Owing to a succession of crises and worsening poverty, food security in Egypt started to deteriorate as early as 2005. These crises included the avian influenza epidemic in 2006; the food, fuel, and financial crises of 2007–2009; a further rallying of global food prices starting in late 2010; and the challenging macroeconomic context that followed political instability in the wake of the 2011 revolution. Household food insecurity and child malnutrition have risen significantly, and food subsidies are an important part of the country’s safety net.
In the current economic climate of constrained government resources, increasing efficiencies in the subsidy system can facilitate investment in job creation and targeted food security and nutrition interventions. Politically feasible policy options include improving the efficiency of supply chains, improving the targeting of subsidies, and complementing subsidies with targeted nutrition and income generation programs. A monitoring and evaluation system is needed to inform decisionmaking, and policymakers must learn and adjust accordingly during the reform process. Finally, subsidy reform is likely to be most successful if it is integrated into a broader national strategy of development and food security.