(**Would’ve been uploaded sooner but I was experiencing uploading issues with the website)
Summary:
This article discusses how Saudi Arabia extended a previous economic agreement with Egypt. The agreement was previously a 3 billion dollar aid package, since Egypt was struggling with inflation and poverty due to conflict in neighboring areas. Saudi Arabia didn’t specify how long the extension would be, but just that its aim is to help Egypt bolster its economy and agreement with the IMF, who also gave them economic aid ($12 billion).
Analysis:
This article is important when trying to understand the deceitful, coercive nature of debt-trapping, which is the idea of a richer country offering a poorer state financial aid with vague terms in an effort to coerce them into giving up sovereignty so the more powerful country has control over things like natural resources and policy. This article is quintessential in recognizing how debt-trapping is the most common way to mimic modern-day imperialism. It’s also important for everyone to recognize and understand that debt-trapping IS a form of hard power because of its coercive nature, despite the fact that no military or fighting is involved.
While there’ve been times where Egypt and Saudi Arabia clash, like the Yemeni civil war, the two are usually aligned in that they both agree on the importance of regional stability, which is why the asymmetrical dynamic where Egypt has been more reliant on the Saudis is generally accepted. This alliance isn’t just beneficial for Egypt; it also benefits Saudi Arabia, because their reputation within the IMF will improve (because they’ll be responsible for the Egyptian compliance within the IGO), which could lead them to emerge as another pole on the international stage. Additionally, Saudi Arabia is benefitting from the alliance because they get access to the natural resources that Egypt isn’t deprived of like phosphates and minerals. The extension of the financial aid package was crucial, because Egypt is very populous, and without financial security, uprisings begin, leading to a part 2 of the Arab Spring or Balkanization.
Given the history of Egypt, it’s reasonable to hope that this money will go towards development and become more stable. However, it’s more likely that this money will go towards survival. This state already has so many problems, like water contamination and poverty, that should be addressed before the materialistic things. If the money goes towards survival, Egypt will remain in the position that they’re in. However, Saudi Arabia will continue to take advantage and assist their producers by providing them access to Egyptian resources, increasing their economic success (potentially resulting in a shift in polarity). If the Saudis continue to increase their regional influence, countries like America, China, and Russia might feel threatened and inclined to support rebels within Saudi Arabia, which would lead to even more conflict.
Class Connection:
This article connects to the class because it relates to issues regarding economics and hard power. Furthermore, this theme connects to development, dependence (modern-day imperialism), and power; it also brings up the common debate about the mechanisms used when establishing the polarity of the global stage.