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Egypt 360 --- مصر ٣٦٠ ®
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Boosting Egypt Economy:
The goal here is to make our analysis more public friendly and easily
understood by the average person with commonsense. We hope that our
analysis helps keep the public aware of certain facts.
We need the Egyptians to be able understand what the economists and the government are doing and not being
lost in all the economic jargons and buzzwords.
To help Egypt's economy, Egypt has to do the following:
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The country has to produce more products
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Investors (local or foreign) must invest and help Egypt build more industrial units.
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Build a balanced budget and pay off national debt
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The above is easier said than done, so to achieve these goals, our analysis is as follows:
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Country's political upheaval - unrest must end
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Egyptians must have more spending money to help boost the economy
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Investors (local or foreign) must feel secure about their investments and the return on their investments
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Government and public services, including banks, must help businesses and the investors
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The cost of helping Egypt (deficit - loans) must be worked out so Egypt does not end up with larger debt.
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Our Recommendation to the team who would be working on Egypt's economy
Country Stability:
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The country stability and country's political upheaval - unrest must stop
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Egypt's president needs a supporting cast of experienced teams in government and economics.
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Egypt needs more managements teams and the use of technology rather than politicians and army generals.
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The army must secure the country - No intervention with the president and his staff
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The Media's Role in Building Egypt:
The media should be the tool for boosting Egypt's economy. We recommend the following media campaigns:
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"Egyptian Moral" - boost Egyptian moral and sense of security about the government and police force.
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"Invest in Egypt" - boost local and international investors' confidence
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"Made in Egypt" - boost the trust of manufacturing and quality of Egyptian products
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"Egyptian Workers" - boost the pride of Egypt's work force
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"The Future is Here" - boost the country mood about the future.
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"Everyone Counts" - bring the confidence of Egyptians, including youth, where everyone is contributing towards Egypt's recovery.
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"Cost of Bad Traffic" - increase public awareness of the cost of traffic jams in term of money, pollutions, health and productivity.
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Prices, Income and Fuel:
The goal is to increase the average income and lower cost of living.
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Increase income by "?%" and raise the minimum wages - "?%" based on the budget, lets say 10%
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Private businesses must increase wages, since our proposed boost will lower the cost
of utilities, fuel and taxes. Such a boost would offset the increase in wages to businesses employees.
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Freeze all product and service prices for two years - no price increase what so ever
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Lower oil product prices (gasoline, etc)
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Egyptian Oil companies and their distribution stations should services motorists and their vehicles to speed services.
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Egyptian Oil companies and their distribution stations should take special care of trucks and heavy transport vehicles - no waiting time
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Lower public utility prices and increase service
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Increase public utilities and make sure no interruption of services
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Egypt's Infrastructure, Business Laws and Construction:
Egypt's infrastructure and boosting business is the foundation of Egypt's future.
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Less red tapes for creating new businesses and tax filing
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Change the laws to help consumers, small and medium size businesses
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Change the law to help new construction and importing construction material
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Encourage businesses to build/repair the streets, public squares, parks and facilities (same as in Alexandria in the time of Alhagob, the Alexandria mayor).
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Give tax breaks to both existing businesses and new businesses
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Increase Government subsidizing for new business and exports.
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Boost tourism and more security measures
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Import and Export:
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Limit the export of certain products to help the local economy
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Lower taxes on import
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Facilitate the processes (red tapes) for imports and exports
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Investors:
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Help investors by facilitating money and banks processes
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Create special force to work with both local and foreign investors
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lower banks' interest rates
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Monitoring government staff and no bribes or red tapes
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Traffic:
Cairo Traffic Congestion Study estimated the annual costs of the congestion in Cairo to
be up to $8.0 billion. Direct costs include the loss of productivity due to sitting
in traffic rather than working. The additional fuel consumed by extended travel times
and the environmental impact of increased vehicle emissions. There are also indirect
costs, such as the effect of the environmental degradation on public health. The traffic
is also deadly. At least 1,000 people die each year in traffic related accidents, of
which more than half are pedestrians, and over 4,000 are injured.
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Increase the police force and traffic control and solve the issues with traffic and peddlers
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Clear traffic for all type transportations
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Increase police control on all intersection
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Build new roads and tunnels
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Communication:
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Increase internet services and lower prices
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Increase Phone services and lower prices
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special care for new businesses and investors
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Railroads and Buses:
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Increase the Railroads and bus services for businesses
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Increase the Railroads and bus services for citizens and tourists
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lower the cost of traveling for Egyptians
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Our Wishful Thinking:
How much that will cost and where does Egypt get the funding?
The Gross Domestic Product (GDP) in Egypt was worth $257.29 billion in 2012.
What is GDP?
Definition of 'Gross Domestic Product - GDP'
GDP = Consumer Spending
+ Government Spending
+ Business Spending
+ (Exports - Imports)
= $257.29 billion
Our assumptions:
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The GDP increases by 4% a year therefore, we can assume for 2013 GDP = $267.58 billion.
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20% of GDP is spent on fuel, utilities and public services which would be = $53.52 billion
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10% increase in Egyptians wages and income would be an addition of 5% of GDP = $13.38 billion
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The addition of the above would be = $66.899 billion
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A Two Year Boost for Egypt's Economy:
Our proposal is Egypt must spend about $134 billion ($67 billion each year) for two years
to bring the economy back out of the hole. Hopefully that will create a solid economy that
would need less subsidizing and produce more taxes, revenue and pay the national debts.
Following the two years, there should be a gradual decrease in subsidizing.
At this point in time, it is difficult to estimate what the next step would be.
We hope Economists and the government can work out the plans for years following the two years boost.
Where does $134 billion come from?
We need to take from Mubarak's System $760 billion in US and European banks.
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