in support of economic structures in place, lest there be a decline along the lines of the East Asian Financial Crisis. Moreover the Arab region has been the least affected by the process of democratization, and it cannot be induced along the same lines as in Asia, which could have catastrophic consequences for the region. He explained that the Arab region is distinctive due to the following reasons: the decline of scientific research, the cultural heritage, failure of ideologies, economic retardation, and the Arab-Israeli conflict. He explained that globalization should be better understood and the opportunities available through it should be utilized. In relation to economic transitions, he stressed that our goal should be regulated/adjusted market mechanisms that consider/acknowledge social justice, that should be achieved within a framework of democratic reforms based on an understanding of citizenship (duties, rights and obligations), developed and functioning political parties, and support of civil rights, etc.
Dr. Seif El Din Abdel Fatah Ismail, Professor at the Faculty of Economics and Political Science at Cairo University, continued the discussion based on some of the points raised by Dr. Abu Taleb. He tackled the issues of culturalist and especially orientalist interpretations of the reasons for the decline of the Arab world. Highlighting the culturalist arguments of blaming Islam and the Arab mind for amounting to the negativity of the Arab man/woman that is in conflict with democracy. He resorted to the historical/philosophical works of the early Arab founder of sociology Ibn Khaldun and his work on Al Muqadema. He explained that the reasons identified by Ibn Khaldun hundreds of years ago for the tyranny of corruption and the excesses of power still apply and can be easily observed. He continued his explanation of the Khaldunian relationship between tyranny, corruption, excess and repression that results from such aspects as concentration of the resources with the ruling power. Dr. Ismail brought up the Malaysian experience as an example that there exist alternative courses of action for economic reform other than those prescribed by the international institutions. He argued that the same applies for democracy it is based on values, principles, structures and rules. He concluded his elaborate discussion of the paper by explaining that with greater power comes greater responsibilities/duties which entail greater accountability, with repression/tyranny the opposite occurs as power goes unchecked. He stressed on the point highlighted earlier and echoed throughout the day that without necessary political reform an economic transition cannot be effective in light of the Egyptian context.
The final paper by Dr. Imam Hassanein, Associate Professor of International Criminal Law, reviewed the Role of Institutions and the Rule of Law in Economic Legislations with a specific focus on the Egyptian Parliament. His paper stressed the drawbacks of the monopolistic hegemony of the executive over the legislature and the monopoly of the NDP within it. He explained that due to such a monopoly over the process of economic transition and legislation , the interests of the poor, issues of corruption and opposing views will continually be neglected and marginalized within the current legislature. Dr. Hassanein explained that the relegation of the legislature to a rubber stamp parliament is ongoing as the government takes measures to accommodate the unexpected rise of opposition. In support of this point he cited the changing of session times from the evening to the morning, more coordinated inter NDP communication tactics, and the reduction of the allocated time for questioning and investigating NDP ministers while conversely providing them with unrestricted time slots. He added that the lack of transparency of the legislation process (such as the restricted and classified committee meeting minutes) are also to account for the demise of the legislation and rise of executive control.
Dr. Gamal Zahran, an independent member of the People's Assembly, led the discussion of the previous paper. His discussion began with comparing the current state of affairs as that with the pre-1952 situation of Egypt with the bonding of both political power/authority and wealth. His comments on the previous paper included the underrated role of the opposition as outlined by Dr. Imam and the concentration on the internal structure of the legislature. Dr. Zahran stressed that opposition has increased and that the politics of the game are slowly changing. He cited the case of NDP members who transferred or were force to transfer to the NDP . Although he did acknowledge that the legislature was not fully activated as a political force there were signs of slow activity yet more political change is required. One of the participants, an elected member from the Muslim Brotherhood, mentioned that 70% of requests for inquiry were presented by the opposition. Zahran believed that the current NDP was not able to catch up with the opposition, yet was still inclined to maintain the status quo. The delay of the local elections, the extension of emergency laws (287 for / 91 against) and the delegation of authorities to the executive (308 for) are all examples of the regime's will to maintain the status quo without inducing any viable political change. An important example of the weakness of the current political structure was raised by Dr. Zahran who mentioned that since 1971 not a single armaments deal was discussed in the legislature despite the massive expenditure on arms.
