With the original Egyptian revolutionaries routed in both the parliamentary and presidential elections, the hapless citizens are now weighing the pros and cons of the two remaining presidential candidates -Mohamed Morsy, the Muslim Brotherhood candidate representing Egypt's Islamic bloc, and Ahmed Shafiq, a former military man and the country's former prime minister, who is widely seen as a remnant of the country's last regime.
As the secular revolutionaries pick up the pieces, grudgingly contemplating a vote for one or the other, as neither represent their ideologies, they may well decide on the economic policies of each of the candidates.
The Egyptian economy has been under a cloud since the unrest ousted strongman Hosni Mubarak fifteen months ago. The economy is struggling to eke out growth, unemployment is at 10.4%, no different from where it was during the previous regime, and companies are reporting much subdued businesses.
"With a new parliament and soon a new president, Egypt will have a government in place, but that alone will not be enough to promote lasting stability in the country," wrote Sabina Dewan, Director of Globalization and International Employment and James Hairston, a Research Associate for the Economic Policy team at the American Progress organisation in a study.
"Stability depends on whether Egypt's economy can generate enough 'just jobs' -- complete with appropriate remuneration, good working conditions, and opportunities for average citizens to make a better life for themselves and their families -- to give the nation's new democracy the underpinning it needs to thrive."
Despite the reluctance regarding both candidates, Mr. Morsy's popularity got a slight fillip when an Egyptian court ruled that Hosni Mubarak and his interior minister's life imprisonment for their role in the killings of protestors during the 2011 uprising, but acquitted six senior officers.
The decision has lit a fire under the masses who are already frustrated at the lack of progress since their 'beautiful revolution' removed a 40-year old regime within a matter of days.
Revolutionary groups have gathered for mass protests against both the verdict in the Mubarak trial and the candidacy of Ahmed Shafiq in the presidential election runoff. Quick to jump on the bandwagon, the Muslim Brotherhood has endorsed the move.
Despite the tensions, the Higher Committee for Presidential Election (HCPE) remains determined to hold the second round of presidential elections as planned on June 16-17.
"We believe that heightened political tension will continue to reflect negatively on the investment environment, already evident in the EGX30's drop to4501.91 at the closing of June 5 trading session - a decline ofc.4% compared to the closing of May 31," wrote Alia Mamdouh, an analyst with CI Capital Research. "Placating measures could help to mitigate public anger and stabilize the macro scene. Otherwise, however, tensions are prone to continue (if not escalate), further pressuring the Egyptian market."
So before Egyptians cast their vote, it's worth while to look in depth the candidates' economic pledges:
Mohamed Morsy
Here are Mohamed Morsy's key economic policies and goals, outlined by CI Capital:
* Focus on Islamic law and development of Islamic investment instruments such as sukuk to finance growth.
* Improve investment climate by cutting red-tape and regulatory reforms, including amending tax law.
*Aim to double national and foreign investment and build a competitive economy through the Al-Nahda project, which proposes to bring together the government, private sector and working population.
* Target economic growth of 7% in the short-term, reduce unemployment to under 7% and cut inflation by half.
*Raise exports by 20%, with technology exports making up 15% of the exports by 2016.
* Raise healthcare allocations to 12% of budget by the end of the presidential term.
* Reduce domestic and external debt by 15% annually.
* Develop projects in key areas to create job opportunities. This includes North-West Coast Development project, Sinai reconstruction project, and Technology Valley project in Ismialia.
* Launch transportation and logistics sector worth USD2.5-billion. This includes the first phase of industrial logistics zone in East Port Said, an 18 km tunnel under the Suez Canal, 3 logistics centres in Upper Egypt, and developing Safaga mining port.
*Develop a fund to provide unemployment benefits.AHMED SHAFIQ
In contrast, Ahmed Shafiq's policies appear to be less explicit. His focus is on investments with the private sector and Gulf investments driving much of the growth, similar to the strategy adopted by the previous regime.
Key policies and goals include:
* Reform regulations to attract foreign investors and special incentives for Arab investors - in short stronger business ties with Gulf states.
* Create special economic zones, similar to the successful Suez Canal, to create jobs. This includes establishment of new industrial zones, especially in Upper Egypt.
* Activate Competitiveness Protection Law
* Revise natural gas export prices to reflect international prices.
* Encourage technology and related industry.
* Provide draft law for unemployment benefits.
* Reduce energy subsidies for industrial sector and transfer it to the poor
* Reduce budget deficit to 6% of GDP within four year.
© alifarabia.com 2012
