Headlines
Published On:11 July 2011
Posted by Indian Muslim Observer

Egypt Combats CIA-imposed Economic Crisis

By Dr. Abdul Ruff

The “freedom struggles” in Mideast, engineered by CIA to advance US economic and political interests has unleashed acute tensions, huge deaths and devastating economic lose in Egypt which had a medium economy before the “revolution”. . The “uprisings” challenge in Mideast has grown acute in Egypt since the fall of President Hosni Mubarak. The month-long anti-government protest has caused tourism and investor revenue to dry up at a time when high popular expectations have increased the pressure on the budget. Revenues from tourism, a mainstay of the economy, have plummeted by 40 percent. CIA and Obama thought once Mubarak steps down Col. Qaddafi would automatically leave and let the CIA take over Libyan energy resources. That did not and will not happen.

The “Jasmine revolution” in Egypt has caused serious economic problems affecting the poor the most leading to selling of their organs for survival. A survey by the U.S.-based International Republic Institute in April found that 41% of those polled said they have trouble covering their basic needs and feeding their families. For many, a couple of thousand dollars for a kidney means debts can be paid off or enough money accumulated to start a business in an economy where unemployment is in the double digits and growing.

The new post-Mubarak military government is struggling hard to put its economy back onto the rails, apart from improving relations with Turkey, Iran and its neighbors, especially the Palestinians. Egypt's economy contracted by an estimated 7 percent in the January-to-March quarter. Factories are paralyzed by strikes. Meanwhile, prices for food and energy have surged, leaving people feeling deeply insecure ahead of crucial parliamentary and presidential elections in the fall.

Also, Suez Canal workers have been on strike for the past three weeks, depriving the economy of toll fees, while over the weekend a pipeline delivering Egyptian natural gas to Israel and Jordan was blown up for the third time this year, briefly cutting off deliveries. The government estimates that tourism to Egypt will fall more than 25% this year to a value of $10 billion as unrest deters visitors.

Political instability is costing Egypt $40m (about £25m) a day in lost tourism revenues, while growth has more than halved and inflation has risen. Foreign investment has dried up. As Egyptian economy has been floundering since the spring revolutions because of a collapse in tourism and trade, Cairo has been asking Arab-West donors to help bridge a funding gap through mid-2012 estimated at between $10 billion and $12 billion in the wake of the mass protests that ousted President Hosni Mubarak on Feb. 11.

By following the footsteps of Libya of Col. Qaddafi who is keen to strengthen Libyan economy and advance people’s welfare without in any way depending on the western financial agencies like International Monetary Fund and the World Bank (IMF and W.B), the new Egyptian transit government has opted out for loans from these agencies by imperialist nations run for their own sake.

The most important aspect of western aid is it has a powerful political tool attached and places a strong political impact too. Those calling for new support seem to forget that the deposed regimes already received plenty of international aid finance. Under the aegis of the IMF& WB, they presided over elaborate privatization and reform programs, which benefited those close to power but did little to help the wider population. In truth the regimes tended to use this support to strengthen their rule, building state security apparatuses and creating kleptocratic governments accountable only to their foreign bankrollers.

Egypt is one of the last countries of the Arab world to implement organ-transplant legislation. A new law that aims to stop Egypt’s poor from selling their kidneys and other organs faces as an uphill battle as the country’s deteriorating economy pushes more and more people into making desperate and dangerous decisions to raise money. As lawmakers dawdled and religious scholars debated the definition of death, the country became a hub for regional trafficking in organs, according to the UN’s World Health Organization (WHO). The new law, which went into effect this month after years of debate, bans the practice of paying money for human organs and restricts donations from live donors to family members of the fourth degree. The law bans foreigners from receiving transplants. Removing organs without government authorization will be treated as first-degree murder. Transplant procedures for the poor will be financed by the State.

In order to ward off any imperialist threats in future on financial issues, Egypt recently turned down a $3 billion package offered by the International Monetary Fund and a $4.5 billion package from the World Bank. IMF placed huge conditions and Egypt has rightly rejected them.

Instead of taking loans from IMF, etc, Egypt depends on aid from the wealthy Arab nations. The government has been trying to raise capital, mostly from Arab nations, to offset a budget deficit in excess of $22 billion. Saudi Arabia on May 21has pledged $4 billion in aid to Egypt. The aid will be in the form of soft loans, deposits and grants, Field Marshal Mohamed Hussein Tantawi, head of the council. Tantawi called the King Abdullah on 02 July and thanked him for providing the financial assistance to his cash-strapped country. The Egyptian leader highlighted the historic ties between the two Arab countries and commended the Kingdom for standing by his country during "these trying times." The United Arab Emirates (UAE) announced on 05th July that it will provide Egypt with $3 billion in aid. The Saudi package would support Egypt's general budget, the central bank, development and other projects and bond purchases. Half of the UAE aid amount is meant for creating a fund to create job opportunities for Egyptian youth; and $750 million is earmarked for infrastructure and housing projects, also for youth.

