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AssessmentEconomics

Egyptian Military and Destruction of Economy (Full Text)

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Egyptian Military and Destruction of Economy (Full Text)

With this famous statement, “Tomorrow, you’ll see Egypt”, General-turned-president Abdel-Fattah Al-Sisi launched his promises of stability and achievement of economic welfare to the Egyptian people in 2013. The Egyptians thought their homeland would witness the end of the era of living crises, especially after the Army ousted the elected President Mohamed Morsi on July 3rd.  2013. However, what later happened was completely the opposite, as many living crises exacerbated, varying between lack of services, low wages, increased unemployment and price rises in most goods and services, after the government tended to reduce the fuel and commodity subsidies in order to reduce the aggravating budget deficit, in addition to many other problems.

The Egyptian Economy suffered a consistent decline in all sectors during the last five years, especially after the military coup in July, 2013, in spite of the enormous support provided to the Egyptian regime by rich Gulf countries during this period and the mega projects that the successive governments claimed to carry out. Corruption rates have increased since July 4 2013. Corruption issues have also undermined ministers of the military governments one after another, as well as higher administration officials.

Also, Prices have witnessed a massive leap creating an additional suffering to low-income citizens amid absence of any government control. This has significantly affected the poor citizen, his purchasing power and his lifestyle. Among the statements that many Egyptian officials used to repeat for pride, is that Egypt is part of the world and should be linked and intertwined with the global markets in prices and in the foreign trade of exports and imports. Based on this hypothesis, the Egyptians should enjoy the decreases in the prices of goods and services in the global markets. However, the fact is that the Egyptians pay only the bill of cons for merger in the global economy, including flooding and global prices for the majority of goods and services, despite denial of the second half of the equation. The Egyptians do not feel any impact of the price decline of goods in the global markets on the domestic markets as well as the fact that their wages are not linked at all to the global system.

Tax returns represent an important aspect of the general revenues of the state. In addition, they do several other tasks, including the achievement of social justice, contribution in the achievement of the goal of equitable distribution of wealth. Taxes are also used in other economic areas, including the protection of domestic industry through the reduction of tax rates on certain industries in order to encourage and protect them in the face of foreign products. Unfortunately, the situation in Egypt reflects an upside down state in the performance of its tax system.

Also, Egypt is considered a net importer of food. It suffers from a food gap in most food commodities, particularly the strategic ones, which led to a high rate of economic dependency on abroad.

Egyptian Military and Destruction of Economy (Full Text)

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