Mr. Morsi et al.

History is replete with liberators becoming dictators - Simon Bolivar in 19th century Latin America, Gamal Nasser six decades ago in Egypt, Fidel Castro as the new year opened in 1959 in Cuba - to name a very few. And it appears that this tradition is unfolding once again in Egypt.

Egyptian President Morsi, narrowly elected last June as the Freedom and Justice Party's (read Muslim Brotherhood's) candidate in the presidential election, secured victory by promises of radical improvements in government services and, more sweepingly, by the immediate introduction of the al-Nahda, or "Renaissance Project", to finally lift the country onto a sustainable path of growth, development and social justice. It all seemed to fit perfectly with the aspirations of the Arab Spring, the broadly-based revolution in 2011 that toppled Hosni Mubarak, and six decades of military-backed Egyptian dictatorships.

Reality, however, has already jumped to the forefront. Economic growth is in free-fall, with tourism, exports, foreign-currency reserves, and private foreign investment inflows sinking. A $4.8 billion bail-out loan from the IMF appears imminent (there is preliminary agreement, pending final approval by the IMF Board in December), but will require severe austerity measures to bring the government budget deficit down, from its current level equivalent to nearly 11% of GDP, to the IMF's target of 8.5% by 2014. Even if this target is reached, deficits of this magnitude are hardly sustainable; restrained public spending together with higher taxation will be a feature for years to come.

And if such economic challenge is not enough, President Morsi, perhaps buoyed by his successful mediation this past week of a ceasefire between Israel and Gaza, decided to once again stir the always volatile Egyptian political pot. On November 22, he issued a seven-point decree granting himself sweeping new powers, including "temporary" executive power over the judiciary, asserting "the immunity of all presidential decrees from challenge by any other authority" until a new Constitution is introduced. Reaction has been instant, with mass protests in Cairo's Tahrir Square, and throughout the rest of the country and the world. There is word today that ensuing political instability could delay the IMF loan.

To conclude his "decree" address, Morsi stated that "the President may take the necessary actions and measures to protect the country and the goals of the revolution". Talk about historical tradition......