Protests against the price rises led to some protests, but they were small and swiftly dealt with. The reforms, as far-reaching as they were, did not touch bread, a reflection of the political sensitivity associated with the item. This was despite government efforts to cushion the poorest from what amounted to the steepest rise of prices in living memory. While the reforms won accolades from bilateral donors and international financial agencies, they added significantly to the hardships faced by most Egyptians. It also introduced taxes including value-added and property tax, along with higher charges for items such as phone connections, passports and driving licences. His government has zealously lifted subsidies on a wide range of goods and services, including fuel, electricity and drinking water. Mr El Sisi, in office since 2014, has been the architect and driving force behind an ambitious and far-reaching economic reform programme. Successive governments have since used other methods to try to reduce the subsidies bill, such as reducing the size of the loaf, curtailing its production or suspending ration cards if their holders were found to be making enough money. EPAĮgyptian officials have for years complained that bread subsidies burdened the national budget, denied successive governments scarce funds to overhaul the economy and encouraged waste and abuse.Īn attempt to raise the price of bread in 1977 by president Anwar Sadat sparked days of deadly riots across much of Egypt, leading him to order the army to patrol the streets of Cairo and other major cities. The nation consumes between 150 and 180 kilograms of bread per capita, well above the global average of 70 to 80 kilograms.Ī bakery worker delivers bread in Cairo, Egypt's capital. Meeting demand for bread has meant that Egypt is annually topping up its wheat production of 9 million tonnes with about 12 million tonnes it imports. Half of that money goes into bread subsidies, with each person entitled to five loaves at 0.05 pound apiece a day. Mr El Sisi’s government spends 87.5 billion pounds ($5.57bn) subsidising food items for the 66.7 million Egyptians covered by state-issued ration cards. In reality, it defines the bond between people and the state.” “The symbolism associated with the loaf of bread goes well beyond it being just a consumer item. “Keeping bread affordable to the poor has for 60 years been something of an informal social contract between citizens and the political authority,” sociologist and author Ammar Ali Hassan said. No crumb of comfort: Egypt's El Sisi says it's time to raise the price of bread
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