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IB 2016 Semester Project (Turkey)

Basma Salama

Hebat’Allah Mahmoud

Marwa Mahmoud

Faculty of commerce- English Section, Cairo University

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Abstract

This Research paper is about a comparing between Egypt and Turkey and about how Turkey managed to develop a well-structured strategy and about how Egypt’s strategy to

reach 2025

Keywords: Economy, Gross domestic product, Egypt, Turkey, Foreign direct investment

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Egypt Country Profile

Egyptian GDP:

If we take a look at how the Egyptian GDP has changes among the years we will see that it has been growing and we have an upward trend but relatively very small comparing to the percentage of Egypt’s contribution to the world GDP, GDP in Egypt averaged 63 USD Billion from 1960 until 2014, reaching an all-time high of 286.54, this might be misleading if we are going to say that this is a good indicator about the Egyptian economy because of the high inflation rates reaching 10.4% in 2015

-GDP growth rates:

As we see we have a upward trend since 2006 till 2008 reaching more than 7 percent growth in GDP which is a good percentage talking into consideration the world Economic crisis which really affects many countries in the world ,from 2005 till 2011 “Ahmed Nazif” was the prime minster, this ministry policies of “ privatization programs “of companies which was owned by the public sector that was nationalized back in 60’ by president Nasser , this period is the reason for that growth on the other hand we find there was not any redistribution of wealth or any social welfare , GDP growth rates starts to deteriorate since 2010 till reaching 1.8 in 2011 due to the political changes “ Revolution “ and other successive events , reaching 2.2 in 2014-GDP composition, by end use:

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The Egyptian GDP depends mainly on the services, the main services that is given by Egypt are tourism and Suez Canal services where manufacturing is only 16% and this not a good indicator as Egypt is a resources based country not knowledge based country While the household consumption in Egypt it is 68.2% were the Government consumption: 15.4% while in Turkey the government consumption is only 11.7% this is a better case because, as much as the government consumption decreases this means that the public sector role in the economy is less or transformed into a more of an intermediate role in the economy and this gives the private sector the opportunity to take its position and change more to a free market

Foreign Trade:

-Imports and Exports: Egypt imports mainly are mineral and chemical products (25 percent of total imports), agricultural products, livestock and foodstuff (24 percent, mainly wheat, maize and meat), machinery and electrical equipment (15 percent) and base metals (13 percent). Other imports include raw hides, wood, paper-making products, textiles and footwear (9.5 percent), artificial resins and rubber (6 percent) and vehicles and aircraft (5.5 percent). Main import partners are Germany, Italy, China, Turkey, Saudi Arabia, Kuwait and Lebanon, United States and India.

While its major exports are oil and other mineral products (32 percent of total exports), chemical products (12 percent), agricultural products, livestock and others fats (11 percent) and textiles (10.5 percent, mainly cotton). Other exports include: base metals (5.5 percent), machinery and electrical appliances (4.5 percent) and foodstuff, beverages and tobacco (4 percent). Major export partners are Italy, Spain, France, Saudi Arabia, India and Turkey. Others include: United States, Brazil and Argentina.

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-Conclusion: By looking at what Egypt export it's clear that it export products at its primary form without introducing any kind of technology or minimal processing like textiles which makes its products with low value adding to the market consequently with low price and thus generate low profits, looking at the imports, some imports are plastics and agricultural products which considered primary items also and the other imported goods are the ones that need technology, electricity..etc we can say that Egypt is depending more on resources more than knowledge and thus it imports high value adding products while exporting the ones with low value adding ,also it imports goods that anyone can produce like food stuff and so on that can be seen in the deficit in the balance of trade which has been increasing since 2011 from (-27.1) to (-39), in 2015 except for a low value in 2013 amounted for (-30.7) which means that individuals consumption is either increasing and Egypt can't cover offer that needed for consumption goods in house or there are luxuries or items that can easily produced in house but are imported instead

Foreign Direct Investment:

A foreign direct investment (FDI) is an investment made by a company or entity based in one country, into a company or entity based in another country , FDI can be achieved either through acquisition , merger ,or by the foundation of a new legal entity which helps in making a green-field real investment (e.g. building a factory

Inflow of FDI to a country is because of its attractiveness .attractiveness can be determined according to:

Large GDP and market potential advanced know-how, skilled work-force. Low labor cost and wages. , low taxation ,high tariff protection. Lower environmental protection, favorable laws and public incentives.

