The Ahram Center for Political and Strategic Studies (ACPSS) and the Center for International Private Enterprise (CIPE) and organized the second national workshop for Egypt under the Economic Platforms for Political Parties Program from November 2nd to November 4th, 2006 at the conference facilities of the Stella Di Mare Resort in Ein Sokhna Egypt.
The Economic Platform Building workshop was preceded by the earlier workshop held in collaboration with the ACPSS in June, 2006.
Brief Critique of the June 2006 workshop:
From my perspective as the Program Officer responsible for this component, I found the workshop to be only satisfactory.
1. At the level of participation: the absence of NDP and Wafd did significantly weaken the level and quality of debates of the workshop. Due to the unexpected absence of the proposed participants and the arrival of an unaccounted number of participants who were unaccounted for resulted in some confusion in terms of distribution of the working papers.
2. The quality of the working papers and the level of analysis of the issues of economic transition and the political sphere was highly satisfactory. The delivered working papers were able to tackle the issue of the workshop from a multidimensional perspective that illustrated diverse political and ideological backgrounds with sufficient applications and case studies. The proposed papers were not merely theoretical academic debates but were highly based on actual experiences from both the Egyptian and international experiences.
3. It appeared that throughout the sessions of the workshops that the caliber of the proposed papers was beyond many of the participants. This point could be attributed to the relative caliber of those who actually attended and their lack of sufficient understanding of the issues at large in comparison to the professional and academic backgrounds of panel members. It is worth mentioning here that this note applies as well to the 7 presidents of political parties who attended the workshop.

Based on the above criticisms of the June 2006 workshop, the feedback from the Jordanian workshop; the main agenda and general structure of the November workshop was formulated. The objective of the workshop revolved around reviewing the Egyptian economic context, the requirements of the private sector in light of political pluralism, the basics of economic platform building and the available Egyptian economic platforms. A separate session was dedicated to each of these main topics, while ensuring representation of all the participating ideological currents in the sessions' delivery.
Furthermore, recommendations of both participating CIPE and ACPSS staff, a more detailed and simplified workshop tailored specifically for economic platform building was developed. Based on the input and collaboration of ACPSS staff, namely Dr. Hassan Abu Taleb, Assistant Director of ACPSS and Editor of the AL-Ahram Strategic Report , Mr. Abdel Fatah El Gebaly, head of the Economics Unit at ACPSS and Dr. Amr Hashem Rabeea, a specialist on Egyptian Parliamentary politics, the workshop agenda was formulated.
CIPE assembled and distributed a reader for the workshop which included the writings of Egyptian and international experts on economic transition, economic platform building, democratization and the market economy, in addition to the submissions of the economic viewpoints of the Wafd, Nasserite, Tagammu and Ghad parties.

Participation:
The target participants for the workshop were members of political party leadership structures (preferably members of the economic committees within these parties), economic analysts, economic journalists/analysts, reform minded writers and opinion makers, members of the private sector and the Egyptian business community.
Of the 25 participants who attended the seminar, more than half (13) participants were active members in the leadership structures of Egyptian political parties. Said attendants constituted a diverse range of party orientations and were divided as follows: National Democratic Party (3), Wafd Party (2), Taggamu Party (2), Ghad Party (3), Nasserite Party (1), Wasat Party (1), and Independent Parliamentarians (1).
The remainder of participants (12) although not active members of Egyptian political parties did have manifested ideological beliefs that were clearly articulated during the workshop proceedings and debates.

Workshop Proceedings:
The workshop was comprised of 8 sessions including the introductory and concluding sessions. All the sessions revolved around the main theme of developing economic platforms based on Egypt's economic needs and its transition to a democracy and a market economy. The following topics were discussed and presented during the workshop: comparative analysis of economic party platforms in Egypt, review of the Egyptian economic context and developments over the past two decades, transitioning to democracy and a market economy, building constituencies for economic reform, designing economic reform programs from both international and Egyptian experiences, and party platforms and economic reform from the perspective of the private sector.

