<p>In this week&rsquo;s issue, we map the risks of privatizing tobacco companies and discuss how food subsidies can combat hunger</p>
<hr>
<h2 dir="ltr"><span style="color: rgb(6, 71, 137);"><strong>Philip Morris in Egypt: Not Smoke-Free</strong></span></h2>
<p style="text-align: justify;">Philip Morris International (PMI) has <a href="https://www.almasryalyoum.com/news/details/3176966">acquired</a> 14.7% of the Eastern Tobacco Company, which has historically monopolized the cigarette market in Egypt. PMI&rsquo;s expansion into the Egyptian market flags the health risks of privatizing the tobacco sector. Since profitability is the priority for the private sector, privatization <a href="https://www.tandfonline.com/doi/full/10.1080/17441692.2011.595727#:~:text=It%20outlines%20how%20privatisation%20leads%20to%20increased%20marketing%2C,smoking%20prevalence%20and%20lower%20age%20of%20smoking%20initiation.">leads</a> to an increase in cigarette consumption and weakens decision-makers&rsquo; ability to combat smoking. PMI&rsquo;s sophisticated marketing strategy aimed to <a href="https://www.msn.com/ar-ae/news/techandscience/%D8%A7%D9%84%D8%B5%D8%AD%D8%A9-%D8%A7%D9%84%D8%B9%D8%A7%D9%84%D9%85%D9%8A%D8%A9-%D8%B4%D8%B1%D9%83%D8%A7%D8%AA-%D8%A7%D9%84%D8%AA%D8%A8%D8%BA-%D8%AA%D8%B3%D8%AA%D9%87%D8%AF%D9%81-%D8%AC%D9%8A%D9%84%D8%A7-%D8%AC%D8%AF%D9%8A%D8%AF%D8%A7-%D8%A8%D8%A7%D9%84%D8%B3%D8%AC%D8%A7%D8%A6%D8%B1-%D8%A7%D9%84%D8%A5%D9%84%D9%83%D8%AA%D8%B1%D9%88%D9%86%D9%8A%D8%A9/ar-BB1mWdm0?ocid=BingNewsSerp">attract new young smokers</a> is particularly alarming, as it <a href="https://www.almasryalyoum.com/news/details/2897843#google_vignette">rests</a> on expanding its e-cigarette division.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api-aps.aucegypt.edu/uploads/tinymce/1719154604imageEd 75_2-2 EN.png" alt="" width="405" height="203"></p>
<h3 dir="ltr"><strong>Privatized tobacco is more dangerous</strong></h3>
<p dir="ltr" style="text-align: justify;">The government expanded its privatization of the industry in <a href="https://www.masrawy.com/news/news_economy/details/2022/9/1/2284472/%D9%85%D8%A7-%D9%87%D9%8A-%D8%B4%D8%B1%D9%83%D8%A9-%D8%A7%D9%84%D9%85%D8%AA%D8%AD%D8%AF%D8%A9-%D9%84%D9%84%D8%AA%D8%A8%D8%BA-%D8%B5%D8%A7%D8%AD%D8%A8%D8%A9-%D9%85%D8%B5%D9%86%D8%B9-%D8%A7%D9%84%D8%B3%D8%AC%D8%A7%D8%A6%D8%B1-%D8%A7%D9%84%D8%AC%D8%AF%D9%8A%D8%AF-%D9%81%D9%8A-%D9%85%D8%B5%D8%B1-#google_vignette">2022</a> when it sold a manufacturing license to the United Tobacco Company. The Eastern Tobacco Company, PMI, and its Emirati partners hold around <a href="https://www.occrp.org/en/investigations/philip-morris-enters-egypt-market-following-disputed-tender">62%</a> of United Tobacco. In its <a href="https://almalnews.com/%d8%a7%d9%8a%d8%b3%d8%aa%d8%b1%d9%86-%d9%83%d9%88%d9%85%d8%a8%d8%a7%d9%86%d9%8a-%d8%aa%d9%88%d8%b6%d8%ad-%d8%aa%d9%81%d8%a7%d8%b5%d9%8a%d9%84-%d8%a7%d8%b3%d8%aa%d8%ad%d9%88%d8%a7%d8%b0/">recent deal</a> with Eastern, PMI bought 49% of UK Egypt Investments Holding Limited, which indirectly owns Global Investments Holding. The latter <a href="https://www.forbesmiddleeast.com/ar/industry/business/uae-global-investment-company-acquires-30-of-the-shares-of-the-egyptian-eastern-tobacco-company">acquired</a> a 30% stake in Eastern last September.</p>
