Politics & Economics: Blasts Muddle Cairo's Mission; Egypt Terrorism Takes Economic Toll, Complicates Liberalization
THE BOMBING of another popular Egyptian beach resort on Monday could further set back Cairo's attempts to liberalize its political, economic and legal systems, and adds a potential complication to U.S. efforts to spread democracy through the region.</br></br>The attacks at the Dahab resort on the Sinai Peninsula -- which officials yesterday afternoon said killed at least 24 people -- promise to buffet Egypt's economy at a time when President Hosni Mubarak has been pursuing aggressive economic changes as a way to reduce unemployment and strengthen his party's flagging popularity. Mr. Mubarak's hope has been that greater prosperity would blunt the appeal of Islamic fundamentalists and give him room to expand the democratic process without threatening the government's secular foundation.</br></br>Instead, what has emerged is a violent and sustained campaign by radical Islamists to destabilize Mr. Mubarak's government -- and a flourishing of support among many ordinary Egyptians who back the Islamists' goal of a religious state, if not their methods. Already, that mix prompted Mr. Mubarak to recently suspend a round of local elections and delay easing Egypt's draconian security laws. Now, in the wake of the Dahab attacks, there is concern that these and other overhauls could be pushed back further and possibly suspended altogether.</br></br>"It's happened once again -- we take a few steps forward and then many leaps back," says Ibrahim Hassan, an Egyptian lawyer who has been active in pressing the government for greater judicial reforms.</br></br>How Mr. Mubarak, 77 years old, proceeds has enormous implications for the U.S. and its goal of pacifying the Middle East through democracy. Cairo has long supported the U.S. on a range of big regional issues and is one of only two Arab countries -- Jordan is the other -- that has made peace with Israel. Egypt also is the recipient of some $2 billion of U.S. aid a year, second only to Israel in U.S. foreign-aid disbursements.