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    Revolution in Egypt Case Study

    Uploaded by

    John Pickle
    The underlying causes of the collapse of the Mubarak regime in Egypt included high inflation, a global economic crisis that decreased tourism, and a large socioeconomic gap between the rich and poor. Foreign governments pressured Mubarak to transition to democracy due to government corruption. For Egypt's economy to grow again and attract foreign capital, the government needs to take a more democratic approach to reforms and policies and invest in job-creating infrastructure projects. Political stability would encourage investment and tourism. However, transitioning from a corrupt system may face resistance and take time. Dangers to Egypt's current economic trajectory include a lack of democratic leadership deterring investors and companies. If the government does not stabilize the economy and establish democracy, potential investors

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    Revolution in Egypt Case Study

    Uploaded by

    John Pickle
    165 views2 pages
    The underlying causes of the collapse of the Mubarak regime in Egypt included high inflation, a global economic crisis that decreased tourism, and a large socioeconomic gap between the rich and poor. Foreign governments pressured Mubarak to transition to democracy due to government corruption. For Egypt's economy to grow again and attract foreign capital, the government needs to take a more democratic approach to reforms and policies and invest in job-creating infrastructure projects. Political stability would encourage investment and tourism. However, transitioning from a corrupt system may face resistance and take time. Dangers to Egypt's current economic trajectory include a lack of democratic leadership deterring investors and companies. If the government does not stabilize the economy and establish democracy, potential investors

    Original Description:

    This is a case Study regarding Egypt for an International Economics course.

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    The underlying causes of the collapse of the Mubarak regime in Egypt included high inflation, a global economic crisis that decreased tourism, and a large socioeconomic gap between the rich and poor. Foreign governments pressured Mubarak to transition to democracy due to government corruption. For Egypt's economy to grow again and attract foreign capital, the government needs to take a more democratic approach to reforms and policies and invest in job-creating infrastructure projects. Political stability would encourage investment and tourism. However, transitioning from a corrupt system may face resistance and take time. Dangers to Egypt's current economic trajectory include a lack of democratic leadership deterring investors and companies. If the government does not stabilize the economy and establish democracy, potential investors

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    165 views2 pages

    Revolution in Egypt Case Study

    Uploaded by

    John Pickle
    The underlying causes of the collapse of the Mubarak regime in Egypt included high inflation, a global economic crisis that decreased tourism, and a large socioeconomic gap between the rich and poor. Foreign governments pressured Mubarak to transition to democracy due to government corruption. For Egypt's economy to grow again and attract foreign capital, the government needs to take a more democratic approach to reforms and policies and invest in job-creating infrastructure projects. Political stability would encourage investment and tourism. However, transitioning from a corrupt system may face resistance and take time. Dangers to Egypt's current economic trajectory include a lack of democratic leadership deterring investors and companies. If the government does not stabilize the economy and establish democracy, potential investors

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    © All Rights Reserved
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    Revolution in Egypt Case Study

    1. What were the underlying causes, economic and political, of the collapse of the Mubarak
    regime?

    1. Inflation was at a high rate of 12.8% and superficial reforms are falling apart. A
    global economic crisis decreased tourism ( accounted for 8.5% of GDP), and there
    was a huge socioeconomic gap between the rich and the poor. Around 2.8 million
    people could not afford their basic food necessities. Foreign governments were
    pressuring Mubarak to step down and to transition to a democratic election
    because of the corruption in the government.

    2. What do you think the Egyptian government needs to do in order to get the economy
    growing again and to attract foreign capital? What are the risks to the government of
    taking such actions?

    1. The government needs to take a more democratic approach to reforms and


    policies. There could also be investments in infrastructure to create more jobs and
    a safer environment. Political stability can positively affect the economy.
    Investors would increase their business in Egypt and tourism would also increase.
    The government could face retaliation from the former way of a corrupted
    government and it may take time to implement a cash-flow economy.

    3. What dangers do you see in the current trajectory of the Egyptian economy? What are the
    implications of these dangers for foreign companies that might consider doing business in
    Egypt? What do you think it would take to encourage more foreigners to visit, invest, and
    do business in Egypt? Would such inward investment be good for the Egyptian
    economy?

    1. Since Egypt is straying away from democratic leadership, investors and


    companies may not be willing to risk an investment where there is no democratic
    leadership and the government owns many of he companies and businesses. The
    current state of the economy could be changed and create jobs for citizens. If the
    government turns to democracy, investors will be more satisfied with the
    economic and political forces.
    2. The biggest thing Egypt needs to do is get a stable economy and a democratic
    government. Potential investors may not be promoted to invest in a country that
    has a corrupted government or if there are high amounts of violence occurring. An
    inward investment into the stability of the economy would be good because
    companies would look for investment opportunities and tourism would increase.
    More jobs would be made and people would have more money to spend.

    4. Political risks in Egypt seem to be increasing again, and the country seems to be
    retreating from democracy, largely due to intervention by the military. As a manager in
    an international business, how would the current turmoil and political uncertainty in
    Egypt influence your investment decisions, and what does this mean for the future of the
    Egyptian economy?

    1. Political risk in Egypt seems to be high as the current economic state doesn’t
    seem to be too attractive to investors. Not having new investors, and if current
    investors pull out, Egypt’s economy will face additional problems.

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