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The 1995/1996 Household Income, Expenditure - (PDF, 101 mb ...

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infrastructure or planning permission. Slums have burgeoned from outright<br />

invasion of public and private land. <strong>The</strong> table below shows that informal<br />

communities presently accommodate about 40% of Egypt's urban population<br />

(some 1.9 million housing units - about 60% of the country's population lives<br />

in "urban" areas). That figure is likely to grow to 60% by the year 2000<br />

(Essam el Din (1994), p. 20).<br />

Distribution of Informal Communities in Ten Governorates<br />

Governorate Nu<strong>mb</strong>er of Population % of Urban<br />

Areas Population Living<br />

in Informal<br />

Communities in<br />

Urban Areas<br />

Cairo 79 2,437,988 35.9<br />

Giza 32 1,398,000 62.0<br />

Kalyoubeya 60 686,350 46.0<br />

Alexandria 40 1,162,750 34.0<br />

Fayoum 28 99,853 23.5<br />

Beni Suef 46 144,770 31.0<br />

Menia 30 273,000 49.0<br />

Assiut 49 401,000 25.0<br />

Sohag 34 381,181 56.4<br />

Qena 8 22,700 31.4<br />

VI.9<br />

TOTAL 406 17,665,475 39.7<br />

Source: Shura Council Report on Informal Communities<br />

Din, op. cit., p. 22.<br />

March 1994 in Essam<br />

el<br />

Since passage of the 1981 law, the government of Egypt has based its<br />

low-income housing subsidy policy on a supply side objective: establish and<br />

develop new communities to ease the population pressures and infrastructure<br />

problems of greater Cairo and the Nile Delta. Funds for building materials,<br />

basic provision of water and sewerage systems, power generation,<br />

transportation, market access and infrastructure management have failed to<br />

meet plan expectations. It will take some time before these services have been<br />

established in the harsh desert locations to make the new communities viable.<br />

<strong>The</strong>re are a limited nu<strong>mb</strong>er of ways, with or without state intervention,<br />

to bring housing prices closer to reality. to deflate the huge unrealized<br />

demand values (natural as well as speculative) caused by housing policies. If<br />

funding for such purposes was unlimited, the state could make long-term<br />

tenants legal owners of their properties, and compensate landlords for an<br />

assessed market rental value. More than likely, landlords would then tear<br />

down their buildings, build expensive new ones, and exacerbate the problem.<br />

At about the same cost, because a large proportion of low-rent tenants are

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