Egypt’s economy has vast potential with fundamental strengths which could drive significant income growth and improved welfare for the Egyptian people. However, for this to be achieved, the right set of policies needs to be put in place. First, let us agree on the basics. Egypt’s economy is suffering. Egypt is experiencing acute shortages in foreign currency available in the economy due to weakening global trade reducing the Suez Canal’s receipts and the sharp drop-off in tourism revenues due to fears of political instability and the MetroJet terrorist attack. This is coupled with downward pressure on remittances from Egyptian workers in the Gulf as Gulf countries grapple with lower oil prices. Government is not the solution. We cannot return to the economic model of Gamal Abdel Nasser, meaning the government cannot provide jobs and guarantee wages for everyone in the country. First of all because we do not have the resources to do so. Secondly, this model was never actually successful in raising living standards and third because we now live in a globalized world with free trade. Restricting imports and trying to control economic activity will result in higher prices for…
