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Cuts in US aid to Egypt could affect economy

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Washington last week announced it was freezing portions of aid to Egypt until it sees progress towards fair elections. Critics say it is poor timing for the US to turn its back on an important ally in the region for the past three decades. Violent clashes between the Egyptian authorities and Muslim Brotherhood supporters continue following the overthrow of President Mohamed Morsi in July. Meanwhile, the move is seen as too timid by those in Washington pressing for greater punitive steps against the Egyptian regime. RFI spoke to economist Angus Blair, the head of the Signet Institute in Cairo, who explains how freezing US aid would harm Egypt's economy.Β 

Egypt's Foreign Minister Nabil Fahmy attends a meeting with US Secretary of State John Kerry in New York, 22 September, 2013
Egypt's Foreign Minister Nabil Fahmy attends a meeting with US Secretary of State John Kerry in New York, 22 September, 2013 Reuters/Eduardo Munoz
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