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Integrating Equal Opportunity
     Principle in Budgets - Egypt
Subsidies’ Reform and Social Protection to Promote Equity
                      Ragaa Mansour
          General Director, Equal Opportunity Unit

 Workshop on: 'Enhance Equity for the New Generations in the
                Middle East and North Africa‘
              Rabat, Morocco – 22-23 May 2012
In 2001, the Ministry of Finance approved the establishment of
“Gender Unit” to link between the National Council for Woman
(NCW) and the Ministry of Finance, aiming at promoting equality
for marginalized groups, providing opportunities for participation
in public life, eliminating all forms of discrimination, giving big
momentum for efforts exerted to advance rights of women and
children, and opening opportunities for human resources
development, in addition to other constitutional rights to achieve
complete equity.
Objectives of Equal Opportunity Unit


 •   Promote and integrate budgets responding to needs of both
     women and men in the national plan and budget to achieve social
     justice for marginalized groups.
 •   Enhance cooperation and networking amongst the different
     sectors in MoF and between MoF and other line ministries.
 •   Develop staff professional and personal skills and advance spirit of
     belonging, which has its positive influence on staff performance as
     well as achieving MoF goals to reach equal opportunities.
Joint Initiatives with UNWOMEN


Extending partnership with UNWOMEN to achieve the Unit goal to
support developing gender-responding budgets and raising the
ministry staff awareness of gender issues, how to plan for it, and
organizing specialized workshops in the field of:
•Strategic planning responding to man and woman needs and how to
monitor and evaluate it.
•Budgeting for gender-based programs and performance to positively
impact the improving of children status.
•The importance of considering children in state plans and budgets.
   Indeed, “Equal Opportunity” project was implemented since 2006,
    Starting to identify what are the needs of women, men and children up
    to the implementation of gender responsive budgets, which required the
    application of programs and performance budgets, undergoing
    legislative and legal reforms; significantly required to promote social
    justice and fulfill children rights.
   Then, we moved ahead from theory to practice, which necessitates the
    commitment of different entities to apply modern and automated
    information systems and developing programme and performance
    budgets in compliance with the law of the State budget.
Objectives of “Equal Opportunities”
Project


•Achieve justice and equity for woman through integrating gender-based budgeting,
that would eventually contribute to the fulfillment of children rights.
•Support  efforts of Ministries and Government organizations to bridge the gender
gaps, combating discrimination against women and children, and improving the
efficiency of public expenditures.
•Supportgovernment efforts to alleviate poverty and achieve the Millennium
Development Goals.
•Supportthe Ministry of Finance in applying modern methods in budget development
through applying gender-based programs and performance measurement budgets
and promoting transparency.
Project Key Stakeholders


       •   Ministry of Finance – National Council for Woman.
  •   Ministry of Economic Development – Central Agency for
               Public Mobilization and Statistics – Parliament.
                •    Media – Academics and Research Centers.
                   •  Civil Society and Women Organizations.
                 •   Netherland Royal Embassy – UNWOMEN.
Target Groups



                        •    Ministries and policy makers.
  •   Ministry of Finance staff responsible for developing,
              implementing, and monitoring State Budget.
Legislative Changes
Budgeting for Women’s Rights




                               10
Social Justice in   Housewife sets the   Ministry of Finance and
 State Budget         State Budget         equal opportunity
                                                                   11
Lessons Learnt



  • Participatory approach to develop gender-based budgets’
                                                         manual.
 • Political support of Minister of Finance, Directors of Budget
                           Departments, UNWOMEN, and NCW.
     • Coordination between Ministry of Finance and Central
          Agency for Public General Mobilization and Statistics.
Sustainability


• Restructuring of Equal Opportunity Unit in the Ministry of
  Finance.
• Qualified Staff to develop equity-based budgets.
• On-the-job training.
What about Child-based Plans and
Budgets?


 •Considering child rights?