<p style="text-align: justify;">The sale of Eastern was <a href="https://www.newarab.com/investigations/corruption-besets-egyptian-cigarette-market-privatisation">shrouded in secrecy</a>, and rival companies <a href="https://www.occrp.org/en/loosetobacco/marlboros-man-philip-morris-representative-in-burkina-faso-is-a-known-cigarette-smuggler">questioned</a> the fairness of the tender process. The opacity of the purchase and the involvement of companies with overlapping interests <a href="https://www.tandfonline.com/doi/full/10.1080/17441692.2011.595727#:~:text=It%20outlines%20how%20privatisation%20leads%20to%20increased%20marketing%2C,smoking%20prevalence%20and%20lower%20age%20of%20smoking%20initiation.">reflect</a> the global concern about the utility of privatizing the tobacco industry, as gains do not benefit the state.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api-aps.aucegypt.edu/uploads/tinymce/1719154702imageEd 75_1 EN.png" alt="" width="405" height="404"></p>
<h3 dir="ltr"><strong>Where there&rsquo;s smoke, there&rsquo;s fire</strong></h3>
<p dir="ltr" style="text-align: justify;">Following its latest acquisition, Philip Morris <a href="https://www.mubasher.info/news/4294583/%D8%A8%D8%B9%D8%AF-%D8%A7%D9%84%D8%A7%D8%B3%D8%AA%D8%AD%D9%88%D8%A7%D8%B0-%D8%B9%D9%84%D9%89-%D8%AD%D8%B5%D8%A9-%D8%BA%D9%8A%D8%B1-%D9%85%D8%A8%D8%A7%D8%B4%D8%B1%D8%A9-%D8%A7%D9%8A%D8%B3%D8%AA%D8%B1%D9%86-%D9%83%D9%88%D9%85%D8%A8%D8%A7%D9%86%D9%8A-%D8%AA%D9%88%D9%82%D8%B9-%D8%AE%D8%B7%D8%A7%D8%A8-%D9%86%D9%88%D8%A7%D9%8A%D8%A7-%D9%85%D8%B9-%D9%81%D9%8A%D9%84%D9%8A%D8%A8-%D9%85%D9%88%D8%B1%D9%8A%D8%B3/">signed</a> a non-exclusive letter of intent for long-term cooperation with Eastern in technology and manufacturing, including heat-not-burn tobacco products. PMI <a href="https://almalnews.com/%d9%81%d9%8a%d9%84%d9%8a%d8%a8-%d9%85%d9%88%d8%b1%d9%8a%d8%b3-%d8%a7%d9%84%d9%85%d9%86%d8%aa%d8%ac%d8%a7%d8%aa-%d8%a7%d9%84%d8%ae%d8%a7%d9%84%d9%8a%d8%a9-%d9%85%d9%86-%d8%a7%d9%84%d8%af/">aims</a> to make 50% of its profits from e-cigarette sales by 2025, up from 40% in 2023.</p>
<p style="text-align: justify;">Tobacco producers have <a href="https://www.pmi.com/who-we-are/who-we-are-overview">marketed</a> e-cigarettes as less risky than conventional smoking and even as aids to quitting, but the World Health Organization has <a href="https://sa.investing.com/news/world-news/article-93CH-2581455">cast doubts</a> on this claim. Similarly, the US Food and Drug Administration has <a href="https://www.fda.gov/news-events/press-announcements/statement-fda-commissioner-scott-gottlieb-md-new-steps-address-epidemic-youth-e-cigarette-use">acknowledged</a> that vaping is driving the epidemic of smoking among young people.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api-aps.aucegypt.edu/uploads/tinymce/1719154772imageEd 75_3-3 EN.png" alt="" width="405" height="540"></p>
