Now the New York Times today scrambling to hide this by boasting of its intimate wisdom of democracy:
But the Fund had the posture of rejection, not the Brotherhood (May 17th, 2012):Mr. Morsi and his party, the Muslim Brotherhood, initially adopted the self-defeating posture of rejecting outside assistance. Since his election in June, however, Mr. Morsi has become much more pragmatic as he confronted the real challenges of governing.
I'll take a question, if I may, "The Egyptian finance minister has said that Egypt will sign an agreement with the IMF on a loan to Egypt by the beginning of next month." He referred to some discussion between the IMF and the Egyptian government to get the first phase of the loan within two weeks.In fact, according to the Times' own reporting, it was the military who "rejected" the offer, but only on the terms that the government actually address public needs (links are theirs):
Let me describe where things stand on Egypt.
We have no fixed timeline for an agreement on a standby arrangement with Egypt. We stand ready to support a home-grown program that maintains macro stability and promotes inclusive growth, and enjoys -- and here's the key point -- the necessary broad political support, and includes adequate external financing from Egypt's international partners. And so we look forward to advancing the discussion, with a view to consideration by the Executive Board, once those elements are in place.
So, as I said, no firm timeline on Egypt.
Egypt’s military rulers are now realizing how big a threat the collapsing economy is — and they clearly don’t want to be blamed. In May, they rejected a $3.2 billion loan from theInternational Monetary Fund, saying it would infringe on Egypt’s sovereignty. They wanted the money, but with no strings attached — no mandatory reforms or austerity measures, like cutting food and fuel subsidies. Now desperate, they resurrected the loan request this week and welcomed an I.M.F. delegation to discuss possible components of an economic program. The I.M.F. probably won’t make a decision on that request until March.
The fund’s officials say that they do not intend to impose conditions on the loan. But even without conditions, Egypt must make reforms if it wants to spur private business ventures, foreign investment and growth. Such measures can never be sustained without public support.