 •Adopting the concept and practice of “equal opportunities”
 for children?
 •Social protection to fulfill rights for all children?
Government Budget 2011/2012
Government Social Expenditure
                                                                              Social protection
                                                                              expenditure is at around
                                                                              9% of GDP, and actually
                                                                              was planned to grow
                                                                              between 2010-11 and
                                                                              2011-12


                                                                              Social protection is by far
                                                                              the largest component of
                                                                              social spending, with
                                                                              health at 1.5% of GDP,
                                                                              and education at 3.3%



, Source: Arab Republic of Egypt, Ministry of Finance, State Budget 2011/12
and Financial Monthly March 2012
How Social Protection Expenditure is Distributed
Among the Population?      Several studies have been conducted
                           to evaluate who is benefiting most
                                   from the current social protection
                                   .policies

                                   A study of the World Bank (2005(
                                   found that out of 100 LE spent in
                                   social protection, 29 LE goes the
                                   richest fifth of the population, while
                                    the poorest
                                   quintile is receiving only 14 LE

                                   While the impact in terms of poverty
                                   reduction is still relevant (more than
                                   10% of the population was lifted
                                   above the lower national poverty line
                                   by social protection policies [mainly
                                   subsidies] in early 2000s(, the
                                   efficiencies of the expenditure is low
                                   . and the leakages very high

 (Source: World Bank (2005
Social Security and Social Pensions Versus
Subsidies
  Social security benefits and social pensions represent less
  than 10% of the total Social Protection expenditure in
  Egypt.

  Subsidies are by far the largest component (around 90%)
  of the social protection spending.

  In the budget 2011-12, subsidies represented around 27%
  of government expenditure, equivalent to 8.5% of the
  projected GDP
Subsidies Are A Key Component of Government
Spending in Egypt
More than 5% of GDP is
                               (Government expenditure on subsidies (as % of GDP
spent in oil product
subsidies (which is                                                 2010-11        2011-12
benefiting mainly the         Total expenditure on
                              subsidies                               8.64            8.45
richest quintiles of the
population, but which is      - Oil products                              5.26               6.08
also very important for the   - General Authority for Supply
                              Commodities (food/bread)                    1.83               1.20
poorest population
                              - Electricity                               0.49               0.32
(.quintiles                   - Other                                     1.06               0.86

                               Source: Arab Republic of Egypt, Ministry of Finance, State Budget
The food subsidy               2011/12, and Financial Monthly, March 2012
represents around 1.8% of
 the Egyptian
. GDP
Reforming subsidies
 The need of reforming subsidies is widely recognized and
 it is part of the current political debate (and in minimal
 part already implemented).
 The process of transformation should be managed very
 carefully, in particular to protect the most vulnerable,
 within an equity perspective, and considering the highest
 vulnerability to poverty of children and women.
THANKS FOR YOUR ATTENTION

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Integrating Equal Opportunity Principle in Budgets - Egypt

