Bread Subsidies in Egypt: Choosing Social Stability or Fiscal Responsibility

John William Salevurakis and Sahar Mohamed Abdel-Haleim
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John William Salevurakis: The American University in Cairo, 113 Kasr el Aini Street, Cairo, 11511, Egypt, jsalevurakis@aucegypt.edu
Sahar Mohamed Abdel-Haleim: The American University in Cairo, 113 Kasr el Aini Street, Cairo, 11511, Egypt, saharmoh@aucegypt.edu

Review of Radical Political Economics, 2008, vol. 40, issue 1, 35-49

Abstract: Bread subsidies contribute greatly to social stability in Egypt, yet there exist academic and political tendencies to abandon the system in the interest of market-based efficiency. This represents a shift in contemporary economic ideology historically focused upon maintaining calm after Cairo's 1977 bread riots. Further, international pressure to `liberalize` the Egyptian economy paradoxically conflicts with Western desires to suppress religious fundamentalism in the region. These incongruities are largely ignored by Egyptian and Western research.

Keywords: subsidies; bread; liberalization; Islamic violence; poverty (search for similar items in EconPapers)
Date: 2008
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