Page 5 - issue-25 - en

ELITE Vol.1 No.25, Nov. 2020

THE BUBBLE OF GLOBAL DEBTS, PRIOR TO COVID19

CRISIS, THREATENS GLOBAL ECONOMY AND ITS

RESCUERS EQUALLY

taught in this faculty made him feel elegant and distinguished,
level. For almost 10 years now, the insurance sector makes up
partly due to the high quality professors there. He thinks that in
0.8 % of Egypt's gross domestic product, compared to a
order for the faculty to influence the student's character, s/he must
percentage of 3 % in Morocco and 2 % in Saudi Arabia and
be moldable and have good receptive skills. This is because the
UAE and other countries with small populations. This puts us
2018-2020
feeling of distinctiveness, instilled in them by the faculty, could in a bad position, for the insurance sector lacks a legitimate
either make them feel arrogant or being capable of bearing sponsor that can help and promote it.
responsibility. The limited number of students also helped to
This is very different from the banking sector where the Central
gradually narrow the gap and differences among students.
Bank-which is only considered to be regulator- did something
outside the realm of governance, and dealt with banks that were
On the educational level, Mr. Basil feels grateful for all of his
then owned by the Finance Ministry. As a result, the Central
professors. On the professional level, Mr. Basil feels grateful for
Bank became the God Father of that sector, managing to lead
Mr. Omar Mehanna, his first manager at the banking sector, and
the development plan of the sector which started in 2004, as a
Mr. Fou'ad Sultan, a former tourism minister, and others whom he
part of the World Bank's economic reform program. Four banks
met during his professional career.
in Egypt were used as a locomotive to pull other banks forward.
Mr basil continues by saying that although Misr Insurance
Although those banks were the most financially troubled, they
Holding Company's (IHC) main job is insurance, it still can be
were the biggest among other banks. So, if those banks were to
categorized as part of the banking sector, as it contributes to the
be reformed, other banks could too. This is what exactly
promotion of financial inclusion, raising Egypt's economic growth
happened. After more than 10 years, the banking sector which
and its GDP, in addition to creating more job opportunities,
in 2004 had an allocation gap of 100 Billion Egypt pounds,
establishing a large investment base that is used in financing of
made profits in 2015.
projects, and raising investments and saving rates. The former two
sectors have the weakest rates in Egypt. In order to support these
The insurance sector, on the other hand, doesn't have a God
sectors, the insurance sector needs to be boosted, because this
Father that can play the role the Central Bank did with the
sector includes all these points, and it adds to them the element of
banking sector, as it has an oversight body that doesn't promote
protection that the whole society looks for.
the sector, because insurance is not the only sector this body is
responsible for. In fact, this body is responsible for other
He thinks that the insurance sector in Egypt is not at the required
financial services apart from banking services.
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