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Article

Poverty and Economic Growth in Egypt, 1995-2000

Journal of African Studies and Development. 2010. No. 2. P. 150-165.
Lokshin M., El laithy H., Benerji A.

In this paper we use the rich set of unit-level data from the most recent Egyptian household surveys (1995 – 1996 and 1999 – 2000) to assess changes in poverty and inequality between 1995 and 2000. The study analysis is based on the new methodology of constructing 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% to less than 17%. 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.