Egypt the Troubled Giant
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- Date Submitted: 06/05/2012 02:05 PM
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Egypt, The Troubled Giant
The case highlights some of the key factors that have enabled Egypt to grow over the last five years. Egypt is the most populated Arab state. More than 75 million people live there. Starting in 2004, Prime Minister Ahmed Nazit was able to pass into law many economic reforms that lowered tariffs, cut taxes, and the deregulation of trade that allowed Egypt to create billions in foreign direct investment in the economy. Many projects began in Egypt that built offices for large American companies to operate in as well as a huge construction project on the Suez Canal. This growth kept Egypt’s growth parallel with many other emerging economies.
At the end of 2008, like many other countries, Egypt’s economy plummeted. This crushed the Egyptian people. The difference between the rich and the poor citizens is significant. This difference became the driving force in the divide of the country. The political and social pressures began to crumble the countries framework. The government has become corrupt and even the elections were “rigged” to favor the current President (at that time) Hosni Mubarak. Leaders opposing the President were harassed and falsely imprisoned.
1. How would you describe the economic policy that Egypt implemented during 2004– 2008? Do you think that this policy helped to boost Egypt’s growth rate? Why?
I would describe Egypt’s economic policy during these years as mixed. There was a great deal of deregulation of trade as well as tax breaks implemented, however, the then President still remained in overall control. Yes, I believe that the Egyptian grow rate was boosted during this time. Because of all of these changes, companies like Microsoft and many Egyptian technology companies were allowed to conduct business in the country. This created a large increase in the money coming into as well as out of the country. This created growth in the Egyptian economy.
2. How vulnerable is the Egyptian economy to a slowdown in...
The case highlights some of the key factors that have enabled Egypt to grow over the last five years. Egypt is the most populated Arab state. More than 75 million people live there. Starting in 2004, Prime Minister Ahmed Nazit was able to pass into law many economic reforms that lowered tariffs, cut taxes, and the deregulation of trade that allowed Egypt to create billions in foreign direct investment in the economy. Many projects began in Egypt that built offices for large American companies to operate in as well as a huge construction project on the Suez Canal. This growth kept Egypt’s growth parallel with many other emerging economies.
At the end of 2008, like many other countries, Egypt’s economy plummeted. This crushed the Egyptian people. The difference between the rich and the poor citizens is significant. This difference became the driving force in the divide of the country. The political and social pressures began to crumble the countries framework. The government has become corrupt and even the elections were “rigged” to favor the current President (at that time) Hosni Mubarak. Leaders opposing the President were harassed and falsely imprisoned.
1. How would you describe the economic policy that Egypt implemented during 2004– 2008? Do you think that this policy helped to boost Egypt’s growth rate? Why?
I would describe Egypt’s economic policy during these years as mixed. There was a great deal of deregulation of trade as well as tax breaks implemented, however, the then President still remained in overall control. Yes, I believe that the Egyptian grow rate was boosted during this time. Because of all of these changes, companies like Microsoft and many Egyptian technology companies were allowed to conduct business in the country. This created a large increase in the money coming into as well as out of the country. This created growth in the Egyptian economy.
2. How vulnerable is the Egyptian economy to a slowdown in...