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Egypt Country Environmental Analysis: Promoting Circular Economy and Blue Economy for Environmental Sustainability
(Washington, DC: World Bank, 2024-07-03) World Bank
Over the last two decades, the Government of Egypt (GOE) has pursued its sustainable and resilient development. The Ministry of Environment (MOE) has improved the governance framework and promoted new policy instruments to meet growing environmental challenges. The Ministry of Environment (MOE) has improved the governance framework and promoted new policy instruments to meet growing environmental challenges. The purpose of this CEA is to help Egypt address some of these environmental challenges by providing strategic guidance to the GOE to achieve green, resilient, and inclusive growth while creating new jobs. This CEA has been developed in consultation with the GOE and has identified short-to medium-term priority areas in: (i) circular economy (CE) for industrial pollution and waste management; (ii) blue economy (BE) with a focus on sustainable coastal zone management; (iii) environmental governance; and (iv) innovative green financing mechanisms targeting the CE and BE. It was conducted by reviewing existing analytical work on environmental management in Egypt, current environmental regulations, strategies, reports, and public data. In addition, consultation workshops, meetings (with government representatives, nongovernmental organizations [NGOs], research institutions, private sector, and key experts), and focus group discussions were carried out to further modify or validate the findings.
Egypt Economic Monitor, December 2022: Strengthening Resilience through Fiscal and Education Sector Reforms
(Washington, DC: World Bank, 2022-12) World Bank
Amidst repercussions from the Russia-Ukraine conflict, lingering supply chain disruptions, and tightening global financial conditions, Egypt is experiencing a spike in inflation and has suffered abrupt large-scale portfolio outflows; adding pressures to the country’s already stretched public finances and external accounts. The Central Bank of Egypt (CBE) has undertaken exchange rate and monetary policy adjustments since March 2022 by allowing the exchange rate to depreciate and by raising key policy rates, in order to contain the widening trade deficit, capital reversal and the ensuing drop in foreign exchange buffers. In tandem, the government announced social mitigation packages. The authorities’ efforts to restore macroeconomic stability, rebuild reserves, and push ahead with structural reforms is supported by the 46-month International Monetary Fund (IMF) program, along with other multilateral and bilateral financing and investments. This report provides an update on the recent economic developments and outlook of the Egyptian economy, while embedding the analysis in long-standing challenges. It also features a Special Focus on Education Sector reforms that draws on the World Bank Egypt Public Expenditure Review for Human Development Sectors. A key message is that education spending, its efficiency, and the overall learning outcomes require improvements in order to meet the needs for robust human development, poverty reduction, improved equity, and long-term growth. According to the report, there are three key (inter-connected) priorities going forward: (1) establishing sustained macroeconomic stability and enhancing the competitiveness of Egyptian economy to ensure resilient sources of foreign income activities (exports and FDI). This requires continuing to push ahead with business environment reforms; (2) streamlining budgetary and off-budget expenditures and increasing revenues to create the fiscal space required to allocate more resources for priority areas (such as the education sector); and (3) unleashing the private sector’s potential in higher value-added and export-oriented activities to create jobs and improve living standards.
Egypt Country Climate and Development Report
(World Bank, Washington, DC, 2022-11-08) World Bank Group
This Country Climate and Development Report (CCDR) explores the challenges and opportunities of improving the alignment of Egypt’s development goals with its climate ambition. The CCDR offers a set of policy options and investment opportunities that, if implemented within five years, can deliver short-term benefits in selected sectors while also creating momentum toward important long-term benefits. The options identified in this report provide: Cost-effective adaptation approaches to reduce the negative impacts of climate change; Policy interventions to improve efficiency in the use of natural resources, and complement the creation of fiscal space to finance projects that reduce the vulnerability of people and the economy to climate shocks; Actions that can help avoid carbon lock-in through low-cost policy changes; Interventions to strengthen the country’s competitiveness while reducing negative externalities (such as pollution) and incentivize Egypt’s move towards a low carbon growth path in a manner consistent with its development objectives. Overall, the report identifies opportunities to reduce inefficiencies, manage risk, and strengthen the foundation for increased private sector participation.