<p dir="ltr" style="text-align: justify;">PMI&rsquo;s penetration of the Egyptian market comes in the <a href="https://globaltobaccoindex.org/ar/fact-sheets">absence</a> of effective anti-smoking policies and dangerously high tobacco consumption rates. Some 17% of adults over 15 <a href="https://www.capmas.gov.eg/admin/news/PressRelease/2021530131839_666%20e.pdf">smoke</a> and half of the population is exposed to its dangers second-hand, as 40% of households have at least one smoker. These alarming rates do not factor in exposure to smoke in public spaces, and the WHO <a href="https://www.msn.com/ar-eg/news/national/%D8%A7%D9%84%D8%B5%D8%AD%D8%A9-%D8%A7%D9%84%D8%B9%D8%A7%D9%84%D9%85%D9%8A%D8%A9-%D8%AA%D9%83%D8%B4%D9%81-%D9%84%D9%85%D8%B5%D8%B1%D8%A7%D9%88%D9%8A-%D9%84%D9%85%D8%A7%D8%B0%D8%A7-%D9%8A%D8%B2%D8%AF%D8%A7%D8%AF-%D8%A7%D9%84%D8%AA%D8%AF%D8%AE%D9%8A%D9%86-%D9%81%D9%8A-%D9%85%D8%B5%D8%B1-%D8%B1%D8%BA%D9%85-%D8%A7%D9%86%D8%AE%D9%81%D8%A7%D8%B6%D9%87-%D8%B9%D8%A7%D9%84%D9%85%D9%8A%D8%A7%D9%8B/ar-BB1hShfQ">expects</a> that the situation will worsen in the coming years.</p>
<p dir="ltr" style="text-align: justify;">Egypt <a href="https://globaltobaccoindex.org/ar/fact-sheets">fell</a> to the 56th position in the Tobacco Index in 2023, compared to the 52nd in 2021. The <a href="https://globaltobaccoindex.org/ar/fact-sheets">decline</a> is due to its failure to protect its citizens from the danger of tobacco producers. Egypt <a href="https://www.who.int/data/gho/data/indicators/indicator-details/GHO/gho-tobacco-control-enforce-bans-e17b-csr-promo-self">does not prohibit</a> tobacco companies from promoting themselves through social responsibility activities or sponsorship of social and sporting events to boost their image and market their products. The Egyptian government only requires warnings to be printed on cigarette packs.</p>
<h3 dir="ltr" style="text-align: justify;"><strong>State control of the tobacco market essential&nbsp;</strong></h3>
<p style="text-align: justify;">The government should <a href="https://www.masrawy.com/news/news_egypt/details/2024/2/6/2534640/%D8%A7%D9%84%D8%B5%D8%AD%D8%A9-%D8%A7%D9%84%D8%B9%D8%A7%D9%84%D9%85%D9%8A%D8%A9-%D8%AA%D9%83%D8%B4%D9%81-%D9%84%D9%85%D8%B5%D8%B1%D8%A7%D9%88%D9%8A-%D9%84%D9%85%D8%A7%D8%B0%D8%A7-%D9%8A%D8%B2%D8%AF%D8%A7%D8%AF-%D8%A7%D9%84%D8%AA%D8%AF%D8%AE%D9%8A%D9%86-%D9%81%D9%8A-%D9%85%D8%B5%D8%B1-%D8%B1%D8%BA%D9%85-%D8%A7%D9%86%D8%AE%D9%81%D8%A7%D8%B6%D9%87-%D8%B9%D8%A7%D9%84%D9%85%D9%8A%D8%A7-">implement</a> internationally recommended tobacco control policies, including a total ban on advertising and sponsorships. The government must proceed with the privatization of the tobacco industry with caution, <a href="https://zawia3.com/philip-morris/">maintaining</a> the state&rsquo;s remaining stakes in Eastern and United Company and even considering ways to increase its shares to regain a majority stake is crucial. This is particularly urgent in the case of Eastern, which has <a href="https://www.alarabiya.net/aswaq/companies/2023/09/04/%D8%A8%D8%B9%D8%AF-%D8%B5%D9%81%D9%82%D8%A9-%D8%BA%D9%84%D9%88%D8%A8%D8%A7%D9%84-%D9%87%D8%A4%D9%84%D8%A7%D8%A1-%D8%A3%D8%A8%D8%B1%D8%B2-%D8%A7%D9%84%D9%85%D8%B3%D8%A7%D9%87%D9%85%D9%8A%D9%86-%D9%81%D9%8A-%D8%A7%D9%84%D8%B4%D8%B1%D9%82%D9%8A%D8%A9-%D9%84%D9%84%D8%AF%D8%AE%D8%A7%D9%86-">offered</a> 36.2% of its shares on the stock exchange for open trading. A majority stake in tobacco companies gives the state the power to regulate the market, control tobacco marketing, and curb practices that threaten public health.</p>
