Publication:
Rethinking Fiscal Policies: Tackling Inequality and Poverty in the Middle East and North Africa Region

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dc.contributor.authorFuchs Tarlovsky, Alan
dc.contributor.authorAmjad, Beenish
dc.contributor.authorLoayza Grisi, Mario Julian
dc.date.accessioned2025-05-27T15:39:32Z
dc.date.available2025-05-27T15:39:32Z
dc.date.issued2025-05-27
dc.description.abstractThis paper examines the redistributive impact of fiscal policy—specifically taxes and transfers—on poverty and inequality in eight countries in the Middle East and North Africa: the Arab Republic of Egypt, Djibouti, the Islamic Republic of Iran, Iraq, Jordan, Morocco, Tunisia, and the West Bank and Gaza. Utilizing the Commitment to Equity framework, the analysis evaluates how fiscal interventions alter income distribution across these diverse national contexts. The results indicate that direct cash transfers and social assistance programs are generally effective in reducing poverty and shielding vulnerable populations, while in-kind benefits—particularly in education and healthcare—significantly contribute to mitigating income inequality. In contrast, generalized subsidies, especially in the energy sector, are fiscally burdensome and largely regressive, offering limited equity gains. Indirect taxes, although important for revenue generation, often exacerbate income disparities. The study underscores the need for comprehensive fiscal reforms, including the expansion of well-targeted transfers, adoption of progressive taxation, and reallocation of inefficient subsidies toward investments in human capital. Successful initiatives, such as Egypt’s Takaful and Karama and Jordan’s Takaful and bread subsidy compensation programs, illustrate scalable models of effective redistribution. Moreover, the Islamic Republic of Iran’s progressive tax policies highlight viable pathways to equitable revenue mobilization. Strengthening investment in education and health is essential for promoting long-term equity, enhancing upward mobility, and supporting inclusive and sustainable development across the region.en
dc.identifierhttp://documents.worldbank.org/curated/en/099754405222540329
dc.identifier.urihttps://hdl.handle.net/10986/43244
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11131
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectFISCAL INCIDENCE
dc.subjectDISTRIBUTIONAL IMPACT
dc.subjectPOVERTY
dc.subjectINEQUALITY
dc.subjectFISCAL POLICY
dc.titleRethinking Fiscal Policiesen
dc.title.subtitleTackling Inequality and Poverty in the Middle East and North Africa Regionen
dc.typeWorking Paper
dspace.entity.typePublication
okr.date.disclosure2025-05-27
okr.date.lastmodified2025-05-25T17:05:16Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099754405222540329
okr.guid099754405222540329
okr.identifier.docmidIDU-222965af-c868-4015-96c6-eeff9936f83e
okr.identifier.doi10.1596/1813-9450-11131
okr.identifier.externaldocumentum40015168
okr.identifier.internaldocumentum40015168
okr.identifier.reportWPS11131
okr.import.id7467
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099754405222540329/pdf/IDU-222965af-c868-4015-96c6-eeff9936f83e.pdfen
okr.region.geographicalMiddle East
okr.region.geographicalNorth Africa
okr.sectorFY17 - Other Public Administration
okr.sectorPublic Administration
okr.themeFY17 - Jobs,FY17 - Job Creation,FY17 - Inclusive Growth,FY17 - Spatial Growth,FY17 - Mitigation,FY17 - Economic Growth and Planning,FY17 - Adaptation,FY17 - Climate change
okr.themeFY17 - Environment and Natural Resource Management,FY17 - Private Sector Development,FY17 - Economic Policy
okr.topicMacroeconomics and Economic Growth::Income
okr.topicPoverty Reduction::Inequality
okr.topicPoverty Reduction::Equity and Development
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicPoverty Reduction::Poverty Monitoring & Analysis
okr.unitEMNPV - EFI - MNA - Poverty and Equity
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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