Introductory Session - Dr. John D. Sullivan (CIPE) and Dr. Mohamed Al Sayed Saeed (ACPSS).
The session revolved around introducing the seminar and participants. During the introductory session both speakers outlined the main objectives of the workshop which included the analysis of the Egyptian economic context since liberalization, the reasons behind Egypt's economic and political lag in terms of liberalization and increasing public participation in the formulation of economic policy. The main points of the session revolved around the fact that economic policy formulation cannot be restricted to a few technocrats and the upper echelons of society, while completely extricating the majority of the citizens from the process. As economic policy is in essence a political decision with far reaching socioeconomic consequences. It is therefore essential to engage public debate on issues of economic policy and strengthen institutional capacities to ensure a more inclusive approach towards economic policy to counter growing dissatisfactions in society resulting from poverty, unequal income distribution and unemployment. It was also outlined by the speakers that the need for more integrated political and economic reform measures is increasing in light of globalization trends that have added pressures to the international system.

Session Two: Comparative Analysis of the Main Egyptian Parties' Economic Platforms - Mr. Saad Hagras (El Alam El Youm) and Dr. Amr Hashem Rabeea (ACPSS).

The second session was presented by Saad Hagras with Amr Hashem Rabeea as a discussant . Saad Hagras attributed the overall weakness of the majority of the economic platforms developed by Egyptian political forces to the following: the difficulties that arise when reviewing Egyptian political parties due to the absence of genuine political pluralism, the internal weakness of Egyptian political parties, the non-existence of the concept of alternation of power has forced political parties to focus on political issues at the expense of economic matters. The session reviewed the Egyptian political forces' approach to economic policy in light of the major economic issues at hand and the ideological foundations of said forces. The study presented by Saad Hagras classified the main political actors in Egypt to liberals, leftists and independent political movements. The liberal front comprised mainly of the National Democratic Party (NDP), El Wafd, El Ghad. The leftist front included the following parties: Tagammua, the Nasserite party, El Karama , El Wefaq and Arab Egypt. Hagras's presentation presented the main ideological inclinations of these parties and the respective influences it had the party platform in terms of the role of the state, trade liberalization and agreements, the size of the public sector, welfare policies, investment and the role of the private sector.
Hagras's presentation and the following discussion by Dr. Amr Hashem reiterated the findings of the previous workshop which included but were not limited to the following: a general weakness of the policy recommendations of economic platforms (with the exception of the NDP and Tagammu) , the prioritizing of political issues at the expense of economic issues, and the absence of a comprehensive vision of economic policy from most parties' platforms.
Dr. Amr Hashem reviewed the economic orientations of the following parties: NDP, Tagammu, Wafd, Ghad and Independent Parliamentary Bloc to the major economic issues which included: areas and methods of economic growth, privatization, economic development sectors, socioeconomic matters, unemployment and international economic cooperation.
The discussions that ensued raised a number of key issues that were to further influence and drive the remainder of the sessions' proceedings. The main points raised were that:
1. Egypt does not have political parties at the same caliber or level of development as those present in the West and consolidated democracies. Due to a number of structural reasons and restrictive measures a weakened framework of ideologies exists that has been growingly detached from the majority of the citizenry. The legal code regulating and restricting the formation of political parties banned parties formed along class lines which has further exacerbated the former issue and resulted in a lack of representation of the majority of social classes. In addition to the fact that whatever political entities present at the moment have been too caught up with political issues (internal conflicts and intra-party conflicts), which has come at the expense of economic issues despite their vitality.
2. The growing need to review the development of economic platform building ever since the commencement of the attempt at pluralistic party politics in Egypt. Such an effort should allow observers to determine what issues have been sufficiently addressed and the priorities of economic development, while allowing for some consensus amongst political actors in terms of economic reform and development.
3. The implemented options ever since the time of Mohamed Ali - which is considered to be the dawn of Egypt's modern history - have been the choices and decisions of rulers in rigid top bottom structures with no room for popular participation. Such a problem is further exacerbated by the concentration of power and the absence of necessary institutional structures allowing for organized and participatory involvement in decision making.
4. The existence of the growing problem of lack of trust and confidence in the current Egyptian economic climate in its entirety. The increasing savings rates and decline of investments was not addressed at all in any economic platform of the political parties.

