Inefficient subsidies harming Egyptian economy

The Egyptian Center for Economic and Social Rights stated in its 2013 report, "Highlighting Rights," that Egypt's inefficient subsidies program is detrimental to more equitable forms of intervention and is disproportionately beneficial to the more prosperous segments of society. The center presented this information in an appearance before the United Nations Committee on Economic, Social and Cultural Rights.

According to the center's 2009 estimates, the richest quintile benefited from 60% of the country’s fuel subsidies. In contrast, social protection schemes unrelated to subsidies — such as cash transfers, microcredit and health insurance — amounted to only 0.11% of total subsidies. This is a very small percentage compared to other countries in the region. However, despite the inefficiency of support systems in the country, their removal would increase impoverishment. Instead, the government should restructure the social protection framework so it can reach those who are most in need.

Many expert recommendations have emphasized two imperatives: the need to forgo the current subsidy system and the need to find ways to not harm the poor in the abandonment of the system.