Roubini Topic Archive: Egypt
The promising Arab Spring has left North Africa in limbo. Now the task is to build a new political and economic system that is sustainable. President Barack Obama’s speech on the Middle East on May 19 outlines most of the right economic features. When communism ended two decades ago, the Soviet Union fared much more […]
The recent overthrow of President Mubarak offers great hope for Egypt’s future political development. But the challenge of economic transformation will be no less important, and arguably as difficult. This challenge is viewed as one of achieving greater globalization and a greater role for markets inside Egypt. The more fundamental challenge, however, is different.
By Jeffrey J. Schott and Barbara Kotschwar
Whoever emerges on top of the unfolding political crisis in Egypt, there is little doubt that the country is in need of fresh economic policies as well as fresh leadership. One year ago, we argued in Reengaging Egypt: Options for US-Egypt Economic Relations that the United States should pursue programs that help Egypt “create a better environment for expanding economic opportunities and promoting democratic processes in Egypt.” In the event, both sides dithered. Economic reforms were pursued in half-steps and too slowly to address some of the underlying economic factors that have contributed to the political rebellion now spreading across Egypt.