Session Three: Mechanisms of Transition to Democracy and the Free Market Economy - Dr. Taha Abdel Aleem (ACPSS) and Mr. Adel El Ezaby (NDP).
Dr. Taha Abdel Aleem initiated the session with an explanation of the foundations of the concept of democracy which is based on : 1- Formulating a democratic constitution, 2 - Strengthening the rule of law, 3- Division of Powers, 4- Political Pluralism. Dr. Abdel Aleem added that as a result of both internal and international developments and within the current global context and the information revolution; the transition to democracy and the free market is inevitable and constantly on-going even if we fail to recognize it. He pointed out that Egypt has been set in the direction of economic liberalization through bodies such as the IMF, WTO and the World Bank. Dr. Abdel Aleem described the mechanisms and transition process to the free market as follows:
1. Shifting resources management and allocation from centralized bureaucratic planning to the forces of a social market.
2. Privatizing nationalized modes of production and the shift from state ownership and the public sector to the private sector.
3. Transformation of economic policy from restricting the private sector to providing investment incentives, from protectionism and reciprocal Special and Differential Treatment agreements to free trade , from deficit financing to financial, macroeconomic and monetary reform, etc.
Dr. Abdel Aleem illustrated the main challenges facing the transition to democracy and a free market economy as follows: a. increasing the capacity of the state through basing it on a system of democratic governance that respects human rights, the rule of law and social justice, b. The integration of the roles of the state, the private sector and civil society in achieving development objectives, attracting investments and job provision, c. attaining a competitive economy capable of participating in the international economic system. According to Dr Abdel Aleem such challenges have prioritized the following requirements accordingly:
1- Facing the challenges of the globalization of policies through utilizing and expanding the available economic policy options for Egypt.
2- Facing the challenges of the globalization of socioeconomic systems through determining Egypt's choice of the social market that encompasses the need to increase economic capacities amongst notions of social justice, protecting the environment and national security.
3- Facing the challenges of the globalization of production in the international system through increasing Egypt's share in knowledge based and technologically advanced products. Such an effort also requires mobilizing potential Egyptian capacities in the specialized sectors requiring higher knowledge content and higher added values.

Abdel Aleem summarized his argument that we must face the fears that surround any efforts at democratization which are namely the establishment of a totalitarian theocracy and the handing down of political power from the 78 year old Mubarak to his son Gamal. However Dr. Abdel Aleem believes that the solution lays in constitutional reform to dismiss any fears, speculation and/or suspicions; the strengthening of political parties, and the decline of international support for undemocratic and oppressive regimes.
Adel El Ezaby, a prominent businessman and an active member of Egyptian civil society commented on the ideas illustrated by Dr. Abdel Aleem. El Ezaby discussed the issue of transition from the view point of the private sector and the shortcomings that have hampered a smooth transition to the market economy and have affected the Egyptian economy in general:
o Xenophobic fears and suspicion of all that is foreign in particular investments.
o The lack of trust between the government and the people.
o Distorted relationships between labor and capital.
o Reluctance in participating in the market economy or exiting.

