Egypt is one of the most powerful nations in the Arab world and a country rich in history. It plays a pivotal role in Middle East politics, but Egypt faces a host of political and economic challenges within its own borders. Key issues include a lack of competition for the ruling party, charges of corruption and repressive rule, weak public infrastructure, poverty and threats to its economic growth.
Ruling Party
The National Democratic Party (NDP), the dominant force in Egyptian politics, has little serious electoral competition. Its strongest opponent is the Muslim Brotherhood, officially banned by the government, which considers it a terrorist organization.
Political Repression
The NDP has little support from the Egyptian public, which has few electoral choices because of weak opposition parties. Critics also accuse the government of human rights violations, especially repression of political and religious dissidents.
Crumbling Infrastructure
The Financial Times newspaper reported in late 2008 that Egypt's public infrastructure--including schools, hospitals and public transportation system--was in poor condition.
Inflation
The Financial Times also reported a 25 percent spike in inflation in Egypt, straining family budgets in a nation in which 40 percent of the population is considered poor.
Economic Challenges
Egypt's economy relies heavily on tourism and trade. A global economic slowdown could mean fewer tourists flocking to Egypt's famous historical sites. Meanwhile, Somali piracy in the Indian Ocean threatens shipping traffic in the Suez Canal.
