THE EFFECT OF THE GLOBAL FOOD AND ECONOMIC CRISES ONPOVERTY IN EGYPT

• Main Authors: Hanady Mostafa Abd El-Radi, Gamal Mohamed Siam
• Format: Article
• Language: English
• Published: Social Sciences Research Society 2012-07-01
• Series: International Journal of Economics and Finance Studies
• Online Access: http://www.sobiad.org/eJOURNALS/journal_IJEF/archieves/2012_no_2_new/hanady_mostafa.pdf

Over the last Three years, the Egyptian economy has been exposed to two worldcrises: the first was the world food crisis that started in the second half of 2007,and thesecond was the world economic crisis, whose consequences began tomanifest themselves globally in September 2008. This study aims to determinethe quantitative impact of the world economic crisis–and before it, the worldfood crisis–on poverty rates inEgypt, whether at the national level or on thelevel of the urban and rural sectors, in light of various economic crisis scenarios.Andthe effect of therevolution,January 25, 2011oneconomicpoliciesto reducepoverty inEgypt. The research methodologyadopted relies on the application ofsimulation tools for social indicators and poverty known as SimSIP to reveal theeffect of external shocks–the food crisis followed by the economic crisis–oneconomic growth and inequality in income distribution, and hence, on povertyrates–while making use of the analysis of specific scenarios related to worldprices and their impacts on local prices and incomes. In applying the model, 2005CAPMAS data on Household Income, Expenditure and Consumption Survey(HIECS) , grouped by income categories, are used.