Poverty reduction

poverty in Egypt

Egypt’s poverty rate has increased, reaching 26.3 per cent for the year 2012/13 compared with 25.2 percent in 2010/11, the state-run statistics agency CAPMAS

A CAPMAS report stated that the domestic poverty line stands at an annual LE3,920 ($569) per person

Poverty remains predominant in rural areas compared to urban areas. The highest rates in the country are in two southern Egyptian governorates, Assiut and Qena, at 60 and 58 percent respectively.

What are the causes of poverty in Egypt ?

The causes of poverty include:• overpopulation,• environmental degradation,• high costs of living standards, • inadequate education.• employment.

Another causes of poverty in Egypt ?1. Disease2. Economic structures3. Lack of education4. Divorce5. Employment abuse6. population 7. Over dependence on agriculture8. Inflationary pressure9. Unemployment

Who are Egypt's poor people?

Rural poor people typically include: • tenant farmers and small-scale

farmers • landless laborers • unemployed youth• women

Rural poverty in Egypt

Although the incidence of poverty is decreasing overall in Egypt, the number of poor people continues to increase as the population grows. Egypt has about 10.7 million poor people, and 70 per cent of them live in rural areas. Most of the country's rural poor people live in the north, in Upper Egypt, where there are higher rates of illiteracy , poorer access to safe water and sanitation, and larger numbers of underweight children. Women in general and particularly the women who head 20 per cent of all households, are particularly disadvantaged. About 80 per cent of girls are taken out of school before the age of ten to do farm work.

Poverty Reduction plans:

I. Encourage investment

• Increase the role of the banking system to provide credit to small and medium-sized projects, which includes the reduction of credit risk and reducing the cost to support and promote investment opportunities and reduce unemployment and export subsidies.

Poverty Reduction plans:

I. Encourage investment

• Establishment of a fund for the treatment of stumbled existing projects, especially medium and small investors in collaboration with the Federation of Chambers of Commerce to cope with the economic feasibility

• International cooperation to support and stimulate investment by coordinating with various agencies and international bodies to support and stimulate investment and attract more foreign capital and to explain the country's efforts to create an appropriate climate for investment

Poverty Reduction plans:

II. Expansionary fiscal policy in the agriculture sector

• According to Egypt has about 10.7 million poor people, and 70 per cent of them live in rural areas.

Poverty Reduction plans:

III. Reduce Stagflation

The solution of stagflation is to increase AS through supply side, it can be very beneficial. • Higher economic growth• Low inflation• Low Unemployment

Increased productivity can also help the balance of payments. If firms become more competitive, then Egyptian goods will be in greater demand, increasing exports and improving the current account deficit

Taxes: Citizens lack the adequate amount of knowledge about taxes, therefore between 80 and 90% of the amount of money collected from taxes comes from large tax payer center, while the remaining percentage comes from other geographical offices. After the Revolution of 25th of January, the country has become unstable and unsafe, so the tax officers tend to go through files and account for businesses that might have shut down or no longer open for business. This leads to a false estimation of the amount of money that can be collected from those businesses. While there might be other businesses that are actually running but the tax officer has no idea because the database provided by the government is neither up-to-date nor does it provide enough information about tax payer. Hence, the system must be improved to be more efficient in order to reach the set goal for the tax receipts that is in addition to increasing the civilians’ knowledge and awareness about taxes.

CausesSeveral factors affect the feminization of poverty, and these factors place women at high risk of poverty. Though low income is the major cause, there are many interrelated facets of this problem. Lone mothers are usually at the highest risk for extreme poverty because their income is insufficient to rear children. It then lowers their children's possibilities for good education and nourishment. Disparate incomeLack of income is a principal reason for women's risk of poverty as it deprives women of their basic needs and capabilities. Income deprivation prevents women from attaining resources and converting their monetary resources into functioning’s.

HealthWomen in poverty have reduced access to health care services and resources. Disproportionate numbers of women are affected by poorer health outcomes and the issue of poverty worsens women's health conditions. EducationThe education of women and children, especially girls, can create greater opportunities for women to lift themselves out of poverty and increase their social position. An important aspect of capabilities is the freedom to make informed choices and have opportunities to achieve goals, and a basic requirement to actively use resources and information is basic education.

Key Pillars of a Poverty Strategy for Egypt  

Increasing Current Earnings Through Growth • Increasing poverty-oriented investments in

Upper Egypt.• Ensuring the availability of critical inputs

for micro small businesses.• Supporting agricultural development.

Increasing Future Earnings Through Education Education is the most prominent correlate of poverty in Egypt and offers the most promising path out of it. Enhancing access and reducing costs of education for the poor  Making more classrooms available in poor areas.Further increasing girls’ enrolmentOffering conditional stipends to the poor