World Daily News
Business
Egypt

Egypt's New Social Support Law: A Step Forward or a Setback for the Poor?

Images from the reference sources
Egypt is set to approve a new Social Security and Cash Support Bill aimed at restructuring its support system amid rising poverty, but concerns about its effectiveness and inclusivity persist.

The new law aims to legally institutionalize cash support programs in Egypt, but its effectiveness is questioned due to strict eligibility criteria.

Critics argue that the law may not cover all impoverished families and could lead to further economic hardship for many.

The average cash support provided under the new law is significantly below the poverty line, raising concerns about its sufficiency.

If the law is enacted in its current form, it may lead to increased poverty levels as many families could be excluded from support.

The government's financial constraints may limit the effectiveness of the cash support provided, failing to keep pace with inflation and rising living costs.

There may be increased public dissent and calls for reform if the law does not adequately address the needs of the poorest citizens.


Overview of Egypt's New Social Support Law

The Egyptian government is on the verge of approving a groundbreaking Social Security and Cash Support Bill aimed at restructuring the nation’s cash support and social security systems. This initiative comes as Egypt grapples with severe economic challenges, including a rising poverty rate that now exceeds 35% of the population. The proposed law seeks to unify existing cash support programs, such as 'Takaful' and 'Karama', into a legally recognized right, a significant shift from their previous status as mere programs.

Concerns and Criticisms

Despite the government's assurances that the new law will enhance social justice and provide adequate support for the poor, critics express skepticism about its effectiveness. The law imposes strict limitations on families with more than two children, potentially excluding many from receiving necessary assistance. Talat Khalil, a prominent opposition figure, argues that the bill fails to adequately define poverty and may lead to the cancellation of essential food subsidies amid rising inflation. Furthermore, the average monthly support of 620 to 740 Egyptian pounds (approximately $14) falls significantly below the poverty line, which is estimated to be over 1,400 pounds per person.

Government's Defense and Future Implications

In defense of the bill, Minister of Social Solidarity Maya Morsi emphasizes that the law aligns with constitutional provisions for social justice and aims to ensure that support comes from the state budget rather than temporary loans. However, experts like Wael Gamal warn that the law's limitations could exacerbate poverty levels rather than alleviate them. As the economic situation in Egypt continues to deteriorate, the effectiveness of this new legislation remains uncertain, with many calling for a more inclusive approach to social support.

Clam Reports
Refs: | Aljazeera |

Trends

Business

Iran's Currency Crisis: Political Pressures and Economic Strategies

2024-12-18T17:48:04.421Z

Iran's rial faces significant depreciation due to political tensions and economic policies, prompting the Central Bank to implement a new pricing mechanism aimed at stabilizing the currency.

Business

Israel's Poverty Rate Remains High, Ranking Second in OECD

2024-12-18T17:47:27.442Z

A report reveals that Israel has the second-highest poverty rate in the OECD, with significant disparities among different demographic groups and alarming child poverty rates.

Business

Kiryat Shmona's Real Estate Market Stagnates Amid Uncertainty and Lack of Investment

2024-12-18T20:17:54.475Z

The real estate market in Kiryat Shmona is facing severe stagnation due to uncertainty and lack of government investment, with significant declines in sales and rental prices.

Business

Wall Street Plummets as Fed Signals Fewer Interest Rate Cuts Ahead

2024-12-18T23:37:31.480Z

U.S. stock markets fell sharply after the Federal Reserve's announcement of its third interest rate cut this year, signaling a more cautious approach to future cuts.

Business

US Federal Reserve Lowers Interest Rates by 0.25% Amid Economic Recovery

2024-12-18T19:37:32.938Z

The US Federal Reserve has cut interest rates by 0.25% to support economic growth, despite rising inflation and mixed labor market signals.

Business

Tunisia's Olive Oil Crisis: Economic Challenges and Reform Opportunities

2024-12-18T14:07:25.529Z

Tunisia faces a severe crisis in its olive oil sector, with prices plummeting and farmers protesting due to lack of demand and liquidity. The crisis stems from aggressive anti-corruption measures and international competition, highlighting the need for comprehensive reforms.

Latest