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Periodical article | Leiden University catalogue | WorldCat |
Title: | The Politics of Adjustment: Egypt and the IMF, 1987-1990 |
Author: | Seddon, David |
Year: | 1990 |
Periodical: | Review of African Political Economy |
Volume: | 17 |
Issue: | 47 |
Pages: | 95-104 |
Language: | English |
Geographic term: | Egypt |
Subjects: | external debt IMF economic policy Politics and Government Development and Technology Economics and Trade international relations |
External link: | https://www.tandfonline.com/doi/abs/10.1080/03056249008703850 |
Abstract: | Since the 'bread riots' of 1977 - which erupted when the price of basic goods, including bread, was increased as part of government measures to bring public expenditure under control - the Egyptian government has been extremely cautious of provoking popular protest and political unrest through the introduction of drastic austerity measures. At the same time Egypt has become increasingly enmeshed in a 'debt trap' and is under mounting economic pressure, including a serious balance of payments situation, increasingly severe foreign exchange constraints and a much tougher line being adopted by foreign lending institutions and governments with regard to the provision of credit. An agreement with the IMF, concluded in May 1987, led to a rescheduling by the 'Paris Club' of creditor States of some eight billion dollars of government and government-guaranteed debt. But the Egyptian government proved unable to adhere to the terms of the IMF 'reform' programme laid down as a condition for the agreement, and the programme collapsed in late 1987. The author outlines subsequent negotiations between the IMF and Egypt over rescheduling agreements, the issue of domestic interest rates, and economic reform. The crucial question remains whether the Egyptian government, under growing pressure from all sides, will be able to implement the measures required by the IMF and survive the political repercussions. |