Bailout Blitz Attacks Egyptian Revolution

[C. Flower]

http://www.jadaliyya.com/pages/index...tional-aid-and

Egypt is under attack from a "strings attached" barrage of "bailout" loans.

The economy of Egypt, particularly its important tourism sector, was hit hard during the upsurge of the revolution and accompanying strike wave.

The vultures, led by Obama, are now circling. A package of over 15 billion "strings attached" loans is being pressed on Egypt, in order to break up and profiteer from state assets and control and influence national politics.

As decades of IMF loans and austerity packages brought Egypt to the breaking point of revolution, there is no great chance of this project being successful, although individuals may make massive profits and the majority get even poorer.

The alternative, perhaps, if they were allowed, would be to hold on to their assets, move forward with democracy and social equality and rebuild their tourism and industry.

Although press coverage of events in Egypt may have dropped off the front pages, discussion of the post-Mubarak period continues to dominate the financial news. Over the past few weeks, the economic direction of the interim Egyptian government has been the object of intense debate in the World Bank, International Monetary Fund (IMF) and European Bank for Reconstruction and Development (EBRD). US President Obama’s 19 May speech on the Middle East and North Africa devoted much space to the question of Egypt’s economic future – indeed, the sole concrete policy advanced in his talk concerned US economic relationships with Egypt. The G8 meeting in France held on 26 and 27 May continued this trend, announcing that up to US$20 billion would be offered to Egypt and Tunisia. When support from the Gulf Arab states is factored into these figures, Egypt alone appears to be on the verge of receiving around $15 billion in loans, investment and aid from governments and the key international financial institutions (IFI).

The press releases accompanying the announcement of these financial packages have spoken grandly of “the transition to democracy and freedom”, which, as several analysts have noted, conveniently obfuscates the previous support of Western governments for the deposed dictators in Tunisia and Egypt. This article argues, however, that a critique of these financial packages needs to be seen as much more than just a further illustration of Western hypocrisy. The plethora of aid and investment initiatives advanced by the leading powers in recent days represents a conscious attempt to consolidate and reinforce the power of Egypt’s dominant class in the face of the ongoing popular mobilizations. They are part of, in other words, a sustained effort to restrain the revolution within the bounds of an ‘orderly transition’ – to borrow the perspicacious phrase that the US government repeatedly used following the ousting of Mubarak.

At the core of this financial intervention in Egypt is an attempt to accelerate the neoliberal program that was pursued by the Mubarak regime. The IFI financial packages ostensibly promote measures such as ‘employment creation’, ‘infrastructure expansion’ and other seemingly laudable goals, but, in reality, these are premised

[Griska]

the key role will have to be played by the private sector, including by attracting foreign direct investment. Thus, government policies should support an enabling environment in which the private sector flourishes.”

The scenario envisaged in the article surely would have many of the protesters wonder why they bothered.

[C. Flower]

The scenario envisaged in the article surely would have many of the protesters wonder why they bothered.

This is what is meant by "transition" I suppose.

The protestors still have most of it in front of them, if they are to succeed.

[C. Flower]

There's a 42% poverty rate in Egypt now and unemployment is 11.9% - almost as high as ours.

Political / democratic reform has not meant economic transformation.

http://www.almasryalyoum.com/en/node/468087

[ang]

It seems Egypt may have decided against IMF loan:-

The World Bank said on Sunday it would have to take stock of plans to lend to Egypt after the International Monetary Fund confirmed the authorities no longer wanted an IMF-backed loan program.

Egyptian Finance Minister Samir Radwan said on Saturday Egypt would not borrow from the World Bank and the IMF after revising its budget and cutting the deficit target to 8.6 percent of gross domestic product from 11 percent.

A World Bank spokesperson said it was not informed of the decision.

http://www.reuters.com/article/2011/...s&dlvrit=56943

[C. Flower]

It seems Egypt may have decided against IMF loan:-



http://www.reuters.com/article/2011/...s&dlvrit=56943

Best news I've heard all day. Depending on where the cuts are made

[Edo]

there ya go - there is nothing compulsory about taking IMF finance - they in fact, would rather you didn't - they are the lender of last resort - if you can do without them - even better.

Hope they dont screw up tho - and have to go back to the IMF in a years time.

[C. Flower]

there ya go - there is nothing compulsory about taking IMF finance - they in fact, would rather you didn't - they are the lender of last resort - if you can do without them - even better.

Hope they dont screw up tho - and have to go back to the IMF in a years time.

Just read that Egypt secured its alternative loans from Qatar and Saudi Arabia.

Not sure that this is much of an alternative to the IMF.

[C. Flower]

Egypt going into "Programme"

http://www.breakingnews.ie/world/egy...ge-563990.html