Free Trade Agreement in Egypt

Essay # 59344

Economics > International
Ethnic Studies > Middle East

Discusses the impact of free trade and its potential benefits on the Egyptian economy.

2,633 words () | 13 sources | MLA | 2005

Paper Summary:

Examines how free trade agreements may aid developing nations such as Egypt. The paper argues that Egypt is not ready to enter an era when it can apply a free trade agreement without being harmed. It discusses that, by applying Arab and African economic cooperation, eliminating the phenomenon of illegal economic activity, encouraging open investment in the economy, benefiting from the principle of comparative advantage, and permitting foreign investment in Egypt, Egypt will be able to improve its economic status and will be apply the free trade agreement without facing economic loss.

From the Paper:

"Ever since the Free Officers' revolution of 1952, Egypt has had an unstable economy, moving from one economic system to another and hardly ever allowing serious reforms. Before 1952, Egypt was a capitalist country but following that, it became a socialist country while, under Sadat, it supposedly began to reform its economy and adopt liberalism. Under Mubarak, the liberal reforms continued but were not stable and did not bring in the results that the government had expected. Instead of decreasing debt and achieving economic growth and development, the economist, Paul Sullivan explains that debt increased and economic growth was not reached. Many economist have argued that the Egyptian economy has not achieved the growth rates that were expected following reforms because they came too late and were not correctly implemented. Over and above, economists additionally argue that Egypt can not realistically expect positive economic results any time soon because it has only recently taken economic reform seriously and had earlier ignored and missed numerous economic development opportunities. Although Egypt missed several opportunities for industrialization and development over the past ten years and currently fears that it will not be able to survive the effects of free trade and economic globalization, through economic reforms, Egypt can overcome the short term negative consequences of globalization and be in a position where it can benefit from globalization, through comparative advantage and foreign investment."