Competitiveness is becoming one of the most interesting topics of the economy. The topic has attracted more economists and think tanks to rethink on what drivers’ nations compete, and how clusters (agglomerations of economic activities) enhance prosperity.
This dissertation aims to study the overall state of competitiveness in Egypt, following Michael Porter’s framework and lessons learnt from the microeconomics of competitiveness course, Centre for competitiveness, University of Fribourg, Switzerland.
Firstly, a comprehensive analysis was conducted on all levels of competitiveness: the endowments, the macro and microeconomics. To guarantee the neutrality of comparisons in assessing the national performance indicators, only data and rankings provided by international reports were used. The list varies from the Global Competiveness reports, the World Bank Doing Business reports to other international reports. In gathering data of some specific parts such as fiscal policies and clusters’ state, official reports of the Central Bank of Egypt and the government were used.
Secondly, the analysis addressed the nature of the national business environment, introduced some of the local clusters and reflected on other dimensions such as culture. The outcomes revealed that Egypt is blessed with several endowments and resources that, if managed effectively, would drive her prosperity. The country is dedicated to move towards “investment driven” economy. There is a popular support for the current leadership and trust in the directions taken so far. Enormously, Egypt has strong potential to grow and improve her competiveness among nations.
Finally, the way forward introduced a list of opportunities and challenges, proposed a strategy to improve productivity considering the economic and social policy. It was followed by recommendations on all competiveness levels, specific clusters and future research to be done.