In this week's edition, we examine the challenges facing irregular workers and pose recommendations, and discuss the opportunities and costs related to desalination projects in Egypt
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<h2>Irregular Workers: The Need for Radical Solutions</h2>
On May 1, 2023, President Abdel Fattah al-Sisi&nbsp;<a href="https://www.presidency.eg/en/%D9%82%D8%B3%D9%85-%D8%A7%D9%84%D8%A3%D8%AE%D8%A8%D8%A7%D8%B1/%D8%A3%D8%AE%D8%A8%D8%A7%D8%B1-%D8%B1%D8%A6%D8%A7%D8%B3%D9%8A%D8%A9/news152023-1/">issued</a>&nbsp;a decree giving irregular workers an emergency stipend of EGP1,000 in order to mitigate the impact of inflation and the economic crisis. To receive the subsidy, workers need to register with the Ministry of Manpower.
The decree creates an emergency aid fund for irregular workers, transferring the accounts for health and social entitlements currently under the Ministry of Manpower to the fund, which will be responsible for their investment and disbursement to irregular workers in a sustainable manner. A&nbsp;<a href="https://www.zawya.com/en/economy/egypt-to-set-up-presidential-fund-to-support-irregular-workers-against-risks-hwh0jwl2">proposal</a>&nbsp;for such a fund has been on the table since 2020, but no progress has been made.
<h3 dir="ltr">What is irregular employment?</h3>
Irregular employment refers to jobs in the private or public sector that are not permanent and do not come with the same rights and benefits as regular employment, such as health and social insurance, paid vacation time, and protection against arbitrary dismissal.
Under the current labor and social insurance laws, irregular workers include: seasonal agricultural and livestock workers, maritime workers, miners and quarry workers, construction and day laborers, Quran instructors and lay church and mosque functionaries, domestic workers, artisans, and street vendors. These types of workers are&nbsp;<a href="https://aps.aucegypt.edu/en/articles/993/irregular-employment-in-egypt-multiple-initiatives-meager-results">most vulnerable</a>&nbsp;to poverty because they lack formal contracts and social protection and, facing the pressure of unemployment and poverty, may be forced to&nbsp;<a href="https://aps.aucegypt.edu/en/articles/956/podcast-irregular-employment-missing-protection-inside-and-outside-the-labor-market">accept</a>&nbsp;poor working conditions.
According to official estimates, around&nbsp;<a href="https://www.moss.gov.eg/ar-eg/Pages/news-details.aspx?nid=2065">12 million</a>&nbsp;of Egypt&rsquo;s 31 million workers are irregularly employed, or some 40% of the total labor force. Together they account for about&nbsp;<a href="https://www.moss.gov.eg/ar-eg/Pages/news-details.aspx?nid=2065">40% of the national economy</a>.
<img style="display: block; margin-left: auto; margin-right: auto;" src="https://mcusercontent.com/5e42bef7fee7e6a299c3d932d/images/563fcdeb-0ac8-25af-31c4-3c1545e3c292.png" width="546" height="432">
<h3 dir="ltr">Limited steps toward protection</h3>
The state has launched several initiatives over the past eight years aimed at identifying irregular workers and recording their data. So far, however, it has managed to <a href="https://aps.aucegypt.edu/en/articles/993/irregular-employment-in-egypt-multiple-initiatives-meager-results">register</a>&nbsp;only 332,000 workers, or 2.5% of the irregular workforce, though it hopes to register&nbsp;<a href="https://gate.ahram.org.eg/News/4267626.aspx">2.5 million</a>&nbsp;workers this year. The low registration rate&nbsp;<a href="https://aps.aucegypt.edu/ar/articles/555/%D8%AD%D9%85%D8%A7%D9%8A%D8%A9-%D8%A7%D8%AC%D8%AA%D9%85%D8%A7%D8%B9%D9%8A%D8%A9-%D9%84%D9%84%D8%B9%D9%85%D8%A7%D9%84%D8%A9-%D8%BA%D9%8A%D8%B1-%D8%A7%D9%84%D8%B1%D8%B3%D9%85%D9%8A%D8%A9">is attributable</a>&nbsp;to the state&rsquo;s weak technological and information infrastructure and workers&rsquo; ignorance of their insurance rights. Another reason is that insurance benefits are worth less due to the depreciation of the pound and inflation compared to the relatively high pension contributions workers must pay after registration.
