BraveNewEgypt

The Economy in the Midst of the Revolution

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The quick answer to that question: No. there are a lot of potential ifs and buts. You may have read that the price of crude oil has pushed past the $100 mark for the first time since the beginning of the recession in September 2008. This is due to fears that the Suez Canal might close, disrupting transportation of oil. Rest assured however, because while Suez is still protesting heavily and contributing whole-heartedly to the Revolution, the Suez Canal remains open.

Egypt’s Central Bank and Stock Market remain closed however, and will remain closed for the third day on Tuesday as well. The decision was made by the Egyptian Financial Supervisory Authority, which will address the situation on a day to day basis. While there are reports that stick prices have been dropping and investors are losing faith in Egypt’s economy, this could be a huge moment for Egypt in terms of its economy.

Over the past few years Egypt has had huge growth in the economy; the problem is that very little of the money flowing into Egypt managed to trickle down to the majority of the population. One of the reasons for this is that almost all of Egypt’s industries were sold off and privatised. Egypt’s resources should not be controlled by any single individual or company. They are the resources of the country, and they should be used for the benefit of the every citizen. Under a new democracy, this must be one of the reforms. While Egypt has enjoyed massive growth recently, unemployment remains at 9.6% in which is shocking. If the government was in charge of it’s own industries, it could provide more jobs, easing the pressure on Egypt’s poorest citizens.

At the moment Egypt is in the middle of an uprising so any damage to the economy, if there is any, should not be surprising. But we should begin to look to tomorrow, and to using Egypt’s vast resources and trade capabilities to create a more fair and competitive environment for workers, like cotton farmers.

Egypt’s reforms must extend much further than just with regards to Human Rights and civil liberties.

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Written by BraveNewEgypt

February 1, 2011 at 4:00 am

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