Egypt Economy after Revolution - Fears & Hopes
After 30 Years of corruption followed by a historical clean revolution, Egypt has unfortunately missed out on billions of dollars in tourism revenues.
Comparing Turkey and Egypt in the last 30 years, which were comparable economies as recently as the 1990s. Last year 28m tourists visited Turkey while Egypt, with its pyramids and pharaonic treasure, got just 11m.
In 1990s, Turkey & Egypt had similar economic performance. Now Turkey's average income is $13,000, Egypt's $6,300.
What do these figures mean? Simply, "revolutionary" Egypt needs to cut its budget deficit by reducing government subsidies to only 3 percent in the coming decade. Such a task seems impossible in view of the stagnant tourism and lack of foreign investment, stalled production, the increase of government spending and the erosion of Egypt's [monetary] reserves abroad, not to mention the declining security conditions and the political tension in the country which may last for several years at least.
Furthermore, Egypt is also suffering a rising state of revolutionary radicalism, with those not content with changing the president and the symbols of his rule, but also demanded the redrafting of Egypt's foreign policy, radical steps being taken with regards to the Gulf regions, and even threatening rapprochement with Iran. At the same time, the Egyptian Supreme Council of the Armed Forces seems powerless in the face of uncontrolled revolutionary chaos in Tahrir Square. Even the Muslim Brotherhood, which is said to be the strongest organized regional power, seems unable to harness the revolutionary current in the Egyptian street.
Egypt may slide towards a radical revolutionary state; with the army and the Muslim Brotherhood eventually coming to the conviction that the best way to win over the Egyptian people would be to adopt radical discourse and slogans which meet the revolutionary ambitions of the street. This will, however, lead Egypt towards the Pakistani model, instead of the Turkish model, with the country falling into security chaos, and conflicts erupting over power between the military and the Islamists, whilst prolonged hostilities and clashes are sparked both inside and outside the country.
As Dr.Ahmed Heikal (Chairman of Citadel Capital, Egypt) says To Economist Magazine (23 June,2011): "If we get things right, we could be Turkey in ten years. If we get them wrong, we could be Pakistan in 18 months."
Egdor Business Accounting is helping Egyptians Enterpreneurs getting back to their business by providing an easy and yet inexpensive cloud ERP solution.
Let's recover from the corruption done against our country in the last 30 Years, let's keep Egypt Clean & Civilized as it always was..
www.egdor.com
Comparing Turkey and Egypt in the last 30 years, which were comparable economies as recently as the 1990s. Last year 28m tourists visited Turkey while Egypt, with its pyramids and pharaonic treasure, got just 11m.
In 1990s, Turkey & Egypt had similar economic performance. Now Turkey's average income is $13,000, Egypt's $6,300.
What do these figures mean? Simply, "revolutionary" Egypt needs to cut its budget deficit by reducing government subsidies to only 3 percent in the coming decade. Such a task seems impossible in view of the stagnant tourism and lack of foreign investment, stalled production, the increase of government spending and the erosion of Egypt's [monetary] reserves abroad, not to mention the declining security conditions and the political tension in the country which may last for several years at least.
Furthermore, Egypt is also suffering a rising state of revolutionary radicalism, with those not content with changing the president and the symbols of his rule, but also demanded the redrafting of Egypt's foreign policy, radical steps being taken with regards to the Gulf regions, and even threatening rapprochement with Iran. At the same time, the Egyptian Supreme Council of the Armed Forces seems powerless in the face of uncontrolled revolutionary chaos in Tahrir Square. Even the Muslim Brotherhood, which is said to be the strongest organized regional power, seems unable to harness the revolutionary current in the Egyptian street.
Egypt may slide towards a radical revolutionary state; with the army and the Muslim Brotherhood eventually coming to the conviction that the best way to win over the Egyptian people would be to adopt radical discourse and slogans which meet the revolutionary ambitions of the street. This will, however, lead Egypt towards the Pakistani model, instead of the Turkish model, with the country falling into security chaos, and conflicts erupting over power between the military and the Islamists, whilst prolonged hostilities and clashes are sparked both inside and outside the country.
As Dr.Ahmed Heikal (Chairman of Citadel Capital, Egypt) says To Economist Magazine (23 June,2011): "If we get things right, we could be Turkey in ten years. If we get them wrong, we could be Pakistan in 18 months."
Egdor Business Accounting is helping Egyptians Enterpreneurs getting back to their business by providing an easy and yet inexpensive cloud ERP solution.
Let's recover from the corruption done against our country in the last 30 Years, let's keep Egypt Clean & Civilized as it always was..
www.egdor.com
