35 Questions
What was the primary objective of the Egyptian government's private sector reforms?
To increase private sector involvement in economic activity
Which of the following was a result of the government's licensing procedure reforms?
Simplification of the licensing process
What was the impact of the government's decision to liberalize prices for certain goods?
Prices for cement and fertilizer were determined by the market
What was the outcome of the parliament's amendment to labor laws?
The recruitment of labor was facilitated without prior government approval
What was the overall goal of the Egyptian government's economic reforms?
To promote economic growth and private sector involvement
What was the purpose of issuing Law No. 203 in 1991?
To convert public establishments into holding and affiliated companies
What was a result of the unification of foreign exchange rates?
Trade liberalization
Why were public sector companies privatized?
Because they were inefficient and making losses
What was the role of the Ministry of Public Enterprises?
To supervise the privatization process
What was a method employed in the privatization process?
Direct sale of companies to strategic investors
What was the outcome of facilitating licensing procedures?
Increased private sector involvement in economic activity
What was the aim of the macroeconomic reforms in ERSAP?
To stabilize the economy from severe deficits in the budget and balance of trade
What was the outcome of the banking sector reforms?
Interest rates were liberalized
What was the effect of the Agricultural Land Law no. 96?
Land rent was raised to 22 times the land tax
Which of the following was NOT removed from price control as part of the domestic price liberalization reforms?
Price controls in the pharmaceutical sector
What was the effect of the domestic price liberalization reforms on petroleum prices?
Petroleum prices were increased
What was the purpose of the social protection program in ERSAP?
To minimize the negative effects of ERSAP on poor and vulnerable groups
What was the purpose of the Social Fund for Development established under the Social Protection Program?
To finance small enterprises through micro-credit loans, and support rural development projects
What was the outcome of the government's efforts to reduce the budget deficit?
The budget deficit was considerably reduced from 17% to 1.2%
What was the result of the Egyptian privatization program?
It was ranked fourth in the world by the IMF
What was the impact of the government's stabilization program on inflation?
Inflation declined from 20% to an average of 6% per annum
What was the outcome of the sale of public sector enterprises?
It generated revenue for the government, reduced public expenditures, and increased foreign investment inflows
What was the outcome of the ERSAP on the balance of payments?
The deficit was changed into a surplus of $1.7 billion
What was a major limitation of the privatization program?
It failed to prevent public monopolies from being converted into private sector monopolies.
What was the outcome of the privatization process in terms of the order of companies sold?
The government started by selling profitable companies.
What was a consequence of the bureaucratic obstacles in the privatization program?
No significant change in the rate of private sector investment.
What is one of the objectives of ERSAP?
Economic stabilization.
What is the meaning of structural adjustment?
Stimulating medium and long term growth by encouraging the growth of the private sector.
What was the result of the contractionary fiscal policy in ERSAP?
Reduced inflation and budget deficit.
What was a major consequence of Egypt's overvalued exchange rate?
Made Egyptian exports expensive abroad
What was a characteristic of Egypt's economy before the reform program?
Dominance of public sector companies
What was one of the sources of foreign currency inflows for Egypt?
Revenue from tourism
What was an objective of the Economic Reform and Structural Adjustment Program (ERSAP)?
To reduce inflation and restore macroeconomic balance
What was a problem in Egypt's economy prior to the reform program?
Distortions in prices and incentives
What was a factor contributing to Egypt's balance of payments deficit?
An overvalued exchange rate
Study Notes
Private Sector Reforms in Egypt
- The Egyptian government took measures to increase private sector involvement in economic activity
- Licensing procedures were facilitated to simplify the process
- The government cancelled restrictions on quantities produced, and liberalized prices for cement and fertilizer
- Parliament amended labor laws to facilitate the recruitment of labor without prior government approval
This quiz covers the measures taken by the Egyptian government to increase private sector involvement in economic activities, including facilitating licensing procedures, canceling restrictions on production quantities, and liberalizing prices. It also amended labor laws to facilitate labor recruitment.
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