Working Papers

Egypt's Economic Reform and Structural Adjustment (ERSAP)

Publication Number: ECESWP19-E

October, 1997

Author : Karima Korayem

Type : Working Papers

Egypt’s economic reform and structural adjustment program (ERSAP) was implemented in 1991, aiming to rectify the imbalances between the demand and supply sides of the economy. The main symptoms of these imbalances are the chronic deficits in the balance of payments and the government budget, and high inflation. This paper assesses the economic and social impact of ERSAP in terms of its effects on the balance of payment deficit, the budget deficit, inflation, output and employment, poverty, and income distribution. It concludes that ERSAP is well designed to rectify the imbalances on the demand side of the economy, but is relatively deficient in addressing the main imbalances and bottlenecks on the supply side.