As Egypt charts a path to democracy, it confronts the legacy of 60 years of dictatorship. President Morsi faces an ongoing power struggle with state institutions, including the judiciary, that are resistant to change. Furthermore, the opposition is unwilling to play by the rules of the democratic game and is primarily focused on undermining the government through street protests rather than the ballot box. If Morsi can navigate through these political challenges, Egypt can emerge from the present economic downturn and move towards a potentially dynamic political and economic trajectory.