Ty McCormick

Nota: Este archivo abarca los artículos publicados por el autor desde el 1 de mayo de 2009. Para fechas anteriores realice una búsqueda entrecomillando su nombre.

Egypt may have dodged a bullet last month when a handful of Gulf states pledged $12 billion in emergency aid to prop up the country’s flagging economy, which has been battling inflation while running dangerously low on foreign currency reserves. But the bailout underscored the extent to which perverse political incentives have become Egypt’s biggest economic problem. As long as the country can count on foreign revenue streams, its leaders will continue to put off much-needed economic reforms — a dangerous dynamic that sets Egypt on the path to financial ruin.

Flush with cash from the Gulf, Egypt’s military-installed leaders have already signaled they will not pursue negotiations with the International Monetary Fund over a long-planned $4.8 billion loan that would require painful tax hikes and subsidy cuts.…  Seguir leyendo »