Research report on food policy and the food subsidy and rationing system in Egypt - considers the origins of the system, food security structure, commodity marketing channels and principal commoditys subsidised; examines food policy decision making and regional level economic administration, as well as distributional and nutritional implications in urban areas and rural areas; discusses current food policy trends. Bibliography, diagrams, statistical tables.

Research report on the effects of the Egyptian food rationing and food subsidy systems on income distribution and consumption - using household survey data explains distribution and food security; examines household expenditure, protein consumption, level of nutrition and percentage calorie deficiency; analyses system of income transfer and interaction with farm crop production and marketing; gives statistical analysis of choice between cooperatives and open market. Bibliography, graphs, statistical tables.

By gradually reducing the number of subsidized foods, and by focusing subsidies on foods consumed more by the poor than by the rich (like coarse baladi bread) Egyptian policymakers have found a way to self-target food subsidies to the urban poor. Yet because the rural poor do not consume as much baladi bread, this system is not as well-targeted to the rural poor.

The Egyptian Food Subsidy System: Structure, Performance, and Options for Reform evaluates the economic, political, and technical feasibility of reducing costs while improving or maintaining the welfare of the poor. The report addresses five questions: (1) How well does the present system target the poor? (2) How much leakage- the pilferage of subsidized foods in the distribution channel-occurs? (3) At what cost does the government transfer income to the needy? (4) How can subsidies be better targeted to the needy? And (5) What are politically feasible options for reform?

By gradually reducing the ...

Extract: The aim of this study is to determine how rapid growth in consumer subsidies has affected agriculture. Therefore, government spending on agriculture is examined, and the government's price policies on inputs and output and its interventions in allocation and marketing are evaluated.

Most Egyptians receive food subsidies, which are the cornerstone of the country’s social protection system. The government recently attempted to reduce subsidies, with limited success, and introduced a cash transfer program targeting the poor. We use a dynamic general equilibrium model of the Egyptian economy to evaluate the growth and distributional impacts of subsidy reforms and cash transfers. We find that the welfare of poor households would be enhanced by a smaller, but better targeted food subsidy program, and that, if the cost savings from reforms are channeled into investment, faster economic growth would eventually outweigh any short-term welfare losses. However, most of the gains from subsidy reforms accrue to nonpoor households. Combining subsidy reforms with cash transfers leads to the largest welfare gains for the poor, while leaving the welfare of nonpoor households largely intact. The latter is crucial to maintaining support for ongoing subsidy reform efforts.