Since the start of the revolution, discussions on the economy have persisted in various forms—ranging from attempts to undermine the revolution through economic pressure to warnings of an imminent financial crisis. Now, after some of the revolution’s political demands have been met, the time might be right to address this critical issue.
There are indeed serious and pressing economic indicators, but they are not as terrifying as some portray them. This exaggeration reflects a lack of understanding of how revolutions unfold and the national priorities that follow. Yes, economic instability exists and must be urgently addressed for immediate rescue. However, another aspect requires a more measured approach—one that establishes new, fair economic principles benefiting both investors and citizens. These fundamental reforms were absent under the previous economic administration, which excelled in serving up the most corrupt and damaging policies.
Some problems demand immediate action, particularly in key economic sectors or related areas. For instance, the tourism industry is reportedly losing $40 million per day. The transport of goods to domestic and foreign markets has been severely disrupted due to the slow return of police to their duties and the continued nighttime curfew on roads. Additionally, foreign currency reserves are declining, and the budget deficit is expected to keep rising to unprecedented levels.
It is crucial to handle these urgent issues swiftly and intelligently without compromising or distracting from the parallel process of restructuring an economy that was inherently unjust—both to investors and ordinary citizens. The old system benefited only a select group of loyalists surrounding Gamal Mubarak.
Yes, it is a difficult situation, but it is solvable with more effort, focus, and negotiation. The key is to distinguish between emergency measures needed for immediate stabilisation and the long-term economic transformation for which the revolution was fought.
The new economic team in Essam Sharaf’s government must recognise the leverage at its disposal, starting with renegotiations with major international institutions such as the World Bank, the International Monetary Fund, the European Commission, and the European Investment Bank. These discussions should be based on new, transparent, and fair proposals, especially given that all these institutions have expressed a willingness to cooperate with post-revolution Egypt. If necessary, Egyptian negotiators might also resort to exposing the corrupt dealings these organisations had with Mubarak’s regime—an open secret.
Cooperation with these institutions could provide one of the quickest solutions to closing the financial gaps created by the revolution, through a package that includes debt relief and politically unconditioned aid—unlike in the past. These organisations are likely to concede, given their tarnished reputations and their desperate need for damage control.
The second component of this rescue plan could involve expediting the recovery of stolen assets and liquid funds. This requires mobilising all necessary resources under the authority of the civil judiciary to ensure swift and precise rulings.
This would be beneficial in two ways. Domestically, assets still within Egypt could be swiftly transferred to the state treasury to offset budget deficits as soon as legal rulings confirm their status. Internationally, countries that have become safe havens for looted Egyptian wealth—such as Switzerland, Canada, the USA, France, and the UK—have all pledged cooperation in this matter. However, this cooperation hinges on the issuance of clear and rapid civil court rulings. Without them, these frozen assets, which are typically held for only a year, risk being lost.
By leveraging these three economic tools—international organisations, stolen wealth inside Egypt, and corrupt assets abroad—the current crisis pressing on Sharaf’s government could be alleviated. This would allow the country’s new economic architects to focus on restructuring, or even dismantling and rebuilding, the flawed system of the past. The goal: a transparent and just economy that serves both investors and ordinary citizens under a truly functional market system.
This article is originally published by AlBorsa in Arabic and later AI-translated by South Push.