Middle class, entrepreneurs key to Egypt's economic recovery
The Egyptian government is implementing programs to help curb poverty and meet the needs of low- and middle-income citizens, but analysts believe more should be done.
Despite Egypt's relentless efforts to help the needy, economists are urging the government to do more by increasing citizens' real incomes and creating jobs. The authorities should clear all obstacles facing the private sector and entrepreneurship to create jobs, one economist said.
The Egyptian government has launched a number of social programs to combat growing poverty rates. Efforts include staple subsidies, the Takaful and Karama plan, and the Hayat Karima (Decent Life) program launched in early January. The Takaful and Karama plan, which provides the poor with income support, is scheduled to end Nov. 30. The Egyptian government and the World Bank signed a $400 million agreement to fund the program in April 2015. The Hayat Karima initiative is designed to financially, medically and logistically support the neediest, including the homeless.
The social programs aim to mitigate the negative impact of economic reforms on the poor, who are the most vulnerable during economic transitions. Egypt launched a package of such reforms after signing a $12 billion loan agreement with the International Monetary Fund (IMF) in November 2016.
On Jan. 22, Alborsa newspaper quoted undisclosed official sources as saying that roughly 57% of Egyptians need subsidies and financial support from the state. The state-run Central Agency for Public Mobilization and Statistics (CAPMAS) said it would announce Egypt’s income and expenditure indicators, which measure living standards and poverty rate, in early February.
