Most economists and policy makers agree that no other economic objective deserves more emphasis than rapid and shared economic growth. By growing rapidly and distributing the benefits widely, society can create jobs, provide social services, and maintain political stability. The issue, however, is: What are the reform priorities to pursue this objective?
This Policy Viewpoint shows that the pay-off to the Egyptian economy is greatest if effort is focused on reforming the education system, reducing the size of government, promoting savings and investment, and improving the rule of law, in that order. Additional gains can be expected from opening up the economy. These conclusions are based on answering two questions: What does it generally take to grow fast? And, how does Egypt compare with the fast-growing economies?
Author(s): Ahmed Galal