Subsidies to consumer goods and fuels have existed in the country since the 1920s. Various approaches are available for scaling them down or eliminating them altogether. However, most of the prior attempts to reform the subsidy system in Egypt have failed. Cash transfers targeted at the poor would be a superior policy relative to the status quo.
The Arab World has de-industrialised under the combined effects of war and neoliberalism. What has occurred in the AW is the gradual disengagement of national industrial capital from commercial capital, after which commerce bereft of industrialisation became the dominant mode.
The turmoil in the Arab Awakening's aftermath has all but decimated the affected countries’ economies. To enable them to transform their economies alongside their political systems, while avoiding destabilization or collapse, the international community must scale up financial, policy, and institutional assistance.
The economic situation in the so-called Arab Awakening countries is deteriorating quickly, and the imperative for large-scale coordinated action is overwhelming. But the post-1945 Marshall Plan in Europe, which targeted countries with well-developed economic institutions, is the wrong model.
The charged and uncertain political climate in the Arab Spring countries constrains economic-reform efforts. In order to create the political space for reform, Arab leaders must underwrite a regional growth pact that facilitates large-scale cross-border investment and dismantles regional trade barriers.
For two years now economic issues have been put on the back burner as Egyptians focused on politics and questions of religion and national identity. As a result, the economic situation has seriously deteriorated and aspirations for better living standards and greater equity are far from being met. This could ultimately jeopardize the democratic transition.
This study will test whether the Basel III rulings are draconian or indispensable for the adequately capitalized banking sectors of Egypt and Tunisia, especially at a time when both nations are endeavouring to rebuild their institutional framework in the wake of their political transitions. Such an analysis is also timely given the need for compliance with Basel III as one of the requirements to raise the credit rating of the affected economies.
Recently there has been much discussion over the prospect of lower crude oil prices. Memories are harking back to 2008. In early July 2008, NYMEX crude hit a record high of $147/B. Six months later it had fallen to $33/B. Fears of another possible price collapse are being driven by both supply and demand factors.