Egypt Public Expenditure Review for the Human Development Sectors
(World Bank, Washington, DC, 2022-09) World Bank Group
This Public Expenditure Review (PER) aims at informing government efforts to pursue its commitment to enhancing socioeconomic outcomes through more and better spending on human capital. To achieve this important objective, the Government of Egypt (GoE) aims at creating the fiscal space needed to increase growth-enhancing spending in a way that reflects positively on socioeconomic outcomes. This PER analyzes the adequacy, efficiency, and equity of public spending on the human development sectors. It examines options to create fiscal space by reducing inefficient and wasteful spending within this sector and increasing the impact of existing resources. From an equity perspective, the PER examines how public resources are distributed within the sector, and across income groups and/or geographical regions, and how system-wide reforms can reduce inequality in spending and outcomes. Drawing on a fiscal incidence analysis jointly carried out with the MOF, the distributional impact of potential fiscal measures and other policy changes is simulated to inform the reforms agenda. The first part of the review (Volume I) presents the macro-fiscal context and its constraints. It also presents an analysis of the social protection system in place to mitigate the effects of the challenging macroeconomic environment. The second part of the review (Volume II) focuses on the most difficult challenges facing the core human development sectors, namely health, education and higher education.
Grievance Redress Mechanism of the Takaful and Karama Program in the Arab Republic of Egypt
(Washington, DC, 2022) World Bank
Launched in January 2015, the Takaful and Karama (T&K) program is among the Arab Republic of Egypt government’s cornerstone social protection mitigation measures. It seeks to alleviate the adverse effects of the country’s bold economic reforms aimed at addressing longstanding macroeconomic issues. Implemented by the Ministry of Social Solidarity (MoSS) and co-financed by the government and the World Bank, the T&K program is among Egypt’s largest investments in human capital development. This case study summarizes the practices of the T&K program GRM to date, including lessons learned. The experiences and achievements of the T&K GRM in Karama’s beneficiary assessment phase are specifically highlighted. Section two explores the GRM as part of a broader social accountability approach; section three summarizes the institutional arrangements for grievance resolution; section four discusses key results and trends regarding grievance handling; and section five concludes with a snapshot of achievements, lessons learned, areas of strength and in need of improvement, and the path forward.
Cairo Traffic Congestion Study : Executive Note
(Washington, DC, 2014-05) World Bank
The Greater Cairo Metropolitan Area (GCMA), with more than 19 million inhabitants, is host to more than one-fifth of Egypt's population. The GCMA is also an important contributor to the Egyptian economy in terms of GDP and jobs. The population of the GCMA is expected to further increase to 24 million by 2027, and correspondingly its importance to the economy will also increase. Traffic congestion is a serious problem in the GCMA with large and adverse effects on both the quality of life and the economy. In addition to the time wasted standing still in traffic, time that could be put to more productive uses, congestion results in unnecessary fuel consumption, causes additional wear and tear on vehicles, increases harmful emissions lowering air quality, increases the costs of transport for business, and makes the GCMA an unattractive location for businesses and industry. These adverse effects have very real and large monetary and nonmonetary costs not only for the economy of the GCMA, but given its size, for the economy of Egypt as well. As the population of the GCMA continues to increase, traffic congestion is becoming worse and the need to address this congestion is becoming more urgent. This report documents the results of the study. The results of this study should be of interest to policy-makers and practitioners in the GCMA, the Egyptian Government, other cities facing similar problems, and international financial institutions.
