Egyptian Prime Minister Mostafa Madbouli announced this week that welfare cash provided by the government to beneficiary families through the successful financial aid programme known as “Takafol wa Karama” (or Solidarity and Dignity) would now include families with only two children, instead of three. This programme has been one of the key initiatives the government introduced three years ago so that extremely poor families can cope with current economic conditions and increasing inflation rates. However, the significance of this programme also lies in linking the financial aid offered to most-needy families to key preconditions, topped with commitment to provide education to children and proper healthcare. The purpose of Madbouli's decision is not only to encourage beneficiaries to practise family planning, considering Egypt's high population growth rates over recent decades. Equally important, is the government's desire to reach more families that direly need such financial aid. Madbouli rightly stated that it was unfair that large families would benefit from such financial support, while depriving other families of it altogether. Considering Egypt's wide-scale economic reform programme, there is definitely a need to follow rational social policies based on logic and available resources, which is certainly challenged by current population growth rates. The “Takafol wa Karama” programme has achieved success in its effective protection of 2.2 million poor families who are considered the most vulnerable and disadvantaged, practically serving nearly 9.5 million citizens. With Madbouli's recent decision, there is a chance to cover millions more. Besides encouraging families to have two children only, the government is also studying policies around ration cards, to ensure that subsidies reach their intended beneficiaries. The results of the study will be announced next year. In recent statements, Minister of Supply Ali Meselhi said that the ministry was considering cancelling ration cards for individuals whose monthly income exceeds LE7,000. It certainly makes no sense that mid-level and high-income families enjoy the same benefits as poor families. The Egyptian economy has undergone many structural changes over recent decades, and it makes no sense to maintain policies that were adopted many years ago to cope with conditions that no longer exist. Of course, poverty in Egypt will remain a major problem that requires immediate measures to improve the living standards of millions of citizens. However, this will not be possible without adopting policies that also target those who most need help. If an Egyptian family lives in a compound where property costs millions of Egyptian pounds, and if they send their children to international schools, and spend their summer vacations in Europe, it definitely makes no sense that they receive any sort of government subsidy. Any subsidy that goes to those who do not need it will only deprive millions who better need that aid. Over the past few years, the government's policy has concentrated on investing in human capital, which depends on improving education and healthcare. This will require the cooperation of all segments of society, whether the wealthy by paying their taxes and no longer receiving any government subsidies they do not deserve, or the less privileged through awareness that population control and having smaller families is the only way to shore up hope for the future. Otherwise, overpopulation in Egypt will remain one of the most serious problems, threatening economic growth and impeding development efforts. Meanwhile, the government needs to devote efforts during the coming phase into consolidating social protection and safety nets while pressing ahead with the development process, which in turn could positively reflect on the lives of low-income people. Such a goal could only be achieved by coordinating with the private sector, civil society, financial institutions and investor associations.
