178. A PRELIMINARY ECONOMIC OVERVIEW

It appears to the present authors that Egypt has considerable potential for benefits from strengthening its international linkages. Some such strengthening would involve the nations of the Middle East, but should also involve the non Islamic world. As is known the nation is dependent upon the global economy as the source for various manufactured goods and thus must find ways to counter balance such imports with exports (McKee, Garner and AbuAmara McKee, 1999, 145).

In prosecuting such international business dealings Egypt is of course constrained by cultural and religious traditions. Handoussa and Khier El-Din were of the opinion that manufacturing growth can be encouraged through exports (1998, 65) and suggested that moves in that direction could utilize existing capacities in moving into higher value added products that they felt would stimulate growing specialization among suppliers of goods as well as auxiliary services (65).

They were also in favor of increasing the pace of incoming foreign direct investment and recommended links between Egyptian firms and multinationals. Such practices they hoped would generate employment and stimulate the use of modern technology and management (65). They saw practices facilitating Egypt in serving as a locus of activity for both European and Middle Eastern markets (65).


More specifically they recommended developing high tech industries to take advantage of existing engineers and technicians as well as other professionals (65). The views of those authors appear to be well founded. Egypt can certainly accelerate its development through an outward looking posture utilizing its strengths in developing linkages both regionally and beyond.