Arab Republic of Egypt Workforce Development : SABER Country Report 2014
(Washington, DC, 2014) World Bank
From the mid-2000s to 2011, the Egyptian economy grew at a rapid pace. Yet, this economic performance has not significantly improved the country's overall competitiveness, nor has this growth impacted the masses by providing more decent jobs. In 2004, the Government of Egypt embarked on a structural reform program of liberalization and privatization, which, combined with high oil prices, booming economies in the Gulf countries, and strong global economic growth, led to real GDP growth of over 7 percent per year between FY06 and FY08. The subsequent global financial, food, and fuel crises dampened economic growth in Egypt to an average of 5 percent in FY09 and FY10, still a strong performance by international standards. However, since 2011, the macroeconomic picture has deteriorated due to unresolved political tensions and policy inflexibility.
Reshaping Egypt's Economic Geography : Domestic Integration as a Development Platform
(Washington, DC, 2012-06) World Bank
This report investigates Egypt's regional economic growth, explores the causes for geographically unbalanced development, and proposes policy options to make unbalanced growth compatible with inclusive development. Regional disparities in income and consumption may be attributed to differences in natural endowments and geographical location, but unbalanced growth is mostly due to economies of scale, spillover effects, and the lower transaction costs that result from agglomeration. In Egypt, despite rapid progress in most welfare indicators in lagging regions, there are still substantial gaps in consumption and opportunities between growth poles and the rest of the country. Adopting integration as a development platform is not simple because spatial disparities are spanned in three dimensions: urban/rural dichotomies, the upper Egypt/lower Egypt duality, and the differences between large metropolises and the rest of the country. This typology of instruments underlies the menu of options presented in this report as the basis of domestic spatial integration as a development platform to achieve more balanced and equitable development without sacrificing growth. This report first identifies the gaps in consumption and in opportunities, showing the stark contrasts between regions and how they evolve through time. It then explores the causes of the gaps, revealing a multiplicity of factors and exposing the complexity of the problem. Finally, the bulk of the report presents the policy options to address the integration challenges.
Arab Republic of Egypt - Reshaping Egypt's Economic Geography : Domestic Integration as a Development Platform, Volume 1
(Washington, DC, 2012-06) World Bank
This report investigates Egypt's regional economic growth, explores the causes for geographically unbalanced development, and proposes policy options to make unbalanced growth compatible with inclusive development. In Egypt, despite rapid progress in most welfare indicators in lagging regions, there are still substantial gaps in consumption and opportunities between growth poles and the rest of the country. This report's central proposal is adopting spatial integration as a development platform, in which the policy focus shifts from spreading out industrial location to spreading out access to basic public services and facilitating factor mobility, which will make growth more inclusive and development more balanced in Egypt. Egypt's new political environment provides an opportunity to examine this perennial problem from a new perspective. Adopting integration as a development platform is not simple because spatial disparities are spanned in three dimensions: urban/rural dichotomies, the upper Egypt/lower Egypt duality, and the differences between large metropolises and the rest of the country. This report first identifies the gaps in consumption and in opportunities, showing the stark contrasts between regions and how they evolve through time. It then explores the causes of the gaps, revealing a multiplicity of factors and exposing the complexity of the problem. Finally, the bulk of the report presents the policy options to address the integration challenges.
Middle East and North Africa Economic Developments and Prospects, September 2011 : Investing for Growth and Jobs
(Washington, DC, 2011-09) World Bank; Ianchovichina, Elena
The report highlights the important links between good governance on a level legal and regulatory playing field, and the ability of investment to stimulate growth. Investment in the Middle East and North Africa (MENA) region has been strong over the last two decades in comparison with Latin America and Eastern Europe. However, in the oil exporting countries, it has been primarily supported by large and expanding public investments. Oil importers, in contrast, have shown more strength in private investment, which has increased in recent years. A concern with reliance on public investment is that in economies with weak governance there is no evidence that public investment stimulates growth. In contrast, in countries with an adequate level of protection of property rights and legal institutions, public investment is strongly linked to growth. The report also makes a strong case for private investment in services and manufacturing as engines of job creation and income growth in the region.