fiscal policy and social justice-auc-march 25-2014-final
DESCRIPTION
the presentation provides an analysis of some fiscal policy measures with the aim to investigate whether they are consistent with Social Justice objectives.TRANSCRIPT
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