What caused the deterioration of the Egyptian Economy from the view of Research Paper

What caused the deterioration of the Egyptian Economy from the view of Egyptians over 40 - Research Paper Example Furthermore, the absence of investment and poor economic system led to currency devaluation and hence increased cost of living. This paper is a discussion to establish what caused the deterioration of the Egyptian Economy. A Congressional Research Service entitled â€Å"Egypt and the IMF† conducted by Nelson and Sharp found out that the Egyptian economy has swiftly deteriorated since the 2011 revolution (Nelson & Sharp 2013). The revolution put the Egyptian political system into a state of anarchy. They elucidate that the anarchic political nature led to sudden drop in the flow of foreign capital into Egypt. As a result, policy makers and economic analysts observed that even though the economic growth may be positive, the Egyptian Central Bank faced the risk of being depleted of foreign exchange reserves. This crumbly economic situation further put Egypt and the entire bordering region in jeopardy and instability. Moreover, the Egyptian economic history reveals that the rate of unemployment was at 9.2 % before the revolution took place, but this shot up to 12.3 % in the year 2012. This prompted the Egyptian authorities and the International Monetary Fund (IMF) to engage in negotiations in order to forge ways and reforms of salvaging the collapsing Egyptian Economy. Shockingly, reports emerged that Egyptian authorities were hesitant to commit to such an agreement citing that it might drastically increase the country’s debt. This research is aimed at establishing the cause behind the deteriorating Egyptian Economy. The rationale of this paper lies on the fact that countries, both developed and developing, thrive on stable economic grounds. This is because nations derive their strengths from stable economies which define their growth and development. The evidence of this is likened to dwindling economies reported from countries like Zimbabwe whose economy has