April 13 – The World Bank is said to provide a 1 billion dollars tranche of a 3 billion dollars loan to Egypt under the condition that the government approves the economic programs.
Skepticism towards the provision of the loan rose within the media following the refusal of the Central Bank to adhere to the VAT law. Yet other economic programs under progress involve the direct cash transfer for the poor, weaning off costly energy subsidies and a civil service law.
Egypt, up to this time, has secured multi – billion dollar aid commitments from China, Saudi Arabia and signed major investment deals with Russia. Using this surge of foreign aid, the country hopes to ease the dollar shortage that crippled the economy and redraw a promising future.
However, a warning comes from Hanieh (2011) in his article ‘’Egypt’s orderly transition’?’’ in which he highlights the three main aims of such foreign aid: privatisation, deregulation and foreign investment. What Egypt is moving towards to is not – as the idealist visions – a more equal society, but a stronger division between the dominant and lower class. The financial inflows, according to Hanieh, will strengthen Egypt’s business and military elites as ‘the only layer of society to benefit’.
With the existence of contrasting outlooks, it is necessary to view Egypt’s future economic programs behind the surface of what they promise to achieve.