Mr. El Ezaby concluded by emphasizing that the driving force of transition should be the state. Such an effort entails that the necessary governance mechanisms of accountability and transparency should be in place. El Ezaby also mentioned that the most effective method of targeting poverty and curtailing it is a sense of community that goes beyond the requirements of social responsibility and philanthropy to touch upon effective human development and solidarity.
The discussions and comments prompted by both speakers revolved around the following topics:
1. Transition to a liberalized market economy requires an integrative approach and comprehensive development involving modernization, social justice, democracy, national security and emphasis on a cultural identity.
2. Despite efforts at liberalization dating back to the early 1970s, the state continues to have the dominant role in directing the economy and consequentially the market forces. Although a private sector exists it is heavily dependent on the state and its domain which is concentrated in production sector as opposed to sectors such as services. El Ezaby added that so long as the state remains the sole dominator of the service sector with no efforts at liberalization and the Article 73 of the Egyptian constitution unchanged (the article stipulates that the president is the sole arbitrator between the three branches of power and that he upholds the well being of the people) the authoritarian climate will remain and therefore the private sector and economic interest groups will continue to be dependent followers of the state.
3. Political parties are also limited and restricted in the same climate of authoritarianism that plagues the private sector and effective democratic transition in general.
4. Common ground and consensus must be achieved between the political and economic forces.
5. Despite widespread belief that a secular state is supported by the majority of the people, we cannot dismiss the effect of the Islamist political current in Egypt today.
6. We must admit that there are significant obstructions hampering Egypt's transition to a market economy which are: a. the need for a democratic transition which is stifled by a climate of corruption and absence of governance, b. a climate of illiteracy and ignorance c. there can be no economic transition to a market economy without the willing and active participation of the middle class that suffers from the socioeconomic ills of unequal income distribution and social injustice.
7. The significance of the Judiciary in the process of economic transition.


Session Four: Egyptian Economic Performance Over The Last Two Decades - Dr. Abdel Fatah El Gebaly (ACPSS and Economic Advisor for NDP and Ministry of Finance)
Dr. El Gebaly explained that the concept of economic growth is an integrated socioeconomic concept that is measured by GDP per capita, the generation of employment opportunities, price stabilization, just income distribution and sustainability for future generations. The sources of growth are: the accumulation of capital, efficient resource allocation, increasing productivity rates. Gebaly added that the four stages of Egyptian economic transition were liberalization, stabilization, structural adjustment and floating the exchange rate and the continuation of privatization. Gebaly stressed that the impediments to transition were mainly the absence of the constitutional and legal structures supportive of transition, the weakness of financial and monetary institutions and the weakness of monetary policy manifested in the balance of payments deficit and increasing inflation.

Gebaly pointed out that as of recently there have been positive indicators for the Egyptian economy, despite high unemployment rates, such as the rate of investment, the decrease in the size of the gap between foreign exchange rates and the real prices (curbing of black market activity), the banking sector's commencement of resolving bad debts and slight improvements in the balance of payments. He did explain that there were still significant challenges such as the size of the internal debt, the balance of trade deficit, the budget deficit and the unemployment rates.
He stressed that the democratic market economy was the viable solution to these challenges. In which the necessary legal and information structures exist to allow interaction of the market forces of supply and demand.
The following points were raised during the debate:
1. The GDP growth cannot be the sole indicator for measuring growth and development. Income distribution is an essential component as it is related also to such issues as taxation and subsidization especially in terms of what is subsidized for foreign investors (mainly energy) at the expense of the Egyptian nationals.
2. The size of the informal sector and methods of incorporating informal economic activity into the formal sector.
3. The ills of the banking sector can be traced back to defective loaning methodology and the absence of trust of small and medium investors.
4. The growth of the internal debt which indicates a recession in profitable investments.
5. Investment in Egypt to a large extent revolves around consumer projects that do not require high labor factors and exacerbate the already existing problem.
6. The existing balance of payments deficits indicate growth of consumption levels and not the growth of exports. There absence of an area of special advantage for Egyptian exports has not resolved the problem. Some protectionist measures that were set in place to allow for the growth of Egyptian industries have only provided the necessary reassurance to local manufactures to continue inefficient production of sub-par goods.
7. The absence of the technological components and added values in Egyptian industries.
8. The existence of a staggering weakness in production which is related to a number of factors such as the low wage rates, lack of job security, neglecting training and human development, and the limitations of the geographical area of industrialization in Egypt.









