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The Economic Well Being of Egyptians in a Globalized Worlddevelopment in each period is expressed asthe percentage change in shortfall of BHDI,by governorate, with respect to itsmaximum value of 100; while economicgrowth is reflected by the annual per capitaGDP growth over each period. It appearsfrom the table that HD and EG do notnecessarily move in the same direction overtime or across governorates. To take a fewexamples, with over 4 per cent annualgrowth in real GDP per capita in 1986-90,Port-Said achieved nearly a three to fourtimes reduction in the shortfall of BHDIcompared to Damietta, Gharbia andIsmailia, while Dakahlia achieved about halfof this reduction (24.2 per cent compared to45.8 per cent in Port-Said) with 5.4 per centGDP growth. At the national level, areduction in shortfall of BHDI by 17.4 percent has been achieved with a per capitaGDP annual growth rate of 3.6 per cent overthe period 1986-1990, while a similarreduction (17.8 per cent) has been achievedwith a decline in GDP per capita growth of1.5 per cent over the period 1990-1996.Is There a Causal RelationshipBetween HD and EG?The causal link between HD and EG hasbeen quantitatively examined on its twowaydirection, i.e. from EG to HD and fromHD to EG, using disaggregated data at thegovernorate level and over two periods ofanalysis, 1986-1991 and 1991-1996.The Link from EG to HDFor this link, the dependent variable chosenas a proxy for achievement in humandevelopment was the shortfall reduction inBHDI.The selected explanatory variables were:● GDP per capita growth rate as a measureof overall EG● Social expenditure, defined as averagepublic expenditure on education andhealth for the period 1993-1996HD and EG do notnecessarily move inthe same directionover time.Table (2-1)Relation Between HD and EG Across Governorates 1986-1990 and 1990-1996Urban GovernoratesCairoAlexandriaPort SaidSuezLower EgyptDamiettaDakahliaSharkiaQaliubiaKafr-El-SheikhGharbiaMenufiaBeheraIsmailiaUpper EgyptGizaBeni-SuefFayoumMeniaAssiutSohagQenaAswanBorder GovernoratesNational AverageBHDI reductionin shortfall23.6616.6345.7715.4513.8624.1712.0711.5414.2411.879.951.7214.7512.917.016.732.841.374.575.1919.5620.1317.351986 - 1990Annual GDP percapita growth2.202.674.373.944.095.433.601.816.244.240.431.624.181.181.44-1.972.703.343.024.062.991.923.61BHDI reductionin shortfall50.2923.9596.6573.2318.8316.4722.2919.4515.3126.4119.7215.1023.5930.9712.728.4113.342.697.348.0413.6321.2017.801990 - 1996Annual GDP percapita growth3.40.81.712.4-8.9-9.6-2.8-0.1-8.9-1.51-2.3-0.21.34.1-1.9-1.8-1.7-2.8-4.2-1.23.04.3-1.49Egypt Human Development Report 2000/2001 - 31
The Economic Well Being of Egyptians in a Globalized WorldFemale indicators arelikely to be associatedwith improvements innutrition, health andeducation indicatorsand hence increaseproductivity.● Several measures of income distribution,i.e. Gini coefficient and income share ofthe bottom 40 per cent● Change in the female unemployment rate.A decline of this indicator is likely to beassociated with greater female controlover household spending, thus tending toimprove HD● Change in the overall unemployment rateExamining the relationship betweeneconomic growth and human developmentshows that the impact of GDP per capitagrowth proved to be significant, with highergrowth of per capita income leading tobetter HD performance. According to themodel, one percentage point increase in theaverage growth rate of GDP per capita isestimated to reduce BHDI shortfall byaround four percentage points over theperiod. Social expenditure on education alsoproved significantly positive. For everypercentage point increase in average socialspending on health and education, BHDIshortfall decreases by 0.13 percentagepoints. An interesting finding is that theunemployment rate for males does not seemto affect human development, while onepercentage increase in female unemploymentrate increases BHDI shortfall by 0.41 percent. As expected, income maldistributionproved to affect HD negatively. This meansthat a more equitable distribution seems topromote human development. Onepercentage decrease in the Gini coefficientreduces BHDI shortfall by 4.9 per cent.The Link from HD to EGFor the link from HD to EG, the dependentvariable chosen was GDP per capita growthrate. The explanatory variables selectedwere:● GDP per capita.