REAL PEOPLE.REAL ISSUES.REAL LIFE.
Building Prosperity
With so many lost in political deadlock, few have given thought to the country’s economic future. By Amr Aref
11 September 2011, 5:13 am
 

A satellite image of Egypt shows vast areas of desert with a green lifeline running through its center. For centuries, the Egyptian people resided by the Nile and tied their lives to it in every aspect. More than 40 years ago, the Aswan High Dam was completed, thereby controlling the annual flood to improve farming and produce hydroelectric power. The project became one of the main pillars behind Egypt’s industrialization and economic development.

 


And now it seems Egypt is in dire need of a new project or, better yet, a new vision that will propel similar growth. The time for simply reaping the Nile’s wealth by the riverbanks is over. For Egypt to prosper, its population needs to move beyond its centers of commerce and better use and develop its natural resources.

 


Geographically, Egypt can be divided into four regions, the Nile Valley and Delta, the Western Desert, the Eastern Desert and the Sinai Peninsula. Over 99% of the population resides in the Nile Valley and Delta, which accounts for only 5.5% of Egypt’s total land area. The continued growth of the population on that same land area means precious arable land is quickly giving way to massive urbanization.

 


Urban sprawl combined with poor land management means Egypt is losing 14,150 square meters of arable land per hour, according to a United Nations report issued last June. This rate is catastrophic, and if it is not addressed soon it may turn Egypt’s breadbasket into large swaths of red brick apartment buildings, eventually causing the green lifeline that runs through the heart of the country to disappear.
To prevent this, Egypt must adopt a massive de-urbanization program in the Nile Valley and Delta to preserve fertile land and continue feeding its increasing population. The government must also investigate its programs to cultivate desert land — it makes little sense to turn the deserts green using limited aquifers, while allowing parts of the delta at risk of desertification.

 


That being said, investment still needs to be directed to developing the country’s vast deserts into economies in their own rights, thereby creating employment opportunities away from the river banks. Incentives need to be provided for citizens to encourage migration to the newly formed cities and economic zones, which could include tax breaks to citizens if they relocate.

 


Investment that will drive future economic growth would ideally be located in the Western and Eastern deserts. But to do that, the region first needs infrastructure and transportation routes. An example of one such project is Farouk El Baz’s Development Corridor slated to be built between 10 and 80 kilometers west of the Nile. The proposal includes the construction of a 1,200 kilometer super highway linking the Mediterranean to the Sudanese border. Also in the works is a modern railway system and power lines slated to run alongside the roadway.

 


Twelve major branches running from east to west will connect the superhighway to population centers along the Nile. The project is set to provide infrastructure for economic development in the Western Desert, while maintaining links to existing cities. For instance, areas east of the corridor and west of the Nile could be dotted with food processing industries, supplied with the raw materials from land on the river’s banks, which allows food consumed in the major cities to be manufactured closer to home. Companies would not only save transportation costs, but excess production could be transported north to the Mediterranean ports for export to Europe.

 


Local economies also need to grow along the North Coast, just west of Alexandria, to better utilize the 200 kilometer stretch of existing real estate that is currently occupied only a few months of the year. The coast’s pristine beaches are an excellent attraction for international tourism, while the adjacent deserts to the south offer year-long sunshine ideal for solar farms.

 


Although there is no development proposal for the Eastern Desert similar to corridor in the west, scientists predict that areas east of the Nile are rich in mineral deposits as well as gold mines.

 


If such predictions are true, then another superhighway needs to be developed in the Eastern Desert also running from north to south. Mineral mining and value-adding industries could grow up around it to serve companies and new residents.

 


Roads running from west to east could then connect the highway to the coastal cities of the Red Sea, which would likely increase tourism in Hurghada and Marsa Allam as well as speed development of more southern communities like Berenice.
This access could also create potential in the mountainous terrain between the Nile Valley and the Red Sea and bolster Egypt’s burgeoning eco-tourism industry. Transportation between major ports such as Port Sukhna with the rest of the country would then become faster and safer.

 


As for the Sinai, development there is long overdue. The peninsula was largely ignored by the previous regime and many of its inhabitants were treated as a security threat. This approach left almost 6% of the country’s landmass severely underdeveloped.

 

The peninsula’s potential for tourism growth has potential that dwarfs even Sharm El-Shiekh’s. The coast line on the Gulf of Aqaba is famous for its camping culture and eco-tourism. With renewed marketing efforts and basic services, occupancy in these cities could be dramatically increased.

 


Handicrafts from the central mountainous region and Sinai at large should be nurtured and developed to contribute to the country’s exports. It is also of vital importance to achieve the development goals within a strict context of environmental preservation in order to protect the coral reefs that are at risk from climate change.

 


Along the western coast and at the Suez Canal, shipping and maritime services must also be increased to boost the canal’s revenues. Currently the fees levied by the canal are in the form of a toll with few additional, value-added services on offer to passing ships.
Egypt’s unique geographic location and ownership of the canal, which sees 10% of global trade pass through its waters, provide it with an opportunity to become an international logistical and assembly hub.

 


Egyptian ports could become some of the largest in the world and surpass those in countries such as Singapore and Hong Kong, which opens up further opportunities in industries like semi-finished goods that can be assembled in factories near major ports, allowing companies to capitalize on low labor costs.

 


Industrialization, tourism, renewable energy, agriculture, transportation and trade offer possible answers to Egypt’s pressing economic issues. What the nation’s squabbling political forces seem to be missing is that most Egyptians are not concerned about a civil or Islamic state. What they care about is a roof over their heads and food on their table, and without a clear economic vision, such necessities will remain out of their reach. bt
 

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