IFIs, economic reform and inclusive growth in Egypt: Why did post 2004 IFI-supported economic reform programmes in Egypt fail to deliver inclusive growth?
Key findings: In 2004 Egypt began to implement bold economic reforms, supported by its main donors and the International Finance Institutions (IFIs). The reforms, which included macroeconomic policies; financial sector reform; privatisation and structural reforms in trade, taxes and subsides, contributed to a rapid acceleration of growth, making it one of the Middle East and North Africa's fastest-growing economies. This economic growth, however, did not result in inclusive growth. Unemployment remained high among particular groups, poverty increased from 16.7% to 22%, and there were also disparities between different regions.
A number of reasons are put forward for the reform programmes’ failure to deliver inclusive growth:
Possible measures for redressing the imbalance include:
Full response: http://www.gsdrc.org/docs/open/HD793.pdf