THE ALLOCATION OF ECONOMIC RESOURCES AND INCOME DISTRIBUTION IN EGYPT

Salah El Sabaa
The Future University

ABSTRACT

This study assesses the impact of allocation of the national resources in solving Egypt’s
prevailing problems and economic challenges, in particular, the efficiency of government
spending in alleviating poverty, unequal income distribution, and addressing the economic crisis
that facing Egypt today. This study also suggests that there is a need for a multi-faceted strategy
for government spending. First, investing in basic education and health care should be considered
for priority ordering of government spending and policies. Second, allocating more resources for
small scale and medium-sized industries could contribute to solving the current economic crisis.
Third and most importantly, implementing mega projects should be subject to extensive
democratic debate with all factions of society participating. Based on the findings, the researcher
argues that the allocation of national economic resources by the government was not optimally
allocated to address the current economic crisis and help improve income distribution and poverty
alleviation in Egypt.

Keywords: Income, distribution, inequality Gini, index, government spending, resources allocation, subsidies