New Clashes in Egypt Leave 1,000 Injured and Democracy Teetering on the Edge
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
In the aftermath of the fiercest street fights to be seen in central Cairo since the fall of Hosni Mubarak, analysts have questioned whether the level of violence that have erupted in the post-Jasmine Revolution Arab World could be a hindrance to the democratic process in the region.
In the aftermath of the fiercest street fights to be seen in central Cairo since the fall of Hosni Mubarak, analysts have questioned whether the level of violence that have erupted in the post-Jasmine Revolution Arab World could be a hindrance to the democratic process in the region.
“Democracy is at risk if democracy does not produce,” said Elliot Abrams, senior fellow for Middle Eastern Studies at the Council on Foreign Relations in Washington D.C, to the International Business Times.
Abrams pointed out that the current violent situation in Egypt was hurting the economy and that economic stability was needed in order to ensure a smooth transition to democracy. Abrams cited Latin America as an example whereby social and economic stability went hand-in-hand with democracy.
“Latin America’s spring or turn from military juntas to democracy failed where people concluded it had brought them no economic improvement.“
US Secretary for Political Affairs William Burns also called for social stability in Egypt while asserting that economic recovery was equally critical if Egypt was to successfully transition towards democracy.
Burns recognised the need for Egypt “to demonstrate economic results,” and added that the US “wants to support the revival of economic growth in a way which benefits not just a few Egyptians, but which spreads benefits and growth across Egyptian society.”
However some Arab economists have warned that foreign intervention within the region may hurt, rather than help, the democratic process.
[quote]”I strongly feel that democracy models need to be locally grown and locally supported. A really large and underplayed factor in why a large portion of Arab audiences are disengaged from political involvement is low morale and feelings of indifference — we do not feel that many policies directly affect us or take us into consideration,” said Hazami Barmada, Co-Founder and CEO of Al-Mubadarah: Arab Empowerment Initiative.“A thorough needs-assessment needs to be conducted prior to budgets being allocated internationally based on assumptions of local needs. Sadly to date, many international development packages represent the select interests of a few — they either target high-end innovation or micro-finance, both of which are leaving out the vast majority that operate between these two extremes.”[/quote]
Just under 12 percent of Egypt’s population is currently unemployed – 2 percent higher than it was last year under Mubarak – and the country’s GDP is expected to decline by nearly double the amount of Tunisia’s, with the budget deficit amounting to nearly 10 percent of GDP.
Related: Sorry Dr Friedman, You Are Wrong – the Middle East Has Fundamentally Changed
Related: Egypt’s Economic Forecast
Story from International Business Times



