Egypt’s Economic Reform and Structural Adjustment (ERSAP)

Author(s): Karima Korayem, professor of Economics, Faculty of Commerce (Girls), Al-Azhar University
Publication Number: ECES-WP19-E


Egypt’s economic reform and structural adjustment program (ERSAP) was initiated in l99l 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 the initial phase of ERSAP is well designed to rectify the imbalances on the demand side of the economy, but not on the supply side.

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