The Government of Egypt and UNDP join forces to rapidly improve the welfare of Egyptian citizens
Cairo, 3 June 2007 – Today, the Ministry of Finance (MoF) and the United Nations Development Programme (UNDP) signed a project document that aims to improve the national capacity to design, apply and monitor pro-poor policies while addressing geographical disparities and establishing a regulatory environment. The project document was signed by H.E. Minister of Finance Dr. Youssef Botros Ghali and UNDP Resident Representative Mr. James W. Rawley in the presence of Deputy Assistant Foreign Minister and Director of International Cooperation at the Ministry of Foreign Affairs Mr. Ayman Zaineldine.
The 2-year project’s contribution to the reinforcement of the State’s capacities will be achieved through a number of activities, including: upgrading the Fiscal Policy Decision Support Unit (FPDSU) at the Ministry of Finance, introducing new e-payment services and supporting the Public Private Partnership (PPP) Central Unit. Additionally, the project will help achieve increased transparency through its support for the Macro Fiscal Policy Unit, and assist in supporting medium and micro-sized enterprises.
“The Ministry of Finance is re-engineering and automating the national budgeting process and introducing nation-wide e-payment for government services. These vast tasks are proceeding rapidly and require support from the project, to help make the Government more efficient and more accessible to citizens,” says Minister of Finance Youssef Botros Ghali. “Automation of government payments, including salaries, pensions, purchases and contracts, in addition to the payment of taxes and fees, are proceeding at a rapid pace which will have a tangible and positive impact on hundreds of thousands if not millions of Egyptian citizens.”
The numerous changes to Egyptian laws brought about by this Ministry, for example Tax and Customs Laws, in the last few years bear witness to its centrality in the economic life of the country. The quality of the policy work emanating from the MoF depends on the skills and experience of people staffing the FPDSU. Hence supporting the hiring and training of people in key units will benefit the nation as a whole because good economic policies give the best chance of an improved standard of living for all.
“The Ministry of Finance is a leading ministry in Egypt’s reform process and that leadership position is reinforced by the Minister of Finance being the Chairperson of the National Economic Policy Committee,” says UNDP Resident Representative James W. Rawley. “UNDP is proud to be associated with key aspects of the Ministry’s work.”
Many countries today are shifting towards the use of Public Private Partnerships (PPP) for the implementation of government programmes. In line with the Government’s strategy to promote and increase private sector involvement in the country’s economic and social development plan, particularly in the area of public utility services, the PPP modality is under serious consideration as a more cost-effective means of delivering governmental services.
“The PPP Central Unit needs to build up its own staff and capabilities as well as offer training support to its partners,” explains Rawley. “The Unit will be working closely with the Ministries of Planning and Investment to ensure a controlled roll-out of a series of significant infrastructure and public services projects. Initially, PPP will concentrate on schools, healthcare, sanitation, social housing and transport. During the second year of the project, specialized units will be established in the line ministries who have plans to implement projects under the PPP program.”
The project also reflects the changes in Government policy regarding Medium, Small and Micro Enterprises (MSMEs). MoF’s focus on MSME development, including legal aspects and formalization of the sector, reinforces UNDP’s aspirations to achieving the Millenium Development Goals (MDGs). Strengthening the MSME sector is an important factor in employment generation and poverty reduction since Egypt has over 2 million SMEs; accounting for the large majority of business enterprises. These business enterprises form the bulk of employment opportunities and therefore play a big role in the national economy and standard of living for most people.
MoF is allocating US$1.2 million to support the project that is set to conclude its activities by the end of 2008. UNDP will contribute an additional $125,000. The total budget includes funds carried forward from 2006 amounting to $125,691, bringing the total to $1,450,691.35