Chief Advisor of the Arab Knowledge Project at the United Nations Development Program (UNDP) Hany Torky says that Egypt is on the right track in overcoming the economic difficulties caused by flawed policies implemented in the past.
Speaking to Ahram Online, Torky said that Egypt had implemented its privatisation program in 2010 in a way that eventually led to the collapse of the companies that had been privatized and weakened the Egyptian economy.
Torky also explained that a knowledge economy is built on mechanisation instead of human labour, where one machine can do the work of five labourers.
“Egypt has industries with significant manpower, but is poor in skills that are necessary for the market. So, when the privatisation programme was applied in 2010, as an implementation of the concept of the knowledge economy, economic growth rose, but its impact failed to reach the targeted segments of society, so the poor became poorer and the rich got richer. This is why Egypt’s privatisation programme failed,” Torky said.
However, Torky said, under the leadership of President Abdel-Fattah El-Sisi, Egypt has started to overcome this problem by translating the concept of the knowledge economy to real national projects that push the country’s economy to grow and absorb the workforce.