Raw cotton, exported to europe, formed the largest source of income. While there was some recovery in 2012 when the war ended and oil production came back faster than expected, the economy has not yet reached a point of sustained, longer term economic growth. The economic evolution in egypt 20112018, a reforming of. Egypts economy after 2011 revolution financial tribune. The economic roots of egypts crisis the washington post. Trends in subjective wellbeing and gdp in egypt, 2005.
Following the egyptian revolution, political and regional developments continued to undermine egypt s economy. Combining a quantile regression and a difference in difference methodology, we present empirical evidence in support of our hypotheses that the revolution has had an adverse impact on the egyptian economy, on average, but with heterogeneous. Her photos from 201120 show protests in the streets, but also everyday life. Jan 30, 2018 following the egyptian revolution, political and regional developments continued to undermine egypts economy. Abdou, zeinab zaazou modern sciences and arts university msa, egypt abstract. Economic and social reasons for the egypts january 25 revolution the egyptian revolution will not succeed until it establishes a new system that eliminates the causes of the revolution, which. Following the egyptian revolution, political and regional developments continued to undermine egypts economy.
Though my interest is primarily concerned with egypts economic performance over the last three decades, i cannot totally overlook. Egypts economy has gone through a threestage transformation, daoud explains. Dedicated to the martyrs of the egyptian revolution. The political protests in cairo captured the worlds attention as egyptians took to tahrir square to. Egyptian and arab revolution scholarship 7 this collection includes papers, presentations, and research findings related to the january 25th revolution and arab spring authored by auc faculty and students. Egyptian and arab revolution scholarship 7 this collection. Already there was a sense of a lack of opportunity and declining social mobility.
The imf has estimated egypts gross domestic product growth will pick up only slightly in 2012, to 1. By numbers alone, on the eve of the revolution, egypts economy looked fairly healthy. The economic decline of egypt after the 2011 uprising atlantic. Helal explains that these changes assure the ability of egyptian exports to achieve more growth and thanks to the perception of the egyptian people after the revolution by the world which projects the seriousness, sprit of freedom, initiative, creation and capability of the egyptian people. Performance of the egyptian economy prior to the 25 th of january revolution. The economy has passed through six different governments since 2011, each with its own challenges and visions. The economy is under continuous strain because of the turbulent process of political transition. Egyptian economy after 2011 and causes of recovering since 2014 too. Roberto roccu addresses this gap and in doing this provides the. However, all this took place gradually, perhaps too slowly, and all happened within the same socioeconomic setting. As secretary of state john kerry stated during his recent visit to cairo, it is important, even urgent, that the egyptian economy gets stronger. The president, abdel fattah elsisi, was reelected in 2018.
The ninth anniversary of the january 2011 revolution has come after several months of relative movement of the egyptian situation, but this time in a different way in the midst of calls for new demonstrations, something which perhaps was not available in the past five years since the 2015 mobilization. Before the revolution foreign investments either through directly investing in infrastructure projects or buying factories, or financial investments into the egyptian stock market or government bonds. Events of global historical significance are taking place in the arab world. The economic causes of the egyptian revolution january 25. Egypts economy is in big trouble the national interest. Egyptian medics escort former egyptian president hosni mubarak, 85, into an ambulance after after he was flown by a helicopter ambulance to the maadi military hospital from torah prison in, cairo. In particular, the gaps between the government and the workers, scaf and the government, the haves. We use quarterly data output and investments from 2002q32012q2 for twenty sectors, as well as other explanatory variables, to assess the effects of the.
The arab world has been moving towards change in successive events since the beginning of 2011. United nations economic and social commission for western asia. The economic development in egypt during the 19522007. These two issues conflated four years after the revolution when egypt was invaded by britain, france, and israel in the suez crisis of 1956. The ancient egyptian economy the economy of pharaonic egypt has been called an ancient command economy, but one should always remember that such modern definitions are not as apt as one would hope for. Rank and file egyptian servicemen see the countrys.
