Egypt and the Challenge of Subsidy Reform
Thursday, March 21, 2013
Vehicles queue at a petrol station in Toukh, in El-Kalubia governorate, about 25 km (16 miles) northeast of Cairo March 12, 2013 (Amr Abdallah Dalsh/Courtesy Reuters).
When I last wrote about the long-discussed (and much-needed) $4.8 billion IMF loan to Egypt in January, it looked as if the loan was right around the corner. Now, in all likelihood, Egypt will not receive the funds any time soon. Much of the hold up is IMF concern over whether Egypt has the political will, and capacity, to scale back its unsustainable subsidy program. Today on ForeignPolicy.com, I discuss Egypt’s subsidy reform challenges as well as some lessons from other countries that have headed down the path of reform. As I write: Read more »











