This post originally appeared at CIPE-Arabia in Arabic.
In a brief interview with CIPE-Arabia, Dr. Ahmed Fikry Abdel Wahab shared some of his thoughts on the pervasive informal sector in Egypt. His concerns center on the potentially negative consequences a large informal sector has on competitiveness, market values, and norms and quality of products. Abdel Wahab explained that while one might not necessarily describe the competition between the formal and informal sector as dishonest, it could easily be described as unfair.
Unlike informal businesses, formal enterprises have higher costs, which are reflected in the pricing of their products. In order to be able to compete, some enterprises compromise on the quality of their products thereby creating negative impacts on the industry and the overall market, as well as undermining consumer rights and the competiveness of the Egyptian products in the global market. He acknowledged that informal businesses suffer from marginalization, lack of access to credit, and meager opportunities for training, advancement and business relations. Abdel Wahab also noted problems faced by informal enterprises in terms of limited market size, attributing this issue to the quality of their products, which are often not fit for export because they do not meet the minimal quality standards. As a result, all these factors create unfair conditions with consequences for both sectors as they generate unhealthy competition, negatively impact the market, and undermine the foundations of industry and its values and norms.
Following is a summary of the main points raised by Abdel Wahab during the discussion.
After years of consultation, discussion, and debate, the sustainable development goals (SDGs) that will guide development efforts for the foreseeable future are close to becoming a reality — meaning a global commitment to end poverty in all its forms everywhere and eliminating extreme poverty entirely by 2030. But one crucial question remains: how to pay for it all?
The Financing for Development (FfD) conference met in Addis Ababa, Ethiopia earlier this month to try to reach an agreement on the right mix of development aid, taxes, loans, trade, and private investment to pay for the ambitious agenda set out in the SDGs, building on the failures and successes of the previous Monterrey Consensus and Doha Declaration.
Following the FfD conference, the Center for International Private Enterprise’s (CIPE) convened a panel of experts to reflect on the new SDG financing framework and outline important steps leading up to the summit in September where 193 heads of state will converge to ratify the goals.
Hosted by CIPE Executive Director John D. Sullivan, the panel featured Trevor Davies of KPMG, Christopher Jurgens of the United States Agency for International Development (USAID), Louise Kantrow of the International Chamber of Commerce (ICC), Kamran M. Khan of Millennium Challenge Corporation (MCC), and Sarah Thorn of Walmart.
By Otito Greg-Obi
It is a popular opinion in the international development community that remittances – money transferred by a foreign worker back to someone in his or her home country – can have a negative effect on economic growth because recipients tend to spend cash flows on day-to-day subsistence. However, research shows that the opposite is true. A study on the effect of remittances on growth in Africa reveals that remittances seem to have an overall positive effect on Gross Domestic Product (GDP). When compared to foreign aid and Foreign Direct Investment (FDI), a 10 percent increase in remittances leads to a 0.3 percent increase in the GDP per capita income.
Real estate investors are attracted to the United States because its strong legal system protects their investment and because of the easy availability of accurate information. (Photo: Wikimedia Commons)
I recently participated in George Washington University’s 2015 Global Real Estate Conference in New York. Having been invited to share CIPE’s work developing the International Property Markets Scorecard at the International Real Estate Federation’s (FIABCI-USA) annual meeting, which dove-tailed with the conference, I took the opportunity to educate myself on the current happenings in the real estate field and see how CIPE’s work might resonate with the professionals most connected to international investment in property.
Headliners at the conference included international representatives from such prominent companies as Morgan Stanley, CBRE, Knight Frank, and Cushman & Wakefield. Mostly I learned a great deal of “inside baseball” language and can now boast a broader vocabulary, but there was another theme that kept coming up. Whether talking about mitigating risk, conducting valuation of property, or trying to determining capitalization rates, it all came down to the need for reliable information and a stable environment that allows for confident investing.
By Brian Jackson
Recently, there have been many articles in the media outlining both the positive and negative implications of China’s growing investment in Africa. On one hand, many accuse China of promoting another period of colonization and exploitation on the continent and preventing Africa from becoming economically independent. Yet on the other hand, some praise the investments for rejuvenating African industries and infrastructure.
With such conflicting interpretations, many are left wondering how to view all of this. Is Chinese involvement in Africa a good thing, or bad thing? Will it lead to more economic and democratic opportunities for the continent and people, or the opposite?
When “3 billion people on the planet making less than $3 a day, [are] effectively cut out of society, we are missing the opportunity of all those people to be our musicians, our Einsteins, and our professors- it is really all of us that lose.”
In an event on harnessing the power of markets to tackle global poverty, American Enterprise Institute President Arthur Brooks and Acumen founder and CEO Jacqueline Novogratz highlighted the role markets can play in enabling the poor to participate fully in society.
By treating the poor “as assets to society,” rather than liabilities, “we’re going to enliven their capital and that will also give them earned success and dignity,” said Brooks. Novogratz’s philosophy is to do just that – by investing in the poor through so-called “patient capital.”
Last week Washington hosted nearly 50 African heads of state at the first-ever U.S.-Africa Leaders Summit. Countless meetings and conversations that took place not just among government officials but businesses, international organizations, and non-profits (including CIPE and Freedom House) brought Africa into the spotlight. Yet the most important aspect of the Summit is still ahead: what did we learn and how can this knowledge guide the way forward?
One of the most informative outcomes of the Summit to me was the launch of a report Africa and the United States: A defining relationship of the 21st century at the U.S. Chamber of Commerce’s Presidential Plenary. The report was jointly produces by the U.S. Chamber and Investec Asset Management (IAM), a global investment management firm founded in 1991 in South Africa. Hendrik du Toit, Investec’s CEO, unveiled the report and discussed its findings with a panel of corporate leaders.