THE ROAD FROM TAHRIR SQUARE TO DEMOCRACY / THE FINANCIAL TIMES COMMENTARY & ANALYSIS ( HIGHLY RECOMMENDED READING )

The road from Tahrir Square to democracy

By Mohamed El-Erian

Published: February 14 2011 22:26

There was a time as a young child in Cairo when I believed that Egypt could do anything. I felt proud to grow up in a country that had overcome decades of British colonial rule, imposed by co-opted and corrupted local elites. I was thrilled to live in the undisputed leader of the Arab world. And I was delighted that Egypt joined India and Indonesia to lead the “nonaligned movement” of the world’s young and newly independent nations.


It was a period of pride and hope for many Egyptians. Yet all this was shattered by the shock of a humiliating defeat in the 1967 war with Israel. At the national level, the deep popular disillusionment that followed was accompanied by greater political repression. At the personal level, I left Cairo shortly thereafter, to accompany my father on his diplomatic postings abroad. I never did live in Egypt, opting for periodic visits; I settled in the US after attending universities in Britain.


Having left, I never anticipated that, one day, I would again experience such feelings of intense Egyptian pride. Well, the feelings are back; and I owe this to a remarkable secular movement that bravely took to the streets of Cairo, helped Egyptians overcome decades of fear and, collectively, chase out a regime thought by many to be among the most entrenched in the world.


This improbable feat was accomplished with brilliant organisation, steadfast determination and large sacrifices. It did not resort to violence, even when attacked by the regime’s thugs. It did not require or request foreign assistance. This was a home-made people’s revolution; one whose foot soldiers deserve the peace prizes usually given to reformist elder statesmen.

The fuel for Egypt’s revolt was a conviction that it is possible to unite citizens of all ages and religions around a simple aspiration of improved well-being. In just 18 remarkable days the movement discredited a decades-old view that Egyptians are passive. No longer will they be deemed a people that, “for their own good”, must be ruled by an iron fist.


The country now moves forward with cries of “never again” often heard. Never again to autocratic rule, corruption or a rentier class prospering on the backs of working people. This mood of euphoria is justified – but while the hardest part of this revolution is over, much hard work remains. The challenge now is to turn the nation’s energies to its economic, institutional, political and social rehabilitation. This process must start today, with a number of critical steps.


The first must be for the armed forces, in their transitional role, to lift Egypt’s emergency law, in place since 1981. Fair and free elections for parliament and the presidency must follow, as must constitutional reforms that provide for broad-based political participation and better protection of individual freedoms.


Next, the nation’s economy should be properly reset. The revolution brought most corporate activity and government services to a virtual standstill. Shortfalls in corporate and government receipts are now inevitable. Capital flight must be addressed through financial buffers, and the resumption of domestic and foreign investment inflows. Offsetting that discredited part of the business community that maintained corruption-laden relationships with the regime must also be a priority.


To support this Egypt’s economic and political institutions must be revamped, to ensure greater transparency, accountability, and checks and balances. It is important that happens in a manner that discourages the personality cults that so undermined the country in the past. Reforms to political parties and other bodies must be the first priority, but corporate reforms should follow quickly. At the same time, addressing social grievances must be brought to the top of the agenda. Urgent steps are needed, in particular, to ensure the efficient provision of basic food, along with health and shelter to the poorest segments of the population.


Completing this “to do” list is essential if democracy is to take root. This, in turn, will facilitate poverty alleviation and financial stability. If both can be achieved, Egypt’s young have a chance never to experience again the feelings of discontinuity that my generation felt in our younger days. That is a revolution worth completing.

The writer is chief executive of Pimco


Copyright The Financial Times Limited 2011.