The political economy of the egyptian revolution mubarak. Banks in egypt could record a wave of cash withdrawals when they resume their operations, such examples have included companies among the hardest hit violent protests against president hosni mubarak, says bloomberg. Impact of the socio economic situation post the egyptian revolution 2011 countries of the world, inequality is considered as a lead cause for. Egypts economy in 2011 banks in egypt could record a wave of cash withdrawals when they resume their operations, such examples have included companies among the hardest hit violent protests against president hosni mubarak, says bloomberg. Section 3 presents a parallel picture of egypt against the information revolution. Foreign investment in e gypt deteriorated after the revolution from 6. After the revolution of 1952 the egyptian economy has transformed gradually from a free market one, based on private property into a regulated and socially controlled economy, being at present in a vast and complex reform process caused by the massive privatisation of the enterprises from the public sector.
These two issues conflated four years after the revolution when egypt was invaded by britain, france, and israel in the suez crisis of 1956. Domestic demand and foreign inflows will take a hit in 2020, with growth averaging under 2% in 201920 and 202021 but recovering to about 5% thereafter. The economy of egypt was a highly centralized economy focused on import substitution under president gamal abdel nasser. Already there was a sense of a lack of opportunity and declining social mobility. Egypt and the industrial revolution at the start of world war 1, egypt is described by issawi as being far ahead in economic.
Two years after the revolution that swept away a 60yearold autocratic system, egypt needs a new economic vision based on more inclusive growth and greater social justice. The repressive and violent nature of the arab regimes also ranks high on the list of major factors culminating in the 2011 arab uprisings. Egypts economy after 2011 revolution financial tribune. The egyptian revolution carries a challenging transition phase, starting out with problems such as low foreign direct investments fdi, a high budget deficit, a high debt rate, a high unemployment rate, a high poverty rate, and a low standard of living. Sep 05, 2012 eighteen months after egypts revolution, president mohamed morsi, the united states and the international monetary fund finally seem to be pulling in the same general direction on the question. Most of the arab regimes, with the exception of a few, are classified as highly authoritarian systems in whic h political power is monopolize d by the few rather than shared by the many. Egypt celebrates on saturday the fifth anniversary of the june 30 revolution that toppled the muslim brotherhoodaffiliated president mohamed morsi, after one year in power during which the country suffered fierce political conflicts and social splits that threatened the future of the nation. Until this very day, the role of the military establishment in the economy remains one of the major taboos in egyptian politics. Egypts economic growth has been robust, averaging 5. After the 2011 revolution, the economy of egypt has suffered a severe downturn. The revolution was initially aimed at overthrowing king farouk. May 22, 2011 egypt counts the cost of revolution jump to media player egypt s revolution sparked celebrations on the streets but it has had a disastrous impact on the nations economy. The economic situation in egypt in the context of political. Egypt 2018 macro update we expect the real gdp growth rate to accelerate to 4.
Economic conditions in egypt prior to 25th of january revolution. Todays egypt in the shadow of the past a note by nagla rizk the american university in cairo email. The military, the media and public perceptions in egypt following the downfall of president hosni mubarak in january 2011, and more markedly after the july 20 ouster of president mohamed morsi, egypts militar y assumed a new role in national politics. Rafik hariri center for the middle east, five years after the 2011 revolution, egypts economy is floundering and remains far from recovery.
After the revolution of 1952 the egyptian economy has transformed gradually from a free market one, based on private property into a regulated and socially. Investments in the egyptian economy concentrated in inward looking sectors, did not prove to be sustainable sources of growth and job creation. The economic roots of egypts crisis the washington post. The arab spring had culminated in a military takeover and the installation of the current president, abdel fattah alsisi. Economic policy reform will continue, albeit at a slower pace. Despite occasional outbreaks of political violence, it has a reasonably stable multiparty system and is strongly supported by the united states and the european union.