Intentional and professional territorial marketing.

-Inflows& Outflows: Egypt is located in the North Africa region which had scored a decline in FDI's inflows to it where in 2011 it was 7548 million dollars and it was at its peak in 2012 with 17151 million dollars thus it continue to decline till it reached 11541 million dollars in 2014, Regarding outflows was 1491 million dollars in 2011, its peak was in 2012 scoring 3332 million dollars While it continues to decline till it reached 1672 MD.in 2014

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Talking about Egypt more specifically, it's clear that the inflow percentage is greater than that of its outflow except for in 2011 where inflows declined till it reached -483 million dollars that can be related to 25th of Jan. Revolution on the other hand the FDI achieved its peak on 2012 at 6031MD. And then declined but somehow in a stable rate reaching 4192, 4783 million dollars in both 2013&2014 respectivelyMorphing to the outflows where in 2011outflows achieved its peak reaching 626million dollars which can be related to the revolution too, as people may have felt unsafe about their money as for themselves, and then it declined to reach 253MD in2014.

2012 2013 20140

1000

2000

3000

4000

5000

6000

7000

inwardoutward

- Countries and sectors:

In million dollars

Main Invested Sectors 2014-2015, in %

Oil sector 71.7

Construction 2.2

Manufacturing 2.0

Real estate 1.4

Finance 1.1

Agriculture 0.2

Tourism 0.1

Main Investing Countries 2014-2015, in %

UK 41.5

USA 16.4

UAE 10.7

Belgium 5.1

Saudi Arabia 5.0

Kuweit 1.8

France 1.7

Germany 1.5

Netherlands 1.4

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According to the Ministry of Investment in 2014, most sources of FDI for Egypt are UK, USA, UAE and Belgium while the most investments go to these sectors: oil, construction, and manufacturing

-conclusion: Taking the factors of categorizing a country as attractive for FDI it's clear why north Africa has low FDI than for example the Asian regions as the African region tends to be a resource based region means having low labor costs and so on but now it's the age of technology where investors are concentrating on technology, knowhow, knowledge based regions and countries that posses strong economies with great, stable GDPs...Etc. as each investor doesn't want to risk his money or throw it away. about Egypt knowing that it has passed with fluctuating events, GDP growth rates, that harmed the flow of FDI to them and by following the pattern of the sectors that FDI flows to we can conclude that Egypt is a country that is far away from technology and it depends more on its' resources than introducing any kind of evolution, technology to it

Technology: Egypt is located in the North Africa region which contains many developing countries and by tracing the flow of ICT products in the countries under this category its noted that they import about 54% of the world impost of that goods because of rising demand on equipment needed for communication also they identified developing as a significant part of ICT value chains. talking about the High-technology exports (% of manufactured exports) in North Africa was zero in 1990's increased to 3 in 2000 and decreased to 2 in 2013 ,about Egypt they didn't export any technology during 90's and 2000's also but they export 1 in 2013

Foreign Country Profile

-Turkish GDP:

The Gross Domestic Product (GDP) in Turkey was worth 798.43 billion US dollars in 2014. The GDP value of Turkey represents 1.29 percent of the world economy. GDP in Turkey averaged 208.26 USD Billion from 1960 until 2014, reaching an all-time high of 823.24 USD Billion in 2013 and a record low of 8.02 USD Billion in 1961.

