What Are the Underlying Causes,economic and Political of the Collapse of the Mubarak Regime?

Case 3

Question #1: What are the underlying causes,economic and political of the collapse of the Mubarak regime?

Answer:  

Economic causes:

1. Inflation remained high at 12.8%
2. The global economic crises slowed Egypt’s economic drivers
3. 8.5% of GDP that came from tourism dropped in 2009 and 2010
4. Remittances from Egyptian expariates working overseas  which amouted $8.5 billion in 2008 declined sharply
5. Earning from the  Suez Canal of $5.2 billion in 2008 declined by 25% in 2009 due to global economic shut down
6. The gap between rich and poor is high in Egypt.Example : 44% of Egyptians are considered poor or extremely poor. The Average wage is less than $100 a month. 2.6 million people cannot cover their basic food needs with their income

Political  causes:

1. President Hosni Mubarak had been in power for more than a quarter of a century.
2. The government was highly corrupt-Mubarak and his family were reported and accused of making personal fortunes amouting billions of U.S dollars most of which were banked outside Egypt.
3. Elections were hardly free and fair-Opposition parties were kept in check by constant police harassment,their leaders often jailed on trumped up charges.
4. Political pressure by  foreign governments including the Obama administration in US who is most important westen  allies of Egypt wanted Mubarak to resign.Also, young Egyptians who initated their protest against Mubarak and wanted him to resign.This movement got stronger through Facebook and Twitter.

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?

Ans-I think that political security would be the most critical change that the nation could make at this moment. Financial specialists and organizations have lost a ton of confidence in Egypt and until they have some measure of sureness that things are steady they are not going to return.

There is always a risk of new government being as terrible, if not more regrettable than the one that it is replacing. The new government will need to work to adjust the financial backing, get subjects back to work and pick up the trust of the Egyptian individuals at the end of the day.

3) answer:

1. Political instability: one of the strongest obstacles for expanding business in a country is its political instability. And recently Egypt is at the apex of political instability. After the regime of Mubarak , Mohamed Morsi won the presidential election but failed to establish a proper democracy.