Analysis of sustainable development financing mechanisms in Egypt in light of the Development Strategy (2030)

Document Type : Original Article

Authors

1 Professor of Economics - Arab Academy for Science, Technology and Maritime Transport - Alexandria

2 Assistant Professor of Economics - Arab Academy for Science and Maritime Transport - Alexandria

Abstract

Egypt's Sustainable Development Vision 2030 includes numerous targets in the areas of economy, social justice, environment, energy, and human development. Providing the necessary financing to achieve these targets is a major challenge for the Egyptian economy, especially in light of the scarcity of financial resources, the increasing burden of public debt, and the chronic budget deficit. This necessitates the development of the current financing structure to align with the desired development goals.
Therefore, the urgent need arises to adopt an integrated financing policy that can reform the imbalances in the structure and size of the existing financing, in order to enhance and mobilize domestic resources as a primary source of development financing. This also requires the optimal allocation of financial resources between domestic and external financing sources. Additionally, it requires the adoption of economic policies that can overcome the financial challenges and obstacles hindering the implementation of the development goals and programs that have emerged from the current conditions of the Egyptian economy.
Accordingly, the current study aims to analyze the strengths and weaknesses in the structure of sustainable development financing in Egypt, in light of the current data and future plans, in order to derive mechanisms for developing the current financing sources and creating new financing sources that are more consistent with the requirements of the current stage. The ability to finance a successful sustainable development process is contingent on developing financing sources and directing the available financial resources in a way that ensures their optimal allocation. This also requires benefiting from official and unofficial development assistance, which necessitates creating favorable domestic conditions for the effective utilization of savings, maintaining adequate investment rates, increasing human capacities, and reducing capital flight. It also requires providing a transparent and stable investment environment that encourages market entry under fair competition between domestic and foreign capital.

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