Causes and Consequences of Inequality in Egypt

Abstract This study presents an analysis of various facets of inequality in Egypt using a political economy approach to understand how inequalities are reproduced in the Egyptian economy. It examines the drivers of income and wealth inequality, and the impact of uneven taxation. The paper highlights how the mismeasurement of top incomes can skew the measurement of inequality, and shows how Egypt has one of the biggest wealth gaps in the world. It investigates educational, gender, and healthcare inequalities and how they are reproduced across generations. The paper also highlights the disparity between urban and rural areas, which further contributes to inequality. It assesses why economic growth in Egypt has had limited success in reducing poverty and inequality, and analyzes how state and military interference in markets hampers the growth of the private sector. The paper concludes by examining how inequality, combined with a number of challenges that Egypt is facing, including increased authoritarianism, climate change, demographic pressures, and water security will likely exacerbate many of the country’s socioeconomic and political problems. Overall, the study argues that inequality remains a key concern that, if left unaddressed, may lead to social unrest and instability in the long term.