● HDI shortfall reduction using BHDI.● Income distribution, using two alternativemeasures: the income share of the bottom40 percent of the population, and the Ginicoefficient.● Female enrollment rate and femaleunemployment rate. Female indicatorsare likely to be associated withimprovements in nutrition, health andeducation indicators and hence increaseproductivity.● Unemployment rate.The results show that if the change in BHDIshortfall reduction were increased by onepercent, GDP would increase by 0.81 percent. Female enrollment rate and femaleunemployment rate are also significant. Theincome distribution changes run counter toexpectations, that is, equity in incomedistribution has no effect on economicgrowth.In summary, the two relations, taken as awhole, showed a significantly positiveeffect of economic growth on HD and asignificantly positive effect of HD oneconomic growth. With respect to specificlinks in each of the relations, findingsbroadly confirmed the tested hypotheses,except for income distribution in the secondlink. For the first link, improvement in HDwas larger with higher social expenditure,higher increase in GDP per capita, higherpublic spending on health and educationand less change in the femaleunemployment rate and in the Ginicoefficient. On the other hand, therelationship between HD and economicgrowth was stronger with higher femaleenrollment rate, higher improvement in HDlevels and lower female unemployment rate.Equity in income distribution was notsignificant in enhancing economic growth.The Quality of LifeThe main indicators of Quality of Life(QOL) in Egypt in the 1980s compared tothe 1990s are shown in Table (2.2).It appears that there is some improvement inthe quality of life as reflected in thedecrease in the under-5 mortality rate from175 per thousand in 1980 to only 59 in1998. This trend is also observed in lifeexpectancy at birth, which is estimated at 68years for females and 65 for males in 1998against 63.3 and 62.1 respectively in 1989.There is still a wide scope for QOLimprovement through decreasing the level32 -Egypt Human Development Report 2000/2001
Page 2 and 3: The Digital Divide is a problem tha
Page 4 and 5: This report is the major output of
Page 6 and 7: AcknowledgementsThe Team of the Rep
Page 8 and 9: Table of ContentsExecutive Summary
Page 10 and 11: Energy Consumption 68Agriculture 69
Page 12 and 13: 2.4 Health and Education 332.5 Poli
Page 14 and 15: AbbreviationsADNAADPAIAPRARCB2CBABC
Page 16 and 17: Executive SummaryI - Globalization
Page 18 and 19: Executive Summarythe main source of
Page 20 and 21: Executive Summaryfertilizers, pesti
Page 22 and 23: Executive Summarythe Egyptian labor
Page 24 and 25: Chapter OneGlobalization and Human
Page 26 and 27: Globalization and Human Development
Page 40 and 41: Chapter TwoThe Economic Well Being
Page 42 and 43: The Economic Well Being of Egyptian
Page 58 and 59: Globalization Challenges to Egypt
Page 80 and 81: The Environment and Sustainable Dev
Page 88: The Environment and Sustainable Dev
Page 93 and 94: Chapter FiveEgypt’s Position inTe
Page 95 and 96: Egypt’s Position in Technology an
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Egypt’s Position in Technology an
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Chapter SixGlobalization and Human
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Globalization and Human CapitalOf t
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Globalization and Human CapitalOne
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Globalization and Human CapitalThe
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Globalization and Human CapitalEmpl
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Chapter SevenEgypt’s Social Capit
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Egypt’s Social Capital and Arab E
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Technical Notesand Sources of DataH
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Technical Notes and Sources of Data
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Bibliography◆ Abdallah, H. (1996)
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BibliographyOECD Development Centre
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BibliographyNational policies in a
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Bibliography◆ Springborg,Robert (
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