This blog originally appeared in Arabic on CIPE-Arabia.org.
Indeed, Egypt is going through a very difficult period. The current economic situation is intrinsically linked to the accumulated weight of poorly addressed economic challenges over the past forty years. Economic problems were either ignored, or in other instances, their root causes were not addressed in a profound and decisive manner. On the other hand, undoubtedly, Egypt has all the capabilities to become one of the largest world economies. This potential has been noted in reports of financial institutions such as the 2010 Citibank report.
The current difficulty stems from fact that there is no alternative to undertaking a comprehensive economic reform program. However, in the short run all Egyptians- the wealthy, the poor, and the middle class, will have to bear the brunt of these reforms. That said, with sound management of reform program, Egyptians will enjoy the fruits of reform in the medium to long run.
There can be no doubt that enacting economic reforms is crucial for Egypt’s progress. Thus, “No,” is my final unequivocal answer to the most critical question of whether Egypt has other alternatives to entering into the loan agreement with the International Monetary Fund (IMF).