Business leaders ponder effects of Islamist parliament
Preliminary ?indications suggest strong electoral showings by ??Islamist candidates, especially those from the Muslim ?Brotherhood’s ?Freedom and Justice Party (FJP), in ?Egypt’s first ?post-Mubarak parliamentary polls.? Businesspeople, meanwhile, ?are wondering how Egypt’s economy would be affected by an ?Islamist landslide.?
?“Of course, I have some fears,” Bahgat El-Hossamy, legal ?advisor to Egypt’s Junior Business Association, told Ahram ?Online. “But if the rotation of power is guaranteed, my concerns ?will be reduced.”?
The Muslim Brotherhood (MB) has repeatedly stressed its ?commitment to a free market economy. The group says that it ?supports development by encouraging the private sector, ?attracting foreign investment and promoting national exports. ?
Key items in the MB’s political platform include calls for a free ?economy that nevertheless ensures social justice, respect for ?international conventions that are in the country’s best interest, ?and the encouragement of labour-intensive industries.?
To satisfy Egypt’s middle class, which constitutes an important ?part of the MB’s membership base, the group has not altered its ?main economic policies, some of which had been espoused by ?the former regime. It calls for the application of a progressive tax ?and the restructuring of Egypt’s tax-collection system, as wells ?as the setting of a national minimum wage. It neglects to ?mention, however, a maximum wage.?
The MB has also promised subsidies and customs exemptions ?for labour-intensive industries.?
“The MB might halt some economic activities that it believes to ?be incompatible with Islamic Law, but it won’t stand against ?private property,” said El-Hossamy.?
El-Hossamy, for his part, will not be surprised to see the MB ?arrive to power after being the largest and best-organised ?opposition movement for decades.?
?“It was necessary that they come to power to put an end to the ?legend,” he said. “But if they don’t serve the popular will, they ?won’t be elected in the next elections.”?
A self-avowed liberal, El-Hossamy is more concerned about the ?influence of Egypt’s Salafist trend. ?
“It appears that the Salafists will capture more seats in ?parliament than originally expected,” he said. “My concern is that ?if the Islamists win a parliamentary majority, they could ?conceivably pass legislation cancelling bank interest rates or ?prohibiting alcohol, which would deeply impact the tourism ?sector.”?
Ultimately, though, says El-Hossamy, the MB does not stand ?against economic liberalization. In fact, he points out, the ?group’s economic program isn’t much different from that of ?ousted president Hosni Mubarak’s National Democratic Party.?
Leading MB businessman Hasan Malek once told Reuters that ?promoting manufacturing, bolstering national human resources, ?and encouraging the private sector represented “the solutions to ?Egypt's economic slump.”?
One of the MB’s main financiers and business strategists, Malek ?said the economic policies associated with the Mubarak era ?were “on the right track,” but had been overshadowed by the ?former regime’s blatant corruption and nepotism.?
Mohamed El-Rachidi, chairman of the Gozour processed food ?company, a sub-group of the Citadel Capital financial group, isn’t ?very optimistic about the preliminary polling results.?
?“The MB has good economic sense. I work in the food industry, ?which will survive in any case since people will always need to ?eat,” he said. “The problem will be with short-term disruptions in ?the coming period.”?
?“It will take months for elections to wrap up and for a new ?constitution to be written,” he added. “Many businesses may be ?forced to close before then.”?