When it comes to Egypt's economy...Honesty is the best policy

A simple idea I would like to offer those responsible for implementing economic policy: uncertainty and opacity are the bane of investment, employment, and economic development.

What investors need above all is a clear understanding of the policies and programs the government intends to implement. Various economic actors will make their own calculations and assessments and will be able to deal with variables and adjust to changing conditions - including price fluctuations, tax hikes, or changes in supply and demand conditions—but only if the state allows them to understand its policies and apprises them of its intentions and directions.

Undoubtedly Egypt is experiencing tough economic times and the country needs major resources we don’t have. But even amid scarce resources and capacities, the state can present a clearly delineated economic vision and a realistic, pragmatic program. It can involve society in what it intends to do, accept revision, criticism, and correction. None of this requires resources, loans, or foreign grants. It just means honoring the Egyptian saying "honesty is the best policy".

This observation is occasioned by the ongoing contradictory, inconsistent stances and statements coming from economic officials. Taken together, they do not indicate a coherent, coordinated economic policy that can be monitored or engaged with, or constitute a foundation on which to build expectations.

I’ll give some examples. First, the Ministry of Investment announced its intention to offer some equity in some state-owned enterprises to the public. But meanwhile the Ministry of Public Sector Businesses, the body with core competence, stated that the sale of state assets is not currently on the table.

Second there is the uncertainty surrounding talks and a potential agreement between Egypt and the IMF. Is a deal in the works, as some officials say, or is it not an option, as other state officials claim? If an agreement is imminent, shouldn’t its outlines be discussed in public, so the announcement doesn’t come as a happy surprise for some and a less happy one for others?