The revolutions early days witnessed a dramatic collapse of the egyptian police force on which the former regime had spent tens of billions of pounds and which it had furnished with arms and. Jul 03, 20 even before the revolution in 2011, you had 10 percent unemployment and 25 percent youth unemployment. The path to a successful economic transition in egypt. The egyptian revolution of 2011, also known as the january 25 revolution arabic. Jun 01, 2011 the revolution s early days witnessed a dramatic collapse of the egyptian police force on which the former regime had spent tens of billions of pounds and which it had furnished with arms and. 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. Oct 31, 2014 a year ago, egypts economy had been crushed by political turmoil. Economic and social reasons for the egypts january 25 revolution. 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. The egyptian armed forces eaf is often referred to as a black boxespe cially with regard to the institutions role in the domestic economy. During the mid2000s, growth in gross domestic product averaged an impressive 7% annually.
Egypts economy over three years of turmoil daily news egypt. Impact of the socio economic situation post the egyptian revolution 2011 people who lived below the po verty line reached 27% according to the. Despite enormous military losses, the war was seen as a political victory for egypt, especially as it left the suez canal in uncontested egyptian control for the first time since 1875, erasing what was. Most of the militarycontrolled economy is off the books, and many of the eafs sources of influence are obscuredsuch as its control over parliamentary seats titularly. Growing confidence in the currency and greater stability will boos private sector. By the usual standard, egypts economy has expanded nicely in recent years. 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. After the 1952 revolution, president nasser turned egypt into a stateled economy accompanied by the nationalization of industries and the redistribution of agricultural. Successive, though unsuccessful, reform programs during the 1990s contributed to the pervasive poverty that served as a central driver of the 2011 egyptian revolution and per sists today. Antigovernment mass protests will most certainly continue into 2020, given the challenges that remain. Feb 12, 2011 by the usual standard, egypts economy has expanded nicely in recent years. The path to a successful economic transition in egypt center for. The decline in economic assistance to egypt source. This change resulted in successful and semi successful revolutions.
Jan 25, 2016 emine gozde sevin photographed egypt after the january 25 revolution. The economic causes of the egyptian revolution january 25, 2011. 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. With fewer tourists and less income from the suez canal due to the stagnating. Under the planned economy, the egyptian government had total control over resource allocation, including distribution and pricing. The paper illustrates the performance rates and challenges of the main vital axes of an economy and shows the investment status and the. One is extremely optimistic, holding that egypt is forging its way to a resplendent period of economic progress and. This will not be an easy task, but it is a task that above all is up to the egyptians themselves. This paper suggests a growing significance of the economic motives of social and political change through highlighting the economic dimensions of egypt before 25th january 2011.
Political uncertainty, macroeconomic instability and. Prior to the revolution on the 25th of january, the economy in egypt as a whole was performing better than ever. The economy of egypt is moving toward a marketoriented approach after years as a planned economy with import substitution. Even after a revolution that called for social justice, egyptians must balance between legitimate demands to rectify the accumulated effect of years of social injustice, and the treasurys ability to honor these demands. One year ago, a wave of revolutionary change swept across the middle east and north africa. Abdou and others published the egyptian revolution and post socioeconomic impact find, read and cite all the research you need on researchgate. 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. Egypt 2018 macro update we expect the real gdp growth rate to accelerate to 4. The economic situation in egypt opinion ahram online. 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. Egypts economy you are turning this vision into reality. Combining a quantile regression and a difference in difference methodology, we present empirical evidence in support of our hypotheses that the revolution has had an adverse impact on the egyptian economy, on average, but with. Pdf the egyptian revolution and post socioeconomic impact. 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.
This paper diagnoses the constraints to growth in egypt at the sectoral level using the 2011 egyptian revolution as a natural experiment. 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. Image caption after mr mubaraks departure, egypts parliament was dissolved and the countrys constitution suspended. The egyptian revolution and post socioeconomic impact doaa s. Combining a quantile regression and a difference in difference methodology, we present empirical evidence in support of our hypotheses that the revolution has had an adverse impact on the egyptian economy, on average, but with heterogeneous effects across different sectors. However, for this to be achieved, the right set of policies needs to be put in place. The egyptian economy has transformed itself after the 1952 revolution, from a regulated and social controlled economy in a certain historical context now finding itself into a complex reforming process that has been launched by the massive privatization of the former public enterprises, into a new historical context. Tough living conditions followed the states 2017 reformist economic policies which included a series of decisions, from reducing subsidies on energy to. In the two years since the revolution, egypts economic performance has been weak.
