We couldn’t speak about economic framework away from politics

The youth suggests: disengagement of  financial tangles between state institutions

Establishment of a sovereign fund to manage public investments and advocate transparency

 Minister of Finance, Dr. Ahmed Galal, confirmed that the government works within an integrated plan through specified policies and programs to activate the economy and achieve social justice along with maintain the financial control, in order to face challenges on the short term and establishing foundations for social and economic structure to be completed by the coming governments on the medium term.

Through the meeting,held few days ago with a number of youth groups representing different revolutionary movements and intellectual trends, among them: representatives of Rebel, 6^th of AprilMovement, the Socialist Alliance, and from liberal and Salafi parties and public figures. This meeting was within series of meetings will be held by the Ministry of Finance to present its directions and recognize opinions and suggestions from different categories in the society to be achieved in the next phase. The Minister assured that all suggestions raised through these meetings or from what citizens sent by e-mail to the Ministry will be discussed and the Ministry will seek implementing what is suitable to achieve the economic and social objectives and respond to citizens prospects.

Dr. Ahmed Galal demonstrated that financial and economic policy makers has two options; either concentrating on General Budget control with austerity measures to reduce deficit rates and public debt; or concentrating on the activation of the economy through expansionary policies leading to increase employment opportunities. The government chose to follow the second option seeking to increase the economy’s overall demand  basically through investment spending. This will increase job opportunities beside increasing state resources as a result of promoting economy.

The Minister said that the IMF programs were choosing the first way (austerity measures) although the recent government decided to follow a different way for the benefit of economy and society.

The Minister affirmed that the recent Egyptian economy low growth rates , which are less than the economic potentials allow the incrementand expansion of growth without having inflation effects. Also, the abundant aids presented by Golf countries to Egypt will allow the increment of investment spending without affecting the financial control and decreasing budget deficit decreasingplans to reach  9% of GDP.

Regarding proposals of escalating income taxes or imposing new taxes, the Minister demonstrated that recently is notthe convenient time, whereas such taxes conflicts with the expansionary policy that the government endeavors to implement.

The Minister said that transferring money from one pocket to another has only a limited economic and social effect and the most important  is to introduce new money to the economy through promoting investment.

The Minister confirmed that there will bespecific procedures to support social justice in the coming period, such as applying a program for cash subsidy which is directly targeted to improve the poor’sstandard of living, also a program for motivating the voluntary integration of the informal sector in the economy. At the same time, he affirmed that the concept of social justice exceeds applying programs for social protection to be a base in all economic policies achieved by the government, such as investment geographical distribution and type of investments which realizesmore job creation. In addition, giving more importance to education and health as a base for achieving justice through creating equal opportunities for citizens in job market.

Dr. Galal said that we couldn’t speak about economy away from political framework, adding that the politically successful countries are the economic successful ones and vice versa. He explained that the political success includes judiciary independence, granting public liberties, respect of law, equality, justice, separating between authorities and good political representation for society sectors.

At the meeting, the participants proposed several suggestions to activate the economy, social justice and increase the state’s resources such as: remove the obstacles facing investment in the communication centers at governorates which allow more job opportunities, the interest in investments solid wastes management, encourage service industries and develop an integrated industrial policy for the country and distribute lands according to objective bases, encourage medium and small projects to be enlarged, direct the Gulf countries’ aids to investment spending especially in infrastructure, support transparency and participation in preparing general budget, public spending and fair access to information, provide foreign currency for companies to expand investments, increase investments at villages and local centers especially in Upper Egypt and establish health services centers and other fundamental services in such regions, develop a plan for minimum wages, provide unemployment subsidies, allow citizens to participate in making decisions on different levels, achieve association freedom and in representation in businessmen gatherings, disengagement of financial tangles between the state’s institutions and control financial transfers between each other, develop and update the state administrative body, work to achieve quick and actual results for citizens and impose taxes on the capital profits.

The participants said that success of the current government is the revolution success and it shall affect the coming political plan. So we should support it strongly, meanwhile criticize it and provide ideas.

Youth also suggested establishment of a state’s sovereign fund, to manage public assets with highest efficiency,  the state can enter the real estate sector and finally they call forissuance of a pledge document by the current government to enable the society to be accountable thereby.

The youth people who participated in this dialogue areZiad Ali the founder of “MasrinaAssociation”, KhaledBeshara –works in the field of investment portfolio management, Mohamed Tolba – founder of  “El-Slafia El-Wasta” Hamdy El-Kashef – member of the Revolution Youth Union, Ahmed Belal-member of Al-TagamoaParty, Noura El-Helmy from the Popular Stream, Haitham El-Khateeb from El Dostoor party, EsamShaban-member of Change Front, AmrHamed-member of the Revolution Youth Alliance and Hamada El-Masry-member of 30^th of June front.