<hr>
<h2 dir="ltr"><span style="color: rgb(6, 71, 137);"><strong>Food Subsidies Took Brazil off Hunger Map, Could Save Us</strong></span></h2>
<p style="text-align: justify;">The government has <a href="https://www.youm7.com/story/2024/5/25/%D9%88%D8%B2%D9%8A%D8%B1-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A%D8%A9-%D9%84%D9%80-%D9%83%D9%84%D9%85%D8%A9-%D8%A3%D8%AE%D9%8A%D8%B1%D8%A9-%D8%A7%D9%84%D8%AF%D8%B9%D9%85-%D8%A7%D9%84%D9%86%D9%82%D8%AF%D9%89-%D8%A3%D9%81%D8%B6%D9%84-%D9%81%D9%89-%D8%A7%D8%B3%D8%AA%D9%87%D8%AF%D8%A7%D9%81/6588380">announced</a> that it is considering different models of social support, including channeling commodity subsidies into direct cash transfers. The announcement aligns with the directives of international financial institutions, which have long <a href="https://www.imf.org/en/Blogs/Articles/2011/05/10/food-and-fuel-subsidies">criticized</a> in-kind food subsidies, arguing that they represent an economic drain on the state budget. The Egyptian government <a href="https://www.sis.gov.eg/Story/269668/%D9%85%D8%AF%D8%A8%D9%88%D9%84%D9%8A-342-%D9%85%D9%84%D9%8A%D8%A7%D8%B1-%D8%AC%D9%86%D9%8A%D9%87-%D9%84%D8%AF%D8%B9%D9%85-5-%D8%B3%D9%84%D8%B9-%D9%88%D8%AE%D8%AF%D9%85%D8%A7%D8%AA-%D9%85%D9%82%D8%A7%D8%B1%D9%86%D8%A9-%D8%A8%D9%80-100-%D9%85%D9%84%D9%8A%D8%A7%D8%B1-%D8%AC%D9%86%D9%8A%D9%87-%D9%85%D9%86%D8%B0-%D8%B9%D8%A7%D9%85%D9%8A%D9%86?lang=ar">adopted</a> this discourse years ago and has sought to <a href="https://www.moss.gov.eg/ar-eg/Pages/program-details.aspx?pid=10">narrow</a> the groups eligible for support without acknowledging that food subsidies are a critical asset. They can combat poverty and spur sustainable development, as countries like Brazil have demonstrated.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api-aps.aucegypt.edu/uploads/tinymce/1719154927imageEd 75_5-5 EN.png" alt="" width="405" height="203"></p>
<p dir="ltr" style="text-align: justify;">Egypt <a href="https://impact.economist.com/sustainability/project/food-security-index/explore-countries/egypt">scored</a> poorly in quality and safety in the Global Food Security Index 2022, ranking 101 out of 113 countries. It also scored low on local farmers&rsquo; ability to access agricultural inputs. Still, it performed moderately well in affordability because it has <a href="https://impact.economist.com/sustainability/project/food-security-index/explore-countries/egypt">secured</a> food for the population at reasonable prices thanks to safety net programs. Eliminating food subsidies would impact this indicator and put Egypt on the hunger map.</p>
