Egypt Pushes to Modernize Industry

Egypt is investing US$35 million in its National Supplier Development Program in an effort to prepare its protectionist economy for gradually-increasing openness to international trade. The venture targets small- and medium-size Egyptian businesses supplying larger "mother companies" whose size and efficiency allow them to compete far more effectively in the global marketplace. Smaller Egyptian firms will receive up to US$173,000 for upgrades designed to better-prepare them for international competition. Much of the money actually comes from the European Union, suggesting the value that Europe places on the development of freer trade with protectionist states like Egypt. Still struggling with a bloated bureaucracy and an underdeveloped banking system, Egypt will be unable to meet President Hosni Mubarak's goals for the nation's economic growth – but any economic growth, suggest some observers, is a start. – YaleGlobal