Combating poverty

Poverty is one of the deep-seated problems facing developing countries; Egypt is no exception. In Egypt, poverty is widespread and is particularly serious in rural areas, Upper Egypt, and among female-headed households. Throughout the past 5-6 years, poverty has been increasing, driven by large increases in expenditure inequality, a pro-rich pattern of growth, limited employment opportunities and large price increases following the devaluation of the Egyptian pound.

The ILO Subregional Office for North Africa, Cairo has undertaken various steps in combating poverty and understanding its root causes. The Office is engaging in a Participatory Slum Upgrading and Local Economic Development Programme for Upper Egypt" (since October 2005). This is a multi-agency endeavour (including ILO, UNDP, UNFPA, UN-Habitat, UNICEF, UNIFEM), focusing on the poor area of Menya, in Upper Egypt. It aims at strengthening local and central authorities' and key stakeholders' capacities in settlement and slum improvement. The Programme covers various technical areas in which ILO has comparative advantage, such as Local Economic Development (LED), labour-intensive technology, support to Micro, Small and Medium Enterprises (MSMEs) , improving enterprise productivity and working conditions, labour inspection, Combating poverty, and gender mainstreaming. The methodology and results of this Programme could feed into the National Plan for Slum Upgrading, currently being developed by the Egyptian authorities (Ministry of Local Development and Ministry of Housing).

Furthermore, the Office is preparing a paper on "The Employment-poverty Linkage, and an Employment-friendly Policy Framework in Egypt". This is one of a series of in-depth country studies, undertaken in partnership with the UNDP in the MENA region, which underscore the importance of enhancing the employment component of growth, and of integrating the poor and the disadvantaged (especially women) in the growth process. These studies throw insights on the growth-employment-poverty nexus, seek to fill knowledge gaps in this nexus, and aim to discuss critical policy issues to operationalize pro-poor growth.

In the coming months, SRO Cairo will be organizing, with UNDP, a sub-regional workshop on "Employment Promotion for Poverty Reduction" (Oct.-Nov. 2006). Its objective is to disseminate the findings of 6-7 selected country case studies (including Egypt), share policy perspectives, and initiate policy dialogue on the most effective ways to generate jobs and reduce poverty. Participants will include policy planners (governments), representatives of workers' and employers' organizations, academics and experts, along with representatives from the ILO, UNDP and other donor agencies. Another workshop should be taking place right after that one, focusing on the specific case of Egypt.