Setting Up a Proper Democracy in Egypt - Essay Example

Setting up a proper democracy is the main challenge for Egypt over the next few years.

Economic Analysis

Tourism has always been a huge boon for the Egyptian economy, so all the political upheaval has had quite a negative effect. Tourists are concerned for their safety and security after watching the latest news on television. Furthermore, many foreign countries have warned their citizens not to travel to Egypt because of the high risk of violence. As the number of tourists has been dropping rapidly, tourism minister Hisham Zaazou will have to come up with marketing schemes to get the tourists to come back.

In addition, the political strife in Egypt has led to a decrease in foreign investment in the country. Before the violence Egypt was welcoming of foreign investment, so the government needs to get back to that image.

Social Analysis

Egypt has a robust and fair social security and welfare system for its citizens. The system is designed to help those in need, particularly people who cannot get jobs. Government employers and employees are required to contribute to the national insurance scheme to cover an array of benefits.

Unemployment has skyrocketed over the past few years due to the political changes taking place. The World Bank Group is doing its best to provide training and support so that development can continue in the job sector.

Technology Analysis

The Zewail City of Science and Technology was finally established after the January 2011 political protests. The project will help train 5,000 promising and talented students. The goal of the project is to bring Egypt into the 21st century by increasing productivity and exploring new technologies.

In September 2012 an agreement was signed between Egypt’s ICT sector and a U.S. business delegation to help stimulate economic growth in Egypt. One of the first focuses of the deal was to improve infrastructure at the Cairo International Airport in conjunction with the Cairo Airport Company.

Legal Analysis

Egypt is very open to foreign investment, although economic projects cannot occur in the Sinai Peninsula because of security risks. There are very few restrictions on investments made by foreigners, and they can own up to 100% of some industries. The purpose of this encouraging policy is to give small businesses additional capital and help larger businesses expand.

The political environment has badly affected the business environment, with many foreign investors too afraid to invest in Egypt because to them the risks outweigh the benefits. The interim government has contributed to this somewhat by not taking the lead on foreign investment.

Environmental Analysis

Egypt has always held a strong emphasis on the environment, meaning that businesses are forced to comply with an extensive list of rules and regulations.

Despite this fact, Egypt still faces many environmental quality problems, such as air pollution. The country is also very susceptible to dust spread by high winds in the region.

The World Energy Council has not looked too favorably on Egypt in recent times, as the country has dropped considerably on the Energy Sustainability Index.