REVOLUTION IN EGYPT

DEANNE CHEN
DANIELLE DEE
NICOLE LAGMAN
JUSTIN ABAD
 CASE SUMMARY

 In the year 2000's when Hosni Mubarak was the president of

Egypt, there was growth in the economy. He was able to enacted
a series of economic reforms that includes trade liberalization,
cuts in import tariffs, tax cuts, deregulations, and changes in
investments regulations.

 The growth in the economic is from 2% - 4% accelerated to 7% a

year, exports tripled from $9 billion in 2004 to $25 billion in
2010, foreign direct investments increased from $4 billion in
2004 to $11 billion in 2008, and unemployment rate fell from
11% to 8%.

 But in the 2010, the inflation rate remained at 12.8% and the
tourism brought $11 billion of gross domestic product with 8.5%
but it fell in the year 2009 -2010. Egypt remains a country where
there's a huge gap between the poor and rich. Which makes the
44% of the Egyptian remains poor or extremely poor.
 CASE STUDY

 Underlying causes of the collapse of the Mubarak regime were

the political and economic inef ficiencies and crises.

 There was a remarkable wealth gap between the rich and the
poor

 The government became corrupt

 In elections, oppositions were continually harassed by police

 Several protests broke out in Egypt which led to the collapse

of Mubarak regime.
There is an urgent need to restore economic stability in Egypt.

 By achieving lower budget deficits, public debt and inflation,

and adequate foreign exchange reserves

 To achieve better standards of living with more jobs, less

poverty, and better health and education systems

 Subsidy reform can change economic instability of Egypt

 Spending more on health, education, and infrastructure could
help generate higher potential growth in the longer term

 A more flexible exchange rate can strengthen

competitiveness, attract foreign investment and tourism, and
support exports of new industries

 Steadfast implementation of reforms can help restore

economic stability, and spur jobs and growth
The Egyptian economy is still in trouble because there is still
political unrest which has harmed domestic and foreign
businesses. This is caused by:

 increased toxic mix of high unemployment

 high inflation
 low foreign currency reserves
 long standing corrupt regimes
 The government would need to become stable to attract
foreign investors to do business in Egypt.

 Political and economic volatility make tourists, investors, and

companies hesitant to visit the country during the turmoil for
fear of being caught in the violation that can occur or invest
in business for fear of government intervention .
The following can attract foreign companies to do business in
Egypt.

 lessened tariffs and streamlined the tariff structure by

reducing the amount of rates and categories to reform the
financial sector
 ease the tax structure while lowering rates
 decreased the amount of red tape required to conduct
business