Government report: Transferring fuel and electricity subsidies to food and social programs

11:57 PM

Tuesday 04 January 2022

Books – Muhammad Nassar:

The Human Development Report in Egypt 2021, issued by the Ministry of Planning and Economic Development in cooperation with the United Nations Development Program, revealed the economic reform plan.

During the past few years, Egypt sought to implement the national economic reform program, which aimed to achieve serious and purposeful structural reforms.

In light of the current crisis and the repercussions of the Covid-19 pandemic on all economies of the world, the Egyptian state must continue to play a leading role in developing this program, in order to transform the Egyptian economy into a productive, knowledge-based economy that enjoys competitive capabilities in the global economy and to continue its efforts to increase focus on activities Productivity, and in particular industry, in accordance with the objectives of the state and in coordination with the private sector plays a major role in the development process.

The current crisis has made it clear that economies that depend on manufacturing have fared better, both during the crisis and during the recovery period.

Strengthening Egypt’s development path during the next ten years requires supporting efforts to complete structural reforms, focus on productive activities, and create a business environment so that the private sector can play an influential role in these activities, in addition to reducing the negative effects resulting from the rise in debt service, by strengthening public debt management.

It also requires work to lift customs and non-tariff restrictions and simplify procedures to enhance exports and competition, in addition to supporting economic analysis at the decision-making level, to go beyond the analysis of aggregate indicators and direct further study to the extent to which the right of individuals and citizens to development is fulfilled, and how general economic performance is reflected on their conditions. livelihood and work on analyzing the extent of justice in distributing the fruits of development between individuals and different geographical areas, as well as enhancing the optimal use of resources by continuing to shift from energy subsidies, especially oil and electricity, which are characterized by higher consumption by the most income classes, to food subsidies and social programs that benefit The higher classes are drawn by the lower income classes to increase distributive justice and combat poverty.

During the next decade, Egypt will begin implementing the second phase of its national program for economic and social reform, through which it targets – for the first time – the real economy with serious and purposeful structural reforms and transforming the course of the Egyptian economy into a productive economy based on knowledge and enjoying competitive capabilities in the global economy in order to encourage inclusive growth and create Decent and productive job opportunities, diversifying and developing production patterns, improving the investment climate and business environment, settling the local industry and increasing the competitiveness of Egyptian exports, thus achieving sustainable economic development and comprehensive and sustainable economic growth.

The program includes 6 axes classified into a main one, which is restructuring the Egyptian economy by focusing on the real economy sector, and other complementary ones: the business environment, developing the role of the private sector, labor market flexibility, raising the efficiency of vocational training, and human capital (education, health, social protection). Financial inclusion and access to finance, efficiency of public institutions, governance and digital transformation.

The first and main axis also included three major priority productive sectors for the structural reforms program, in accordance with the state’s objectives and in agreement with the private sector in order to encourage investment and develop the business environment, namely: the agricultural sector, the technology-intensive manufacturing sector, and the communications and information technology sector.

Parallel with the implementation of the various axes of the structural reforms program, support service sectors that complement and support productive sectors, capable of creating job opportunities and providing foreign exchange among these sectors: logistics, the construction sector, and the tourism sector, in addition to promoting the green economy.

Reference-www.masrawy.com

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