Egypt’s economy suffers as strikes intensify

Thousands of workers walked out from their jobs, piling pressure on a political leadership already rocked by protests Control of Egypt’s economy appeared to be slipping out of the government’s hands, as strikes multiplied across the country and leading business figures sought to disassociate themselves with the Mubarak regime. Thousands of workers in key industries walked out from their jobs, piling pressure on a political leadership already rocked by the 17th straight day of street protests calling for the president to stand down. In a further blow to leading NDP members, who in recent years have styled themselves as pro-business reformers, several large companies took out adverts in local newspapers putting distance between themselves and the regime. “There’s a lot of nervousness among the business community,” said Issandr El Amrani, a prominent analyst and blogger. “Elements of this regime are clearly on their way out, and that worries certain businessmen who have made a fortune off the back of their links with parts of that regime. With those connections now crumbling, a big realignment is taking place and people are unsure about where the new centre of power is going to be. It’s not surprising that in that environment some businesses are seeking to distance themselves from the political elite.” Senior business sources who preferred to remain anonymous confirmed to the Guardian that there was a great deal of concern over political transition, but insisted that it was tempered by optimism that a stronger Egyptian economy would emerge from the turmoil. “Not everyone has succeeded because of their links to Mubarak’s circle; some have done well in spite of the government, not because of it,” said one. “Behind the scenes many business leaders have been furious with the regime for years over the hurdles placed in their way when they wanted to expand. A lot of people you might think are in bed with Mubarak have privately lost patience with it for some time.” Earlier this month Naguib Sawiris, an Egyptian telecoms tycoon and one of the world’s richest men, gave his tacit support to the anti-government uprising, claiming that the end result would be “a more solid foundation for future growth”. Despite worries about short-term instability, other major business players appear to be backing Sawiris’s position. “Anti-government sentiment is not calming down, it is gaining momentum,” Wael Ziada, head of research at Egyptian investment bank EFG Hermes, told the Guardian. “This latest wave is putting a lot more pressure on not just the government but the entire regime; protesters have made their demands clear and there’s no rowing back now. Everything is going down one route. There are two or three scenarios, but all involve the same thing: Mubarak stepping down – and the business community is adjusting its expectations accordingly.” Labour unrest has erupted in a wide breadth of sectors, including postal workers, electricity staff and service technicians at the Suez Canal, in factories manufacturing textiles, steel and beverages and hospitals. A bus strike snarled traffic in Cairo, a city of 18 million where many of its impoverished residents rely on public transport. Few buses were seen on the streets, which were jammed and slow moving because of the extra reliance on cars. Around 800 public transport workers blocked a main Cairo thoroughfare with a protest, demanding salary increases, and they said at least 3,000 of their co-workers were rallying in other parts of the city. If demands are not met, “we will join Tahrir and camp there,” said one bus driver, Mustafa Mohammed, who said he has been working since 1997 and only earns 550 Egyptian pounds a month (£58). “We are immersed in debt,” he said. On Thursday, hundreds of doctors in white coats marched down a street from one of the biggest state hospitals, Qasr el-Aini, to Tahrir Square, chanting “Join us, oh Egyptian,” witnesses said. From another direction, crowds of lawyers in black robes marched from their union to the square, waving Egyptian flags and circling Tahrir’s roundabout with chants of “Mubarak, you pilot, how did you get $70bn?” referring to the president’s past as the air force commander. Egypt Hosni Mubarak Middle East Jack Shenker guardian.co.uk

Posted by on February 11, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry