The principal theme of this chapter is the implications of the Egyptian food subsidies for such macroeconomic measures as nonfarm output, the government's budget, inflation, the exchange rate, and the balance of payments.

Food subsidies affect various sectors of the Egyptian economy, but their influence on agriculture, which employs a considerable share of the nation's resources, seems particularly strong (von Braun and de Haen, 1983).

Egypt’s food subsidy system has been a mainstay of the government’s long-term policy of promoting social equity and political stability.

Since its earliest years IFPRI has conducted research on food subsidies, concentrating on methods to achieve the social objectives of subsidies without undue distortion of the economy or excessive economic and political costs.

Since its earliest years IFPRI has conducted research on food subsidies, concentrating on methods to achieve the social objectives of subsidies without undue distortion of the economy or excessive economic and political costs.

Manufacturing has the potential to drive economic growth, job creation and poverty reduction, but African manufacturers face challenges in competing with global markets.

Food is a vital part of poor households' budgets and so subsidizing staple foods would appear to be an obvious pro-poor policy.

The conference, "Food Secure Arab World: A Roadmap for Policy and Research," was held February 6-7, 2012 in Beirut, Lebanon.