Monday, July 7, 2008

Housing and Cost of Living

(I am piecing this entry together from many different sources and lectures, inadvertent errors may have occurred.)

Now that I’ve been in Egypt for a couple of weeks, I’m starting to put together a better idea on how the average family lives. A university professor would normally make 400-500 Egyptian Pounds (EP) per month in Cairo. In El Arish, a more rural area, the president of the university we visited was so proud of the self-sustaining school he built; he stated that he only gets 2,000 EP a year. (Remember there are roughly 5 EP to one US dollar.)

When looking at the price of energy, a gallon of gas would be .79 US, which the Egyptians find to be high. When we attended a lecture on the geography of Egypt, I asked if there were plans to use more solar energy. The speaker replied that natural gas was so cheap, that it wasn’t cost effective. “Why should I pay thousands of dollars for a solar system when my monthly gas bill is 3-5 EP’s?” (All of us Americans in the room gasped.)

When you travel around Egypt, you notice many unfinished houses:

This is not necessarily a sign of poverty, but rather a way to beat the tax system. In Egypt you pay property taxes only when the house is finished being constructed; therefore the houses are often unfinished to avoid taxes. It is very common for Egyptians to construct only what they can pay for, and then leave the rest for when they get more money, even if that is years and years away. This has recently been changed with much controversy; now people have property tax 40% of the value of the property.

The rental properties are even more difficult. Not only is it impossible to evict someone, but it is impossible to raise their rent. Families will pass down the same rental agreements, meaning a family could be paying the same amount of rent that grandpa did. Some tenants move out of the rental, but hold on to the original rental contract and sub-let it for much higher rates; literally making money off of a rental they do not own. Property owners make no money, so they make no improvements to the properties which are out of date and sometimes downright unsafe by American standards. It’s a vicious cycle.

For education, there is “free” public education. Just like American public schools, parents are responsible for uniforms and supplies. However there are typically 60 students per class, so most parents pay for tutors. In Egypt there are places called “carpet schools.” Children start around the age seven, “when their fingers are small enough to tie knots in the silk.” They work in the carpet shops in the morning where they are paid for their work and then go to school in the afternoon. During the summer, they can just work if they choose. (It was implied that many do, as their families needed that income. Let's just say I won't be buying any carpets while I'm here.)

The parents are also responsible for the college tuition; there are no student loans and scholarships seem rare, if non-existent. One private university we visited averages about $10,000 US per year; somewhat inexpensive by US standards, but pricey for the average Egyptian citizen.

There are some difficult statistics about the population in Egypt. 50% of the population is in poverty, 20% live on less than $2 US a day. There are beggars on the street corners, and it is difficult to say no. Our group was discussing the amount of trash on the streets, and how we felt it was so unhygienic and unsightly. But at the same time if you implement garbage collection system, you may be depriving thousands of the most poor a means of income, as they are literally garbage pickers.

There are no easy solutions here; just like there are no easy solutions back home.

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