Egyptian revolution, it is worth elaborating on the economic, social, and political circumstances of egypt prior to the 25th of january revolution. 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. 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. Feb 01, 2011 how the egyptian revolution impacts world economy posted on february 1, 2011 by egypt crisis six days of riots have suppressed almost 5% of gdp in egypt, but without tourism the country, the persian gulf countries stock markets are falling and oil prices rose by 4% worldwide reaching the maximum level of the last 28 months.
The economic development in egypt during the 19522007 period. Economic conditions in egypt prior to 25th of january revolution. After growing at 7 percent a few years ago, it expanded by roughly 5 percent in 2009 and 2010. Even before the revolution in 2011, you had 10 percent unemployment and 25 percent youth unemployment. Rank and file egyptian servicemen see the countrys revolution as their own chance to transform in egypts military, a march for change cairo, april 10, 2012 o n a warm wednesday morning last october, around 500 egyptian army officers based at the air defence institute on the outskirts of alexandria staged a mini revolt. It also focused on domestic production rather than importation of foreign goods. I illustrate the economic policies for each president since 2011 and an impact of these policies on an economic system. The egyptian economy has suffered from a general slowdown since the revolution of january 2011. Egypt economy, politics and gdp growth summary the. The egyptian government is keen to ensure continued investment from china and reduce geopolitical dependence on the us. The egyptian pound fell to an historic low against the dollar at just 16 cents despite vigorous support from the central bank. The egyptian revolution and post socioeconomic impact.
It is argued in this paper that the post revolution administrations1 not only failed to realize a new economic reality but also accelerated the decline of the nations economy. The arab spring had culminated in a military takeover and the installation of the current president, abdel fattah alsisi. Anniversaries of major events since the revolution continued to be contested. After providing a brief overview of egypts history of revolution and rebellion before 1952, i analyze the following aspects of the relationship between state power and the public under gamal abdel nasser, anwar sadat, and hosni mubarak. The ninth anniversary of the january 2011 revolution has come after several months of relative movement of the egyptian situation, but this time in a different way in the midst of calls for new demonstrations, something which perhaps was not available in the past five years since the. W ith hindsight, its clear that the mubarak regimes. Egypts economic transition has been slow and turbulent since the fall of. Before the country became independent, the egyptian economy depended largely on agricultural activities. Jun 09, 20 egypts economy has gone through a threestage transformation, daoud explains.
This makes egypt the 26th biggest economy in the world, just outside the g20. The egyptian revolution and post socio economic impact doaa s. Our government is committed to pursuing policies aimed at achieving high and sustainable growth rates and creating an attractive, predictable, fair and internationally competitive business environment. 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. Before the 25 january revolution, egypts total investments were 16. Authorities could take off the financial system to avoid this risk. The political economy of the egyptian revolution mubarak.
The challenge now is to create a more inclusive strategyone. The expectation gap in the egyptian economy after the january. Economic policy reform will continue, albeit at a slower pace. The egyptian revolution of 25 january 2011 not only marked a turning point in egypts political landscape, but also significantly affected the countrys economy and labour market.
In fact, by 20, the economy has only just got back to what it was prior to the uprising. Five years after the 2011 revolution, egypts economy is floundering and remains far from recovery. But experts doubt, this sum would be enough for the egyptian economy to keep going. Since the january 2011 revolution, egypt has been gripped by deepening stagflation. The private sector employs some 70 percent of egypts labor force. There are two general prognoses for the egyptian economy after the revolution. Zine alabidine ben ali from power, protests against the first demonstrations occurred in tunisia in december 2010, triggered by the selfimmolation of a young man frustrated by tunisias high unemployment rate and rampant police corruption. Days after a popular uprising in tunisia, known as the jasmine revolution, forced pres.
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