Egypt's post-revolution economy should be geared toward sustainability and community development
In the previous century, the pursuit of economic growth went unchecked as countries, governments and people assumed the planet's resources were seemingly endless. The Industrial Revolution allowed us to increase our production efficiency and led to an exponential increase in the rate of natural resources consumption.
Today, issues such as climate change have served as a wake-up call for the international community that consumption patterns need to change. Furthermore, the 2008 global financial crisis has put the spotlight on the ills of a capitalist economy when left unregulated.
Expansion in globalization saw businesses grow massively, but unfortunately, too often at the expense of the local population. The exploitation of local resources by irresponsible multinationals often meant that opportunities for local development were missed. It has become clear that while economic growth that is solely GDP-based is necessary, its does not automatically lead to social and sustainable development.
The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), a federal organization that supports the German government in its development goals with operations in more that 130 countries, issued an August 2012 report titled "Green Economy -- the economy of the future".
The report summarizes the challenges the global economy faces and highlights solutions for inclusive, resource-efficient and low-carbon development. It states that, "Economic development is necessary but insufficient for reducing poverty and improving overall living conditions."
"We need new, environment and climate-friendly development paths. But we also need socially sound forms of economic development that generate broad-based employment and income, thus contributing to the reduction of poverty," the report says.
The potential for job creation and social development that is resultant from a realigning of economic policy with more green and environmental sustainability practices is immense. Almost all developed countries and some emerging ones have realized this potential and the need for a shift has made it to their agenda.
"Many industrialized countries and some emerging economies recognize the potential offered by environmentally sound, resource-efficient production systems, and are now working specifically to promote ecologically innovative sectors of the economy. [...] Many developing countries, however, fear that embracing a green economy could slow their economic growth and thus their fight against poverty," says GIZ.
As Egypt's economic debate is about to intensify, important questions regarding the direction of the economy need to be answered. Will Egypt repeat the same policies of industrialized nations in its fight against poverty, and essentially lag behind a shifting global economic paradigm? Or will it learn from their mistakes and take a leap forward toward a more sustainable and inclusive economy?
While at face value it may appear that Egypt has more pressing problems than promoting sustainable development, it must be noted that sustainable development in itself holds many solutions to the country's problems.
Egypt's poor infrastructure and underdeveloped cities provide a fertile soil for incubation and growth of numerous sustainable and environmentally savvy economic and social initiatives. In contrast to the developed countries who face immense challenges in transforming their well-established systems and infrastructure to serve a greener economy, Egypt is at the point where it is about to build from scratch. This makes it easier for the country to adopt a green path.
Furthermore, there are initiatives in the country that are worth our attention and could be taken as jumping off points. In this issue, Business Today sheds light on three initiatives that focus on what we believe to be the necessities for the majority of the population: namely energy, food and housing.
© Business Today Egypt 2013
