This document provides a literature review on poverty and economic inequality in Egypt. It begins with introducing key concepts of poverty and inequality. It then provides an overview of the poverty situation in Egypt with various statistics. It discusses the main causes of poverty in Egypt such as population growth, deteriorating infrastructure, and lack of economic growth. It outlines the government's efforts to combat poverty through subsidies, financial support programs, and reforms. Finally, it discusses critical points in combating poverty including challenges in measuring poverty and institutional fragility.

1. Poverty & Economic
Inequality in Egypt
Literature Review
Mahmoud M. Elmakkawe
The American University in Cairo, School of GAPP
Fall 2018

2. Agenda
• Introduction to Poverty and Economic Inequality
• Overview of the Situation in Egypt
• Causes of Poverty in Egypt
• The Government’s Efforts to Combat Poverty
• Critical Points in Combating Poverty
• References

3. Intro to Poverty & Inequality
 Poverty is the scarcity or the lack of a certain (variant) amount of
material possessions or money. Poverty is a multifaceted concept,
which may include social, economic, and political elements. Absolute
poverty, extreme poverty, or destitution refers to the complete lack of
the means necessary to meet basic personal needs such as food,
clothing and shelter. (UNESCO 2015)
 In 2012 it was estimated that, using a poverty line of $1.25 a day.
 In 2015 that 702.1 million people were living in extreme poverty,
down from 1.75 billion in 1990 (The World Bank).
 Between 1990 and 2015, the percentage of the world's population
living in extreme poverty fell from 37.1% to 9.6%.

4. Intro (Cont’d)
• Relative poverty, as a concept differs from a country to another based
on income variations. While absolute poverty is defined as a complete
absence of basic services required for survival with dignity.
• Poverty used to be considered as inevitable until before the Industrial
Revolution (Encyclopedia Britannica)
• In 2018, Oxfam reported that the gains of the world's billionaires in
2017, which amounted to $762 billion, was enough to end extreme
global poverty seven times over. In 2012, it was $240 billion.
• Rather than encouraging multinational businesses to meet the needs
of the poor, organizations such as the World Resources Institute & the
UNDP began to focus on helping bottom-of-the-pyramid populations
become local, small-scale entrepreneurs

5. Intro (Cont’d)
Extreme Poverty Rates (1981: 2008) - The World Bank

6. Intro (Cont’d)
• Inequality is quantitatively estimated through Important types of
economic measurements focus on wealth, income, and consumption.
• Liberalism Vs Socialism
“A society that puts equality before freedom will get neither. A
society that puts freedom before equality will get a high degree
of both.” ~ Milton Freedman
• Taxation Exemption Vs Progressive Taxation

7. Intro (Cont’d)
Global Economic Inequality - The CIA World Fact Sheet

8. Overview: Egypt in Numbers

9. Overview: Egypt in Numbers

10. Overview: Egypt in Numbers

11. Overview: Egypt in Numbers

12. Overview: Egypt in Numbers

13. Overview: Egypt in Numbers

14. Overview: Egypt in Numbers

15. Overview: Egypt in Numbers

16. Overview: Egypt in Numbers

17. Overview: Egypt in Numbers

18. Overview: Egypt in Numbers

19. Overview: Egypt in Numbers

20. Overview: Egypt in Numbers

21. Overview: Egypt in Numbers

22. Overview: Egypt in Numbers

23. Overview: Egypt in Numbers

24. Overview: Egypt in Numbers

25. Causes of Poverty in Egypt
• Scarcity of natural resources combined with massive increase in
population
• Deteriorating infrastructure
• Alarming rates of illiteracy
• Centralization of development planning
• Lack of sustainable economic growth
• Accumulated budget deficit
• Unattractiveness for foreign investment

26. The Gov’t Efforts to Combat
Poverty
• Subsidizing social services (Fuel, bread, sugar, rice, electricity,..)
• Financial Support programs (Takaful and Karama)
• New channels of good distribution (The Military)
• Loans for SMEs at little interest (The Central Bank Initiative)
• Health and education reform

27. Critical Points in Combating
Poverty
• Estimates of national surveys conducted on poor slums are in
question
• Subsidized services Vs Financial support
• Institutional fragility of municipalities
• Macroeconomy Vs Microeconomy (Fixing Public finance at the
expense of the people)
• Inefficient supply chain (Delivering goods to the unneedy)
• Monitoring and evaluation (Lack of coordination with civil society)

28. References
• Nassar, H. & Biltagy, M. (2017). Poverty, Employment, Investment, and Education
Relationships: The Case of Egypt. SAGE.
• Mansour, D. (February 2016). The Socioeconomics of Exclusion: Re-Questioning
Citizenship in Relation to Social Justice in Post-Arab Spring Egypt. Orient-Institut
Beirut.
• Tsuchiya, I. (2016). Poverty in Egypt during the 2000s
• CAPMAS (2015). Multidimensional Poverty in Egypt. Oxford Poverty and Human
Development Initiative.
• Verme, P. et al. (2014). Inside Inequality in the Arab Republic of Egypt. The World
Bank.
• The World Food Program (May 2013). The Status of Poverty and Food Security
in Egypt: Analysis and Policy Recommendations.

29. References (Cont’d)
• Hoynes, H. (April 2012). Poverty: Facts, Causes and Consequences. University of
California, Davis.
• El-Laithy, H. (2011). The ADCR 2011: Poverty in Egypt (2009). Arab Development
Challenges Report. United Nations Development Programme.
• Azzawy, S. (September 2010). The Dynamics of Poverty and Inequality in an Era
of Economic Liberalization: The Case of Egypt. Economic Research Forum.
• Sabry, S. (May 2010). Could Urban Poverty in Egypt
Be Grossly Underestimated? Center for Development Policy and Research.
University of London.
• Sabry, S. (May 2009). Poverty lines in Greater Cairo: Underestimating and
Misrepresenting Poverty. International Institute for Environment and
Development.

30. • Roushdy, R. & Assaad, R. (November 2007). Poverty and Geographic Targeting in
Egypt: Evidence from A Poverty Mapping Exercise. Research Gate.
• Datt, G. & Jolliffe, D. (2005). Poverty in Egypt: Modeling and Policy Simulations.
Economic Development and Cultural Change.
• Moustafa, A. (2005). Does Income Inequality Effect the composition of Growth?
The Case of Egypt.
• Lewis, L. (). Social Conditions in Egypt According to the Millennium Development
Goals.
• Yousry, A. & Mekawy, H. (2003). On Poverty Alleviation in the Age of Globalization:
Toward Minimizing Urban-Rural Inequalities in Egypt. Faculty of Urban and
Regional Planning, Cairo University.
• Nagi, S. (2001). Poverty in Egypt: Concepts, Realities, and Research Agenda.