Economists and human rights advocates have launched a sharp attack on the economic model pushed by international financial institutions, arguing that its twin pillars—austerity and growth—are deeply biased against the most marginalized, especially women.
At a seminar titled “Toward Restoring Economic Justice,” organized by the Egyptian Initiative for Personal Rights (EIPR) in cooperation with the Arab NGO Network for Development (ANND), speakers laid bare a system that privileges big infrastructure projects while ignoring the “invisible” care work that holds societies together.
Construction of a 'male-dominated' economy
The socio-economic outcomes of public policies, argued Roberto Bissio of the Global Campaign to End Austerity, are largely determined by the type of investment chosen by governments. He explained that while political leaders tend to favor infrastructure projects, such as public works and construction, this trend contains a “hidden bias,” as most of these projects primarily employ and benefit men.
In contrast, many governments do not invest sufficiently in education and care, which could yield greater economic and social returns than certain infrastructure projects. “Care” here refers to essential activities and services, such as early education, childcare, and caring for the elderly and the sick—fields that, in daily life, are most often linked to women, Bissio clarified.
Over the past decade, the Egyptian state has faced criticism for its expansion into real estate activity, particularly the New Administrative Capital project. Rights groups frequently argue that the government fails to meet the constitutionally mandated spending quotas for education and health.
Bissio noted that Gross Domestic Product (GDP) remains the primary indicator used by states to measure progress, despite its failure to adequately reflect social and environmental dimensions or reveal how the fruits of growth are distributed among different groups. This, in his view, contributes to persistent imbalances and weakens the ability of many countries to meet their developmental obligations.
While Egypt’s GDP growth has recovered over the last two years—buoyed by a stable exchange rate and inflation indicators—this belies the fact that one-third of Egyptians remain trapped below the poverty line.
Austerity in the name of reform
Bissio moved on to criticize austerity, noting that its application in economic policy has transformed it into a tool for imposing harsh measures that hurt the most vulnerable. He pointed out that the “Structural Adjustment Programs” championed by the World Bank and IMF in the 1980s, centered on privatization and a diminished state role, deepened inequality by favoring high-income groups at the expense of the poor.
Recent studies show about 80% of the world's population lives under austerity-driven cuts to health, education, and social protection—the very sectors most critical for reducing poverty.
In Egypt, Finance Minister Ahmed Kouchouk announced last month that the government targets a record primary surplus of 5% of GDP for the next fiscal year. However, experts previously told Al Manassa that the sharp contraction in fuel subsidies through 2027 likely signals imminent price hikes.
The “invisible” care economy
Lina Abou-Habib of the Asfari Institute in Lebanon discussed the “care economy,” noting that unpaid domestic work—primarily performed by women within the home—remains excluded from official economic metrics despite being the foundation for all other productive activity. She argued that this “invisibility” is a structural feature of the economic system; traditional indicators like GDP systematically ignore the time and skill required for childcare and household management because they are not market-priced.
Abou-Habib added that, because this labor is not recognized as “real work,” it lacks legal protections, fixed hours, and social security, even though it enables other family members to participate in the formal economy. A recent study from the Central Agency for Public Mobilization and Statistics (CAPMAS) confirms this disparity, showing that women in Egypt bear more than double the burden of unpaid care work compared to men.
Structural inequality and the cycle of poverty
Inequality in the Arab region is not accidental, nor can it be reduced to mere income gaps, Bryony Stien of the United Nations Economic and Social Commission for Western Asia (ESCWA) argued. Rather, it is baked into policy structures and the inequitable distribution of public services. These disparities extend beyond access to the quality of services, with education and healthcare standards varying sharply by geography and social class. Eventually, these discrepancies dictate future housing, employment, and political representation.
Stien illustrated this through the “rural girl” archetype: born into a low-income family with limited access to quality schooling, she is forced to drop out early due to economic pressure or domestic care duties. This cycle stifles her ability to secure decent work or achieve economic independence. Stien posed a central challenge to current models: “Can economic growth be considered a success if poverty rates continue to rise?”
Highlighting the urgency of these issues, the Egyptian Initiative for Personal Rights (EIPR) warned last year of Egypt’s plummeting rank in the World Economic Forum’s 2025 Global Gender Gap Report, which placed Egypt among the worst ten countries globally for gender parity.