-GDP Growth:

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Turkey has a fluctuating GDP growth rate since 2000 till 2016 were their highest rate is 12. 6% and the lowest GDP growth rate is during the world economic crisis which starts in 2007 and ends at the end of 2008 reaching -4.8% and also between the year 2001 and 2002 reaching -5.7% due to the banking crisis were interest rates reaches very high levels ,Large quantities of Turkish lira were exchanged for U.S. dollars or euro, causing the Turkish central bank to lose $5 billion, on the bright side Turkey was always able to maintain their GDP growth rates a year or two after any big crisis which is a very significant thing , after the year 2012 till 2016 their economy is quite stable with a slight increase every year

-Turkish composition of GDP:

Turkey is a country that their GDP depends mainly on services, where in 2004 60.6% were services contribution in GDP and 28 .4% is for industry while only 10.9% is for agriculture comparing this year to 2014 , while also services has the biggest portion with 64.8% and industry of 27% while the agriculture of 8% this give us insights about how turkey main services include value added like wholesale and retail trade, transport ,professional, and personal services such as education, health care, and real estate services.

Foreign Trade:-

-Imports and exports: The top export destinations of Turkey are Germany, Iraq, the United Kingdom  France and Italy and their top exported products are Motor cars and other motor vehicles principally designed for the transport, Other bars and rods of iron or non-alloy steel, Petroleum oils, other than crude

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Their top importing partners are Us, Russia, Germany, Italy, and China. And their top imports are Petroleum oils and oils obtained from bituminous minerals, crude, Petroleum oils, other than crude, Ferrous waste and scrap; remitting scrap ingots of iron or steel

-Conclusion: by noticing the type of products that Turkey export we can say that it's unlikely to Egypt which is a strong industrial country which offer a high value adding products that generate great profit by processing it, introducing technology to it i.e. don’t' export raw materials or crude oil for example that can be clearly expressed in their export of cars which is a heavy industry. on the other hand it's imports mainly concentrated on petroleum oil, crude oil and iron where those items are essential for generating energy for the operation of their industries, also they import crude oil and then export petroleum oil other than crude which mean that they make benefit of technology they own to change a low value adding item to a high value adding, crucial product like petroleum and thus generate more profit ,By noticing the deficit in the balance of trade we can say that it's decreasing from 2011 from (-89.2) to

-) 47.9 (in 2015 except for a value of (-79.9) in 2013 which means that either consumption rates of individuals there decreased or Turkey somehow managed to reach a state of self sufficiency where it produce, offer products they used to import from other countries and so on

It is not about the amount of imports that you country buy but it is about the content and how you are going to use this imports to generate profit of transformed to a higher vale products

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Foreign Direct Investment

-Inflows& Outflows: Turkey is located in west Asia and is considered one of the emerging industrial Economies, About the flow of FDI to that region we can say that it kept declining for about 6 years prior to 2014 that's whether because of the economic crises that had hit the world or the political unrest that evoked in that region that decrease amounted for 4% means about 43billions where it's inward investment achieved 47862 in 2012 and then decreased to 44718 in 2013 and completed its decrease till it reached 43046 in 2014 . On the contrary it's Outward investment showed unstable state between rising and falling down as in 2012 it achieved 23028,jumped to 40756 in 2013 and fall again in 2014 to reach 38326 million dollars ,The good thing is that Turkey remained to be the largest recipient of FDI in that region that by looking at the values of its inward inflow it's appear to be somehow stable where it was at its peak at 2012 with a value of 13283 while its value decreased to 12357, 12 146 in 2013 and 2014 respectively probably for the previous mentioned factors , shifting to its outwards investment values ,it showed fluctuation unlike for the inwards where they scored a value of 4106 in 2012 and 3527 ,6658 in 2013 and 2014 respectively

-countries and sectors:

Technology:

  Turkey is located in the area of Europe & Central Asia where their High-technology exports (% of manufactured exports) valued zero in 1990 and increased to reach 9 in 2000s and 10 in 2013

