This is the detailed PESTLE/PESTLE Analysis of Egypt which discusses the external factors impacting the country ; Political, Economical, Social, Technological, Environmental and Legal.

Introduction

Egypt is one of the most ancient countries in the world. The rulers of Egypt are famous for their unique and cruel traditions like in order to avoid mosquito sting they would move with naked slaves whose bodies were covered with honey. Both men and women used to wear makeup in ancient Egyptian culture and pharaohs used to cover their head all the time. When the king would die and has to be buried according to Egyptian culture, the slaves and wives would have to be buried along the dead body, alive!! The Egyptian queen Cleopatra which is so famous for her beauty was actually Greek. Egypt holds one of the Seven Wonders of the World; pyramids, which are a mystery till date as to how were they created in the age when cranes and heavy lifting machines were not invented.

Political Factors

Political instability and turmoil has plagued the roots of the country since long. Military rule is the major decision making force in the country and it has not allowed democracy to flourish. In 2011-2012 elections, for the first time democratic parties took part and it seemed as if Egypt has at last gained democratic vision and learnt from the past mistakes, but unfortunately the government couldn’t survive even a year and was dismissed and taken over by military coup. Since then, military, judiciary and political parties are struggling to gain control of power. This has fueled ethnic, secular and religious conflicts among Egyptians. Internationally Egypt and Ethiopia are in constant debate over the dam issue on River Nile, due to its heavy dependence on river water, international council has given veto power to Egypt to approve or disapprove any projects on this river and other countries who share the water source with Egypt are unhappy over this decision. Ethiopia wanted to construct dam on Nile in order to meet its needs of energy and export it to its neighbors too but Egypt is using its veto power against this project which has lead to conflicts among the two countries.  (Manfreda, 2014)

Economic Factors

Egypt’s economic condition is considerably better since July 2014 presidential elections but economy is still bleak due to a number of facts like high inflation rate of 10%, increasing unemployment rate from 10% to 13% (2010-2013), high debt servicing and debt to GDP ratio as high as 97%. Despite all these factors there are positive hopes regarding economy and faith of business community have been restored through reforms and expansion of Suez Canal. Since 2011 the economy had suffered as due to political instability tourism and foreign investment declined. Rising inflation increased class differences and made it difficult for poor to survive. Egyptian currency devalued against dollar which made imports even more expensive. There were oil shortages in the country due to lack of governmental support on providing subsidies on imported essentials. (Kingsley, 2013)

Social Factors

Unemployment rate is increasing and as a consequence the crime rate in Egypt has increased three times. The protests against government turns nasty at times where women get sexually harassed by men and thus a very unsafe society has formed there where women could no longer move about freely, alone. Women have to move around under protection especially in crowded areas where men would circle a single woman and assault her both physically and sexually.   Power shortage has hampered productivity of all fields of life, industries couldn’t fulfill their orders on time as a result of which they lost customers to more efficient foreign markets, equipment in hospitals malfunctioned due to frequent break downs. Fuel shortage leads to long lines of citizens waiting for their turn to get small quantity of oil just enough to run their vehicles.

Technological Factors

Ancient Egypt was technologically advanced; their pottery was sold all over the world. They invented small machineries which would carry out the construction work for them. They progressed in the fields of medicine, astronomy and mathematics. Egyptians used to write and keep records of events happening at that time and that is how we know about their culture. Their method of storing accounts of life was unique; stone carving, paintings etc. Egyptians invented paper and they used papyrus plant as a source. For trade and navigation purposes they created ships that would move through winds. Unfortunately all the glory and achievements is past now and modern day Egypt, due to lack of dedicated and honest leadership, is contributing nothing towards development of science and technology.

Environmental Factors

Major water source of Egypt is River Nile which is being polluted by industrial dumping. After the construction of Aswan Dam the flow of river water is reduced and farmers are forced to use chemical fertilizers in order to compensate for all the fertile silt and soil that was deposited by the river water. More importantly the storage of polluted water means high concentration of pollutants as a result of which marine life is in constant danger. Due to urbanization and heavy wind storms the agricultural lands have been reduced and thus a decreasing trend on agricultural produce.

Law/Legal Factors

Law and order situation in Egypt is never stable as it’s a constant tug of war between military rule and democracy, in 2011 protests and unrest lead to end of 30-year old tyranny of Hosni Mubarak and hence parliamentary elections were conducted but law and order situation again got out of hand when new elected President Mohamed Morsi was also dismissed by military coup followed by protests and showcase of displeasure by followers of Morsi. The ruling President has taken actions towards eradicating Islamic extremists from Egypt, many doubtful and unregistered mosques have been shut down and preachers have been arrested which clearly shows where this religious revolution is heading. Many religious scholars and critiques have blamed him for having and supporting the anti Islamic agenda which has been borrowed from the west. Therefore the unrest and politically instability continues.

Bibliography

Kingsley, P. (2013, May 16). Egypt ‘suffering worst economic crisis since 1930s’. Retrieved January 18, 2016, from The Guardian: http://www.theguardian.com/world/2013/may/16/egypt-worst-economic-crisis-1930s

Manfreda, P. (2014, November 25). Current Situation in Egypt. Retrieved January 18, 2016, from About News: http://middleeast.about.com/od/egypt/tp/Current-Situation-In-Egypt.htm

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