Economists of the bloody coup regime led by Abdel-Fattah El-Sisi called for freezing and stopping work in the new administrative capital and other new city projects, stressing that these funkosh projects have no return even in the long term and threaten the collapse of the Egyptian economy.
Experts said that “it was better to direct the billions of the administrative capital to productive industrial and agricultural projects whose revenues could build such an administrative capital without exhausting the Egyptian economy and without starving the Egyptians.”
They emphasized that the funds of the Administrative Capital and New Alamein would have been better directed to developing industry and restarting closed factories Pointing out that there are more than 11,000 factories, representing 40% of the private sector, have stopped working.
Experts pointed out that investment in the industry amounted to 49 billion pounds in 2020, according to data from the Ministry of Trade and Industry of the coup government, which is a meager number compared to trillions of new cities, stressing that billions of pounds and billions of dollars that were spent on establishing the administrative capital, bridges and tunnels, could have achieved a boom. A major economic system that guarantees an increase in exports, provision of hard currency, and a reduction in unemployment, but this did not happen.
They explained that new cities such as the capital and El Alamein do not have economic bases, and therefore it is difficult to talk about achieving returns from them even in the long term, criticizing the absence of investment maps and strategic planning for the Egyptian industry by the military state, which caused many problems that the industry faces.
For her part, Dr. Howaida Adly, a professor of political science at the National Center for Social and Criminological Research, asked, what is the priority of investment in the capital and its sister cities in light of the deteriorating economic situation and huge development challenges?
d said. Howaida, in press statements, said, “These challenges required working on different paths based on the idea of creating multiple poles for growth in the different governorates of Egypt, which would withdraw part of the population density from Cairo and limit rural migration to urban areas, instead of concentrating this huge amount of investments in Create a new capital.
11 thousand factories
Labor leader Kamal Abbas revealed that the number of factories that stopped working during the last period amounted to 11,000 factories, representing 40% of the strength of the private sector.
Abbas said in press statements that “factories have stopped for a number of reasons, most of which are related to either loans from banks or the need for facilitation in financial credits, or reasons related to high operating costs such as the high cost of electricity and natural gas.”
He added, if we look at the national income, we are talking about only 11% of it achieved from the returns of industrial activity, which is a very small number, explaining that the internationally recognized rate is 33%, and therefore it is not possible for a country like Egypt with the size of its large population and in light of the dire need for job opportunities. The industrial activity limit stands at only 11%, because this is a very low percentage.
Abbas stressed that there is a need to solve the current problems of the private sector, and through it we stand on the reasons for stopping, whether administrative or financial, or exaggeration in prices, customs and production requirements, and this will be resolved, calling for the necessity of facilitating the private sector and enabling it to enter the industrial field. .
An expert and engineering consultant said, “The crisis is not only related to the internal problems of the industrial sector, but it is part of the vision of the military state in general and its plans for the future, as it focused on real estate investment without supporting it with an industrial backing, explaining that the current problem in some new cities such as the Administrative Capital and New Alamein is that it It has no economic rules, and therefore it is difficult, however, to talk about achieving long-term returns.”
The engineering consultant, who preferred not to be named, added that there is no city based on services only, and in this case – the new capital – city services only, it is not even regional services that have a role in the Arab region, considering that the transfer of administrative sectors and ministries from Cairo to the administrative capital It is tantamount to (transportation of services) and therefore there is no city based on the transfer of services only.
He explained that cities are usually based on industry, trade, agriculture, or any of the production projects or industries, but there is no city based on services, for example. Today, I moved to the New Administrative Capital with my family. What will I do to benefit from the services provided there? Only for workers in the ministries to which you will move? It is assumed that the answer is no, and therefore the question is what work or job will be provided for the average citizen to move to the capital?
The economist, Dr. Zuhdi Al-Shami, revealed what is directed to the capital compared to the productive sectors, stressing that the amounts directed to production are very meager, as the investments directed to the agricultural sector, according to the data of the Minister of Coup Planning, amounted to only 27 billion pounds in 2019-3020, and reached 43 billion pounds in the following year, then To 73.8 billion, or only 5.9% of total investments in 2022-2022.
Al-Shami confirmed in press statements that the number is meager and far from the trillions of new cities, and the luck of industry does not seem better than that of agriculture. Investment in industry, according to the data of the Minister of Trade and Industry in the coup government, amounted to only 49 billion pounds in 2020.
He stressed that the logical result of this is the clear decline in agricultural and industrial output, and this is evident in the continuation of the large deficit in the trade balance as a result of weak commodity exports and the increase in commodity imports. This is evident in the rise in the import bill of agricultural commodities to $10.4 billion in 2021, in addition to another $6.7 billion from the food industry.
Al-Shami stressed that Egypt desperately needs, in light of the current crisis, to freeze spending on these entertainment projects, especially the new administrative capital, and not to persist in the same wrong path, and to rearrange priorities in the direction of production, agriculture, industry, science, education, technology and health, and without that the current crisis will be complicated. more and more.
Source: بوابة الحرية والعدالة by fj-p.com.
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