Opinion: Egypt - 21st century story of “From Riches to Rags”. (Post #1)

The title of the article is not intended to provoke anybody. Instead, it's an opinion of the author supported by the facts and statements that are in the public domain.

The story of "Nauru" is very well-known in the area of Economics, when we talk about the steepest slump in the history of the world. For those who don't know, Nauru is a tiny island nation in Micronesia which was blessed with the natural treasure of "phosphate rock" which made Nauru, the richest country in the world in terms of GDP per capita at least for some time (during the late 1960s and early 1970s). But instead of using the resources wisely by making investments, they exploited all the extractable resources and have become a country with barely $8,343 as their GDP per capita(as of 2017).


Similarly, Egypt under the administration of President Abdul Fattah el-Sisi is moving towards the same track. Sisi came in power with a military coup where they have come up with a government which instituted a new constitution. Sisi is not exploiting the resources in Nauru's way, instead, they are over exploiting it with huge multi-billion dollar investments which put Egypt's economy under a huge debt of 34.4545 billion USD.(1)

Egypt has seen a revolution in this decade which played a vital role in the shift of economic prosperity in the middle eastern nation of Egypt. President Abdul Fattah el-Sisi in a public address has said that his government has started and is about to complete 11000 projects in just 4 years making an average of 3 projects/day. These projects are mainly financed by foreign funding which is to be returned someday but Sisi is pushing his nation into the vicious circle of debt trap where there's no exit.


Egypt is trying to reposition itself as a "global investment destination" to fight again the debt game by reducing state-ownership and pushing for more privatization. But the outcome cannot be predicted as according to the current standards, Egypt is an economically unstable nation which makes investors feel skeptical as to whether they should invest or not.




I'm not going to give any conclusion or predictions as events in this world are uncertain. So, I will leave it to your understanding in deciding what's the case.