The Egyptian economy is in continuous decline. To a significant extent, this crisis is a result of the ways in which the current rulers have secured their power and avoided social unrest. Their structural crisis of legitimacy and the closure of nearly all channels of collective interest representation prevent any substantial reform. Economic policy, including the implementation of the recent agreement with the IMF, will therefore be limited to the management of misery unless the current rulers accept the need for more participation in policy formulation. The EU and Germany should encourage and support steps towards an upgrading of Egyptian industry as part of a strategy for bottom-up import substitution.
Table of contents
- Preface to the Series
- How did we come to this?
- What was the government's strategy? Surely they could not have expected that the Gulf's generosity would last forever?
- Where do we go from here?
- Will the IMF deal save Egypt's economy?
- Will the crisis cause unrest, or even another revolution?
- Who really carries the cost?
- Recommendations: What is to be done?