The influence of the international monetary fund (IMF) on economic liberalization development in Egypt: A geopolitical and economic analysis (2011-2018)
DOI:
https://doi.org/10.61511/emagrap.v2i2.2025.1505Keywords:
economy, Egypt, IMF, liberalizationAbstract
Background: International Monetary Fund (IMF) as an international financial institution implements a liberalism policy for countries that need loan funds. In 2016 after lengthy negotiations and numerous rejections from the public, the Egyptian Government finally made an agreement with the IMF. This agreement is the first agreement after the revolution in Egypt in 2011, which was also assessed as a result of implementing IMF policies. Egyptian society feels that the policies set by the IMF did not bring prosperity evenly. The influence of the IMF on the implementation of economic liberalization policies then becomes an interesting thing to study. Methods: This study aims to analyze the background and influence of the IMF on the development of economic liberalization in Egypt and explain how Egypt implements the policies set by the IMF. This research is a qualitative research with a descriptive analytical approach. Findings: The theory that will be used in this research is the institutional neoliberal theory developed by Robert Owen Keohane and elaborated with the concept of interdependence. Conclusion: This research concludes that the negotiation agreement between the IMF and Egypt in 2016 is because the Egyptian economy is in a state of decline. And the program agreement that was agreed with the IMF as an international organization had an influence on Egypt both in monetary, fiscal and structural terms. Novelty/Originality of this article: This study reveals that Egypt's IMF-backed reforms stabilized the economy but primarily benefited the elite, while the poor faced harsher conditions. Despite these negative social impacts, Egypt continued the reforms due to its interdependence with the IMF.
References
Abboud, A., & Betz, M. R. (2021). The local economic impacts of the oil and gas industry: Boom, bust, and resilience to shocks. Energy Economics, 99, 105285. https://doi.org/10.1016/j.eneco.2021.105285
Al-Riffai, P., Blohmke, J., Breisinger, C., & Wiebelt, M. (2015). Harnessing the Sun and Wind for Economic Development? An Economy-Wide Assessment for Egypt. Sustainability, 7(6), 7714-7740. https://doi.org/10.3390/su7067714
Barakat, Z., & Fakih, A. (2021). Determinants of the Arab Spring Protests in Tunisia, Egypt, and Libya: What Have We Learned? Social Sciences, 10(8), 282. https://doi.org/10.3390/socsci10080282
Breisinger, C., Mukashov, A., Raouf, M., & Wiebelt, M. (2019). Energy subsidy reform for growth and equity in Egypt: The approach matters. Energy Policy, 129, 661-671. https://doi.org/10.1016/j.enpol.2019.02.059
CBE. (2019). Official exchange rates. https://www.cbe.org.eg/en/economic-research/statistics/exchange-rates/historical-data
Egypt’s economic crisis challenges El-Sisi. (2014). Strategic Comments, 20(5), iv–v. https://doi.org/10.1080/13567888.2014.955281
Egypttoday. (2019). Public, private investments contribute to Egypt’s growth by 45%. https://economy-finance.ec.europa.eu/document/download/f6caf66f-8ec3-4724-888d-edaa19c46c08_en?filename=eb066_en.pdf
El Shaarawy, B., Abdel-Latif, M. M., & Salheen, M. A. (2024). Understanding the implications of successive waves of currency devaluation and associated government reforms for real estate market. HBRC Journal, 20(1), 275–299. https://doi.org/10.1080/16874048.2024.2310457
el-Badrawi, M., & Corkery, A. (2017). Egypt's new deal comes with a huge price tag for human rights. Brettonwoods Project. https://www.cesr.org/sites/default/files/2021/At-Issue-Egypts-new-IMF-deal-comes-with-a-huge-price-tag-for-human-rights.pdf
Fischer, A. M., & Storm, S. (2023). The return of debt crisis in developing countries: Shifting or maintaining dominant development paradigms? Development and Change. https://doi.org/10.1111/dech.12800
Hamdy, O. (2025). Effect of Fiscal Policy on Economic Growth Sustainability in Egypt. International Journal of Economics and Financial Issues, 15(2), 387–396. https://doi.org/10.32479/ijefi.18094
Harrigan, J. (2014). Causes of the global food crisis and its impact on the Arab world. In The political economy of Arab food sovereignty (pp. 64-80). Palgrave Macmillan. https://doi.org/10.1057/9781137339386_4
Hecan, M. (2016). Comparative political economy of the IMF arrangements after the Arab uprisings: Egypt and Tunisia. The Journal of North African Studies, 21(5), 765-793. https://doi.org/10.1080/13629387.2016.1195268
IRENA. (2018). Renewable energy agency outlook. International Renewable Energy Agency. https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2018/Apr/IRENA_Report_GET_2018.pdf
Joya, A. (2016). Neoliberalism, the state and economic policy outcomes in the post-Arab uprisings: The case of Egypt. Mediterranean Politics, 339-361. https://doi.org/10.1080/13629395.2016.1219182
Kassab, B. (2019a). Have the IMF’s promises to Egyptians come true? https://madamasr.com/en/2019/08/14/feature/economy/have-the-imfs- promises-to-egyptians-come-true/
Kassab, B. (2019b). Do not rest assured: People in need are still not getting their food subsidies. https://madamasr.com/en/2019/10/03/feature/economy/do-not-rest- assured-people-in-need-are-still-not-getting-their-food-subsidies/
Koussa, Z. (2023). Revolution, change, and democratic transition in Egypt since 2011: A critical political economy approach. Contemporary Review of the Middle East, 10(2), 165-187. https://doi.org/10.1177/23477989231154359
Miles, M. B., Huberman, A. M., & Saldana, J. (2014). Qualitative data analysis: A Methods Sourcebook. California: SAGE Publications.
Momani, B. (2018). Egypt’s IMF Program: Assessing the political economy challenges. Brookings Doha Center Publications. https://www.brookings.edu/wp-content/uploads/2018/01/imf_egypt_momani.pdf
Piazza, B. A. (2018). The foreign policy of post-Mubarak Egypt and the strengthening of relations with Saudi Arabia: balancing between economic vulnerability and regional and regime security. The Journal of North African Studies, 24(3), 401–425. https://doi.org/10.1080/13629387.2018.1454650
Puspitasari, S. (2017). Arab Spring: A case study of the Egyptian revolution 2011. Andalas Journal of International Studies, 6(2), 159-176. https://doi.org/10.25077/ajis.6.2.159-176.2017
Rudolf, R., Wang, S., & Wu, F. (2023). The Arab Spring, a setback for gender equality? Evidence from the Gallup World Poll. Journal of Asian Economics, 84, 101578. https://doi.org/10.1016/j.asieco.2022.101578
Sharaf, M. F. (2021). The asymmetric and threshold impact of external debt on economic growth: New evidence from Egypt. Journal of Business and Socio-economic Development, 2(1). https://doi.org/10.2635/jbsed.2021.02.01
Trading Economics. (2019). Egypt total external debt. https://tradingeconomics.com/egypt/external-debt
Unel, B., & Upton, G. B. Jr. (2023). Oil & gas induced economic fluctuations and self-employment. Labour Economics, 82, 102362. https://doi.org/10.1016/j.labeco.2023.102362
Usman, H., & Akbar, P. S. (2003). Metodologi penelitian sosial. Bumi Aksara.
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2025 Rikh Rezza Saudia
This work is licensed under a Creative Commons Attribution 4.0 International License.
