In this paper we talk
about the country Egypt, focusing on two indicators firstly its economy then we
talk about its security, but then in order to understand both these indicators
in the case of Egypt, we going to have to talk about Egypt’s background and
looking at its history and its geographic location.
Egypt is a country that
is joining northwest Africa with the Middle-East, and its neighbors is mainly
Israel, Sudan and Libya. A country which dates back to the times of the
pharaohs. And its population is estimated at 95.69 million
(2016), and they use Egyptian Pound as their currency. The capital of Egypt is
Cairo, is home to Ottoman landmarks like Muhammad Ali Mosque and the Egyptian
Museum. Egypt is also one of the most Arabic-speaking countries and
Middle-Eastern cultures is comprehensively influenced by Egyptian literature,
music, film and television, although Egyptian identity evolved in the span of a
extensive period of occupation to accommodate Islam, Christianity and Judaism;
and a new language, Arabic, and its spoken descendant, Egyptian Arabic which is
also constructed on numerous Ancient Egyptian words.
“Egypt emerged as one
of the world’s first nation states in the tenth millennium BC. Modern Egypt
dates back to 1922, when it was granted independence by the British Empire as a
monarchy. Following the 1952 revolution, Egypt declared itself a republic, and
in 1958 it merged with Syria to form the United Arab Republic, which dissolved
in 1961. Throughout the second half of the 20th century, Egypt endured social
and religious strife and political instability, fighting several armed
conflicts with Israel in 1948, 1956, 1967 and 1973, and occupying the Gaza
Strip intermittently until 1967. In 1980, Egypt signed the Camp David Accords,
withdrawing from the Gaza Strip and recognizing Israel. The country continues
to face challenges from terrorism, political unrest, and economic
underdevelopment.” According to https://en.wikipedia.org/wiki/Egypt
Egypt is measured to be
a regional power in the Middle East and the Muslim world,
North Africa, and a middle influence worldwide. Egypt’s economy is one of the biggest
and most diversified in the Middle East, and is projected to become one of the biggest
in the 21st century. In 2016, Egypt surpassed South Africa and became Africa’s
second biggest economy.
There’s been a lot of
president but one in my researched was significant, this is Hosni Mubarak who
came to power after assassination of Sadat in a referendum in which he was the
only candidate. Hosni Mubarak endorsed Egypt’s
affiliation with Israel yet lessened the tensions with Egypt’s Arab neighbors.
Domestically, Mubarak encountered serious complications. Even though farm and
industry output extended, the economy could not keep pace with the population
boom. Mass poverty and unemployment led rural families to migrate into cities
like Cairo where they ended up in congested slums, hardly managing to survive.
In the 1980s, 1990s,
and 2000s, terrorist attacks in Egypt became frequent and severe, and began to
target Christian Copts, foreign tourists and government officials. In the 1990s
an Islamist group, Al-Gama’a al-Islamiyya, affianced in a lengthy campaign of
violence, from the murders and attempted murders of conspicuous writers and
scholars, to the frequent targeting of tourists and foreigners. Severe damage
was done to the largest sector of Egypt’s economy tourism and in turn to the
government, but it also overwhelmed the means of support of many of the society
on whom the group depended for support.
During Mubarak’s period
in office, the political scene was ruled by the National Democratic Party,
which was formed by Sadat in 1978. It passed the 1993 Syndicates Law, 1995
Press Law, and 1999 Nongovernmental Associations Law which disadvantaged
freedoms of association and expression by imposing new regulations and draconian
penalties on violations, (citation needed) As a result, by the late 1990s
parliamentary politics had become almost inappropriate and alternative opportunities
for political expression were reduced as well.
Cairo developed into a
metropolitan area with a population of over 20 million. On 17 November 1997, 62
people, mostly tourists, were massacred near Luxor.
In February 2005,
Mubarak publicized a reform of the presidential election law, flagging the approach
for multi-candidate polls for the first time since the 1952 movement. Nonetheless,
the new law placed limitations on the candidates, and led to Mubarak’s informal
re-election victory. Voter attendance was fewer than 25%. Election spectators furthermore
suspected government interloping in the election procedure. Subsequently the
election, Mubarak imprisoned Ayman Nour, the second place.
Human Rights Watch’s
2006 report on Egypt says: “serious human rights violations, including routine
torture, arbitrary detentions and trials before military and state security
courts. In 2007, Amnesty International released a report alleging that Egypt had
become an international center for torture, where other nations send suspects
for interrogation, often as part of the War on Terror’. Egypt’s foreign
ministry speedily delivered a confutation to this report.
voted on 19 March 2007 forbidden parties from using religion as a source for
political doings, acceptable the drafting of a new anti-terrorism law, authorized
comprehensive police powers of arrest and surveillance, and provided the
president power to dissolve parliament and termination judicial election observing.
In 2009, Dr. Ali El Deen Hilal Dessouki, Media Secretary of the National
Democratic Party (NDP), labelled Egypt as a “pharaonic” political
system, and democracy as a “long-term goal”. Dessouki also specified
that “the real center of power in Egypt is the military”.
On 25 January 2011,
extensive demonstrations initiated in contradiction of Mubarak’s government. On
11 February 2011, Mubarak resigned and fled Cairo. Jubilant celebrations broke
out in Cairo’s Tahrir Square at the news. The Egyptian military then anticipated
the power to govern. Mohamed Hussein Tantawi, chairman of the Supreme Council
of the Armed Forces, developed the de-facto temporary head of state. On 13
February 2011, the military dissolved the parliament and suspended the
So knowing or given
this brief information now we can look
at its economic and security indicators;
Given the Central banks
information that, “size of Egypt’s foreign debt increased by $19.522bn in 2016,
recording $67.322bn by the end of December 2016, compared to $47.8bn by the end
of December 2015”.
