Privileges, corruption, favouritism.. On October 6th 2015, Professor Ishac Diwan, lecturer at Paris School of Economics, presented an analysis of the impact of these phenomena on productivity in Egyptian businesses at the FEMISE and Partners workshop on “Firms and Globalization”.
-“What do you mean by a “politically connected” business?”
-“To what extent does this relationship with political decision makers stimulate productivity?”
– “What recommendations would you make for the Egyptian government?”
“A market economy only works well when there is competition. Credit needs to be distributed on a more competitive basis. For example, over 80% of private credit was allocated to 460 companies controlled by 32 families in 2010. But can economic liberalisation be achieved without political liberalisation?! ”
To subsrcribe to Econostrum Newsletter : http://www.econostrum.info/subscription/