The Ethiopian Renaissance Dam and its economic impacts on Egypt

This paper aims to discuss the economic impacts of construction the Ethiopian Renaissance Dam (GERD) on Egypt, by clarifying the nature of the water crisis between the Nile Basin countries, particularly the Nile River water problem between Egypt and Ethiopia.It then identifies the most important economic and legal determinants of the water conflict and dispute between Egypt and the Nile Basin countries, as well as identifying the roles played by Israel, the United States, and the World Bank in the water conflict and dispute between Egypt and the Nile Basin countries.Furthermore, it determines whether this crisis is economic, political or technical?It explains the scenarios and mechanisms for dealing with this crisis in the future to avoid the negatively attributed impacts of the Renaissance Dam on Egypt's annual water share.This paper assumes that the Ethiopian Renaissance Dam construction will reduce Egypt's annual water share, which will have negative impacts on the agricultural, electricity, energy, and other sectors, as well as increasing unemployment in Egypt and negative effects on the country's public budget in the event of resorting to alternative sources such as desalination.To achieve the objectives of this paper, descriptive analysis and the prospective approach has been used.The findings showed that the World Bank's proposal to introduce new concepts such as privatization, water pricing, water exchange, and water markets, which may lead to water conflict and disputes in the Nile Basin countries, because the United States' dominance and other developed countries over the World Bank's policies and approaches.In addition, there is no collective agreement that brings together all countries located in the Nile Basin concerning the regulations and exploitation of water in the Nile River, and there is no international law regulating it.This leads to the continuation and increases of water conflict and disputes between Egypt and the Nile Basin countries.This paper recommends the continuation of diplomatic negotiations to find a formula for consensus between the parties with the aim of achieving joint cooperation between Egypt and the Nile Basin countries to achieve water security.