External factors threatening the national economy The fact that Egyptian
agriculture fails to supply the food requirements of the country’s population
would have no serious economic consequences if the deficits were balanced
by a respective growth in other economic sectors, leading to equivalent
exports. But the total growth rate of the Egyptian economy has shown a
steep decline since the 1980s (see Figure 1.1). While official sources boast
of the achievements made in the areas of land reclamation and industrial
development, many people see a steady deterioration in the overall economy
taking place. All economic sectors suffered considerably after the withdrawal
of the financial aid from oil-rich Arab countries after the 1979 Camp David
Agreement with Israel, but structural problems also ensued after the social-
ist regime came to an end, when economic liberalization measures were
introduced and the Structural Adjustment Programmes of the World Bank
were implemented. All these external factors coming into effect within only
three decades changed the framework of Egypt’s macroeconomic conditions
decisively, making consistent planning of the country’s economy impossible
for the Egyptian government.