The recession witnessed by the Egyptian economy is blamed for all social ills, and is being accepted by the people as a painful fact of life, says a report by Al Ahram Weekly,
"We are all frustrated; …but it just seems to be the norm these days," a citizen was quoted in the feature story as saying.
The English weekly said that the economy is blamed for virtually every social ill: from obvious woes like unemployment, high prices, salary-cuts and layoffs, to more indirect repercussions, like the break-up of marriages.
People apparently do not buy official statements and pro-government news stories saying the opposite of what they feel, and live.
“And though the government periodically issues statements signaling a turnaround, people have ceased paying any mind. A recent plan of economic reform was touted by the government as a sure way to jumpstart the economy within 90 days. But almost a year later, the fruits of this effort have yet to be seen,” said the report.
Ismail Osman, chairman of the Arab Contractors Company was quoted as saying that he expected the current slowdown in the construction sector, which witnessed a 25 per cent reduction in its operations in the year 2000, to continue at the same rate. Osman noted that the economic slowdown is a result of failure to implement even "basic financial, legal and security polices." He also cited political instability in the Middle East as an additional deterrent for foreign investment.
In the streets, said the weekly, shops are crammed with unsold stock and floundering businesses and bankruptcies are on the rise. Even a new government plan that would ostensibly stabilize the exchange rate of the pound has elicited little enthusiasm.
"We can do nothing but hope for the best," said one taxi driver. "Every day the government issues optimistic statements, while conditions are only worsening," he said. "Life has become increasingly expensive, especially after the imposition of the new sales tax. How can we live?"
Egypt has devalued its currency against the dollar by 6 percent. The move was criticized by many, despite repeated assurances that it was a step in the right direction.
According to the report, the Egyptian, due to the recession, have no faith in the economy forces, and refrain from investing in projects and fear of what lies ahead encourages people to save obsessively, slowing spending.
“Talking to small business owners and other professionals, it becomes clear that consumers are tightening their belts and preparing for the worst,” said Al Ahram.
However, Egypt is still trying to tackle joblessness by introducing more projects.
The Arabic daily, Al Ahram, said Friday that Minister of Industry and Technological Development Mustafa al-Rifai announced that 829 new industrial projects began production during the 2000-2001 fiscal year. He said that more project are in the pipeline that will create thousands of jobs for the Egyptians – Albawaba.com