Session Five: The Politics of Economic Reform - Building Constituencies for Reform - Dr. Mohamed El Sayed Saeed and Dr. John D. Sullivan
Dr. Saeed commenced the session through outlining four main topics in the transition to the market economy which were:
1. Good governance depends on popular support and therefore requires the existence of the capable institutions that implement clear cut and transparent policies. That point is especially important considering that one of the main arguments in market economies is that of the role of the private and public sectors.
2. The need to end the vicious cycle of crony capitalism and the bonding of wealth and power in Egypt. In order to achieve productive capitalism and a more just system of income distribution, such a system of cronyism must be abolished due to its damaging and far reaching effects that have paralyzed the political system.
3. The dilemma of fast paced or tempered reform measures. It has been proven that tempered and slow steps at reform have only benefited the factions loyal to the regime and their cronies.
4. Attention must be directed to the structuring of the role of the state within the mixed social economy. The social market cannot exist without the state and by sole dependence on civil society organizations and popular associations, but requires a stronger sense of solidarity and just public policy. The essence of the Egyptian predicament lays in the absence of good governance, and the absence of a public sector with justice and the welfare of its citizens at heart, absence of freedom of expression and the press, and the absence of free and fair elections.

John D. Sullivan explained that there are five main sectors within societies in transition . First, a business sector dependent on the state, a state owned public sector, entrepreneurial sector and business associations, a small business community that refuses to venture in economical risk, and a very large informal sector. Dr. Sullivan stressed two main points: First the importance of the role of the state and its institutions, under the rule of law, as a regulator curbing chaos and not as an authoritarian overseer. Second, the growing need for political parties to develop their visions of where the society is going. This can only exist in a democratic system of governance based on participation, competition and accountability that operates under the rule of law.
The discussions revolved around the following points:
1. The importance of culture in the democratic transition especially in terms of the relationship between Islam and good governance. The state must face the facts and begin to focus on Islamic values that benefit good governance and thus weakening the positions of those who exploit religious dogma.
2. There is no popular support for reform measures. Reform is perceived as a cause of the increasing prices, growing unemployment, widespread corruption, and the lack of confidence the public has in the business community in general.
3. The resolving of the lack of confidence between state and society is a prerequisite for transition. The state is capable of implementing good governance mechanisms and gaining trust based on significant steps and efforts towards democratization.

Session Six: Reform Programs form the Perspective of the Private Sector - Mr. Adel El Ezaby and Mr. Fouad Thabet (Chairman of the Federation for Egyptian Development Associations - FEDA)
Mr. El Ezaby discussed the overall climate the surrounds Egypt business and the private sector in Egypt. He stated that both the internal and external environments are restrictive of the private sector. In terms of the external and general environment: the economic decline and recession in general has not been supportive of the growth of the private sector. This has only been further exacerbated by an increase in poverty, unemployment, widespread corruption, etc.
Concerning the internal environment, is also restrictive. Mainly due to the absence of what people claim to be businessmen. El Ezaby stated that what in fact exists is people who own businesses and manage them, with no concept of sustainability or institutionalization, which in the end results in the closure of the business with the death of the owner.
El Ezaby added that the relationship between the state and the private sector has come at the expense of the public good. He explained that despite attempts of creating a supportive climate, through spending millions of pounds on subsidizing energy costs for private sector, the plight and socioeconomic pressures on the poor have increased as they are more deserving of such assistance. He added that the private sector is always waiting on directions from the government, which has come at the expense of innovation and creativity. The government has also not been in complete support of the private sector as there still exists a huge and bloated bureaucracy with an average of one government employee for every 25 citizens. El Ezaby concluded his discussion saying that decreasing the limitations in front of the private sector and the business community in addition to focusing efforts on the service sector instead of the consumer sector could perhaps strengthen the private sector's contribution to a smooth transition.
Mr. Fouad Thabet explained that small and medium business enterprises constitute around 97.7% of the businesses in Egypt. He focused most of his segment of the discussions on the real world problems and experiences of such businesses in Egypt:
o The small and medium enterprise law number 141 for the year 2004 was in fact drafted and advocated for by FEDA. However when it was formulated into a law, four articles were removed concerning tax exemptions. Such a revision of the proposed law has favored projects funded by the Social Fund for Development over the remainder of Egyptian small and medium enterprises.
o The increasing costs and fees for licensing industrial buildings has led to the closing down of hundreds of factories, after efforts from FEDA the licensing fees were revised.
o The increasing costs of land utilized for industrial purposes. One meter of such land is priced at 150, which is an exaggerated figure and has only further added to the costs of doing business.
He concluded by adding that there are many untapped areas that can be explored by the private sector. He cited the example of the fisheries, where by Egypt imports 36% of its needs despite its vast coast lines.
The following points were raised during the discussion:
1. There is no linkage within the private sector between the vast majority of small and medium enterprises and the 15 largest business men who have monopolistic control over major businesses.
2. The continuation of the difficulties that face the private sector, despite assigning three ministers from private sector backgrounds.
3. The need to focus on increasing advocacy efforts and civil society activity in line with what Mr. Thabet cited, while simultaneously reforming economic legislation in the Egyptian parliament.
4. The increasing dependency and reliance on foreign expertise has limited the growth of a strong Egyptian private sector. Therefore strengthening the linkages between the private sector and research centers is a growing concern in addition to efficient resource allocation of local resources.
5. The need to activate the efforts of the Social Fund for Development towards realistic development objectives such as capacity building and managerial training. However the current formation of the fund and heavy reliance on retired military officials who do not have the necessary expertise to achieve such goals.
6. The need to revise many dualities within the Egyptian economy such as the relationship between foreign and internal investment, whether the relationship should be one of substitution or completion.