Roberto roccu addresses this gap and in doing this provides the first detailed study of the deeper causes of the. The main indices of egypts stock exchange egx 30 and egx. Feb 12, 2011 by the usual standard, egypt s economy has expanded nicely in recent years. Egypt overview of economy, information about overview of. The information revolution and the industrial revolution. In the 1990s, a series of international monetary fund arrangements, coupled with massive external debt relief resulting from egypts participation in the gulf war coalition, helped egypt improve its macroeconomic performance.
By numbers alone, on the eve of the revolution, egypts economy looked fairly healthy. Private investment is picking up and net exports are improving. During the mid2000s, growth in gross domestic product averaged an impressive 7% annually. Over the past thirty years, the army has insisted on concealing information about its enormous interests in the economy and thereby keeping them out of reach of. The economic decline of egypt after the 2011 uprising.
The rate of informal economy activities in egypt reached 35% of gdp in 19972006, according to a world bank study prepared by friedrich schneider et al. Since the beginning of 2019, egypts currency has surprised economic observers, rising % against the u. Human development, information technology, egypt the transport system provided channels to the remotest villages, but the water that might. This paper diagnoses the constraints to growth in egypt at the sectoral level using the 2011. An overview of human resource development in pre and post. Jan 30, 2018 as the political climate worsened after the january 25, 2011 revolution, egypts longstanding structural challengesincluding high public debt, poorly targeted subsidies, a growing public. Gdp growth had shifted into a much higher gear, increasing from just below. The egyptian revolution and post socioeconomic impact doaa s. In the short term, economic policy will focus on mitigating the impact of the coronavirus, with fiscal consolidation suffering, although reforms will be revived with imf financial support. V channels by blocking some of them, faraeen and dream. Even though egypt has begun to ease the emergency situation that has gripped the country since the revolution a year ago, the economy still has a long way to recover.
Opinion egypts economic struggle the new york times. Growing confidence in the currency and greater stability will boos private sector. Following the float of the pound and subsequent overnight depreciation by about 50% in november 2016 as part of an. In taking on such new responsibilities and control, the military also came to realize. Tough living conditions followed the states 2017 reformist economic policies which included a series of decisions, from reducing subsidies on energy to devaluing the local pound. Some optimistic experts and analysts go as far as to include egypt in the second wave of emerging countries to achieve high growth rates, maybe even adding an e to the bric. The economys main exports are crude oil and petroleum products, cotton. Five years after the 2011 revolution, egypt s economy is floundering and remains far from recovery. Institutions in egypt play an integral part in egypts development. Most causes of the 2011 egyptian revolution against mubarak also existed in 1952, when the free officers ousted king farouk.
Moreover, what it will take to sell postmubarak egypt to foreign investors in view of problems facing egypts economy these days. W ith hindsight, its clear that the mubarak regimes. While the 2011 egyptian revolution has already become the subject of much debate, the roots of the socioeconomic context which made the revolution possible have seldom been explored. Days after a popular uprising in tunisia, known as the jasmine revolution, forced pres. The economic development in egypt during the 19522007. A year ago, egypts economy had been crushed by political turmoil. Many observers of the middle east upheavals have focused. Prior to the revolution on the 25th of january, the economy in egypt as a whole was performing better than ever. Tough economic times are likely to be egypts reality for a while, despite the announcement that egypt and the international monetary fund have agreed to.
The following year, the chief of the armed forces, abdel fatah alsissi, was elected president and has overseen the harshest crackdown on dissent since the republic was established by gamal abdel. The egyptian pound has proven to be one of the bestperforming emerging market currencies over the past year. The issue driving protesters in egypt is the same that dominates elections in the u. Pdf the egyptian revolution and post socioeconomic impact. Oct 31, 2014 a year ago, egypt s economy had been crushed by political turmoil. Today, egypt is primarily a free market economy with some state control. Containing of this inflationary pressure was partially attributed to the decline in food prices, given that egypt is the major importer of wheat in north africa, and food prices represent 40% of. The date was set by various youth groups to coincide with the annual egyptian police holiday as a statement against increasing police brutality during the last few years of mubaraks presidency. Jul 03, 20 even before the revolution in 2011, you had 10 percent unemployment and 25 percent youth unemployment. Egypt economy, politics and gdp growth summary the. After the revolution of 1952 the egyptian economy has transformed gradually from a free market one, based on private property into a regulated and socially controlled economy, being at present in a vast and complex reform process caused by the massive privatisation. Eighteen months after egypts revolution, president mohamed morsi, the united states and the international monetary fund finally seem to be pulling in the same general direction on the question. The economic causes of the egyptian revolution january 25, 2011. The egyptian revolution and post socioeconomic impact.