<p style="text-align: justify;">Although the level of hunger in Egypt is still &ldquo;moderate,&rdquo;​​ according to the <a href="https://www.globalhungerindex.org/egypt.html#:~:text=In%20the%202023%20Global%20Hunger,of%20hunger%20that%20is%20moderate.">Global Hunger Index</a>, the data does not yet <a href="https://www.thenewhumanitarian.org/analysis/2022/10/19/hunger-food-Egypt-wheat-climate-change-Ukraine">reflect</a> the full repercussions of the ongoing inflation crisis.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api-aps.aucegypt.edu/uploads/tinymce/1719156323imageEd 75_6 EN.png" alt="" width="405" height="405"></p>
<h3 dir="ltr"><strong>How Lula&rsquo;s Brazil exited the hunger map</strong></h3>
<p style="text-align: justify;">Under President Lula da Silva (2003-2011), Brazil <a href="https://foodfoundation.org.uk/sites/default/files/2021-10/Learning-from-Brazilian-Food-and-Nutrition-Security-Policies_final_clean_rev_FF.pdf">succeeded</a> in eradicating hunger by expanding food subsidy programs, and Egypt can benefit from this experience. Lula&rsquo;s policies significantly <a href="https://www.macrotrends.net/global-metrics/countries/BRA/brazil/hunger-statistics">reduced</a> the proportion of the population suffering from hunger from 7.9% in 2003 to 3.2% in 2011.</p>
<p dir="ltr" style="text-align: justify;">Brazil was able to reduce hunger by approaching the issue of food from a human rights perspective, not just fiscally. The Lula administration introduced <a href="https://www.fao.org/right-to-food/news/news-detail/en/c/157360/">important legislation</a> affirming citizens&rsquo; right to food, which it sought to realize by pursuing agricultural production policies that targeted the local market, empowered small farmers, and served effective social protection programs.</p>
<p style="text-align: justify;">For example, Brazil&rsquo;s <a href="https://nacla.org/article/brazil%E2%80%99s-social-safety-net-under-lula">Food Acquisition Program</a> purchased crops from small local farmers marginalized under previous governments in favor of large landowners. The state bought the crops directly from farmers at near-market prices to <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8893935/">supply</a> meals to government schools, food banks, and subsidized collective kitchens.</p>
<h3 dir="ltr"><strong>How does Egypt compare to Brazil?</strong></h3>
<p dir="ltr" style="text-align: justify;">Recent amendments to the Egyptian constitution <a href="https://eipr.org/blog/2014/12/%D8%A7%D9%84%D8%AD%D9%82-%D9%81%D9%8A-%D8%A7%D9%84%D8%BA%D8%B0%D8%A7%D8%A1-%D9%85%D9%86-%D8%A7%D9%84%D9%86%D8%B8%D8%B1%D9%8A%D8%A9-%D8%A5%D9%84%D9%89-%D8%A7%D9%84%D8%AA%D8%B7%D8%A8%D9%8A%D9%82">recognized</a> the right to food sovereignty&mdash;a first in the Arab world&mdash;but the government <a href="https://aps.aucegypt.edu/en/articles/1075/addressing-food-insecurity-in-egypt-towards-sustaining-food-access-for-all">has not acted</a> on these provisions to provide safe and adequate sources of nutrition to its citizens. The government <a href="https://aps.aucegypt.edu/en/articles/1393/kidney-failure-kills-millions-as-the-government-exports-its-healthy-produce">adopts</a> export-oriented agricultural policies at the expense of domestic market production and small farmers' empowerment. The government has also been <a href="https://aps.aucegypt.edu/en/articles/1399/food-subsidies-to-keep-hunger-at-bay-and-social-protection-to-stop-child-labor">seeking</a> to limit social protection programs to a very narrow cohort of impoverished people. It has increasingly confined hunger and poverty programs to <a href="https://aps.aucegypt.edu/en/events/120/the-role-of-the-civic-sector-in-inclusive-development-a-public-talk-at-alternative-policy-solutions">charitable work</a>, in addition to some <a href="https://docs.wfp.org/api/documents/WFP-0000158952/download/?