Abstract
Despite the government’s efforts, Egypt experiences high levels of poverty. The highest poverty rates in Egypt are in Assiut governorate, with 66 percent in 2015. This chapter analyzes poverty reduction policies in Assiut governorate during the period 2000–2011, following the model of policy evaluation developed by Matthew Cahn, to find the reasons behind poverty increase, and how to solve this problem. The study concluded that there are six main reasons that Assiut governorate is the poorest in Egypt. These answers may provide a strategic vision to make poverty alleviation policies more coherent in Assiut governorate in the future.
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Notes
- 1.
See Fig. 12.3, p. 4.
- 2.
The Gini coefficient refers to the measurement of the deviation in the distribution of income (or consumption) between individuals and households in a given country from the full fair distribution. The Lorenz curve shows the cumulative percentage of total obtained income compared to the total number of beneficiaries, starting with poorer individuals or families. The Gini coefficient measures the area between the Lorenz curve and the default line of full equality and is expressed as a percentage of the maximum area below that line. The value of zero (0) represents full equality, while the value of one hundred (100) represents absolute inequality (United Nations Development Program, 2007, p. 355).
- 3.
According to the Central Agency for Public Mobilization and Statistics (CAPMAS) data, the inflation rate reached a peak of 23.6 percent in August 2008. The rate remained above 10 percent during most of the years 2000–2011. The sudden slowdown in the context of accelerated inflation rates has reversed the gains in poverty reduction that were made during the rapid growth period of 2006–2008.
- 4.
Interview with Major General Ahmed Abdeen, former Minister of Local Development, on 29/4/2018.
- 5.
Formerly known as the Social Fund for Development (SFD ). In April 2017, the SFD was replaced by the Agency for Developing Medium, Small, and Micro Enterprises (MSME). The MSME is now responsible for the development of strategic policies and plans for SMEs. I will refer to it in this study by the previous name, because it was the name that prevailed during the period of study 2000–2011.
- 6.
In November 2014, the President of the Republic issued Decree No. 141 of 2014 regulating microfinance activities in Egypt.
- 7.
Takaful and Karama social protection program, launched in 2015, is the first conditional cash transfer (CCT ) program in Egypt, aimed at poorer families with children under the age of 18, the poorest groups of elderly people, and people with special needs.
- 8.
For example, the Ministry of Planning and Economic Development (MoPED) prepares comprehensive economic and social development plans for short, medium, and long-term periods. These plans determine the overall policy framework for the country and set the target rates at the national level. The Ministry of Social Solidarity provides several programs to reduce poverty either directly through cash transfers, social assistance, and pension programs, or indirectly, by supervising and supporting the large number of non-profit organizations. The Ministry of Supply and Internal Trade provides subsidies for a number of basic foodstuffs, such as bread, sugar, edible oil, rice, and tea. The Ministry of Education provides basic education programs. The Ministry of Health provides free health care through local health units and large public hospitals.
- 9.
Targeting means identifying the poor very accurately, so that public resources, such as subsidies or financial supports, are directed to them alone and not given to others, unlike other kinds of public programs that provide benefits to all citizens (Mkandawire, 2005).
- 10.
See Fig. 12.3.
- 11.
CCT are programs designed to provide funds for the poor families on condition that the parents invest these funds in their children. Funds are designed to be directed for education and health of the poor family members. The CCTs are differed greatly the mere cash transfers as the latter may be misused by parents due to their bad behavior (World Bank, 2009a).
- 12.
It is known that income redistribution depends mainly on tax policy. However, the tax policy adopted during the period under study showed a bias for the high-income classes, by reducing the upper limit of income taxes to 20 percent, while at the same time raising the minimum tax brackets on the incomes of individuals (El-Sabaa & Soliman, 2013).
- 13.
Decree of the Minister of Social Solidarity no. (15) of 2011 on amending some of the provisions of Ministerial Resolution no. (84) of 2009 regarding the provision of new ration cards for the neediest groups. See also Egypt Economic Development Conference (EEDC), March 2015.
- 14.
Decree of the Minister of Supply and Internal Trade no. (215) of 2014, issued on 26/6/2014.
- 15.
Now known as the Agency for Developing Medium, Small, and Micro Enterprises (MSME).
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Youssef, M.H. (2022). Assessment of Poverty Alleviation Policies in Assiut Governorate, Egypt. In: Ali, H.E., Bhuiyan, S. (eds) Institutional Reforms, Governance, and Services Delivery in the Global South. International Series on Public Policy . Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-82257-6_12
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