Apparently, Arab donors do not keep the commitments and delay the payment of aid to Cairo citing various reasons. Egyptian officials have said there is a balance of payments deficit of $11.5 billion resulting from the political unrest and the collapse of the Mubarak government. USA and EU, claiming to be legal guardians of Arab interests, obviously by controlling their energy resources, have effectively influenced the Arab decisions on foreign policy matters, including their foreign aid.

Egypt’s economy, whose main exports have been battered by strikes and political uncertainty, took another blow this week after the European Union blamed a deadly outbreak of E. coli infections on Egyptian fenugreek seeds and imposed a temporary ban on some of the country’s farm exports. The ban came hours after an official probe concluded that a shipment of fenugreek seeds used to grow sprouts imported from Egypt by a German company was the “most likely common link” to the outbreak of E. coli. The EU banned imports of all Egyptian seeds and beans for sprouting until October 31.

In recent times, USA and EU under the G8 also have promised aid to Egypt as well as Tunisia to “help” the regime to stabilize itself. On 26 May, the European commission president, José Manuel Barroso, confirmed at the G8 summit in Deauville that the 27-member EU would provide €1.24bn (£1bn) in "fresh new money" to its neighbours in the east and across the Mediterranean. Colonialist UK is to set aside £110m over the next four years to foster democracy and economic growth in Tunisia and Egypt as part of a wider international package to show support for the Arab spring. The US is the largest contributor, offering $4bn in aid and loans. President Obama delivered a “major address” on what role the US should play in the post-“Arab Spring” world, in which he pledged US economic help for Arab countries that embrace democracy.

Upon enormous success of terror operations in Afghanistan, Iraq and Pakistan, the US imperialist designs are also working well in Mideast. In execising its fascist power, the UNSC has directed the notorious NATO to invade sovereign Libya which has resulted in the slaughter of innocent Libyan Arabs and destruction of property probably worth trillions of dollar. Western terrocracies have destabilized Libya and looted its oil y employing rebel terrorists, made ready in Libya before the "uprisings" engineered by the CIA ostensibly for "freedom and democracy".

An Observation

Notorious UNSC and NATO organizations led by USA-UK terror twins that control literally the globe - all global institutions including the ICJ and ICC, are on terror voyage through Islamic world, citing ridiculous reasons and consuming the corpses of Muslims in thousands and millions.

More and more Muslim nations are coming under NATO attack cum occupation, killing Muslims. These western NATO led anti-Islamic war manger states must be brought to justice for their crimes against humanity at the earliest - but who will tie the bell?

Egypt is now on a balancing act, struggling to hold on and revive a fast crippling economy by rejecting imperialist conditions of IMF and seeking to obtain aid from willing, helpful Arab nations. Saudi is an excellent example of generous nation to both western & the eastern nations.

Neither a strong Egypt nor a sovereign Libya can worry the western terrocracies too much, after all, their chief concern centers around the resources and reduction of global Islamic populations. West is keen to destabilize entire Islamic world and make them fight one another.

In order to implement Islamic law universally to the advantage of Muslims, Arab nations must stop taking loans from the West that gives them at 30% of interest rates to keep them enslaved so that the sovereignty of one's nation is not threatened. America continues printing its paper note & lends it at 30% of interest to the congressmen as well as to the poor nations of the world- directly and through IMF.

Western nations are ready to destabilize Muslim nations and loot their resources, but once destabilized the Muslim nations from Pakistan to Iraq to Egypt to Tunisia to Libya are struggling to revive their economy and put in place credible security systems.

Economic evils of Egypt are not state specific at all- this is a general scenario of all NATO occupied Muslim nations- from Afghanistan, Pakistan, Iraq, Palestine, Kashmir to Libya. They destroy the Muslim nations in a sustained manner and pretend to be rebuilding them with resources having been looted from these failed countries by offering contacts to their western corporate bosses.

[Dr. Abdul Ruff is Specialist on State Terrorism. He is Chancellor-Founder of Center for International Affairs (CIA). He is former university Teacher, Analyst in International Affairs and an Expert on Middle East. He can be contacted at abdulruff@gmail.com]

About the Author

Posted by Indian Muslim Observer on July 11, 2011. Filed under , , , . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response

By Indian Muslim Observer on July 11, 2011. Filed under , , , . Follow any responses to the RSS 2.0. Leave a response

0 comments for "Egypt Combats CIA-imposed Economic Crisis"

Leave a reply

Editor's Pick

SPECIAL REPORT: Indian religious leaders strongly protest against South Korean government hounding of Shincheonji Church despite cooperation to contain COVID-19 spread

By Danish Ahmad Khan The government of South Korea is pursuing a discriminatory policy towards Shincheonji Church while accusing it of COVI...

IMO Search Finder

Subscribe IMO

    Archive