Publication: Inside Inequality in the Arab Republic of Egypt : Facts and Perceptions across People, Time, and Space
Loading...
Files in English
1,818 downloads
Published
2014-04-02
ISSN
Date
2014-04-02
Author(s)
Al-Shawarby, Sherine
El Tawila, Sahar
Gadallah, May
A. El-Majeed, Enas Ali
Editor(s)
Abstract
This book joins four papers prepared in the framework of the Egypt inequality study financed by the World Bank. The first paper prepared by Sherine Al-Shawarby reviews the studies on inequality in Egypt since the 1950s with the double objective of illustrating the importance attributed to inequality through time and of presenting and compare the main published statistics on inequality. To our knowledge, this is the first time that such a comprehensive review is carried. The second paper prepared by Branko Milanovic turns to the global and spatial dimensions of inequality. The objective here is to put Egypt inequality in the global context and better understand the origin and size of spatial inequalities within Egypt using different forms of measurement across regions and urban and rural areas. The Egyptian society remains deeply divided across space and in terms of welfare and this study unveils some of the hidden features of this inequality. The third paper prepared by Paolo Verme studies facts and perceptions of inequality during the period 2000-2009, the period that preceded the Egyptian revolution. The objective of this part is to provide some initial elements that could explain the apparent mismatch between inequality measured with household surveys and inequality aversion measured by values surveys. No such study has been carried out before in the Middle-East and North-Africa (MENA) region and this seemed a particular important and timely topic to address in the light of the unfolding developments in the Arab region. The fourth paper prepared by Sahar El Tawila, May Gadallah and Enas Ali A. El-Majeed assesses the state of poverty and inequality among the poorest villages of Egypt. The paper attempts to explain the level of inequality in an effort to disentangle those factors that derive from household abilities from those factors that derive from local opportunities. This is the first time that such study is conducted in Egypt. The book should be of interest to any observer of the political and economic evolution of the Arab region in the past few years and to poverty and inequality specialists that wish to have a deeper understanding of the distribution of incomes in Egypt and other countries in the MENA region.
Link to Data Set
Citation
“Al-Shawarby, Sherine; Verme, Paolo; El Tawila, Sahar; Milanovic, Branko; Gadallah, May; A. El-Majeed, Enas Ali. 2014. Inside Inequality in the Arab Republic of Egypt : Facts and Perceptions across People, Time, and Space. © http://hdl.handle.net/10986/17583 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Arab Republic of Egypt - Reshaping Egypt’s Economic Geography : Domestic Integration as a Development Platform, Volume 2. Technical Background Reports(Washington, DC, 2012-06)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.Publication Top Incomes and the Measurement of Inequality in Egypt(World Bank, Washington, D.C., 2013-08)By all accounts, income inequality in Egypt is low and had been declining during the decade that preceded the 2011 revolution. As the Egyptian revolution was partly motivated by claims of social injustice and inequalities, this seems at odds with a low level of income inequality. Moreover, while income inequality shows a decline between 2000 and 2009, the World Values Surveys indicate that the aversion to inequality has significantly increased during the same period and for all social groups. This paper utilizes a range of recently developed statistical techniques to assess the true value of income inequality in the presence of a range of possible measurement issues related to top incomes, including item and unit non-response, outliers and extreme observations, and atypical top income distributions. The analysis finds that correcting for unit non-response significantly increases the estimate of inequality by just over 1 percentage point, that the Egyptian distribution of top incomes follows rather closely the Pareto distribution, and that the inverted Pareto coefficient is located around median values when compared with 418 household surveys worldwide. Hence, income inequality in Egypt is confirmed to be low while the distribution of top incomes is not atypical compared with what Pareto had predicted and compared with other countries in the world. This would suggest that the increased frustration with income inequality voiced by Egyptians and measured by the World Values Surveys is driven by factors other than income inequality.Publication Global Inequality Recalculated : The Effect of New 2005 PPP Estimates on Global Inequality(2009-09-01)The results of new direct price level comparisons across 148 countries in 2005 have led to large revisions of purchasing power parity exchanges rates, particularly for China and India. The recalculation of international and global inequalities, using the new purchasing power parity rates, shows that inequalities are substantially higher than previously thought. Inequality between global citizens is estimated at 70 Gini points rather than 65 as before. The richest decile receives 57 percent of global income rather than 50 percent.Publication Global Income Inequality by the Numbers : In History and Now(World Bank, Washington, DC, 2012-11)The paper presents an overview of calculations of global inequality, recently and over the long-run as well as main controversies and political and philosophical implications of the findings. It focuses in particular on the winners and losers of the most recent episode of globalization, from 1988 to 2008. It suggests that the period might have witnessed the first decline in global inequality between world citizens since the Industrial Revolution. The decline however can be sustained only if countries' mean incomes continue to converge (as they have been doing during the past ten years) and if internal (within-country) inequalities, which are already high, are kept in check. Mean-income convergence would also reduce the huge "citizenship premium" that is enjoyed today by the citizens of rich countries.Publication Party Age and Party Color : New Results on the Political Economy of Redistribution and Inequality(World Bank, Washington, DC, 2014-12)This paper advances research on inequality with unique, new data on income distribution in 61 countries, including 20 Latin American countries, to explore the effects of political parties on redistribution. First, consistent with a central -- but still contested -- assumption of the political economy literature, left-wing governments redistribute more. In addition, consistent with recent research on the importance of party organization and the organizational differences between younger and older parties, older left-wing parties are more likely to internalize the long-run costs of redistribution and to be more credible in their commitment to redistribution, leading them to redistribute less. With entirely different data, the paper also provides evidence on mechanisms: left-wing governments not only redistribute more, they tax more; older left-wing parties, though, tax less than younger ones.
