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Population and development in Egypt. Part 2. New hopes for old problems.


 Egypt is faced with many economic difficultires, e.g., acutely limited land and water resources already stretched to their limits, an increasing dependence on imported food and raw materials, and a large and rapidly growing population which makes ever greater demands on all available resources. For many years, Egypt focussed, understandably but obsessively, on political matters. Only in 1978, with a peace initiative with Israel ongoing, could Egypt concentrate on economic possibilities. The positive economic element that entered the scene at that time was the 1st balance of payments surplus in recent Egyptian history, due to growing tourism, increased oil earnings, resumed revenues from Suez Canal traffic, and high remittances from Egyptians working abroad. There is no guarantee that any or all of these favorable factors will continue. Agriculture in Egypt is inefficient. There are steady pressures of population on the land, sluggishness in land reclamation programs, and a continual loss of cultivated land to industry and urbanization. Water creation projects have not achieved their goals. The increase in agricultural production in 1980 was estimated at 2.7%, but the increase in population in the same year was 2.9%. It is with population growth that Egypt must meet the challenge.
