By Hussein Kamal Mehrem, Egyptianomics It is no secret that Egypt suffers a severe economic crisis accompanied with political instability. Egypt exerts noticeable effort to reduce its massive budget deficit, which reached 12.5%, via some harsh austerity measures. The most populous Arab country struggles with the provision of meaningful jobs for its youth as to meet their aspirations for social justice and a better future. The energy crisis is also visible to its citizens who constantly experience power cuts. As a response to the ailing economy, the Egyptian government launched several mega projects, mainly infrastructure projects, such as the Suez Canal and the golden triangle as to reinvigorate growth. Massive amounts of funds are poured into building roads, public infrastructure and reviving the tourism industry. One may argue that the nature of the response and efforts for economic recovery entail a strong Keynesian element. There can be numerous of varying views of whether the latter response is the most prudent one. There is always an opportunity cost. The funds allocated for those massive projects could have been allocated for other sectors that would have a better multiplier effect for the…
