The increase in fuel prices is obligatory/ Subsequently , it will tend to a substantial inflation .We used to have a deficit in our budget before 25th January but our economy was growing by 7% which is considered very healthy .Although the upper part of our balance of trade was negative- our imports exceed our exports with more than four times -but the overall balance of payment was positive . The deficit was compensated by the inflow of investment funds , tourism income and the incoming transfers of the Egyptians .That was reflected on the stable price of the dollar against the Egyptian pound which remained around at 6 pounds. More over the Central bank was continuously increasing its foreign currency reserve to reach US Dollars 35 billion. These are facts not a a false information or propaganda. Yes we admit that there were many defects . miss management corruption ..etc in the government’s performance. For sure we could be better .In my humble opinion the fatal mistake of Mubarak’s regime policy was that it did not give enough attention to the very low income brackets, did not grant a minimum income to the poor citizen. An income enough to secure the basic needs for such citizen( reasonable food and shelter ) Regardless the good intentions of the people what happened in 25th was completely an economical disaster It tended , either deliberately or by ignorance , to create a huge atmosphere of ciaos ,a condition of instability . panic . Lack of security ......etc. That of course negatively stopped investment inflow, and tourism besides the investment direction reversed to became outflow . That subsequently has hit badly our economy. We all used to criticize many mistakes at the previous regime. But since the first day of 25th January I realized that what was happening will tend to an economic a disaster, From the economic point of view , it was obvious that we were going to suffer a lot economically. .I was almost cry while I was helplessly begging people to stop their violent demonstrations .Never the less the wise people were talking subjectively nobody wanted to listen .They were busy in shouting and raising some shallow slogans. For myself, I was attacked violently even insulted by many people, I am not a politician and I never was but the vision were very clear . It seems as if the matter was a prepared conspiracy which the media played a major part in it .They succeeded to decorate wrong things and to mute any wise rational voice. What is happening now of increasing the fuel prices ,increase in inflation are expected.Moreover we expect further financial steps to be taken to decrease the subsidy.That surely will lower the standard of living of the citizens It is the logical result to what happened. Unfortunately taking brave painful reform steps are obligatory and not an option .Such steps together with improving the security condition will gradually improve the economy to restore its health gradually . . Postponing such steps will lead to a complete disaster in the future and the economy will go into what so called a depression Long term recession.recession. Attracting the foreign investments is the vital solution to get out of the crisis .Therefore some constructive steps must be taken in this respect.Also this must be considered very carefully upon issuing any economic decision such as increasing taxes..etc it may come with a very negative effect on the flow of investment
Posted on: Mon, 07 Jul 2014 13:33:11 +0000
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