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Economic

Inequality in
Egypt
Mayar Abdelaziz, Seif Altamimi and
Rania Abukeshek
What is Economic Inequality?

Economic inequality is the unequal


distribution of income and opportunity
between different groups in society.

The average income of the richest 10% of


the population is about nine times that of
the poorest 10%
Types of Economic Inequalities
● Income inequality: how unevenly income is
distributed throughout a population.

● Wealth Inequality: uneven distribution of wealth

● Pay Inequality refers to payment from


employment ONLY.
Egypt's Economic Inequality

• Egypt suffers from all 3 of types of


inequalities
• Egypt's poverty rate is 32.5% since
2018
• Egypt's population is 100 million
meaning that around 32 million
people are living under the poverty
line
Egypt's income inequality

Causes:
The tax system: some individuals of the higher class
are able to pay less taxes than what they should.
Education: the degree and access of education affects
the level of earnings
Labour market: the differences in skills and
qualifications  and experience means that the supply
of labours differs in contrast to the demand
Wealth Inequality in Egypt

Causes:
● Hoarding of unnecessary
wealth and land
● Inheritance of the wealth and
land

Wealth: Stock, houses, physical


assets
PAY INEQUALITY IN EGYPT – GENDER PAY GAP

● Egyptian women are still paid less


than men for equal work.
● In Egypt, only 7 percent of firms are
led by a female top executive.
● Egypt’s gross domestic product
(GDP) could soar 32 percent if
gender equality achieved in the labor
market
EGYPT’S GINI INDEX
● A method of measuring Income Inequality is
through the GINI Index
● GINI Index includes all the income earned by a
country's residents, businesses, and earnings from
foreign sources.
● The value for GINI index in Egypt was 31.50 as
of 2017 according to the World Bank.
Egypt’s Opportunity Inequality

From 1998 to 2006 and


then from 2006 to 2012,
the distance between the
classes generally
decreased, with the
exception of the middle
class moving away from
the upper class
CORONAVARIUS ECONOMIC INEQUALITY

● In response to the pandemic crisis, Egypt’s central bank


instructed all banks to apply temporary caps on daily
withdrawals and deposits.
● The government will have to increase its national health
budget and restructure healthcare system to extend quality
health care services to rural areas.
BIBLIOGRAPHY
● Fathalla, Y., 2020. Coronavirus Exposes The Extreme Disparity Between Rich And Poor In Egypt.
[online] Middle East Centre. Available at: <https://blogs.lse.ac.uk/mec/2020/04/08/coronavirus-
exposes-the-extreme-disparity-between-rich-and-poor-in-egypt/#:~:text=The%20coronavirus
%20pandemic%20has%20the,rich%20and%20the%20poor%20widening.&text=Inequality%20across
%20regions%20is%20sharp,as%20high%20as%2081.7%20percent.> [Accessed 24 November 2020].
● Max Roser (2013) - "Global Economic Inequality". Published online at OurWorldInData.org.
Retrieved from: 'https://ourworldindata.org/global-economic-inequality' [Online Resource]
● Indexmundi.com. 2020. Egypt - GINI Index (World Bank Estimate). [online] Available at:
<https://www.indexmundi.com/facts/egypt/indicator/SI.POV.GINI> [Accessed 24 November 2020].
● Samra, Y., 2020. Egypt’S GDP Could Jump 32% By Achieving Gender Equality: IFC. [online]
EgyptToday. Available at: <https://www.egypttoday.com/Article/3/44750/Egypt%E2%80%99s-GDP-
could-jump-32-by-achieving-gender-equality-IFC#:~:text=Egyptian%20women%20are%20still
%20paid,22%20percent%2C%20the%20study%20showed.&text=In%20Egypt%2C%20only
%207%20percent,by%20a%20female%20top%20executive.> [Accessed 24 November 2020].
Thank you!
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