Link to article: https://apnews.com/article/russia-ukraine-business-africa-europe-economy-2b3d4abaa969523f09dfc93eb9a5b854
Egypt’s poor economic situation has been worsened by the Russo-Ukrainian war. Egypt’s Central Agency for Mobilization and Statistics released data revealing inflation had increased. The country’s inflation rate climbed from 12.1% in March to 14.9% in April. This has caused prices to soar in a variety of areas, from food to gas. From March to April, the agency reports that food prices rose 8.1%, worsening the country’s poverty situation. Around 30% of Egypt’s population is at or below the poverty line, meaning the inflation in the country is expected to exacerbate the poverty levels. The government of Egypt has tried to counter these effects by raising interest rates and deflating the value of Egyptian currency, leading to public outcry and a worsening of the poverty situation.
The Russo-Ukrainian war has hammered many countries, including the United States, with rising inflation. Mostly, it goes to show how dependent the world economy is on the trade of oil. While the wealth of the U.S. makes inflation less of a worry than it is for Egypt, the global economy will definitely continue to summer for quite some time. The domestic poverty issues in Egypt threaten to weaken their country. While Egypt remains an ally of the U.S., situations like these with such high poverty rates threaten to upend political functioning in the country. Scholars with more knowledge than I could attest to the likely future of the economic situation in Egypt, but the high inflation and poverty sets the scene for political turmoil in a country. Being in such a volatile region of the world, Egypt is put further at risk of political instability.
The inflation in Egypt as a result of the war in Europe could support the liberal argument of complex interdependence. The high reliance of many countries on the oil flow in Europe strengthens the argument that the international community relies upon the reciprocity of goods between countries. Also relating to class discussions, the ecumene is very concentrated in Egypt, concentrating the population of the country to a specific area. Egypt does, however, have a legalistic legitimacy and no nonconforming sectors, increasing the strength of the country. With a smaller-sized country, Egypt can have a stronger, centralized government to regulate their economy and political governance.