_ga=2.217140756.34417201.1718262986-171311961.1718262986">modest assistance</a> from UN agencies. Nevertheless, Egypt&rsquo;s <a href="https://aps.aucegypt.edu/en/articles/82/egypts-uncured-hunger-problem">problem</a> is not only restricted to the number of people living in extreme poverty but also points to the broader crisis of malnutrition, which affects a large slice of the population because of the <a href="https://www.thenewhumanitarian.org/analysis/2022/10/19/hunger-food-Egypt-wheat-climate-change-Ukraine">fragile food production system</a>.</p>
<p dir="ltr"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://api-aps.aucegypt.edu/uploads/tinymce/1719156449imageEd 75_2 EN copy.png" alt="" width="405" height="405"></p>
<h3 dir="ltr"><strong>Sustainable food sovereignty across sectors</strong></h3>
<p dir="ltr" style="text-align: justify;">Egypt <a href="https://www.thenewhumanitarian.org/analysis/2022/10/19/hunger-food-Egypt-wheat-climate-change-Ukraine">suffers</a> from structural problems that lead to food insecurity and does not guarantee sovereignty. Egypt&rsquo;s <a href="https://ipes-food.org/_img/upload/files/AnotherPerfectStorm.pdf">reliance</a> on imports and the fragility of its food production system <a href="https://aps.aucegypt.edu/en/articles/82/egypts-uncured-hunger-problem">necessitates</a> an immediate change in agricultural policies and social protection programs to ensure access to and availability of adequate food for the population.</p>
<p dir="ltr" style="text-align: justify;">In this light, the Egyptian government must view food subsidies as a crucial component of a comprehensive strategy to combat poverty and advance human development. As evidenced in the Brazilian experience, effective food support programs result from concerted development efforts across various sectors, including agriculture, health, and education.&nbsp;</p>
<hr>
<p dir="ltr" style="text-align: justify;"><em><a href="https://aucegypt.us17.list-manage.com/subscribe?u=5e42bef7fee7e6a299c3d932d&amp;id=e0d95df1c1&amp;mibextid=Zxz2cZ">Subscribe to the weekly edition&nbsp;</a></em></p>
<div style="text-align: justify;"><em>"Adasa" is a weekly policy digest by Alternative Policy Solutions. </em><em>"Adasa" provides an analysis of a select number of policy developments and their effect on inclusive development and socioeconomic change.</em></div>

عدسة

Adasa

الوصول إلى الرعاية الصحية والتغطية

Health Care Access and Coverage

الغذاء والتغذية

Food and Nutrition

السياسات الاقتصادية

Economic Policies

حماية اجتماعية

Social Protection

خصخصة التبغ تهدد الصحة ودعم الغذاء ينقذ من الجوع 

Tobacco Privatization Threatens Health and Food Subsidies Save from Hunger	

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