Main Investing Countries

2014-2015, in %

UK 41.5

USA 16.4

UAE 10.7

Belgium 5.1

Saudi Arabia 5.0

Kuwait 1.8

France 1.7

Germany 1.5

Netherlands 1.4

Main Invested Sectors

2014, in %

Manufacturing 33.2

Finance and insurance

22.0

Information, communication

13.3

Wholesale and retail trade

12.3

Gas, electricity and water, waste management

9.9

Transport equipment

7.6

Food, drink, tobacco

7.4

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About Turkey their high technology exports was 1 during 90's and 5 in 2000s but decreased to reach 2 in 2013

Foreign Country Development Experience

Role of State in Development:

since (1930-1939) the concentration of the state morphed from supplementing the private enterprises to complement them, The 1950s was a strengthening of turkey's integration into the world economy and turkey played the role of food and raw materials supplier in the new international division of labor we can say Following the Second World War changes began to unfold in Turkey’s relationships with the outside world. all in all Turkey started looking around it from about the 50s where it start striving for acquiring knowledge and know, increase its heavy industry capacity, partnering with foreign companies to learn from and so on the following part will handle, talk about the period of (2014-2018) where country has aimed that Turkey become a country that will have higher positions in the value chain hierarchy, ranked among high income countries and solved the absolute poverty problem. in order to do so they start focusing their concentration on :Security ,Fundamental Rights and Freedoms, on-Governmental Organizations, Education, Growth and Employment Domestic Savings, Balance of Payments, Intellectual Property Rights ..And others

Where they issued some polices to address these topics:

Education: Quality-oriented transformation in the educational system which develops individual’s personality and skills, strengthens compliance with the labor market within the framework of lifelong learning and based on equality of opportunity will continue.

Security: The cooperation mechanisms for joint use of infrastructure and organizational capacities of security agencies will be enhanced.

NGOs: NGOs are given some tax privileges owing to public benefit and tax exemption procedures, also public funds are allocated for them, while Internal and external audit standards of NGOs will be established; effective and objective auditing will be emphasized.

Balance of payments: The new incentive system built on strategic sector dimensions and covering large-scale investments that aim to reduce import dependency will be implemented effectively. Moreover In the consumer export products, authentic designs will be encouraged, qualified designers will be trained, patent registration And creation of international brands will be supported, promotion and marketing Supports will be developed according to exporters’ needs.

Role of State in Business Systems:

The most distinctive feature of the Turkish business system is that it is a state organized system where in which the state is highly involved in economic activities and the intermediary associations is less important ,the state tried to control the business life in the country through its relations with the family-owned holdings that

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grew rapidly through diversification by vertical and horizontal integration and The resources needed in the market were supplied and coordinated through the public bodies and state banks. The State-Owned Economic Enterprises supplied raw materials to the sectors for many years and assumed a critical role in the economic development of the country and then on 24th January 1980 actions taken to shift the public activities from manufacturing sector to the infrastructure activities and eliminating the restrictions imposed on importation prior to 1980 to protect the capital and then in 1990 a new public management model issued According to it the state, public management, public activities and especially those activities with economic content will be downsized, the public activities and organizations in the downsized areas will be restructured from the viewpoint of private business administration or they will be run with the direct contributions of the private enterprises attach more importance to the regional economic activities and to trust and delegate more powers to the intermediary associations.

Role of Technology in Development:

Turkey has discovered the importance of technology and how far a country can go because of it thus it started to concentrate a part of its efforts on this area therefore it started building an infrastructure for R&D and IT:

o The Scientific and Technical Research Council of Turkey (TUBITAK)o Marmara Research Centero The Turkish Academy of Sciences (TUBA)o Techno parks

1-The TUBITAK was established in 1963 for the purposes of organizing, coordinating, and promoting basic and applied research, its main activities was: Determining Turkey’s science and technology policies, Supporting, encouraging and coordinating scientific research, Establishing and operating special institutes to conduct research and development activities geared to the targets of the five-year economic development plans and the priorities set by the Science Board, Supporting R&D activities and innovations in industry, Publishing scientific journals, as well as books and monthly popular science magazines making science accessible to the public, moreover Supporting scientists and researchers with awards and programs as incentives for scientific publication one of their participations that they initiated a new program with the aim of fostering university-industry cooperation, giving priority to research areas meeting the needs of the industry in 1996.Currently three centers which specialized on ceramics and textiles are operational.

