Wednesday, January 16, 2008

Bread in Egypt and Corruption

Very nice article here on Egypt and her bread subsidies and how that affects peasant life there:

[...]So the bread subsidy continues, costing Cairo about $3.5 billion a year. Over all, the government spends more on subsidies, including gasoline, than it spends on health and education. But it is not just the cost that plagues the government. The bread subsidy fuels the kind of rampant corruption that undermines faith in government, discourages investment and reinforces the country's every-man-for-himself ethos, say government officials and political experts, not to speak of bakers and their customers.

"The most corrupt sector in the country is the provisions sector," said a government inspector who asked not to be identified for fear of punishment. His job is to go to bakeries to ensure they are actually using the cheap government flour to produce cheap bread that is sold for the proper price. "There is a great deal of corruption. The amount of money in it will make anyone accept to be bribed." [...]

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