Users also downloaded
Showing related downloaded files
Publication Government Matters III : Governance Indicators for 1996-2002(World Bank, Washington, DC, 2003-08)The authors present estimates of six dimensions of governance covering 199 countries and territories for four time periods: 1996, 1998, 2000, and 2002. These indicators are based on several hundred individual variables measuring perceptions of governance, drawn from 25 separate data sources constructed by 18 different organizations. The authors assign these individual measures of governance to categories capturing key dimensions of governance and use an unobserved components model to construct six aggregate governance indicators in each of the four periods. They present the point estimates of the dimensions of governance as well as the margins of errors for each country for the four periods. The governance indicators reported here are an update and expansion of previous research work on indicators initiated in 1998 (Kaufmann, Kraay, and Zoido-Lobat 1999a,b and 2002). The authors also address various methodological issues, including the interpretation and use of the data given the estimated margins of errors.Publication Governance Matters IV : Governance Indicators for 1996-2004(World Bank, Washington, DC, 2005-06)The authors present the latest update of their aggregate governance indicators, together with new analysis of several issues related to the use of these measures. The governance indicators measure the following six dimensions of governance: (1) voice and accountability; (2) political instability and violence; (3) government effectiveness; (4) regulatory quality; (5) rule of law, and (6) control of corruption. They cover 209 countries and territories for 1996, 1998, 2000, 2002, and 2004. They are based on several hundred individual variables measuring perceptions of governance, drawn from 37 separate data sources constructed by 31 organizations. The authors present estimates of the six dimensions of governance for each period, as well as margins of error capturing the range of likely values for each country. These margins of error are not unique to perceptions-based measures of governance, but are an important feature of all efforts to measure governance, including objective indicators. In fact, the authors give examples of how individual objective measures provide an incomplete picture of even the quite particular dimensions of governance that they are intended to measure. The authors also analyze in detail changes over time in their estimates of governance; provide a framework for assessing the statistical significance of changes in governance; and suggest a simple rule of thumb for identifying statistically significant changes in country governance over time. The ability to identify significant changes in governance over time is much higher for aggregate indicators than for any individual indicator. While the authors find that the quality of governance in a number of countries has changed significantly (in both directions), they also provide evidence suggesting that there are no trends, for better or worse, in global averages of governance. Finally, they interpret the strong observed correlation between income and governance, and argue against recent efforts to apply a discount to governance performance in low-income countries.Publication Design Thinking for Social Innovation(2010-07)Designers have traditionally focused on enchancing the look and functionality of products.Publication Breaking the Conflict Trap : Civil War and Development Policy(Washington, DC: World Bank and Oxford University Press, 2003)Most wars are now civil wars. Even though international wars attract enormous global attention, they have become infrequent and brief. Civil wars usually attract less attention, but they have become increasingly common and typically go on for years. This report argues that civil war is now an important issue for development. War retards development, but conversely, development retards war. This double causation gives rise to virtuous and vicious circles. Where development succeeds, countries become progressively safer from violent conflict, making subsequent development easier. Where development fails, countries are at high risk of becoming caught in a conflict trap in which war wrecks the economy and increases the risk of further war. The global incidence of civil war is high because the international community has done little to avert it. Inertia is rooted in two beliefs: that we can safely 'let them fight it out among themselves' and that 'nothing can be done' because civil war is driven by ancestral ethnic and religious hatreds. The purpose of this report is to challenge these beliefs.Publication Governance Matters VIII : Aggregate and Individual Governance Indicators 1996–2008(2009-06-01)This paper reports on the 2009 update of the Worldwide Governance Indicators (WGI) research project, covering 212 countries and territories and measuring six dimensions of governance between 1996 and 2008: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. These aggregate indicators are based on hundreds of specific and disaggregated individual variables measuring various dimensions of governance, taken from 35 data sources provided by 33 different organizations. The data reflect the views on governance of public sector, private sector and NGO experts, as well as thousands of citizen and firm survey respondents worldwide. The authors also explicitly report the margins of error accompanying each country estimate. These reflect the inherent difficulties in measuring governance using any kind of data. They find that even after taking margins of error into account, the WGI permit meaningful cross-country comparisons as well as monitoring progress over time. The aggregate indicators, together with the disaggregated underlying indicators, are available at www.govindicators.org.