The latest decrees were preceded by government attempts to formalize irregular and informal employment and extend social protection to them. Law 148/2019 on social insurance and pensions, for example, obliges the state to protect irregular workers, but enforcement has been&nbsp;<a href="https://aps.aucegypt.edu/en/articles/547/background-paper-whos-insured-and-whos-not-creating-a-more-inclusive-social-insurance-system-in-egypt">hindered</a>&nbsp;by the requirement that a worker obtain a professional license in order to complete his registration for a pension; workers must also pay&nbsp;<a href="https://www.ctuws.com/content/%D9%88%D8%AB%D9%8A%D9%82%D8%A9-%D8%AF%D8%A7%D8%B1-%D8%A7%D9%84%D8%AE%D8%AF%D9%85%D8%A7%D8%AA-%D8%A7%D9%84%D9%86%D9%82%D8%A7%D8%A8%D9%8A%D8%A9-%D9%88-%D8%A7%D9%84%D8%B9%D9%85%D8%A7%D9%84%D9%8A%D8%A9-%D9%81%D9%8A-%D8%A7%D9%84%D8%A7%D9%88%D9%84-%D9%85%D9%86-%D9%85%D8%A7%D9%8A%D9%88-2023">consistently&nbsp;</a>in to the system with high contributions for a period of ten years. Given the unstable nature of irregular employment and income, these conditions are incompatible with the aim of extending coverage to informal workers. Moreover, the focus is shifted more towards worker registration as an&nbsp;<a href="https://aps.aucegypt.edu/en/articles/993/irregular-employment-in-egypt-multiple-initiatives-meager-results">end goal</a>&nbsp;&ndash; which would expand the tax base and boost GDP &ndash; at the expense of protection.
In addition to&nbsp;<a href="https://aps.aucegypt.edu/en/articles/956/podcast-irregular-employment-missing-protection-inside-and-outside-the-labor-market">neglecting</a>&nbsp;many groups deserving protection, Law 148/2019 established&nbsp;<a href="https://api-aps.aucegypt.edu/uploads/articlesAttachments/1603050876pdf%D9%85%D9%86%20%D8%A7%D9%84%D9%85%D9%88%D9%8E%D9%94%D9%85%D9%91%D9%80%D9%86%20%D8%B9%D9%84%D9%8A%D9%87%D9%85%20%20%D9%88%D9%85%D9%86%20%D8%A7%D9%84%D9%85%D8%B3%D8%AA%D8%A8%D8%B9%D8%AF%D9%88%D9%86%D8%9F%20FINAL.pdf">no mechanisms</a>&nbsp;to reach out to irregular workers, communicate with them, and inform them of their rights. The problem with this critical oversight became clear in 2020/21 when the state sought to disburse the presidential aid given to irregular workers to mitigate the repercussions of the Covid-19 pandemic. The aid only reached&nbsp;<a href="https://api-aps.aucegypt.edu/uploads/articlesAttachments/1603050876pdf%D9%85%D9%86%20%D8%A7%D9%84%D9%85%D9%88%D9%8E%D9%94%D9%85%D9%91%D9%80%D9%86%20%D8%B9%D9%84%D9%8A%D9%87%D9%85%20%20%D9%88%D9%85%D9%86%20%D8%A7%D9%84%D9%85%D8%B3%D8%AA%D8%A8%D8%B9%D8%AF%D9%88%D9%86%D8%9F%20FINAL.pdf">1.6 million</a>&nbsp;of 4 million eligible workers in its first phase because the majority of poor workers lacked Internet services and sufficient awareness of the initiative. Efforts were also hobbled by excessive bureaucracy, the government&rsquo;s multiple requirements, and the weakness of the ministry&rsquo;s electronic platforms.&nbsp;
<h3 dir="ltr">Recommendations and alternative solutions</h3>
More comprehensive, radical solutions are needed to address the inadequacy of current initiatives and laws and sustainably expand the umbrella of social protection to all irregular workers in Egypt without exception. To achieve this, experts agree on several short- and medium-term actions: <a href="https://www.ctuws.com/content/%D9%88%D8%AB%D9%8A%D9%82%D8%A9-%D8%AF%D8%A7%D8%B1-%D8%A7%D9%84%D8%AE%D8%AF%D9%85%D8%A7%D8%AA-%D8%A7%D9%84%D9%86%D9%82%D8%A7%D8%A8%D9%8A%D8%A9-%D9%88-%D8%A7%D9%84%D8%B9%D9%85%D8%A7%D9%84%D9%8A%D8%A9-%D9%81%D9%8A-%D8%A7%D9%84%D8%A7%D9%88%D9%84-%D9%85%D9%86-%D9%85%D8%A7%D9%8A%D9%88-2023">enabling</a>&nbsp;irregular workers to form effective trade unions; developing joint mechanisms with unions and employers to register irregular workers in a unified, updated database; encouraging workers to register by spreading awareness; and simplifying registration procedures.
In the long term, specialized research highlights the&nbsp;<a href="https://aps.aucegypt.edu/en/articles/746/social-protection-and-informal-employment-revisiting-in-formality">importance</a>&nbsp;of implementing a universal basic income, providing direct cash transfers to citizens that enable them to meet their basic needs comprehensively and unconditionally, after emergency subsidies and grants have proven unable to protect the most vulnerable workers.
