Egyptians, facing soaring prices, not tasting fruit of government reforms

Egypt implemented a set of radical economic reforms linked to a three-year $12-billion loan the IMF approved in November 2016, including the adoption of a value-added tax, energy subsidy cuts and floating the pound. (AFP)
Updated 28 February 2018
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Egyptians, facing soaring prices, not tasting fruit of government reforms

CAIRO: Traders at the textile market in Cairo’s Al-Azhar district were once used to seeing their shops filled with customers, but soaring prices have driven many away.
The reason for the spiraling costs — drastic reforms that the government pledged would bring benefits to the turmoil-hit nation.
But far from improvements, many Egyptians say they feel worse off, and the economic woes could present the major challenge for President Abdel Fattah El-Sisi as he approaches an election essentially unopposed.
“People who want to get married these days have to wait; there is no money for anyone to buy anything,” said Shaimaa, a homemaker in her 30s, as she looked for some fabric.
“Years ago, the salary was enough and there was even a surplus, but now a salary that is even as high as three thousand, or four thousand pounds a month is not enough.”
Egypt’s presidential vote from March 26-28 is the third since a 2011 uprising toppled longtime ruler Hosni Mubarak, and Sisi looks certain to win a second four-year term.
Most of his rivals have either been sidelined or withdrawn and the only other candidate, Moussa Mostafa Moussa, has himself previously expressed support for the ex-military chief.
While there is little competition at the ballot box the economic discontent facing many Egyptians could prove a bigger political issue.
Shaken by the 2011 revolt and the years of turmoil that followed, Egypt implemented a set of radical economic reforms linked to a three-year $12-billion loan the International Monetary Fund approved in November 2016.
The steps included the adoption of a value-added tax, energy subsidy cuts, and floating the pound, which halved its value against the dollar in the import-reliant country.
Sayyed Mahmoud, 50, one of the biggest fabrics merchants in Al-Azhar district, sits outside his store, blaming “the pound’s flotation” for the slump.
“This decision changed everything. Prices went up threefold and fourfold,” said Mahmoud.
“A blanket that was 200 pounds, now costs 800 pounds,” said Mahmoud.
Since the currency move the inflation rate has soared, reaching a high of 34.2 percent in July.
Meanwhile some 28 percent of Egyptians, or 93 million people, now live under the poverty line, according to official figures.
While some of the government’s measures were positive, floating the pound was handled “the worst,” said Alia El Mahdi, the former dean of the faculty of Economics and Political Science at Cairo University.
“If the economic improvement comes at the expense of people’s living standards, then the target of the reform program was not met,” she said.
Despite the soaring inflation and rising poverty, Sisi insists that his first term has seen an “unprecedented boom.”
Since his election in 2014 after the military ouster of Mohamed Morsi, Egypt has been working on a series of mega projects.
The large-scale national projects included the expansion of the Suez Canal, which ended in 2015, about year after Sisi’s inauguration.
After its completion, Sisi announced another ambitious project: a new capital that is currently being built over about 170 square kilometers and should begin functioning next year.
“We are about to finish about 11,000 projects ... with a cost of about two trillion pounds,” Sisi said in January.
Hailing the economic successes during his term he pointed to a rise in foreign currency reserves to $37 billion and a drop of unemployment to 11.9 percent.
But economists like Mahdi said that if the government wanted to build sustainable growth it needed to focus on bolstering “industry, agriculture, and services to reduce unemployment in a lasting and real way.”
“National projects only need temporary workers,” she said.
And while the IMF in January declared a “favorable” economic outlook for Egypt after growth of 4.2 percent in the fiscal year to June 2017, many are not feeling it.
Like fabric vendor Mahmoud, who is adamant that he has not seen any improvements.
“The state’s political leadership works correctly and has accomplished many massive projects, and I support Sisi through and through, but where is the return for me at the moment?”


