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THE MAN WHO BROUGHT THE NATION TOGETHER
Muhammad Hosni Mubarak seems to have the gift it takes to keep a nation together by unifying political, religious, business, non-governmental groups as well as to care and protect the underprivileged.
Maybe that is why he has contributed to many changes and turnarounds without the unrest seen in other emerging economies. He has managed to foster a growing economy that goes hand-in-hand with a more liberal legislation through many initiatives and projects.
Land-reclamation projects like Toshka or many BOOT (build, own, operate, transfer) projects pave the way for a competitive Egypt in the next millennium.
His biggest achievement is the obvious policy change to shift the centralized planning of Egypt's historically inward-looking and protected public-sector economy to a more competitive, outward-looking, market-based economy, in which the private sector plays the leading role. Many obstacles still need to be overcome, but a commitment to privatization and a liberal economy is the hardest step to take in overcoming a country's socialist heritage of more than three decades.
Since the early nineties, Egypt has accomplished many of the objectives asked for by the IMF. GDP has grown, unemployment has decreased dramatically, and the general budget deficit has plummeted to less than one percent.
There are many reasons for the IMF to pat Egypt on the back and call it a star pupil. Nevertheless, to produce macro-economic figures like that, many changes and reforms were necessary to Egypt's most important industries. Something that might not have been possible if Mubarak did not enjoy the full support of the public and business community, who now seem to understand that an Egypt of the future has to have the capability to compete on the world market.
Of course, the private sector will always be in favor of a free market, but to have the support of the public is proof in itself that Mubarak understood the need to address and strengthen national concerns like health care, population growth, social welfare, insurance and education. Even Mubarak's opposition must admit that his achievements and progress in this field stand out when you compare Egypt to other emerging countries.
NGOs BENEFIT FROM CHANGE IN LAW
The participation of the general populus in society's decision-making in Egypt was limited for many years by bureaucratic and financial impediments. With more democratic practices and the expansion of the role of civil society, the Egyptian government found it necessary to modify Law no. 32/1964 regulating non-governmental organizations (NGOs).
The new law provides NGOs with an opportunity for self-governance. However, with the previous law, all NGOs needed prior approval from the Ministry of Social Affairs. The modified law allows any group to form and establish an NGO without prior government approval.
The modified law also provides NGOs with substantial tax exemptions for all imported equipment. Whereas contributors and donors to NGOs previously received a 7% maximum income tax exemption, the new law increases the exemption to 10%.
The ministry also no longer has authority to dissolve NGO boards. This authority is limited to judiciary bodies for specific reasons, such as threatening the social integrity of the Egyptian community or threatening national security. NGOs will also enjoy the freedom to raise funds and diversify their financial resources.
This new law was received very positively by the public because it complies with the transparency rules of globalization.
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