Carnegie Endowment for International Peace
U.S. Secretary of State John Kerry’s visit to Egypt comes in the aftermath of Iran’s nuclear deal and as part of broader American diplomatic efforts to coordinate the region’s fight against terrorism.
Egypt’s real challenge is ensuring political as well as economic inclusion for the broadest array of social groups and classes possible.
Egypt’s leaders hope that foreign investors, led by the Gulf states, will provide much-needed capital. But the fall in oil prices may make it difficult for them to help.
The developing military-backed regime under Abdel Fattah al-Sisi signals the triumph of the Egyptian bureaucracy.
Big business has been virtually excluded from recent stimulus plans designed to get Egypt’s wheels spinning after years in recession. However, long-term recovery and stabilization are quite dependent on the resumption of activities by large private enterprises, which still control key sectors of the economy.
Egypt has witnessed a tidal wave of conservative nationalism since June 30 that cuts across regime discourse on local politics, the economy, and foreign relations.
The number and size of economic ventures carried out by affiliates of the Egyptian armed forces will have long-term negative effects on the future of Egypt’s private sector.
The setting of a minimum and maximum wage for Egypt’s civil service will help the system become more transparent and equal. But comprehensive reform is still needed.
Financial restructuring in Egypt has become a matter of urgency which can no longer be postponed.
The tragic irony in Egypt is that while fuel subsidy programs benefit the higher income brackets, lowering them will more negatively impact other groups.
