2. 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.
3. What are the causes of poverty in Egypt ?
The causes of poverty include:
• overpopulation,
• environmental degradation,
• high costs of living standards,
• inadequate education.
• employment.
4. Another causes of poverty in Egypt ?
1. Disease
2. Economic structures
3. Lack of education
4. Divorce
5. Employment abuse
6. population
7. Over dependence on agriculture
8. Inflationary pressure
9. Unemployment
5. Who are Egypt's poor people?
Rural poor people typically include:
• tenant farmers and small-scale farmers
• landless laborers
• unemployed youth
• women
6. 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.
7. 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.
8. 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
9. 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.
10. 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
11. 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.
12. Causes
Several 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 income
Lack 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.
13. Health
Women 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.
Education
The 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.
14. 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.
15. 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’ enrolment
Offering conditional stipends to the poor