The cause for this proliferation
is because of the government intensifying its obtainment of direct foreign
loans from numerous countries and international financing institutions, as well
as its issuance of bonds in international stock markets during 2016 to channel
the breach in the general state budget.
On 10 November 2016,
the Ministry of Finance issued bonds worth $4bn at the London Stock Exchange,
with yields ranging between 4.62% and 7%, and maturity dates ranging from 10
December 2017 to 10 November 2028, and also had loans from the IMF.
Besides the IMF’s loan,
Egypt has also received $1bn from the World Bank, $500m from the African
Development Bank, $1bn from the United Arab Emirates, and $2bn from Saudi
Arabia, during 2017.
“The Gross Domestic Product
(GDP) in Egypt was worth 336.30 billion US dollars in 2016. The GDP value of
Egypt represents 0.54 percent of the world economy. GDP in Egypt averaged 73.84
USD Billion from 1960 until 2016, reaching an all time high of 336.30 USD
Billion in 2016 and a record low of 4 USD Billion in 1962. Egypt ranks in 32
place in the world in 2016″, according to www.statisticstime.com
‘The Gross Domestic
Product per capita in Egypt was last recorded at 10319.30 US dollars in 2016,
when adjusted by purchasing power parity (PPP). The GDP per Capita, in Egypt,
when adjusted by Purchasing Power Parity is equivalent to 58 percent of the
world’s average. GDP per capita PPP in Egypt averaged 7960.54 USD from 1990
until 2016, reaching an all time high of 10319.30 USD in 2016 and a record low
of 5836.70 USD in 1991.Egypt ranks in 92 place in the world in 2016”, according
Now we going to talk
about productivity levels and unemployment levels; “The
private sector has been the main provider of jobs, while the public sector lost
jobs in almost all activities in the last decade. Small businesses account for
nearly 96% of all Egyptian companies and employ approximately 70% of
non-agricultural workers. Small informal firms are in the majority (78%) and
employ about 42% of the workforce.” According to The African Development Bank
growth in Egypt is mostly in arrears to the movement of labor among sectors
form low productivity to high-productivity activities. The furthermost
eye-catching sectors for labor are those consuming modern production methods
that have need of improvement the skills of workers. Nonetheless, certain
sectors such as agriculture, construction, communications and social services
have also understood their productivity intensification through capital
injections and the usage of advanced technologies.
On the other hand, the
comprehensive labor productivity improved gently between 2001 and 2008. Additionally,
from the employment standpoint, labor productivity is relatively little in
major sectors such as agriculture, social and community services, construction,
trade and tourism.
In Egypt, where luxury
hotels and fashionable neighborhoods abut extensive informal settlements, inequality
is out in the open, carrying with it the relentless potential for social
turmoil. Thus far in spite of this conspicuous inequality, Egypt devours a
statistically low level of income inequality and constricted the gap subsequently
the turn of the millennium, such as measured by the Gini coefficient. The
answer to this puzzle; how can a nation in which publics have moderately equal
incomes have such a noticeable difference in wealth? This is typically because government
policy, or absence thereof.
Even in a entirely
tax-free setting, wealth gaps will raise at a greater rate than income gaps
because rich people consume an at ease time saving and gathering wealth, and for
that reason return on capital (the wealthy people’s income) is larger than
growth in Gross National Income (the total incomes of everyone in a certain
economy). Then again tax records indicate that Egypt’s tremendously deteriorating
tax system overstresses this tendency.
moderately thriving in measures of income equality. According to estimates by
economists Facundo Alvaredo and Thomas Piketty, “the top 10 percent of earners
in Egypt account for roughly 30-35 percent of total income. This is less than
the roughly 36 percent of income earned by the top decile of earners in Western
Europe, 48 percent in the United States or 53.6 percent in South Africa”.
Nevertheless of the
consistency of such data and information, the fact remains that wealth gaps are
always inclusive than income gaps everywhere, and as a result are improved as
an indicator of social and economic inequality.
In the accurate setting
and in the absence of just tax policy, even minor variances in income can
rapidly spiral into enormous inequalities in wealth and Egypt look as if to be
such an environment.
“If we look at wealth
inequality, we find out that in 2000, the richest 10 percent of Egyptians held
61 percent of total wealth, despite earning just 28.3 percent of income. In
2007, their share of wealth shot up to 65.3 percent, although their share of
income dropped in 2008 to 25.57 percent. The top decile s share of wealth in
2014 rose even more to 73.3 percent”, according Credit Suisse’s Global Wealth
This means Egypt has
one of the largest wealth gaps in the world, even though its relative income
Now we look at the
socio-economic dynamics which asks the questions of if there is still people
living in the slams and the answer to this question, they
are still slums in Egypt in the capital Cairo, showing that there is people
living under poor conditions in Egypt.
According to David Sims
in his book Understanding Cairo, “Of the 17 million inhabitants living in
Greater Cairo in 2009, a conservative 11 million – or 63 percent, inhabit areas
that have been developed informally or extra-legally since 1960.”
These numbers have
gradually increased, particularly after the building of more and more slum
areas due to the increased lawlessness and diminishing security that have
convoyed the political turmoil in Egypt over the past four years.
Slum areas started to
yield up in Cairo in the 1950s, for a diversity of reasons, containing the
internal migration of Egyptians looking for better living circumstances, the enlargement
of the capitalist economy, overpopulation and high birth rates