Top-Down or Bottom-Up Reform… Why not both?

Last week I visited Egypt for the first time. As exciting as I found the ancient wonders to be, I discovered new sources of excitement in voluntary initiatives by business leaders to reshape the way economic policy gets made. Business leadership for change is flowing from different directions, particularly from two CIPE partner associations representing contrasting constituencies.

The Egyptian Junior Business Association (EJB)  represents over 400 young managers and business owners. Many of them have international education and experience and are responsible for large companies. This elite, forward-thinking group has been on the cutting edge of promoting ethical business and public service. Since 2004, EJB has issued an annual National Business Agenda based on the CIPE model, which reflects the policy priorities of its membership. The annual launch of the agenda document is now anticipated by government officials and has attracted a significant number of cabinet members. Through the NBA process of consultation with stakeholders in more than a dozen sectors, EJB has shaped a vision for national competitiveness and improved economic governance.

No less impressive is the Federation of Economic Development Associations (FEDA), a grassroots small-business federation spanning 18 of Egypt’s 26 governorates, 102 member associations, and 32,000 entrepreneurs. It speaks for owners of formal and informal businesses in farflung areas, creating venues to give officials direct access to small-business views and concerns. FEDA works with an intense focus, identifying key legislation that affects small business and rallying broad support for change. It has gained enough credence with members of parliament that nearly 45% of FEDA’s recommendations were incorporated into Egypt’s new law for small and medium enterprises.

The remarkable success of FEDA and EJB, two young organizations, can be explained by their adherence to good strategy and diligent attention to the needs of their constituents. Yet while faithfully advocating for their respective members’ interests, both organizations can be commended for their inclusiveness. They are reaching out to include non-members and other organizations in the dialogue for economic reform. Indeed, the strongest coalitions are built outward this way from a core of genuine voluntary associations. Together, FEDA and EJB complement each other very nicely, reaching as they do from the grassroots–across sectors and governorates–up to the summit of policymaking.

Published Date: February 11, 2008