Mixed Results on Human Development in Egypt

Wafik Grais, 05 Mar 2015

Since the 1980s, health indicators in Egypt have improved significantly but with citizens bearing a heavy health expenditures burden. Life expectancy increased from about 57 in the early 1980s to 73.5 in the early 2010s, slightly higher than the average for Arab countries. At 75.5 years, female life expectancy is slightly higher than male life expectancy.[1] The increase reflects improvements in water and sanitation and health provision services that enabled reductions in mortality rates.[2] However, total health expenditures in gross domestic product (GDP) remain less than half those observed in Western Europe.[3]

 

A sizable share of public expenditures (11.9%) is devoted to education (World Bank 2005). Current GDP education spending (5.9%) is high by international standards. Today practically all children attend primary school, 87 percent attend secondary school, and more than 30 percent attend tertiary education. The private sector does not seem to hold a significant share of students.

 

The education sector's performance, however, has not kept pace with expenditures. For example, literacy rates are 88 percent for youths aged 15–24, compared to 93 percent in comparator countries.[4] The Trends in Mathematical and Science Studies (TIMSS) scores for grade eight students were well below the 500 average in 2007.[5] Efficiency assessments suggest that equivalent outcomes could be achieved with about a quarter of the public spending on primary and secondary education.[6]

 

Reflecting the stated spirit of nondiscrimination in the pre-2011 constitution, Egypt ratified the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) on September 18, 1981.[7] However, despite substantial improvements in female literacy rates, high enrolment rates, and labor force participation, a gender gap remains in favor of males.[8] The 2012 United Nations Development Programme’s Human Development Report ranks Egypt 112 out of 186, using the Gender Inequality Index.[9]

 

Poverty levels remain high, vulnerable to changes in GDP growth rates, and heavily concentrated in rural and southern areas.[10] In the aftermath of the January 25, 2011 revolution, poverty levels increased significantly (CAPMAS 2012)[11]. Based on an analysis of per capita consumption, poverty appears to be heavily concentrated in rural and southern areas of the country, with the governorates of Assiut and Suhag accounting for 89 percent of the bottom 100 poorest villages (Roushdy and Assaad 2007).

 

References

 

  • Egyptian Ministry of Economic Development and the World Bank. 2007. “Arab Republic of Egypt Poverty Assessment Update (Volume One: Main Report).” Report No. 39885 – EG. September 2007.
  • IMF (International Monetary Fund). 2007. “Arab Republic of Egypt: Selected Issues.” IMF Country Report No. 07/381, IMF, Washington, DC, December.
  • Roushdy, Rania, and Ragui Assaad. 2007. “Poverty and Geographic Targeting in Egypt: Evidence from a Poverty Mapping Exercise.” Economic Research Forum Working Paper 0715, November. http://www.erf.org.eg/CMS/uploads/pdf/1195384167_Rania_Roushdy_Ragui_Assaad.pdf.
  • World Bank. 2005. “Egypt—Public Expenditure Review: Policy Note 2: Making Egyptian Education Spending More Effective.” World Bank, Washington, DC. http://www.mof.gov.eg/english.

 

 


[1] See ESCWA, Demographic Profile of Egypt; http://www.escwa.un.org/popin/members/egypt.pdf.

[4] The adult literacy rate was 72 percent in 2010; http://data.worldbank.org/indicator.

[6] See also IMF (2007, p. 38, para 63): “DEA results suggest that equivalent outcomes (in terms of literacy rate and test scores) could be achieved with about a quarter of the public spending on primary and secondary education, placing Egypt in the 50th percentile among the countries in the sample in terms of the overall efficiency of education spending.”

[8] The total adult labor participation rate was 49 percent in 2011; http://data.worldbank.org/indicator.

[9] A composite measure reflecting inequality in achievements between women and men in three dimensions: reproductive health, empowerment, and labor market. See UNDP, http://hdrstats.undp.org/en/indicators/68606.html.

[10] World Bank (2007) puts the number of poor in Egypt at 28 million in 2005, or 40 percent of the population. World Bank (2007) considers 13.6 million (19.6 percent) in absolute poverty or ultrapoverty (spending less than the minimum to cover their basic food requirements or less than LE 1,423 per person per year) and 14.5 million (21 percent) in near poverty (spending between LE 1,424 and 1,854 per person per year).

[11] These figures are according to the national poverty line estimated at LE 256 per person per month, or LE8.5 per day. Central Agency for Public Mobilization and Statistics (CAPMAS), News, Press Release, 2012, available at: http://capmas.gov.eg/pepo/281.pdf; in Arabic.

 

 


Wafik Grais is an International Senior Adviser specializing in Islamic finance, financial regulation, investment financing, private equity management, and corporate governance with expertise in SMEs and green growth financing. He was co-founder and chairman of Viveris Mashrek, a Cairo-based, financial advisory services company specialized in private equity investments in SMEs, licensed by Egypt's Financial Supervisory Authority. He spent 28 years in international finance notably with the World Bank in Washington DC where he held several senior positions both in operations and at corporate levels. He holds a Ph.D. in Economics.

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