There could be extreme water scarcity in Egypt this decade

Despite being home to the river Nile, Egypt could face extreme water scarcity in the next decade according to a report by MIT.

The report concluded that Egypt will need to import more water than is currently supplied by the Nile due to the pressures of economic growth and an increasing population.

With the Egyptian economy growing rapidly since the 1970s, the burden on scarce resources such as water has increased dramatically. Economic growth has led to the development and creation of a whole host of new industries and economic activity. In particular, the Egyptian government has worked hard to improve the country’s agricultural sector.

Economic development in the extremely arid African nation has significantly increased prosperity but also given rise to a fundamental economic problem. That is indeed the basic economic problem itself: that the world has finite resources but humans have infinite wants.

THINK LIKE AN ECONOMIST!

Q1: What is the basic economic problem?

Q2. Explain why increased economic activity will lead to more prosperity.

Q3. Explain why increased economic activity will also lead to the scarcity of resources. (Give some examples in your answer)

Q4. What are the possible economic and political impacts of the scarcity of resources?

Click here for the source article

TheCuriousEconomist

Recent Posts

Coffee Prices Hit Record Highs as Supply Struggles to Meet Global Demand

Coffee drinkers, brace yourselves: the price of your daily cup is set to rise as…

1 week ago

France Targets the Wealthy with New Tax Hikes to Tackle Deficit

In a bid to save €60 billion in 2025, the French government has unveiled a…

1 month ago

China’s Exports Surge as Global Demand Remains Strong, But Trade Tensions Loom

China’s exports surged by 12.7% in October, marking the fastest growth in over two years…

1 month ago

VW Boosts Rivian Joint Venture with an extra $5.8 Billion

Volkswagen Group is betting big on its electric future with Rivian. The automaker has raised…

1 month ago

American Brands are Feeling the Squeeze as Sales Drop in China

U.S. consumer giants are finding China a challenging market as slowing consumer spending and strong…

2 months ago

Russia Slaps Google with an Unpayable Fine for Blocking State Media

In one of the largest fines ever imposed on a company, a Russian court has…

2 months ago