China changing the global economic order, minister says
CAIRO: Human capital in Egypt is more important than any other industry said the Minister of Trade and Industry Rachid Mohammed Rachid.
“We need to break the vicious circle that Egypt’s high population is a negative thing. We must learn from China and India, the minister said.
Rachid added “Our human capital here in Egypt is more important than oil, the Suez Canal or any other industry. We need to continue to push for the human capital of Egypt and we can do it by looking at existing models.
Rachid spoke at a special breakfast briefing hosted by the American Chamber of Commerce and the German-Arab Chamber of Industry and Commerce entitled “Mena/Egypt on the rise .
The other speaker was Professor Norbert Walter, Chief Economist of the Deutsche Bank Group.
“Your [Egypt’s] population is extremely young, a third is under fourteen. This needs to be tapped into, Walter said.
However Walter warned that some changes were needed to better exploit this potential. “Giving everyone a chance to be a university graduate is not the best orientation, he said, “there must be apprenticeships.
Both spoke of China’s emergence in the world economy as a force to be reckoned with.
“China and Asia are influencing us, Rachid said, “China is changing the model and the order of the world economy and trade. This is because “China is embracing change at a very quick rate. They are an element of change, that’s why we’re all interested, he added.
Rachid alluded to complications concerning trade discussions with Europe, citing reservations about the Barcelona process, indicating that business with China is easier and cheaper.
“Lengthy discussions with the west will be undercut by China. They provide western technology at cheaper prices.
When asked about when the Doha Round of trade talks would take place, Rachid said “We [trade ministers] say every year that we have to finalize talks this year. The Doha round is important, it will take the world to a new platform in trade liberalization but this will happen in the long run.
He added that because the Doha Round is on hold, most countries are accelerating bi-lateral relations.
The Doha Round is stalled because Europe and the US are not yet willing to liberalize their agricultural protectionist policies.
Previously, US Deputy Secretary of Commerce David A. Sampson told The Daily Star Egypt that his country is looking into removing agricultural restraints but warned it would not be a unilateral agreement.
Sampson told The Daily Star Egypt that Bush stated in the UN General Assembly three years ago that trade-distorting agricultural policies should be abolished, but “we put it on the table, and no one has come to us. We won’t negotiate against ourselves.
He added: “We are currently reauthorizing the Farm Bill in the US. Commodity prices are extremely strong, American farmers are doing well, so now is a good time to talk about this.