2-About The Marmara Research Center (TUBITAK-MRC) it was established to support and conduct applied research (technological development) in cooperation with local industry to solve their technological problems, and increase their competitiveness in Gebze, anarea near Istanbul housing most Turkish industry since 1972.

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3- The Turkish Academy of Sciences (TUBA) is essentially an institution based solely on merit. Where it is structured according to the principle of scientific excellence measured by contributions to universal science about their goals: stimulating scientific curiosity, awakening interest in research awarding successful scientists for their creative work as well as on potential scientists to encourage them in this domain, spreading scientific methods and thinking. they also didn't forget the part of awareness regarding the importance of R&D therefore they establish TTGV in 1991 which is jointly by the private and public sectors in order to raise the industrial sector's awareness of R&D and to support technology development projects of the Turkish Industry4-TechnoparksThe first techno park in Turkey was established in 1985 by Istanbul Technical University and the Istanbul Chamber of Commerce. Techno park can be categorized as a Technology Development Center In addition to the techno parks Turkey has 7 Technology Development Centers which are established with support of Small and Medium Sized Industry Development Organization (KOSGEB)-Success stories:

In 1990, a contract between Turk Telekom9 and a French based company Aerospatiale was signed and "TURKSAT National Communication Satellites" created. Turksat-1Bwhich launched into space in 1994 and two years later a second satellite was also launched. Meanwhile, GSM technology was introduced in Turkey in1994. With the help of Nokia, Ericson, and Motorola, then two Turkish companies; Turkcell and Telsim were given license to operate as GSM service provider. In turn, Turk cell later transferred its technology and knowledge to other countries such as Georgia, Ukraine, and Moldova.

In the last decade MRC acquired one of the most effective instruments for transforming R&D results to marketable products and services, namely the techno parks. In 2000, technology incubator, operating since 1993, was elevated to become the first and only Technology Free Zone in Turkey

Most of Turkey’s current military technology resulted from TT. by know Turkey is currently able to manufacture a very broad range of military equipment ranging from interpersonal communication to the F-16 Fighting Falcon.

Role of Financial System in Development:

Before 1980 the Turkish financial system was characterized by having a negative reali interest rate, lack of capital markets, restrictions on FX operations and centrally established deposit and loan rates. In 1980 a structural adjustment program was launched to turn the economy from an inward to an outward orientation and to establish free market principles. Measures to deepen the financial markets and increase efficiency and competition went hand in hand with this program of structural adjustments. Major steps taken in the structural reforms included: liberalization of deposit and of loan rates; establishment of government securities (1985) and interbank markets (1986); introduction of open market operations with government securities (1987); re-opening of the Istanbul Stock Exchange (1985) and its becoming operational (1986); and the liberalization of the foreign exchange regime. Finally the liberalization of capital movements and acceptance of the convertibility of the Turkish

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Lira in 1989 and 1990 the reforms of 1980 had three main aims: economic stabilization, including a reduction in the rate of inflation; a deliberate shift away fromImport substitution and towards an export-oriented economy; and a move towards a more market-oriented economy. These reforms initially had very good results. Inflation came down from a peak of about 100% to around 30% by 1983. Exports rose at a spectacular rate. Thus financial liberalization had a major impact on development. It was an integral part of the “Thatcher revolution” process of privatization, and ensuing globalization many multinational companies established a presence in Turkish service as well as manufacturing sectors. Citibank (1980), Mac Donald’s (1986), Ford (1985), Toyota (1994), HSBC (2001), Ernst & Young (1983), Motorola (1995).

