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Egyptian President Sisi's Economic Reforms Are Working

(Jerusalem Post) Zvi Mazel - On July 9, Egypt ended all oil subsidies and the price of gas rose from 18% to 30%, while Egyptian streets remained quiet. Oil subsidies totaling $17 billion accounted for 21% of the 2012/2013 budget, putting an intolerable strain on the nation's economy. Yet President Sisi's predecessors found subsidies a useful tool to keep down the cost of staples, thus limiting popular opposition to the regime and ensuring social peace. Sisi's economic reforms are working. Annual growth is expected to be 6%, while inflation and unemployment are down. Yet Egypt has a population of more than 100 million, half of them below the poverty line. The birth rate remains dramatically high, with two million new mouths to feed every year. The Sinai insurgency has not been eliminated and the threat of terrorism remains high. The writer, a former Israeli ambassador to Egypt, is a senior researcher at the Jerusalem Center for Public Affairs.
2019-07-19 00:00:00
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