Balancing the 4 Es.

Towards Equitable Fiscal

Policy
SHERINE AL-SHAWARBY

NINTH AUC ANNUAL FORUM

THE ECONOMIC AND BUSINESS HISTORY OF EGYPT
AND THE MIDDLE EAST
CAIRO
MARCH 25, 2014

The Main Question

How social Equity is finding its place in

Egypt as an equal among the traditional
fiscal policy values of Economy,
Efficiency, and Effectiveness?

OBJECTIVE
Share ideas for imagining and
improving the future so that social
Equity becomes an equal among its
peers (Economy, Efficiency, and
Effectiveness(
Introduction to the Economic Justice
Unit (EJU): How it ensures the 4 Es
balance (Economy, Efficiency,
Effectiveness and Equity)

What is Economic Justice?

Economic justice encompasses

the moral principles which
guide us in designing our
economic institutions.

The Three Principles of Economic Justice

The Principle of Participation

The Principle of Distribution
The Principle of Harmony (Redistribution)

Injustice anywhere is a threat to justice

everywhere

The Principle of Participation

It defines how one makes "input" to the
economic process in order to make a living

The Principle of Participation

It defines how one makes "input" to the
economic process in order to make a living
It requires equal opportunity in gaining
access to private property in productive
assets as well as equality of opportunity to
engage in productive work.

The Principle of Participation

It defines how one makes "input" to the
economic process in order to make a living
It requires equal opportunity in gaining
access to private property in productive
assets as well as equality of opportunity to
engage in productive work.
It does not guarantee equal results, but
requires equal right to make a productive
contribution to the economy

The Principle of Participation

It defines how one makes "input" to the
economic process in order to make a living
It requires equal opportunity in gaining
access to private property in productive
assets as well as equality of opportunity to
engage in productive work.
It does not guarantee equal results, but
requires equal right to make a productive
contribution to the economy
Thus, this principle rejects monopolies,
special privileges, and other exclusionary
social barriers to economic self-reliance.

The Principle of Distribution

It defines the "output" or "out-take" rights

of an economic system matched to each

person's labor and capital inputs.

The Principle of Distribution

It defines the "output" or "out-take" rights

of an economic system matched to each

person's labor and capital inputs.
Distributive justice becomes automatically

linked to participative justice, and incomes

become linked to productive contributions.

The Principle of Distribution

It defines the "output" or "out-take" rights

of an economic system matched to each

person's labor and capital inputs.
Distributive justice becomes automatically

linked to participative justice, and incomes

become linked to productive contributions.
It is based on the idea "to each according to

his contribution and not "to each

according to his needs.

The Principle of Distribution

It defines the "output" or "out-take" rights

of an economic system matched to each

person's labor and capital inputs.
Distributive justice becomes automatically
linked to participative justice, and incomes
become linked to productive contributions.
It is based on the idea "to each according to
his contribution and not "to each
according to his needs.
Distributive justice follows participative
justice

The Principle of Redistribution

It defines the "out-take" rights of a social

protection system matched to basic needs of

citizens and common risks they may face.
Redistributive justice makes whatever

corrections are needed to redress distortions

of either the input or output principles and to
restore a just and balanced economic order
for all.

Progressive tax
system

Egypts Fiscal Policy and Equity

Participative principle

New Constitutional spending targets for

health, education, and R&D--- (additional
LE90 billion in 2012/13 prices)
how this would be funded and how to ensure
quality, efficiency, and equity in moving
towards these higher spending levels.

Egypts Fiscal Policy and Equity

Egypts Fiscal Policy and Equity

Egypts Fiscal Policy and Equity

Distributive principle

MinimumWage
Wageandjobincreases

MaximumWage

LE 28 billion- of which 8
billion for teachers and 10
for doctors
More than LE70 billion

Egypts fiscal policy and Equity

Redistributive principle

Egypts fiscal policy and Equity

Redistributive principle: Taxes

Egypts fiscal policy and Equity

Redistributive principle: Taxes

Egypts fiscal policy and Equity

Redistributive principle:Taxes
Broaden tax bases:
Property taxes
VAT
Temporary 5% tax on incomes exceeding one

million LE/year

Egypts fiscal policy and Equity

Redistributive principle: Social Spending

Egypts fiscal policy and Equity

Redistributive principle: Social Spending

Egypts fiscal policy and Equity

Redistributive principle

Egypts Fiscal Policy and Equity

Who are the main beneficiaries from the
subsidies?

Egypts Fiscal Policy and Equity

Who are the main beneficiaries from the
subsidies?

Egypts Fiscal Policy and Equity

Who are the main beneficiaries from the
subsidies?

Egypts Fiscal Policy and Equity

Who are the main beneficiaries from the
subsidies?

Egypts Fiscal Policy and Equity

Who are the main beneficiaries from the
subsidies?

Balancing the 4 Es.

Towards Equitable Fiscal Policy

THANKS
FORYOUR
ATTENTION