Successive egyptian governments have struggled to develop a vision for a new economic model for. Gdp growth had shifted into a much higher gear, increasing from just below 5% in the mid1990s to 7% in 200608. An overview of human resource development in pre and. The armys control over economy began in the aftermath of the 1952 revolutioncoup, which paved the way for egypts experience with state socialism under leadership of the late president gamal abdel nasser. Although we expect that the first free presidential elections in. Apr 25, 2017 challenges faced by the economy of egypt. After growing at 7 percent a few years ago, it expanded by roughly 5 percent in 2009 and 2010. The economic causes of the egyptian revolution january 25. About egypts economy egypts economy in 2011 banks in egypt could record a wave of cash withdrawals when they resume their operations, such examples have included companies among the hardest hit violent protests against president hosni mubarak, says bloomberg.
Authorities could take off the financial system to avoid this risk. In the case of egypt, the commodity was longstaple cotton, introduced in the mid1820s during the reign of muhammad ali 180549, and made possible by the. Egypts economy struggles after revolution bbc news. Containing of this inflationary pressure was partially attributed to the decline in food prices, given that egypt is the major importer of wheat in north africa, and food prices represent 40% of the index. What are the drastic impacts on the politicaleconomic conditions after revolution, and. In the two years since the revolution, egypts economic performance has been weak.
The military, the media and public perceptions in egypt. Kheng guan toh egypts economy improved dramatically in the 1990s as a result of several arrangements with the international monetary fund imf and the move by several, mainly arab, countries to relieve a large proportion of its debts. By the usual standard, egypts economy has expanded nicely in recent years. The challenge now is to create a more inclusive strategyone. How egypts stubborn poverty threatens strongman sisis. From the 1850s until the 1930s, egypts economy exhibited a classic third world dependency syndrome, the essence of which was reliance on the export of a single, usually primary, commodity. The egyptian revolution of 2011, also known as the january 25 revolution arabic. The economic development in egypt during the 19522007 period. Unemployment is up, and the countrys biggest money earner, tourism is down. The revolution three things changed after the revolution. Pdf the egyptian revolution carries a challenging transition phase. The government of egypt, supported by the world bank group, has achieved significant results across all three focus areas under this cpf.
As the political climate worsened after the january 25, 2011 revolution, egypts longstanding structural challengesincluding high public debt, poorly targeted subsidies, a growing public. Egypt economy gdp, inflation, cpi and interest rate. The economy likely lost steam in the third quarter of fy 2020, which ran from january to march, as cases of coronavirus rose both domestically and abroad and the government imposed strict containment measures to control its spread such as nighttime curfews and the closure of airports. Egypt counts the cost of revolution jump to media player egypts revolution sparked celebrations on the streets but it has had a disastrous impact on the nations economy. The bureaucratic apparatus in egypt is the main source of change as evident throughout the history of the country. Even before the revolution in 2011, you had 10 percent unemployment and 25 percent youth unemployment. The president, abdel fattah elsisi, was reelected in 2018. In the 1990s, a series of international monetary fund arrangements, coupled with massive external debt relief resulting from egypt s participation in the gulf war coalition, helped egypt improve its macroeconomic performance.
On the socioeconomic side, the revolution is largely attributed to the rise of unemployment, inflation of food prices, low income and rising inequality, the lack of health services. Egyptian revolution, also known as arab spring or arab uprising, was a shock for international community because egypt has been seen as one of the strongest military state in north africa region. How egypt rebuilt its economy since june 30 revolution. With his term extended and a further term permitted he could rule until 2030 although he will face some dissent to his authoritarian rule. A new cause of the arab spring is the increase in population, which increased unemployment.
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