Five Myths About Egypt's Economy

If the democratic transition in Egypt fails and the country adopts a repressive, authoritarian, or theocratic form of government, the consequences could be profound. Failure in Egypt could lead other countries in the region to turn away from the very idea of democratic reform. Of course, democracy in other countries will rise and fall due to local conditions. Nevertheless, if the transition in Egypt succeeds, and the country acquires a democratic, accountable, and efficient form of government, it is likely to become a powerful example and, ultimately, a stabilising force in a turbulent region.

The grievances that led to the revolution of 25 January were chiefly political, but old economic grievances played a role as well. The rigged parliamentary elections of 2010, the ‘emergency’ repressive measures that lasted for decades, and the absence of freedom to speak and assemble robbed Egyptians of their sense of dignity. At the same time, Egyptians blamed their government for high rates of poverty, youth unemployment, corruption, illiteracy, and deep divisions between rich and poor.