Strategic plan for Development in Egypt

Suggested Development Strategy:

Open up to the world. Indians in the Silicon Valley, New York City, London and Singapore bravely face the wide open world and their businesses are thriving. Why don't we trust the Egyptians?

Build world class education both at the top and bottom. We need really good primary education, but top notch Universities too. Argentina and most countries that got stuck did well in the former, but got stuck in the latter. None of the lower Income countries have world class Universities. We need to continue building them and also make sure their qualities (especially the new ones) are taken up substantially. Learn this from other countries experience and so on

Press more on privatization: As its one of the tools of bringing FDI to Egypt

Encourage youth and their SMEs by funding them and making linkages among

them and investors to make a strong private sector in various industries and services also make improvements easier for cutting down illegal companies to benefit from their performance and production in the nation's GDP growth. Decrease the interest rates on the borrowings and make the process of getting funds to start a business or conducting new projects easier. Make it easy for the private and foreign banks get inside helping the development under the rules had put.

Introduction of crowd funding, encouraging the engagement and the appearance of angel investors and so on..

Poverty :Egypt’s poverty rate has increased, reaching 26.3 % for the year 2012/13 compared with 25.2 percent in 2010/11, according to CAPMAS

Poverty is considered as a burden facing Egypt in its way towards development on the other hand it also hinder people from living in satisfactory standards so those problems might be solved as follows:

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improving access to and the quality of essential public services for poor rural people, including health and education, by implementing and improving specific programs and involving the voluntary sector

giving special attention to minorities, and especially to the economic empowerment of women in those groups

We should depend on industrial development strategy first of all we should depend on. Industrial Take-off: Building on Solid Base Future industrial policies in Egypt that focus on enabling the industrial sector to be the engine of growth through the expansion of exports and job opportunities. The industrial sector is a major growth driver, having strong backward and forward linkages with both the agriculture and services sectors. It is expected to play an instrumental role in reinvigorating economic growth in the Egyptian economy over the medium and long terms. Learning from the successful experience of other developing countries, the industrial sector is bound to become the driver for increasing growth rates, generation of sufficient employment opportunities, and fostering Egypt's integration into the global economy.

Comparative performance indicators suggest that there is a large room for improving the competitiveness of Egypt’s industrial sector. Parallel to this process is the process of technological advance. Thus, in the short run, the focus will be on leveraging of the existing base of resource-based and low-tech industries; and, therefore, on labor-intensive exports. The next stage will witness the upgrading of the technological content of both production and exports by moving to medium-tech industrialization. The highest level, based on high-tech production and exports, will represent the final stage of this process. Role of state in development:

As we hope the year 2025, Egypt will be a leading industrializing nation in the MENA region in terms of industrial performance as well as a main export hub for medium-technology manufactured products. The role of the state here in our point of view is to formulate a clear vision and goals then encourage private sector and youth applying it under the supervision of them on a specific clear standards had been put before with all segments will cooperate in this development. Vision formulation is an important phase in the process of designing and implementing industrial development strategies. The vision for industrial development should realistically be based on the country’s resource endowment (including human resources) and state of domestic capabilities and facilitating drivers for industrialization such as skills, technological attainment, infrastructure, and level of integration with international markets.

Role of State in Business Systems: Egypt should give up on the clientelism and open up for the existence of free market that contains competition, with no one excluded, also it should open more rooms for the participation of the private sector, NGOs, SMEs regarding SMES they are considered the back bone of any economy though they must have much care where Gov. should:

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-Grow the ecosystem as growing the ecosystem is much more important than growing a program. It is important to reach out to different entrepreneurship initiatives and private-sector volunteers. Expanding to secondary locations, which are still dependent on support from Cairo, is also important. Networking and collaboration among all the ecosystem stakeholders should be the top priority-Enables Cluster approach: which will help the assisted enterprises move beyond their individual capacities, organizing themselves in dynamic production networks, developing strategic relationships with other firms and institutions to improve their competitive advantages based on economies of scale, innovation and learning-linkage between SMEs- TNCs: by offering different programs with the help of NGOs

