Is the Revolution Good for Business; Business in Egypt  

Oleh:

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Jenis: Article from Bulletin/Magazine
Dalam koleksi: The Economist (http://search.proquest.com/) vol. 400 no. 8746 (Aug. 2011), page 46-47.
Topik: Geographic Profiles; Business Community; Business Conditions; Rebellions; Tourism; Foreign Investment; Economic Conditions

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Perpustakaan Pusat (Semanggi) Nomor Panggil: EE29.67 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Egypt has uncounted millions of small entrepreneurs. Most operate outside the law. Hernando de Soto, a Peruvian economist, once estimated that informal enterprises employ 40% more workers than all of Egypt's legally registered companies put together. Throat-constricting red tape is the reason. Small wonder most businessfolk opt to work without licences or legal protections. Few pay tax, either. For obvious reasons, statistics on the informal economy are hard to come by. No one knows how many Egyptians have been put out of work since the uprising began in January. But it is clear that tourism, which provides one job in seven and 11% of GDP, has been badly dented. The gloom will not last forever. Egyptian tourism has been wounded before. Political uncertainty is keeping investors away, at least for now. The first quarter of 2011 saw a net outflow of foreign direct investment of $163m. The economic fundamentals are largely unchanged: Egypt's location at the crossroads between Europe, the Middle East and Africa remains attractive. The country also has one of the Arab world's most diversified economies. But investors are still wary. The corrupt and brutal Mubarak regime styled itself as business-friendly. Now that the regime is gone, there is a danger of a backlash against all businesses, which are tarred by association. Firms are doing all they can to distance themselves from the old order. The revolution could make Egypt more prosperous, if it leads to less corruption, stronger institutions, greater diaspora goodwill and a more motivated population.

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