To Save Egypt’s Economy, Move Quickly

Egypt is being convulsed by for and against the rule of President Mohamed Mursi on the one-year anniversary of his accession. Beneath the political turmoil and questions of legitimacy lie profound economic challenges that must be met by whoever governs Egypt.

The nation’s hopes for “bread, freedom and social justice” are being overwhelmed by the slow pace of economic change. Instead of undertaking reforms, Egypt has been relying on its wealthy neighbors for unconditional cash injections so that it can import food and fuel. Qatar’s recent infusion of $3 billion may provide temporary relief, but the unpredictability of such measures -- which include Saudi Arabia’s promise last week of a $500 million -- scares investors and postpones the inevitable fiscal consolidation that Egypt needs to stabilize its economy.