Session Seven: Designing an Economic Reform Program : International Experiences - Senator Robert Kasten and Dr. John D. Sullivan
This session discussed the politics of economic platform building from the perspectives of the American political system. Senator Kasten explained that the economic platform was an essential component for whoever party that wanted its candidate to win. Senator Kasten added that the preparation of the economic platform was a difficult task that required various committees and sub-committees that worked in an organized manner to coordinate the needs and expectations of the electorate throughout the United States. Based on collaboration between the various structures of the party the economic platform is formulated. Kasten also outlined the importance of debate and participation on the parts of the prospective voters and the citizens. He added that such platforms and programs have to be phrased in terms and language that can be understood by the average citizen and is not heavily reliant on academic jargon and complex terms. Kasten highlighted the importance of media coverage and campaigning for the program in order to target and reach out to the widest possible constituencies and attract new voters.
Dr. John Sullivan highlighted the importance the private sector plays in the electoral process. He explained that it was essential for competing political parties to have an understanding of the needs and expectations of the private sector. Based on this knowledge the parties can better understand the wider economic context and better achieve the expectations of a wider constituency.

Session Eight: Economic Platform Building in Egypt - Political Party Perspectives: Wael Nawara (El Ghad), Abdel Ghafar Shokr (Tagammu), Abbass El Tarabeely (Wafd), Ahmed Abdel Hafeez (Nasserite).
During the final session, participants from El Ghad, Tagammu, the Nasserite Party and El Wafd outlined their perspectives and experiences in economic platform building.
Wael Nawara, of the Ghad party explained that economic platform building for his party was mostly a pragmatic attempt, which explained why the platform was changed a number of times. The main components of the platform revolve around liberalization both politically and economically while focusing on individual initiative. The platform was based on convictions and beliefs in human development and socioeconomic conditions. Nawara added that the platform building process was based on a series of meetings throughout Egypt with a variety businessmen, youth, exporters and members of the informal sector. In addition to that, the platform was created through analysis of the current situation, detecting expectations, policy formulation and funding possibilities.

