07/05/2003
The subsidy issue with its two parts, the limited social part and the more comprehensive economic part, is of vital importance. With further legal and administrative organization, this subsidy is capable of bringing forth its fruits for our economy, in general, and for individuals, in particular. ( Available in Arabic )
Subsidy is bilateral: social subsidy and economic subsidy. Social subsidy is a duty imposed on the state budget, yet it brings no economic yield to the state. Heed should be paid to directed subsidy, in order to magnify the competitive potentials of the Egyptian economy and modernize industrial and economic institutions. Subsidy should be especially directed towards industrial modernization and the enhancement of exportation, while taking into account the development of human capital. In fact, economic progress is the result of increased individual productivity, qualitatively and quantitatively. The experience launched by the Ministry of Foreign Trade, in setting up a mechanism through which exporting potentials could be enhanced for certain promising industries, is a pilot experience that establishes the subsidy theory.