Strategic Setback: From Military Economy to War Economy

By Dr. Nagy Abdul Rahim November 11, 2024 1835

In the heart of the East, it swings like a pendulum, uncertain and lacking a clear direction since 2013, as if it has lost the compass of resilience it once carried for many years. It once served as a model of leadership in past eras, planting roots of hope in its surroundings and spreading a spirit of cooperation and solidarity. However, these values have eroded, quickly dissipating like dust in the winds that stripped the nation of its resources, which are now sold off like commodities in passing markets, where interests are managed by foreign hands that see only an opportunity for further gains.

Strategic Impact on Regional Influence

This country has long been an undeniable regional power, playing a pivotal role in stabilizing neighboring regions. Yet, its role has receded, leaving a dangerous vacuum that other forces have moved to fill, imposing their own agendas.

In Palestine, the people face a tragic deterioration as Egypt’s role diminishes, with the number of martyrs in Gaza alone reaching around 43,600, and over 6,250 reported missing. Injuries have exceeded 1.9 million, with the majority suffering from permanent disabilities. The crisis extends to the displacement of more than 400,000 within the Gaza Strip, amid the absence of any serious efforts to lift the siege or improve humanitarian conditions.

In Lebanon, the suffering of the people has doubled due to escalating internal and external crises. Since the intensification of the crisis, 2,464 lives have been lost, with more than 11,530 injured. The situation has also led to internal displacement of about 809,000 people, the destruction of over 100 schools, and five hospitals, further exacerbating education and healthcare crises. The humanitarian situation thus lurches under the weight of Arab and international neglect, as the gap between the people’s needs and the state’s capacity to meet them widens. Meanwhile, Egypt withdraws from the scene, passively observing and leaving space for other powers to fill the void with their own interests.

Economic Dependence and the Consequences of Selling Strategic Assets

As Egypt's foreign debt surpasses $165 billion, it has resorted to selling its vital assets, seemingly grasping for one last sliver of hope. Yet, this path only chains national decisions with dependency, placing sovereignty on the line. Foreign investments, instead of revitalizing the economy, become a noose around the state’s neck, slowly eroding its independence. Each new investment deepens this dependence, rendering the state hostage to the will of outsiders, who manipulate decision-making as they please.

Security and Sovereignty Risks in Privatization and Sale of Strategic Assets

Privatizing strategic assets is akin to handing over the keys of the homeland to those unfamiliar with its heart. Selling airports and ports to foreign entities sacrifices national security on the altar of financial hardship. How can a country ensure its sovereignty when it has surrendered its vital borders to foreign hands? Airports and ports are more than mere transit points for people and goods—they are the arteries of the homeland, pulsating with its sovereignty and independence. When these arteries are managed by foreign parties, sovereignty faces an imminent threat, and national decisions become mere responses to external pressures. These entities, in turn, tighten their grip on the economy, undermining the state’s independence.

Impacts of Strategic Downfall and Economic Setback on Social Cohesion

The rising inflation rate, which reached 26% in 2024, is yet another face of the citizen’s suffering. Prices of essential goods have soared, the value of the pound has eroded, and purchasing power has crumbled, making daily life a growing burden. This fragile economic state not only affects the average citizen but also weakens social cohesion, threatening a wave of discontent and anger that could spark new upheavals. The public remains filled with questions: Where are the signs of economic independence? How can the nation rise when pressures only increase daily, with dreams of development shattered by walls of debt?

Balancing National Security and Sustainable Social Growth

Amid severe economic decline and a shift towards a "war economy," Egypt faces a critical dilemma: How can it maintain national security while sustaining social growth? A war economy, primarily reliant on military spending, diverts resources from essential sectors that ensure citizen welfare, such as education and healthcare. As the military economy expands, social division deepens, with the average citizen watching the state prioritize military armament over securing basic necessities. The pressing question remains: How can Egypt strike a balance that keeps it on the path of development without becoming a tool of the military economy?

On the Threshold of a “War Economy,” the Citizen Suffers and the People Are Forgotten

Today, Egypt stands on the brink of a regressive economic model, one that transforms it into a vehicle for defense and conflict at the expense of the sectors that uphold citizen welfare. As financial constraints tighten, the nation's economy is bound, leaving the citizen caught between a rock and a hard place, struggling with rising living costs and increasing burdens. Meanwhile, the country’s military leadership takes a path that does not place citizen welfare as a priority, investing in massive projects that exceed the state’s capabilities, at a time when the people need urgent support for their basic needs.

At the end of this long tunnel, one question remains suspended in the air: Will Egypt recover from its strategic setback? Will the people finally witness the light of economic justice after such a long wait, or will the nation remain mired in a swamp of dependency, burdened by a military economy that quietly crushes the dreams of generations and the nation?

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