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Corruption in Egypt

Corruption in Egypt. Sample Project for Gb699. 2009 CPI Rank: 111 of 180 countries 2009 Score: 2.8 Previous ranking: 115 Compare to: United States rank and score: 19th, 7.5 New Zealand rank and score: 1st, 9.4. A history of vast corruption….

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Corruption in Egypt

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  1. Corruption in Egypt Sample Project for Gb699

  2. 2009 CPI Rank: 111 of 180 countries 2009 Score: 2.8 Previous ranking: 115 Compare to: United States rank and score: 19th, 7.5 New Zealand rank and score: 1st, 9.4

  3. A history of vast corruption… In 2008, the United Nations published the Egypt Human Development Report. The results called on the civil society to act as a “third pillar” in developing the country as they have been failed by both public and private administrations. As a result of the vast corruption, Egypt’s development has remained stagnant while the disparity between the wealthy and poor has increased.

  4. The World Bank says that poverty in the 2004-2005 years is equivalent to that of 1995-1996. • CPI dropped from 70th to 105th from 2006 to 2007. • New York Times: 45 percent of Egypt’s population survives on < $2 per day.

  5. The Corruption of Bread • Bread, sugar and tea have been subsidized since WWII. • Provisions are the most corrupt sector in Egypt. • $2.74 billion spent on subsidies -more than on healthcare, education • Creates significant black market value.

  6. As a result… Government sells flour $1.50 per sack for a profit of $10 per sack. An inspector must certify that the baker has used flour properly for 3 months in order for baker to receive $1/sack refund. Inspector is bribed by baker with black market sales and inflated prices.

  7. In a study by the Al Ahram Center for Strategic Studies, 28.5 percent of respondents attribute inflation and increased prices caused by corruption. 88 percent blame it on low wages. After 20 years, the bakery inspector makes $55 per month to feed a family of ten.

  8. "The state-businessmen relations in Egypt are an illegal and unconstitutional marriage.” Abdel Khaleq Farouk, economist L.A. Times, March 1, 2009

  9. Executing a commercial contract requires and average of 42 procedures and takes 1,010 days. It takes 6 years to settle business dispute in court. (Heritage Foundation, 2009) Corrupt police officials will buy shops and properties off of detainees. 7.3 percent of annual sales spent on bribing officials. No tenure for low level judiciary. Wages low and bonuses contingent on higher levels. Environmental ministry is lowest paid and has most high-level scandals in 5 years, with 10. Business Anti-Corruption Snapshot

  10. 2006 Ferry Disaster 1,035 people are killed when the ferry catches fire and sinks in the Red Sea.

  11. Recovered bodies are put in unlabeled garbage bags. Only riot police are sent to assist concerned family members. An investigation finds that the ferry owner, Mamdou Ismail,a parliament employees is related to the owner of Egypt’s safety inspection company. The 600 page report indicates incompetence by authorities and neglect by the ferry owner. He flees to London and is acquitted. The incident symbolizes Egypt’s corruption.

  12. A Corrupt Education.. “What remains is a decomposed corpse that yields nothing worthy of meaning and to the stench of which we have become thoroughly desensitized.” Al Ahram, June 25, 2008 editorial

  13. A Cycle of Poor Regulation: -June 2008: Daughter of Egyptian parliament member accused of selling national exams that are essential to determine college enrollment. Lack of proper oversight leads to an exam riddled with errors, impossibly difficult questions. Suicide is common for students that fail the exams. Students that pass can incur debt for private tutoring they need because of poor schools. Overcharging tutors are the same professors.

  14. Babies Killed in Power Outage July 2008: 4 babies die when a hospital loses power for 3 hours and the generator fails.

  15. Outrage spreads in Egypt when a mobile phone captures doctors trying to resuscitate 5 infants at a hospital without power. • Healthcare and education are free in Egypt, however, public spending has been cut. In 2001, national spending was 2.4 percent, in 2006, 1.3 percent. Egypt has seen 7 percent economic growth, yet most goes to wealthy. • Doctors are paid $47 per month.

  16. Optimism for future?

  17. Transparency is improving with rise in Internet popularity. Egypt uses 2nd most Internet in Africa (8.6 million users). 40 percent of population between ages 15 and 40. USAID-funded Nazaha website to raise awareness by reporting corruption from 23 sources. Egypt signed UN Convention against corruption. 51% believe democracy will help. Established 4 councils: Committee of Integrity and Transparency, Administrative Authority Council, Central Auditing Agency, Public Funds Prosecution, Administrative Prosecution Authority. Transparency on the horizon..

  18. New York Times New York Sun Times L.A. Times Reuters BBC Transparency International Business Anti-Corruption Portal PoliticsOnline Al-Ahram Sources

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