A ceasefire holds in Syria but civilians live with fear and resentment

Updated 3 sec ago
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A ceasefire holds in Syria but civilians live with fear and resentment

QAMISHLI: Fighting this month between Syria’s government and Kurdish-led forces left civilians on either side of the frontline fearing for their future or harboring resentment as the country’s new leaders push forward with transition after years of civil war.
The fighting ended with government forces capturing most of the territory previously held by the Kurdish-led Syrian Democratic Forces in the country’s northeast, and a fragile ceasefire is holding. SDF fighters will be absorbed into Syria’s army and police, ending months of disputes.
The Arab-majority population in the areas that changed hands, Raqqa and Deir Ezzor, have celebrated the SDF’s withdrawal after largely resenting its rule.
But thousands of Kurdish residents of those areas fled, and non-Kurdish residents remain in Kurdish-majority enclaves still controlled by the SDF. The International Organization for Migration has registered more than 173,000 people displaced.
Fleeing again and again
Subhi Hannan is among them, sleeping in a chilly schoolroom in the SDF-controlled city of Qamishli with his wife, three children and his mother after fleeing Raqqa.
The family is familiar with displacement after the years of civil war under former President Bashar Assad. They were first displaced from their hometown of Afrin in 2018, in an offensive by Turkish-backed rebels. Five years later, Hannan stepped on a land mine and lost his legs.
During the insurgent offensive that ousted Assad in December 2024, the family fled again, landing in Raqqa.
In the family’s latest flight this month, Hannan said their convoy was stopped by government fighters, who arrested most of their escort of SDF fighters and killed one. Hannan said fighters also took his money and cell phone and confiscated the car the family was riding in.
“I’m 42 years old and I’ve never seen something like this,” Hannan said. “I have two amputated legs, and they were hitting me.”
Now, he said, “I just want security and stability, whether it’s here or somewhere else.”
The father of another family in the convoy, Khalil Ebo, confirmed the confrontation and thefts by government forces, and said two of his sons were wounded in the crossfire.
Syria’s defense ministry in a statement acknowledged “a number of violations of established laws and disciplinary regulations” by its forces during this month’s offensive and said it is taking legal action against perpetrators.
A change from previous violence
The level of reported violence against civilians in the clashes between government and SDF fighters has been far lower than in fighting last year on Syria’s coast and in the southern province of Sweida. Hundreds of civilians from the Alawite and Druze religious minorities were killed in revenge attacks, many of them carried out by government-affiliated fighters.
This time, government forces opened “humanitarian corridors” in several areas for Kurdish and other civilians to flee. Areas captured by government forces, meanwhile, were largely Arab-majority with populations that welcomed their advance.
One term of the ceasefire says government forces should not enter Kurdish-majority cities and towns. But residents of Kurdish enclaves remain fearful.
The city of Kobani, surrounded by government-controlled territory, has been effectively besieged, with residents reporting cuts to electricity and water and shortages of essential supplies. A UN aid convoy entered the enclave for the first time Sunday.
On the streets of SDF-controlled Qamishli, armed civilians volunteered for overnight patrols to watch for any attack.
“We left and closed our businesses to defend our people and city,” said one volunteer, Suheil Ali. “Because we saw what happened in the coast and in Sweida and we don’t want that to be repeated here.”
Resentment remains
On the other side of the frontline in Raqqa, dozens of Arab families waited outside Al-Aqtan prison and the local courthouse over the weekend to see if loved ones would be released after SDF fighters evacuated the facilities.
Many residents of the region believe Arabs were unfairly targeted by the SDF and often imprisoned on trumped-up charges.
At least 126 boys under the age of 18 were released from the prison Saturday after government forces took it over.
Issa Mayouf from the village of Al-Hamrat, was waiting with his wife outside the courthouse Sunday for word about their 18-year-old son, who was arrested four months ago. Mayouf said he was accused of supporting a terrorist organization after SDF forces found Islamic chants as well as images on his phone mocking SDF commander Mazloum Abdi.
“SDF was a failure as a government,” Mayouf said “And there were no services. Look at the streets, the infrastructure, the education. It was all zero.”
Northeast Syria has oil and gas reserves and some of the country’s most fertile agricultural land. The SDF “had all the wealth of the country and they did nothing with it for the country,” Mayouf said.
Mona Yacoubian, director of the Middle East Program at the Center for Strategic and International Studies, said Kurdish civilians in besieged areas are terrified of “an onslaught and even atrocities” by government forces or allied groups.
But Arabs living in formerly SDF-controlled areas “also harbor deep fears and resentment toward the Kurds based on accusations of discrimination, intimidation, forced recruitment and even torture while imprisoned,” she said.
“The experience of both sides underscores the deep distrust and resentment across Syria’s diverse society that threatens to derail the country’s transition,” Yacoubian said.
She added it’s now on the government of interim Syrian President Ahmad Al-Sharaa to strike a balance between demonstrating its power and creating space for the country’s anxious minorities to have a say in their destiny.