Suggested Role of Technology in Development: the government should issue a document , policy meant by the Promotion of Science and Technology in the Next for example Ten Years, covering: the establishment of targets for scientific and technological development; the training of technicians, mainly for providing support to scientists and engineers; the expansion and consolidation of research activities ; increasing and streamlining information-gathering activities and promoting the internationalexchange and dissemination of science and technology; and improvements in the taxation and patent system in order to stimulate the development of science and technology. Thus,these policies cover not only administrative measures but also education in science and technology. to increase the national investment in scientific and technological research, as a percentage of the GDP, Also open the door for the entrance of new technologies flow sinceWe can partner with companies offer high tec. and learn from them and then have the license and the knowhow and then start producing a high technological product too- building infra-structure for R&D and technology transfer as the TUBITAk and Marmara centers also form zones like techno parks that encourage production of technological products or scientists to carry on their researches Power with branded technology products Suggested Role of Financial System in Development:

Financial sector reform and development is much more than setting rules, articulating standards, approving legislation, and creating new institutions. All are important but ultimately behavior must be changed if there is to be meaningful and lasting financial reform.

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Savings-investment relationship

Savings are channelized to productive resources in the form of investment. Here, the role of financial institutions is important, since they induce the public to save by offering attractive interest rates . Knowing that the percentage of saving in Egypt is only 14% but to achieve a satisfactory rate of development you need as a country at least 30% of savings

Financial systems help in growth of capital market

Foreign exchange market enables exporters and importers to receive and raise funds for settling transactions so we need in Egypt to settle down

Government Securities market

Financial system enables the state and central governments to raise both short-term and long-term funds through the issue of bills and bonds which carry attractive rates of interest along with tax concessions.

Financial system helps in development of Trade

The financial system helps in the promotion of both domestic and foreign trade. The financial institutions finance traders and the financial market helps in discounting financial instruments

The banking system improvement will lead to the developing macroeconomic performance ,This is through allowing the increase in diversification and flexibility in banks’ loans and also risk assessment strategies to avoid any negative changes in the international market that may affect Egypt

Financial sector reform and development is much more than setting rules, articulating standards, approving legislation, and creating new institutions. All are important but ultimately behavior must be changed if there is to be meaningful and lasting financial reform.

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This all will affect the unemployment rate as it will generate more opportunities and also the working capital with businessmen will increase so the need for new jobs will increase

The idea also of venture capital will increase as business men will have surplus to supply young people’s ideas increasing working opportunities

References

http://www.mof.gov.eg/mofgallerysource/english/macro-policy-note-v.2annexes.pdf

http://www.sis.gov.eg/En/Templates/Articles/tmpArticles.aspx?ArtID=864

https://www.cia.gov/library/publications/the-world-factbook/

http://www.worldbank.org/en/country/turkey

http://www.oecd.org/

http://globaledge.msu.edu/countries/egypt/memo

http://mecometer.com/infographic/turkey/gdp-composition-breakdown/

http://www.mfa.gov.tr/turkey_s-development-cooperation.en.mfa

http://www1.worldbank.org/finance/assets/images/strengthpaper.pdf

http://www.bddk.org.tr/WebSitesi/english/Reports/Working_Papers/8675from_crisis_to_financial_stability_turkey_experience_3rd_ed.pdf

http://www.bloomberg.com/news/2011-06-30/turkish-economic-growth-accelerated-to-11-in-first-quarter-1-.html

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http://www.invest.gov.tr/en-US/investmentguide/investorsguide/Pages/InternationalTrade.aspxSource: UN Comrade and UN Service Trade

https://www.cia.gov

http://www.economicswebinstitute.org/glossary/fdi.htmhttps://en.santandertrade.com/establish-overseas/egypt/foreign-investment