Economic Freedom

            The liberty principle for this Freedom Friday is the simple fact that any nation can increase their economic freedom by obedience to the applicable rules. The latest example is Egypt, a nation that faced “economic stress and political turmoil” for years.

            According to Christine Lagarde,managing director of the International Monetary Fund, “Egypt is at a turning point in its economic structure and is signaling to investors it is serious about comprehensively reforming its economic system.” 

            There are some solid ways that Egypt has improved its economic system. The Heritage Foundation’s 2018 Index of Economic Freedom shows that Egypt’s general economic freedom increased because it made “improvements in financial freedom, investment freedom and, and business freedom.”

            An article written by Anthony B. Kim and Patrick Tyrrell at The Daily Signal says that Egypt made some impressive improvements in order to increase its economic freedom. 

Reform of fuel and electricity subsidies has been a notable achievement, and market forces now determine the exchange rate. A recently enacted investment law aims to reduce bureaucracy and promote greater foreign investment. And, earlier this year, Egypt’s parliament passed the country’s fir bankruptcy law, which should help viable companies return to business success more quickly.

            The article states that the “reforms are paying off.” It also says that tourism is “rebounding” with “hotel occupancy rates at their highest since 2010.”

            Why should the economy in Egypt be of interest to Americans? The authors quote Jim Phillips of The Heritage Foundation as saying: “Egypt is a heavyweight Arab power that can serve as an effective partner in advancing regional efforts to fight terrorism, contain Iran, and stabilize the explosive Middle East.”

            I believe that any intelligent person will recognize that Phillips gives three very good reasons why Americans should rejoice at the improving economic freedom in Egypt. The economic situation for Americans has improved under the policies of President Donald Trump. We should gratefully acknowledge the efforts of Egypt to do the same for her people.