THE ROLE OF BANKS IN FINANCING POLLUTION PREVENTION PROGRAMS IN THE INDUSTRIAL SECTOR

Abstract

Industrial pollution is one of the serious problems facing the world, especially the developing country such as Egypt. This is due to the industrial development being achieved in Egypt now as a result of the implementation of the "open door" policy in the seventies of the past century. This policy aimed at using fully the available resources and providing the necessary guarantees to encourage investment and the importation of technology as far as the activities of the local private section and foreign investors are concerned. This would increase the effectiveness of economic development.

The experience of developing countries to achieve economic development shows that a number of economic countries, especially Southern Korea and Singapore, have achieved high development rates through implementing the "open door" policy. It should be noticed that although these countries had circumstances similar to those of Egypt, Egypt did not manage to achieve equal development rates through the implementation of the "open door" policy.

The Egyptian government has adopted a program for econmmc reform since the nineties of the past century called "Adaptation and Structural Adjustments" program. It aims at achieving economic stability on the one hand and reforming the structure of economic activities on the other. This is brought about through increasing the production capacity, reforming the public sector, and augmenting the role of the private sector in economic activities.