fiscal policy and social justice-auc-march 25-2014-final

SHERINE AL-SHAWARBY

NINTH AUC ANNUAL FORUMTHE ECONOMIC AND BUSINESS HISTORY OF

EGYPT AND THE MIDDLE EASTCAIRO

MARCH 25, 2014

Balancing the 4 Es…. Towards Equitable

Fiscal Policy

The Main Question…

How social Equity is finding its place in

Egypt as an equal among the

traditional fiscal policy values of

Economy, Efficiency, and Effectiveness?

OBJECTIVE

Share ideas for “imagining and improving the future” so that social Equity becomes an equal among its peers (Economy, Efficiency, and Effectiveness(

Introduction to the Economic Justice Unit (EJU): How it ensures the 4 Es’ balance (Economy, Efficiency, Effectiveness and Equity)

What is Economic Justice?

Economic justice

encompasses the moral

principles which guide us in

designing our economic

institutions.

The Three Principles of Economic Justice

The Principle of Participation

The Principle of Distribution 

The Principle of Harmony (Redistribution)

Injustice anywhere is a threat to justice everywhere

The Principle of Participation

It defines how one makes "input" to the economic process in order to make a living

The Principle of Participation

It defines how one makes "input" to the economic process in order to make a livingIt requires equal opportunity in gaining access to private property in productive assets as well as equality of opportunity to engage in productive work.

The Principle of Participation

It defines how one makes "input" to the economic process in order to make a livingIt requires equal opportunity in gaining access to private property in productive assets as well as equality of opportunity to engage in productive work. It does not guarantee equal results, but requires equal right to make a productive contribution to the economy

The Principle of Participation

It defines how one makes "input" to the economic process in order to make a livingIt requires equal opportunity in gaining access to private property in productive assets as well as equality of opportunity to engage in productive work. It does not guarantee equal results, but requires equal right to make a productive contribution to the economyThus, this principle rejects monopolies, special privileges, and other exclusionary social barriers to economic self-reliance.

The Principle of Distribution

It defines the "output" or "out-take" rights of an economic system matched to each person's labor and capital inputs.

The Principle of Distribution

It defines the "output" or "out-take" rights of an economic system matched to each person's labor and capital inputs.

Distributive justice becomes automatically linked to participative justice, and incomes become linked to productive contributions.

The Principle of Distribution

It defines the "output" or "out-take" rights of an economic system matched to each person's labor and capital inputs.

Distributive justice becomes automatically linked to participative justice, and incomes become linked to productive contributions.

It is based on the idea "to each according to his contribution “and not "to each according to his needs”.

The Principle of Distribution

It defines the "output" or "out-take" rights of an economic system matched to each person's labor and capital inputs.

Distributive justice becomes automatically linked to participative justice, and incomes become linked to productive contributions.

It is based on the idea "to each according to his contribution “and not "to each according to his needs”.

Distributive justice follows participative justice

The Principle of Redistribution

It defines the "out-take" rights of a social protection system matched to basic needs of citizens and common risks they may face.

Redistributive justice makes whatever corrections are needed to redress distortions of either the input or output principles and to restore a just and balanced economic order for all.

االجتماعية الخدمات

لصحةاالتحويالت االجتماعي

ةنقدية • مساندة

مباشرةبدون • معاشات

اشتراكاتلألطفال • مزاياوجبات •

مدرسيةمن • إعفاء

مصاريف صحة/ مدرسة

مدخالت •زراعية

الحماية االجتماع

يةالتعليم

االتشريعات

االجتماعية

التأمينات اإلجتماعي

حقوق •ةاإلنسان

الطفل • حمايةالصحة •

واألمانضمانات •

العمالاألدنى • الحد

لألجور

الضمان •االجتماعى

معاشالبطالة •معاشات •

باالشتراكات

Progressive tax system

Egypt’s Fiscal Policy and “Equity”

Participative principle

New Constitutional spending targets for health, education, and R&D--- (additional LE90 billion in 2012/13 prices)

how this would be funded and how to ensure quality, efficiency, and equity in moving towards these higher spending levels.

Egypt’s Fiscal Policy and “Equity”

Egypt’s Fiscal Policy and “Equity”

Egypt’s Fiscal Policy and “Equity”

Distributive principle

Minimum Wage

Wage and job increases

Maximum Wage

LE 28 billion- of which 8 billion for teachers and

10 for doctors

More than LE70 billion

Egypt’s fiscal policy and “Equity”

Redistributive principle

Egypt’s fiscal policy and “Equity”

Redistributive principle: Taxes

Egypt’s fiscal policy and “Equity”

Redistributive principle: Taxes

Egypt’s fiscal policy and “Equity”

Redistributive principle:Taxes

Broaden tax bases:

Property taxesVATTemporary 5% tax on incomes exceeding

one million LE/year

Egypt’s fiscal policy and “Equity”

Redistributive principle: Social Spending

Egypt’s fiscal policy and “Equity”

Redistributive principle: Social Spending

Egypt’s fiscal policy and “Equity”

Redistributive principle

Egypt’s Fiscal Policy and “Equity”Who are the main beneficiaries from

the subsidies?

Egypt’s Fiscal Policy and “Equity”Who are the main beneficiaries from

the subsidies?

Egypt’s Fiscal Policy and “Equity”Who are the main beneficiaries from

the subsidies?

Egypt’s Fiscal Policy and “Equity”Who are the main beneficiaries from

the subsidies?

Egypt’s Fiscal Policy and “Equity”Who are the main beneficiaries from

the subsidies?

Balancing the 4 Es…. Towards Equitable Fiscal Policy

THANKS FOR YOUR

ATTENTION