  • 1. Integrating Equal Opportunity Principle in Budgets - Egypt Subsidies’ Reform and Social Protection to Promote Equity Ragaa Mansour General Director, Equal Opportunity Unit Workshop on: 'Enhance Equity for the New Generations in the Middle East and North Africa‘ Rabat, Morocco – 22-23 May 2012
  • 2. In 2001, the Ministry of Finance approved the establishment of “Gender Unit” to link between the National Council for Woman (NCW) and the Ministry of Finance, aiming at promoting equality for marginalized groups, providing opportunities for participation in public life, eliminating all forms of discrimination, giving big momentum for efforts exerted to advance rights of women and children, and opening opportunities for human resources development, in addition to other constitutional rights to achieve complete equity.
  • 3. Objectives of Equal Opportunity Unit • Promote and integrate budgets responding to needs of both women and men in the national plan and budget to achieve social justice for marginalized groups. • Enhance cooperation and networking amongst the different sectors in MoF and between MoF and other line ministries. • Develop staff professional and personal skills and advance spirit of belonging, which has its positive influence on staff performance as well as achieving MoF goals to reach equal opportunities.
  • 4. Joint Initiatives with UNWOMEN Extending partnership with UNWOMEN to achieve the Unit goal to support developing gender-responding budgets and raising the ministry staff awareness of gender issues, how to plan for it, and organizing specialized workshops in the field of: •Strategic planning responding to man and woman needs and how to monitor and evaluate it. •Budgeting for gender-based programs and performance to positively impact the improving of children status. •The importance of considering children in state plans and budgets.
  • 5. Indeed, “Equal Opportunity” project was implemented since 2006, Starting to identify what are the needs of women, men and children up to the implementation of gender responsive budgets, which required the application of programs and performance budgets, undergoing legislative and legal reforms; significantly required to promote social justice and fulfill children rights.  Then, we moved ahead from theory to practice, which necessitates the commitment of different entities to apply modern and automated information systems and developing programme and performance budgets in compliance with the law of the State budget.
  • 6. Objectives of “Equal Opportunities” Project •Achieve justice and equity for woman through integrating gender-based budgeting, that would eventually contribute to the fulfillment of children rights. •Support efforts of Ministries and Government organizations to bridge the gender gaps, combating discrimination against women and children, and improving the efficiency of public expenditures. •Supportgovernment efforts to alleviate poverty and achieve the Millennium Development Goals. •Supportthe Ministry of Finance in applying modern methods in budget development through applying gender-based programs and performance measurement budgets and promoting transparency.
  • 7. Project Key Stakeholders • Ministry of Finance – National Council for Woman. • Ministry of Economic Development – Central Agency for Public Mobilization and Statistics – Parliament. • Media – Academics and Research Centers. • Civil Society and Women Organizations. • Netherland Royal Embassy – UNWOMEN.
  • 8. Target Groups • Ministries and policy makers. • Ministry of Finance staff responsible for developing, implementing, and monitoring State Budget.
  • 11. Social Justice in Housewife sets the Ministry of Finance and State Budget State Budget equal opportunity 11
  • 12. Lessons Learnt • Participatory approach to develop gender-based budgets’ manual. • Political support of Minister of Finance, Directors of Budget Departments, UNWOMEN, and NCW. • Coordination between Ministry of Finance and Central Agency for Public General Mobilization and Statistics.
  • 13. Sustainability • Restructuring of Equal Opportunity Unit in the Ministry of Finance. • Qualified Staff to develop equity-based budgets. • On-the-job training.
  • 14. What about Child-based Plans and Budgets? •Considering child rights? •Adopting the concept and practice of “equal opportunities” for children? •Social protection to fulfill rights for all children?
  • 16. Government Social Expenditure Social protection expenditure is at around 9% of GDP, and actually was planned to grow between 2010-11 and 2011-12 Social protection is by far the largest component of social spending, with health at 1.5% of GDP, and education at 3.3% , Source: Arab Republic of Egypt, Ministry of Finance, State Budget 2011/12 and Financial Monthly March 2012
  • 17. How Social Protection Expenditure is Distributed Among the Population? Several studies have been conducted to evaluate who is benefiting most from the current social protection .policies A study of the World Bank (2005( found that out of 100 LE spent in social protection, 29 LE goes the richest fifth of the population, while the poorest quintile is receiving only 14 LE While the impact in terms of poverty reduction is still relevant (more than 10% of the population was lifted above the lower national poverty line by social protection policies [mainly subsidies] in early 2000s(, the efficiencies of the expenditure is low . and the leakages very high (Source: World Bank (2005
  • 18. Social Security and Social Pensions Versus Subsidies Social security benefits and social pensions represent less than 10% of the total Social Protection expenditure in Egypt. Subsidies are by far the largest component (around 90%) of the social protection spending. In the budget 2011-12, subsidies represented around 27% of government expenditure, equivalent to 8.5% of the projected GDP
  • 19. Subsidies Are A Key Component of Government Spending in Egypt More than 5% of GDP is (Government expenditure on subsidies (as % of GDP spent in oil product subsidies (which is 2010-11 2011-12 benefiting mainly the Total expenditure on subsidies 8.64 8.45 richest quintiles of the population, but which is - Oil products 5.26 6.08 also very important for the - General Authority for Supply Commodities (food/bread) 1.83 1.20 poorest population - Electricity 0.49 0.32 (.quintiles - Other 1.06 0.86 Source: Arab Republic of Egypt, Ministry of Finance, State Budget The food subsidy 2011/12, and Financial Monthly, March 2012 represents around 1.8% of the Egyptian . GDP
  • 20. Reforming subsidies  The need of reforming subsidies is widely recognized and it is part of the current political debate (and in minimal part already implemented).  The process of transformation should be managed very carefully, in particular to protect the most vulnerable, within an equity perspective, and considering the highest vulnerability to poverty of children and women.
  • 21. THANKS FOR YOUR ATTENTION