Egypt’s Socioeconomic Status Hinders its Modernization

Socio-economic status in Egypt is hindering its modernisation

Last updated on September 11th, 2021 at 02:36 pm

Trust displays positively on nations’ speedy monetary growth argues renowned political scientist Francis Fukuyama. To further illustrate his point, Fukuyama claims in his book, Trust: The Social Virtues and the Creation of Prosperity, that the high degree of mutual have confidence and other shared high-quality cultural traits, such as difficult work, have empowered Germany and Japan to end up advanced nations.

In the Egyptian enterprise community, there is a sizeable shortage of have faith that regularly leads to large commercial enterprise deceleration.

Nevertheless, the absence of believe in a given society could be compensated to some degree through the acceptable software of rule of law, which is additionally missing in Egypt, both due to the ambiguity of our legal guidelines or to the appreciably prolonged and bureaucratic court cases of our courts. Egypt is acknowledged for its formidable government forms that can be circumvented by way of bribes whose sizes range depending on the value of the transaction and the length of the bureaucratic procedure.

Moreover, paying millions of dollars to international TV channels to promote Egypt as an attractive investment or tourism destination will certainly interest the world in learning more about our investment opportunities, rules and business environment – which should have prompted us to work on addressing our business structure deficiencies prior to publicizing ourselves globally.

Egypt presently lacks the principal pillars for founding a sound economic platform that are needed to develop a truly modernized nation. Egyptian private enterprises will not be stimulated to modernize their entities on their own; our society is a naturally “static” society, wherein citizens prefer to prolong their respective enterprises’ status rather than risk changes that they can’t apply! This attitude is shared even by various Egyptian chambers of commerce and industry, who work to serve their members’ business aspirations.

The Egyptian authorities needs to enlarge its management position to repair our socioeconomic flaws, carefully addressing the non-public sector’s challenges by way of supplying a bundle of scientific solutions.

  The government must right now work on advancing rule of law, meritocracy and sound financial policy; these practicalities will help Egyptians to restore higher socioeconomic norms. The quicker we tackle these issues, the better the outcomes will be.