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Government Policies |
| About Egypt |
To varying extents, all countries that are pursuing IT economic development strategies are either helped or hindered (possibly both) by the policies of their respective governments. In the U.S. and Canada, this may take the form of pro-active assistance and supportive legislation. The predominate international model, however, is far more interactive. This is primarily due to a legacy of government involvement in economic planning, activity and ownership. Equally important is the need to coordinate nearly every issue discussed in this case on a national scale in order to achieve a sustainable comparative advantage in the high-reward, highly competitive global IT marketplace. The government of Egypt owes its involvement to both of the above conditions. Government as IT Catalyst Government Organizations One of the Egyptian government’s (GOE) initial efforts at actively developing the high technology sector was the creation of the Information Decision Support Centre (IDSC). The IDSC is charged with implementing and managing the country's technological development, while its subsidiary, the Technology Development Program (TDP), is specifically charged with technological development in industry. Closely related, the RITSEC (Regional Information Technology and Software Engineering Center), was established in 1992 through multilateral donor funding. As part of its mission, the IDSC established the Information Technology Institute (ITI) in 1993. Its purpose was to supplement the number of Egyptian IT professionals by providing specialized IT training. (African Internet Connectivity) According to Harvard study interviews conducted with managing directors of Egyptian software companies, ITI graduates are ranked highly for familiarity with the latest technologies and for possessing excellent, relevant programming skills. (Harvard Study) Government Organizational Activities In 1994, the IDSC, in conjunction with RITSEC began a program to broaden the knowledge and user base of the Internet community in Egypt. Funded by the GOE, the program offered free Internet access to corporations, government agencies, non-governmental organizations and professionals. By late1995, the number of users was estimated at 10,000. (Ibid.) The IDSC/RITSEC partnership, joined by Egypt Telecom in early 1996, began laying the foundations for wide spread Internet access by developing an Internet backbone and gateway facility. In March 1996 this infrastructure began to be utilized by the first IDSC/RITSEC licensed ISPs. Expanding beyond the capitol and increasing the number of ISPs (16 to 40) brought increased usage, from 25,000 in early 1997 to 100,000 users by mid 1998. (Ibid.) RITSEC played a critical part in the creation the Regional Arab Information Technology Network (RAITnet) in December 1994. The main objectives of the organization are
IDSC was also responsible
for implementing the Egyptian Information Highway Project in late 1995
to help development of Egyptian content on the Internet. (Ibid.)
Current Government Policy and Initiatives There has been an increasing emphasis placed on the development of Egypt’s IT economy and the GOE’s commitment to this undertaking; all of the following statements were made in the span of four months: President Hosni Mubarak declared at a national ICT conference in (9/1999) that he will be directly overseeing and chairing a committee for high technology. This committee will determine the national strategy for high tech for the country. The Egyptian Minister of Economy and Foreign Trade and the U.S. Commerce Secretary signed a joint statement on e-commerce on October 14, 1999. Central to the statement, was a commitment by both countries to promote the use and spread of e-commerce in Egypt. The statement enumerated a number of broad policies to encourage the development and use of e-commerce: private sector leadership, minimal government regulations and restrictions, government encouragement of self-regulation, duty-free treatment of digital goods of value, and promotion of cooperation among all countries. (USIS, 1999) A large number of these policies are a restatement of the privatization, liberalization and deregulation recommendations made by Egypt’s international donors/partners for the previous two decades – only the duty-free treatment policy directly reflects IT’s new relevance on the world stage. Soon after the
above statements, November 9, 1999, Ahmed Nazif, the Minister of Telecommunications
and Information publicly announced the inception of a new government program
for the development of the IT sector. New legislation covering intellectual
property rights, commercial, financial and legal issues will be proposed.
In addition, the GOE will provide exemptions on customs duties and taxes
to exporters of computer programs and offer new incentives for international
joint ventures in the sector. This new effort closely mirrors the
conclusions of the recently concluded Harvard study of the software sector.
(ArabicNews.com)
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| Telecommunication
Infrastructure |
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| Privatization and Deregulation | |||
| Internet Activity | |||
| Internet History | |||
| Hardware manufacturing | |||
| E-Commerce | |||
| Software development | |||
| IT
Usage
(bymilitary, households and Labor) |
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| IT Geographics | |||
| IT Financing | |||
| IT Labor Market | |||
| Government Policies | |||
| Legal Environment | |||
| Analysis : IT Strengths/ and Weaknesses | |||
| Analysis :Impacts on the Business | |||
| Sources and Links | |||
| About the authors | |||
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