Name
Course
Instructor
Date of Submission
Why some people so rich and others are so poor in Egypt.
The analysis of Egypt crisis has slowed the economic growth early this year in Egypt. As a result of the country instability, the Tourists have fled the country resulting to problems in foreign investments. In addition, many companies have been closed and the government has been forced to be in debt in maintaining its economic growth. There has been a concern of Egypt dollar dropping by 5.75% thus, the country having financial problems. This was because of the combination of high deficit along with capital flows. All these problems have resulted to economic inequality. On 30th January 2011, they were worries about the Egypt being unable to pay of its debts. Most of the price of food increased leading to many spending a lot of money. In other words, while the price for food increases, the poor will continue being poor due to the fact they would be unable to progress in life. The manipulation of prices has affected the number of countries.
In the early 2008, the economist magazine noted that, the consumer price index was at a highest peak since 1846. The wheat prices that increased last year had affected the prices of other commodities (Blaskey 1). Blaskey has argued that, the reason behind price increase is on the crisis. The cost increase has affected the consumers to be erupted on a daily basis. Although it is true the food crisis is rooted in financial speculation, the government has failed to institute a strong mechanism to slow the prices. This has resulted to a large gap between the poor and the rich. The poor have become poorer as they spend a lot of money in buying food which is a basic commodity.
In Egypt, the low income people have experienced difficulties in making the ends meet. Studies have shown that, 40 % of Egypt population survives with less than a $2 in a day. On the other hand, the unemployment rate has increased by 10%. This implies that, when food price is raised, individuals’ have encountered difficulties thus pushing them into unsuitable situation (Andy 1). On Contrary, Andy argues that, the people earning high wages tend to have secure jobs which enable them to bargain their wages up with inflations thus coping with high prices of commodities. The concern of unemployment rate increasing in Egypt has caused many people to live below poverty. Due to wealth and income inequality, the poor have become poorer and the rich maintaining their position. There has been concern that a loaf of bread has been so expensive that bakers bakes two different breads, for the poor and for the rich. According to Joyce, two reasons for the change were due to increase in poverty and unemployment (Joyce 1). She argues that, many Egyptians people have remained employed. From her argument, instead of the poor having their type of bread being baked, the solution is employment. As many become jobless, they may not be able to buy the cheaper bread. In addition, she pointed that, there are people who live a life that is really poor and cannot access the basic needs. On the other hand, there are rich people who have the access of internet access, basic needs and enjoy their lives. This is deeply connected to unemployment.
For the past years, steel has been very expensive in Egypt and only the rich can sell the commodity. The government has kept the price high through mandated monopolies. Its essential price has only benefited the rich who can afford to buy and later sell it. The poor have been unable to raise money due to its cost. Andy argues that, when such monopolies are done away with, all individuals despite of their economic set up will be able to save money thus cope with inflation better (Andy 1). Wood is scarce in Egypt. There are no forests thus wood is not used in house building. The poor uses one row of bricks and the average people use two or four rows. Although the poor can only afford mud brick houses, they are not durable and crumbles. The rich are the only one who affords to build their homes from stone and most of their houses have different rooms along with having indoor toilets and bathrooms. Sewage is usually disposed and thrown to the river or streets. This unfortunately for the poor who uses water from the river while the rich have their own private fresh drinking water and. The poor end up spending a lot of money in treatment due to waterborne diseases although; many may not have enough money to go for the treatment.
Corruption has been a major concern in Egypt government. The government has used its position to gather wealth from its citizens for themselves. The leaders of the country have used the wealth of the country to enrich themselves, their friends and their families. For instance, early this year, the president of the country Hosni Mubarak appointed his wealthy businessman to his political post so as to enrich himself and his family. Apparently, the wealth business men in Mubarak cabinet benefited but with no benefit to ordinary people. Ordinary Egyptians are forced to live in poverty to make ends meet. Like any country, many individuals have seen the need of having a democratic government that will look for ways to empower the poor financially (Olivier 1).
The government has indulged into practices that have enriched their top officials, often under condition of favoritism towards certain connection. Business people, who know the politician, tend to benefit while the ordinary people suffers for lack of connection. For instance, some people though qualified, they are forced to work extra hard and others without jobs. Others with connection have gotten stable jobs although unqualified.
The rich have benefited from the great deal of oil in the international market. Trading of oil is expensive, only the rich have been able to invest. The innovation of gas deposits for the past years has projected into fast track lane for liquefied natural gas (LNG) thus making the rich benefit. In 2008, special economic zone was created for foreign countries to invest in the country (Heard, 1). According to Heard, this has increased foreign investment gradually for about $13 billion. These benefited a small number of Egyptians who had invested in oil. Finally, the population of Egypt has increased 2.5 times than it was in 1970. However, there is no land that has been cultivated for food for almost thirty years leading to problems in feeding its people. The struggling people have continued to be poor while the rich have enjoyed their possession.
Work Cited
Alasmi Nada. Mid East conflict felt at UTD. The mercury News, 28th February, 2011. Web. 1st March, 2011
Andy Xie. Hot Money, fast riots and the Fed caixin. Hot Money, fast riots, 28th Feb 2011. Web. 1st March 2011
Blaskey Sarah. Mubarak forced out. Egypt’s fate unsure. The clarion, 23rd Feb, 2011. Web. 1st March 2011
Heard Linda. Egypt should help oust Qaddafi. http://arabnews.com/opinion/columns/article291047.ece Web. 1st March , 2011
Joyce Chediac. Imperialist exploitation at the heart of every grievance raised at Tahrir Square. Workers World, 28 Feb 2011. Web. 1st March, 2011
Olivier Bert. Poverty, corruption pushes Egyptians to braking point. http://www.thoughtleader.co.za/bertolivier/2011/01/31/egypt-a-revolution-that-was-just-waiting-to-happen/. Web. 1st March, 2011
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]