Abdel Ghafar Shokr from the leftist Tagammu party outlined that were three main aspects to the economic crisis Egypt is facing. The first aspect was the international economic context that has perpetuated the Egyptian case. Second the historical context of the Egyptian case: the policies implemented since the late 1970s which resulted in stagnation of the commodity production sector, parasitic growth of the service sector, and the dependency on selling non-renewable natural resources, the increasing growth in public and private consumption, the staggering accumulation of external debt, the deterioration of the exchange rate, and the deterioration of income distribution. The third aspect was the stance of public participation from the available remedies to the economic crisis, which entails comprehensive democratic reform for ending the economic crisis. Shokr pointed out that the Taggamu was not consulted on economic policy formulation, and it was preferred to take the neo-liberal prescriptions of international organizations. The proposed alternative vision of the Tagammu is based a different social organization of economic activity and a political system other than the one provided by Egyptian capitalism. An alternative vision dependent on a greater role for the state in development efforts, just income distribution, self sufficiency, relating the Egyptian economy to external developments through the following:
1. A model that does not conflict with the market mechanism, but acknowledges that the market alone is incapable of delivering comprehensive development.
2. A model that does not boycott foreign direct investment or international trade but does not depend on international trade with trickle down economic development.
3. A model that does not consider foreign investment as a substitute for national efforts, which therefore requires that Egypt utilize concessions and exceptions in the WTO agreements, increasing the scope of such exceptions and extending its periods.
4. A model that does not oppose the private sector, but acknowledges the need for its productive capacity to support development, while at the same time aware of its capabilities and limitations.
5. A model based on popular participation in decision making, implementation, benefiting from such models. Where the people also act as a safety valve to prevent bureaucratic and administrative corruption and waste.
6. Self sufficiency/reliance is the main principle for the alternative model for development and is based on two main points: territorial based the capabilities of Egypt, and a collective integration with Arab capabilities.

The Nasserite Party represented by Ahmed Abdul Hafeez pointed out there were a number of principles fundamental to the party's economic viewpoint:
1. Stressing the central role of the state in the development process.
2. Popular control over wealth and authority.
3. Comprehensive economic planning in the short and long term.
4. Liquidating foreign influence in the national economy.
5. Social justice and relating both social and economic freedoms.
Abdel Hafeez pointed out that such a vision has placed the Nasserite party with the opposition over the last 30 years ever since liberalization embarked on by Sadat. Such a liberal economic perspective has grown widely recently said Hafeez. He gave the examples of privatization of the public sector, the state abandoning its sociopolitical role as well as the understandings of independent economic development and the pursuit of Arab integration.
Abdel Hafeez stressed the fact that the Nasserite vision illustrated the gravely negative impact of the dependency policies implemented:
1. The increased dependency on external forces particularly the United States as a result of the wasteful squandering of loans, aid and imports.
2. The accumulation of both internal and external debt with widening deficits in the balance of trades and payments.
3. Increased size of the budget deficit.
4. The decline and regression of development and economic growth indicators.
5. The growth of the number of citizens below the poverty line.
6. The unprecedented unemployment problem.
7. The growing increase in prices that has not been complemented by an appropriate increase in real wages.
Dr. Abbass El Tarabeely outlined the viewpoint of the Wafd party. The Wafd view is based on preserving natural resources from internal or external threats, balancing the following: production with consumption, resources and expenditures, savings and investment rates, and imports and exports. He stressed the fact that the Wafd believed in a liberal policy which calls for regional bloc formation and the formation of a common Arab market. He also added that the party believed in just income distribution and controlled spending. Therefore the Wafd economic liberalism is based on unleashing investment for the private sector and restricting the public sector to higher production activities, complete competition, prohibiting monopolization, and unleashing the forces of supply and demand without government intervention only to prevent monopolistic activity or dumping. The Wafd also stresses freedom of trade (except for what conflicts with the national interest) and floating exchange rates.
The Wafd's development strategy is contingent upon inter-Arab integration and securing capital for investment. The Wafd stands opposed to ad hoc expenditures and investments without clear and concise analysis as well as against borrowing for covering consumption. Tarabeely also expressed the party's conviction in the economic rights of farmers and workers and the support of creating an industrial complex within Egypt. The Wafd calls for a pro-investment climate, which is based on restoring trust between the state and investors, privatizing banks while maintaining a role for the central bank for regulation and the prevention of money laundering, and freeing the banking sector from the control of the police state. The Wafd also believes in controlling and reform subsidies as it is threatens development.
Discussions:
1. There was a growing consensus amongst the four largest political parties towards the end on the basics of economic reform albeit through different mechanisms. The Tagammu party and the Nasserite party both were supportive of self reliance and independent development, but did not reject the role of the private sector.
2. The consensus amongst the opposition parties indicated the possibility of forming a wide coalition to counter balance the NDP.
3. The representatives from the NDP highlighted that the recent policies implemented by the NDP have managed to generate funding, a significant step that differentiates them from the remainder of Egyptian political parties.