Social Spending in the Middle East is Declining Compared to Emerging Markets

In its latest report, the International Monetary Fund announced that social spending programs in the Middle East have declined compared to emerging markets.

The report emphasized that the decline came after social spending programs achieved remarkable growth over the past few decades. He noted that refugees in many countries are “ineligible” for national social assistance programs.

There is a worrying disparity in the amount of spending on emerging market action programs compared to social spending. Emerging markets not only spend more, but they are highly efficient in what they spend compared to other social aspects.

For his part, the “International Monetary Fund” confirmed that the results of this disparity may lead to the elimination of about a third of the human development index gap.

He explained that the redistribution of spending within the limits of the existing funds with the governments of the Middle East is a necessity to protect financial sustainability.

In its latest report, the International Monetary Fund announced that social spending programs in the Middle East have declined compared to emerging markets.

The report emphasized that the decline came after social spending programs achieved remarkable growth over the past few decades. He noted that refugees in many countries are “ineligible” for national social assistance programs.

The impact of declining social spending and its causes
Spending

Social spending negatively affects the rates of human development in the region as a whole. Middle Eastern governments allocate only about 10.4% of their GDP to social spending support programs.

Meanwhile, governments allocate about 14% of the average gross domestic product to emerging markets, and develop them, and develop employment prospects in them.

The size of social spending compared to emerging markets

There is a worrying disparity in the amount of spending on emerging market action programs compared to social spending. Emerging markets not only spend more, but they are highly efficient in what they spend compared to other social aspects.

For his part, the “International Monetary Fund” confirmed that the results of this disparity may lead to the elimination of about a third of the human development index gap.

He explained that the redistribution of spending within the limits of the existing funds with the governments of the Middle East is a necessity to protect financial sustainability.

Countries on the right track

In the context, the “International Monetary” revealed that there are a number of countries that have paid attention to social spending programs, which represents the correct path.

And the countries that were praised in turn were: “Egypt, Pakistan and Mauritania” for providing the necessary financial support to the most needy women.

The report indicated that the governments of the aforementioned countries have given priority to supporting vulnerable groups in society, by setting up financial support packages in light of the outbreak of the Coronavirus.

The IMF report praised Egypt’s position on social spending before the crisis. But he did not elaborate on its size.

He considered that the efficiency of spending on the sectors of education, health, social care, and wages helps in the effectiveness of the results of the Egyptian state’s efforts.

The Egyptian public budget for the year 2020/2021 has shown an increase in government spending by about 9%. This was followed by increases in health, education, wages and welfare benefits.