Egypt

UN to help develop Egypt subsidy system, says minister

Egypt will receive technical support from the United Nations Development Programme to develop the country’s subsidy system, Supply and Social Affairs Minister Gouda Abdel Khaleq said Wednesday.

Abdel Khaleq’s statements came after a meeting in Cairo with UNDP officials who are visiting Egypt to discuss ways they can support the ministry.

The UNDP will provide support in various fields, including establishing a complete database of the ministry's beneficiaries. It will also link the supply directorates across the country with the data network of the ministry and other ministries.

Abdel Khaleq said the UNDP would also help raise public awareness about issues related to the ministry’s work with the aim of rationalizing consumption and preventing public money from being wasted.

Abdel Khaleq said the assistance will also include enhancing the technical capacities of ministry workers to develop human resources in communication.

During the talks officials reviewed the UNDP’s previous cooperation with the government in fighting poverty, achieving social development, providing jobs and other areas.

Subside policies are often criticized in Egypt for not providing assistance that reaches those in need.

Former Finance Minister Hazem al-Beblawy in October warned against leaving the subsidy policies unreformed, saying that  the cost of Egypt's subsidy program jumped from LE1 billion in 1991 to LE95 billion in 2011. He said 80 percent of gasoline subsidies go to 40 percent of high-income earners.

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