The International Monetary Fund (IMF)'s proposed $4.8 billion loan will not be enough for Egypt to overcome its post-revolution economic dilemmas, David Malone, president of Canada’s International Development Research Centre (IDRC), said in Cairo on Sunday.
Malone, a renowned development scholar, said that a "western tailored" development model was "not what Egypt needed at the moment," stressing that international borrowing – although badly needed – was not necessarily the solution to Egypt's chronic economic woes.
"Only Egyptians," Malone said, would be able to formulate a development plan compatible with Egyptian social dynamics and the country’s economic potential.
"International institutions cannot be a substitute for internal decision-making,” said the IDRC head, adding that development formulas dictated by the IMF and other international bodies had repeatedly failed in developing countries, such as Argentina and India.
A series of austerity measures is expected to accompany the loan deal, including across-the-board subsidy cuts aimed at reducing Egypt's ever-widening budget deficit. (Ahram Online)