Egypt and Subsidies: A Country Living Beyond Its Means
Since Egypt’s 2011 revolution, the country’s economy has been suffering, with almost all economic indicators pointing to a deteriorating situation—and this despite the unprecedented support of some of the Arab Gulf countries. Subsidies, which have always represented the social contract between the governing regime and the population, are a major problem. Though reforming subsidies has consistently been a concern, no regime over the last 60 years has been able to implement serious measures. Rather, a piecemeal approach has been used when adjustments to the subsidies system became urgent.