Egypt fell to the center of the 100 in the world in the Index of Economic Freedom for 2012, issued by the U.S. Heritage Foundation and Wall Street Journal, compared to its position during the previous year against the backdrop of political unrest and lawlessness caused by the outbreak of the Egyptian revolution.
He considered the report of the American establishment that the Arab spring «prosperity was not reflected on the economic freedoms», pointing out that the levels of economic freedom has declined in many countries in the region last year, declining to assess the region to 59.9 points.
Egypt, fell back after the index showed a measure of the deterioration of economic conditions, where I got 9.57 degrees versus 5.59 degrees during the previous year. The Index of Economic Freedom consists of ten sub-indices that measure economic freedom in various areas ranging evaluation and between zero and 100 degrees, which represents the highest rating for economic freedom.
The report attributed the decline in Egypt’s index of economic freedoms to the low status of intellectual property rights by about 5 points up to 35.1 points, to the instability of the situation of the judiciary during the last period, resulting in a lack of independence of the judicial system in Egypt, as a result of subjugation to political pressure, in addition to the judicial proceedings become time consuming for a decision, which led to no decision be taken on the issues of intellectual property rights.
He explained that the widening deficit of Egypt about 8% of GDP and public debt rising to 70% of the gross domestic product, caused the reduction of Egypt in the evaluation index of government spending by about 2.1 points, up to 1.46 degrees.
The government of Kamal al-announced during the last period for the plan austerity aims which raise about 83 billion during the current fiscal year, from the austerity measures and the collection of back taxes, and measures are designed to meet the large deficit in the state budget is expected to reach 106 billion pounds, no 6.8% of GDP.