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Egypt Struggles to Sustain Subsidies

Egypt's new government has launched a plan to alleviate poverty, but many doubt its ability to finance the projects.
A man offers money to buy bread at a bakery in Cairo March 17, 2013. The spectre of steep food price inflation driven by a weaker pound is of particular worry to President Mohamed Mursi as he grapples with spasms of unrest two years after the uprising that toppled Hosni Mubarak and was itself partly driven by a sense of mounting economic hardship in a country long steeped in poverty. REUTERS/Mohamed Abd El Ghany (EGYPT - Tags: POLITICS BUSINESS FOOD) - RTR3F42I
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CAIRO — Two and a half years after the Jan. 25 revolution deposed Egyptian President Hosni Mubarak in the name of social justice, the state has faced many challenges to realize the hopes of Egypt’s poor, who have become more numerous as a result of continued political turmoil.

The Egyptian transitional government, which took office after the June 30 demonstrations and the ouster of President Mohammed Morsi, has announced a package of urgent economic measures as part of it reform program to support the poor and bring about structural changes to achieve social justice and economic growth. Public-school students have been exempted from paying tuition. The prices of subsidized commodities have been reduced from 10% to 15%, and 15,000 job opportunities have been proposed.

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