Egypt Fueling the Pressure
Over the past two weeks in Egypt, food prices are soaring due to fuel prices climbing, electrical power is in question, and fights over gasoline have already killed five and wounded dozens. According to economists, the root of Egypt’s problem is that they don’t have enough cash to further import fuel, not helped by the fact that the government is trying to contain violent protests initiated by political rivals.
Due to farmers already lacking the fuel needed for their fields’ irrigation pumps, it seems out of the question that they would have enough fuel for their tractors that are supposed to harvest their wheat. If they don’t manage to harvest their crops in time, it just rots in the fields. Overseeing the issue, the U.S. recommends that Egypt carry out tax increases and make use of a $4.8 billion loan they can acquire from the International Monetary Fund. However due to disputes over how Egypt would raise taxes and cut subsidies, the loan has been stalled. Unfortunately, Egypt needs this loan badly because the $4.8 billion could reassure other future lenders of Egypt’s credit worthiness. Incredibly Egypt’s own president, Mohamed Morsi has so far resisted an I.M.F. deal, insisting that Egypt can wait, which does not seem like a wise decision.
Written by Kevin Zhang
Kirkpatrick, David D. “Egypt, Short of Money, Sees Crisis on Food and Gas.” The New York Times. The New York Times, 31 Mar. 2013. Web. 31 Mar. 2013. <http://www.nytimes.com/2013/03/31/world/middleeast/egypt-short-of-money-sees-crisis-on-food-and-gas.html?pagewanted=all>.