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The global financial and economic crisis and the Egyptian agriculture (Opportunities and challenges)

The global financial crisis began when the real estate market in America faced a violent jolt led to the collapse of the "Lehman Brothers" Bank and the declaration of its bankruptcy, resulting in the promotion of financial chaos in the U.S. Despite the U.S. rescue plan that ruled the pumping of 700 billion dollars for the purchase of the assets of major financial institutions faltering and the subsequent action, but there are a lot of skepticism by economists in their success and restoring things to what they were. From here, views appeared seeing that the global economic system which is currently stands on capitalism, the free market economics and globalization is on the way to collapse too.
The repercussions of the American crisis spread to affect all countries in the world to varying degrees. And despite the seriousness of the intractability of the crisis, it has coincided with a crisis more serious, which is the global food crisis that has swept the world in all its countries and institutions, and its devastating effects on the population of the developing world in particular, especially the poor.
The world faces many challenges in the world food crisis, most notably are the rise in food prices, climate change and its consequent negative effects economically, socially and environmentally, and the increasing risk of food shortages due to the production of bio-energy at the expense of food.
In this context, we can stand on two visions: The first is represented by certain official bodies that recognize the existence of the crisis on the global level, but at the same time they do not take practical and concrete steps to reduce their effects. The second vision: also recognizes the existence of the crisis on the global level and its seriousness, but is trying to provide alternatives in line with the national capacities to reduce the consequences of this crisis, so as not to affect the broader categories, especially low-income people.
In the midst of this crises, Egypt was reeling from successive blows, almost touched by the global food crisis, which led to another wave of protests and sit-ins that have threatened the security situation of the country, and before it finds successful solutions to the food crisis came in the world financial crisis.
The agricultural sector is one of the key sectors in the Egyptian economy as this sector is in charge of food security and a major source of productive sectors to provide input and other services, in addition to the role of agricultural exports to improve the balance of payments, as it absorbs about 34% of the workforce.
The food crisis developed in Egypt depending on the growth rates of production and consumer demand for food products, and there was almost unanimous that it had reached a critical point reflected in the growing reliance on external sources to feed its population, the decline in the per capita agricultural output and the decrease in the contribution of the agricultural sector in the domestic product output.
Official reports indicate that the agricultural sector has achieved a steady increase in the investments made, with a size of about 6.4 billion pounds in 2005/2006, the 2006/2007 has increased to 8.6 billion pounds, representing about 6.3% of the total public investment. The real growth rate of the agriculture sector has also increased to 3.3% in 2005/2006, as it has succeeded in developing its performance during the period from 1981/1982 to 2005/2006.
However, international reports indicate that many of the development strategies in developing countries - including Egypt - range from development to manufacturing, through the strategy of import substitution or export-led growth, agriculture is a secondary role of support, and often overlooked the importance of positive interactions between agriculture and other sectors, and does not give much attention to the promotion of research and investment in agriculture, as many development economists have not indicated the importance of the agricultural sector, however, relatively in a small matter - with some exceptions - although some economists say that any of the industrial revolutions taking place must be preceded by agricultural revolutions, as has happened in China and Japan.
The production of food crops in the last three years witnessed heinous plot on small farmers who have suffered from the high prices of agricultural inputs such as fertilizers, pesticides, fuel and seeds, but in any case they were unable to sell their crops at reasonable prices, which made them the poorest and most needy, because they bought the agricultural inputs at higher prices, and sold their crops cheaply to market lords.
The prices of crops have now dropped in all countries of the world, and it is safe to assume that the traders of food commodities in Egypt are preparing to remove all traces of this decline to the peasants and farmers, who are the only ones who will pay the bill for this decline in the prices of their crops, and there isn't the slightest possibility that anyone will intervene to protect small farmers from traders whom the Federation of Chambers of Commerce provides them with all the power necessary to continue to reap profits from the blood of farmers.
Economists warn of the repercussions of the global agricultural and financial crisis which impact Egypt, especially on the agricultural sector, which threatens Egypt's agricultural development, and reflects on other development programs. Experts are also expecting it to impact the plans and programs to encourage farmers to grow strategic crops such as: wheat, corn and sunflower, which would lead to dependence on imports from abroad again, and retreat from the policies of approaching self-sufficiency in these crops, as well as declining growth rates in agriculture in Egypt.
It is expected that investments move away from the agriculture sector under the current situation, resulting in reduced employment opportunities in this sector, and the entry of new groups, especially from the rural community under the poverty line.
It is also expected to worsen the global food situation, especially if the financial crisis affected the obligations of the donor countries to support the agricultural sector in developing countries, including Egypt. Such steps may increase the risk of another food crisis fiercer during 2009, and it is logical that the state of instability in the existing international financial markets and the risk of global recession may lead countries to take trade protection measures and to re-evaluate their commitments in connection with international development assistance.
In this context, the Land Center for Human Rights is organizing a seminar entitled: The global financial and economic crisis and the Egyptian agriculture, which will be discussing the following points:
• The global financial and economic crisis, development programs and the conditions of economic, social and cultural rights in Egypt (negatives and positives).
• The escalation of the global financial and economic crisis and its effects on the various requirements and the costs of agricultural production, profits of farmers and on their wages, employment and unemployment in the Egyptian countryside.
• How can human resources be developed in the global financial and economic crisis, and what is the role of extension to reduce the severity of the rural people?
• The role of civil society organizations, farmers associations, chambers of commerce and the federation of the food industry to alleviate the devastating effects of the financial crisis on the standard of living of the farmers in the face of rising rents and the low level of income.


Proposed Workshop Agenda Proposed Workshop Agenda 10:00 A.M. – 12:00 P.M. First Session
The global financial & economic crisis, development programs and the economic, social & cultural conditions in Egypt
Headed by Mr. Abdl Ghaffar Shukr, vice presedent of the Arab Research Center
Dr. Ahmed Thabet, head of Ibn Khaldoun Center for Development
Dr. Sherief Fayyad, agricultural economy assistant professor in the Desert Center
Dr. Ahmed El Ngaar .el -ahram Center for political studies

12:00 P.M. – 02:00 P.M. Second Session
The global financial & economic crisis and its effects on the costs and requirements for agricultural production, in addition to farmers' profit and wages and the rate of unemployment in the Egyptian countryside
Headed by Mrs. Shahenda Meqled, farmers' union under construction
Dr. Mohamed Sayed, researcher at the Agrarian Research Center, El nabaa newspaper consultant
Dr. Al Khouly Salem Al Khouly, rural society professor in Al Azhar University
02:00 P.M. – 02:30 P.M Break

02:30 P.M. – 04:00 P.M. Third Session
How can human resources be developed under the current global financial & economic crisis, and what is the role that agrarian guidance can play to reduce its affects?
Headed by Mrs. Manal Al Teiby, head of the Center for Housing Rights
Dr. Ahmed Gamal, director of the Institute for Agrarian Guidance Research and Rural Development
Dr. Mohamed Sayed, researcher at the Agrarian Research Center ,el nabaa newspaper consultant

04:00 P.M. – 05:00 P.M. Fourth Session
The role of civil society organizations, farmers associations, chambers of commerce and the federation of the food industry to alleviate the devastating effects of the financial crisis on the standard of living of the farmers in the face of rising rents and the low level of income
Headed by Mrs. Gihan Farouq, Hiwar Project coordinator
Mr. Erian Nasief, head of the Farmers' Union Under Construction
Dr. Amany Qandeel, head od the NGOs Network
Dr. Mohssen Bahgat Institute for Agrarian Guidance Research and Rural Development.


05:00 P.M. – 05:30 P.M Lunch