Tuesday, January 10, 2012

Revolution in Egypt, Minister Addresses Political and Economic Dimensions

Yesterday at the Mershon Center for International Security Studies, Gouda Abdel-Khalek, Minister of Supply and Domestic Trade, Egypt, spoke on "The Political Economy of Egypt and the Arab Spring: International Support Packages"

He addressed the tripartate slogan of Tahrir: "Bread, Freedom, and Social Justice!" from a political/economic analytical perspective. He also identified the causal factors of the revolution as inequality and poverty. In particular unemployment: as high as 20% very high among youth, above 30%.

Thus, logical that young Egyptians spearheaded the movement. Inequality between old generation and young generation. High poverty rates is the number one factor. Not caused by corruption. Below mean level of corruption worldwide.

What kind of economic system is it?
Pendulum between free market and regulated. Question of what controls will be put in place for social justice remains. Progressive taxation has not been implemented, which would be a step toward it. Equality in terms of opportunities between the social strata. The Mubarak regime gave lip service to liberalizing the economy, but actually implemented a system of cronyism. The minister supports the integration of a regulated free market economy.

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