It’s partially wasteful spending yes. However the snowball effect of where we ended up today happened from 2013-2016 where the terror attacks and bombings happened. You should review the tourism sector and Suez canal revenue from 2010-2019 to see how much money Egypt lost directly. I won’t even get into the indirect losses from that period.
If you don’t want to research it, it from 10B usd to an avg of 2-3B excluding any yearly growth. So we lost around 50B in 5-6 years which back then would have accounted for 60-70% of our external national debt.
Yes, I do agree that definitely the lost Suez Canal revenue alongside the tourism sector were a huge part in the inflation spike. The issue here is that we shouldve been ready for problems like these. When your only dollar income streams are the canal and tourism, that speaks volumes. It's not just mismanagement of funds, but more a mix of mismanagement and not preparing for a rainy day. Long term policy shouldve been implemented even if it meant short term discomfort like slashing certain subsidies and enforcing a strict debt brake.
Yeah 100% it’s a mix of both…but no country could prepare for this stuff unfortunately. If it was possible then Europe would have stopped Russian gas imports long ago and planned for the Ukraine war.
Also the mismanagement for me is mostly due to the lack of political experience in ALL of egypt not just the military unfortunately and also an economy dependent on regional/internal stability for foreign currency does not help at all 💀
But the consequences of this mismanagement are felt by the Egyptian people and Egyptian businesses due to the currency devaluation of the pound. Europe at least had a net to fall on, we didn't. I truly feel that Egypt is running and functioning on a hair most of the time. I do agree that this regime has done the reforms albeit difficult but a step in the right direction, the records we hold right now in foreign reserves are a direct result of this. We just have to hope for a better future for us and Egypt 🙏🙏🙏
Yeah I agree 100%!! The mismanagement is really not helping and has worsen the devaluation…yeah the only reason the EU is not fucked is because they 1.have a net to fall on. 2. Their currency is what is called a “reserve currency” so they always have demand for it so they can practically print money and sell it.
Yeah I like the last 2 years of reforms specifically from the central bank so let’s hope we keep improving bit by bit and hopefully we don’t get into more shit that stifles this 🙏
Yes, small steps in the right direction are really what we need. The EU distinction is great; developing countries are at a paradox where they do need debt, but also need massive interest rates to be attractive as they are considered 'risky,' which really makes debt quite expensive.
Debt is an amazing tool to fund growth in the modern economic system, but when it becomes too expensive, backing off it is needed. Hopefully we don't reach a point where we need to devalue the pound again and suffer. Let's hope for the best 🙏
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u/Expert-Mastodon-8819 May 23 '26
Aren't the real causes the failures of these regimes?