Poverty and economic growth in Egypt, 1995-2000

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Poverty and economic growth in Egypt, 1995-2000, Volume 1

Author:	El-Laithy, Heba; Lokshin, Michael; Banerji, Arup;	Collection Title:	Policy, research working paper series ; no. WPS 3068
Country:	Egypt, Arab Republic of;	Date Stored:	2003/07/08
Document Date:	2003/06/30	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	(Historic)Sector not applicable
Region:	Middle East and North Africa	Report Number:	WPS3068
Sub Sectors:	(Historic)Sector not applicable	SubTopics:	Environmental Economics & Policies; Poverty Reduction Strategies; Achieving Shared Growth; Rural Poverty Reduction; Poverty Lines; Poverty Assessment; Health Monitoring & Evaluation; Services & Transfers to Poor; Public Health Promotion
Volume No:	1

Summary: After a decade of slow economic growth Egypt's rate of growth recovered in the late 1990s, averaging more than five percent a year. But the effect of this growth on poverty patterns has not been systematically examined using consistent, comparable household datasets. In this paper, the authors use the rich set of unit-level data from the most recent Egyptian household surveys (1995-96 and 1999-2000) to assess changes in poverty and inequality between 1995 and 2000. Their analysis is based on household-specific poverty lines that account for the differences in regional prices, as well as differences in the consumption preferences and size and age composition of poor households. The results show that average household expenditures rose in the second half of the 1990s and the poverty rate fell from 20 percent to less than 17 percent. But, in addition to the ongoing divide in the urban-rural standard of living, a new geographical/regional divide emerged in the late 1990s. Poverty was found predominantly among less-educated individuals, particularly those working in agriculture and construction, and among seasonal and occasional workers. These groups could suffer the most from the slowing economic growth evident after 1999-2000.


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