Egypt: Import and President Mohamed Morsi Essay

Submitted By kaymariex18
Words: 665
Pages: 3

The article I read was titled “Egypt, Short of Money, Sees crisis on Food and Gas.” The article brings to light the fuel shortage that Egypt is currently in the midst of. The insufficiency of fuel comes from the fact that the country is short on the hard currency that is necessary for the importation of fuel. The country is experiencing multiple blackouts and there have been five people killed in a gaslight gunfight within the past two weeks. The problem is that with a shortage of fuel, food prices are now soaring through the roofs. Everyone in Egypt is feeling the effects of this economic disaster. The problem not only lies within the borders of Egypt but impacts the rest of the global economy as well. The problem originates with the country of Egypt. Fuel is a necessity for the people, and so when the fuel requirements are not being met it will create all sorts of problems. The fact is that the country is running out of hard currency, so it can not afford the importation of fuel. Fuel is not the only import that had to be cut back on. The country’s economic situation has also affected it’s ability to afford the importation of wheat, another maine commodity of the people. Farmers are quickly running out of fuel that is necessary for them to produce wheat. So not only can wheat not afford to be imported, but now it can not even possible to produce it within the country itself. These difficulties arising also have a huge effect on the Egyptian government. The government is facing violent protests from the opposing political party who are blaming the problem on the party that currently holds office. Part of the problem may in fact be due to the current party as Egyptian President Mohamed Morsi refuses to accept a 4.8 billion dollar loan form the International Monetary Fund. He does this because he feels that accepting the donation would cause the public to worry and fret about the issue even more. So for fear of public reaction he is actually hindering the country’s economic situation. The government is also trying to alter public opinion of the problem by insisting that the country is worrying over nothing and that there is in fact not even a shortage of hard currency at all. He describes the situation as merely a perception of a crisis, and proclaims that the country is still importing just as much fuel as it was before. Whether there is a shortage or not, the hard currency rate has still fallen, going from 36 billion to 13 billion in the span of two years. This is a prime example of how…