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<h2>Desalination Using Renewable Energy: Opportunities and Costs</h2>
On May 1, 2023, the Sovereign Fund of Egypt&nbsp;<a href="https://tsfe.com/pdf/Water%20Desal%20PreQual_PRL_EN_V6.pdf">announced</a>&nbsp;that 17 international consortiums had qualified to develop desalination plants in various locations around Egypt, including on the coasts of Marsa Matrouh and Alamein. Desalination projects aim to produce&nbsp;<a href="https://tsfe.com/pdf/Water%20Desal%20PreQual_PRL_EN_V6.pdf">3.35 million m3/day</a>&nbsp;of water by 2025 in the first phase, with a total capacity of&nbsp;<a href="https://tsfe.com/pdf/Water%20Desal%20PreQual_PRL_EN_V6.pdf">8.85 million m3/day</a>&nbsp;by 2050.
Egypt needs more than&nbsp;<a href="https://www.sis.gov.eg/Story/545/%D9%85%D8%B5%D8%B1-%D9%88%D9%82%D8%B6%D9%8A%D8%A9-%D8%A7%D9%84%D9%85%D9%8A%D8%A7%D9%87?lang=ar#:~:text=%D8%AA%D9%82%D8%AF%D8%B1%20%D9%85%D9%88%D8%A7%D8%B1%D8%AF%20%D9%85%D8%B5%D8%B1%20%D8%A7%D9%84%D9%85%D8%A7%D8%A6%D9%8A%D8%A9%20%D8%A8%D8%AD%D9%88%D8%A7%D9%84%D9%89%2060%20%D9%85%D9%84%D9%8A%D8%A7%D8%B1%20%D9%85%D8%AA%D8%B1,%D8%AA%D9%82%D8%A7%D8%A8%D9%84%2034%20%D9%85%D9%84%D9%8A%D8%A7%D8%B1%20%D9%85%D8%AA%D8%B1%20%D9%85%D9%83%D8%B9%D8%A8%20%D8%B3%D9%86%D9%88%D9%8A%D9%8B%D8%A7%20%D9%85%D9%86%20%D8%A7%D9%84%D9%85%D9%8A%D8%A7%D9%87.">312 million m3/day</a>&nbsp;of water to achieve full self-sufficiency, while it currently has only&nbsp;<a href="https://www.sis.gov.eg/Story/545/%D9%85%D8%B5%D8%B1-%D9%88%D9%82%D8%B6%D9%8A%D8%A9-%D8%A7%D9%84%D9%85%D9%8A%D8%A7%D9%87?lang=ar#:~:text=%D8%AA%D9%82%D8%AF%D8%B1%20%D9%85%D9%88%D8%A7%D8%B1%D8%AF%20%D9%85%D8%B5%D8%B1%20%D8%A7%D9%84%D9%85%D8%A7%D8%A6%D9%8A%D8%A9%20%D8%A8%D8%AD%D9%88%D8%A7%D9%84%D9%89%2060%20%D9%85%D9%84%D9%8A%D8%A7%D8%B1%20%D9%85%D8%AA%D8%B1,%D8%AA%D9%82%D8%A7%D8%A8%D9%84%2034%20%D9%85%D9%84%D9%8A%D8%A7%D8%B1%20%D9%85%D8%AA%D8%B1%20%D9%85%D9%83%D8%B9%D8%A8%20%D8%B3%D9%86%D9%88%D9%8A%D9%8B%D8%A7%20%D9%85%D9%86%20%D8%A7%D9%84%D9%85%D9%8A%D8%A7%D9%87.">164 million m3/day</a>; part of the gap is currently made up by&nbsp;<a href="https://english.ahram.org.eg/News/461078.aspx#:~:text=This%20gap%20is%20filled%20by,less%20than%2040%20square%20meters.">water recycling</a>. The planned desalination plants are expected to cover some 6% of the water deficit after completion.
<img style="display: block; margin-left: auto; margin-right: auto;" src="https://mcusercontent.com/5e42bef7fee7e6a299c3d932d/images/412da95d-fd89-f061-ffdf-6013a5efa9b3.png" width="546" height="432">
In 2022, Egypt ranked&nbsp;<a href="https://gain.nd.edu/our-work/country-index/">107 out of 181</a>&nbsp;countries vulnerable to the impacts of climate change due to the country&rsquo;s primary dependence on the Nile &ndash; which&nbsp;<a href="https://www.sis.gov.eg/Story/232476/%D9%85%D8%B5%D8%B1-...%D9%88%D8%A7%D9%84%D8%AF%D8%AE%D9%88%D9%84-%D8%A7%D9%84%D9%89-%D8%B9%D8%B5%D8%B1-%D8%AA%D8%AD%D9%84%D9%8A%D8%A9-%D8%A7%D9%84%D9%85%D9%8A%D8%A7%D9%87?lang=ar">provides</a>&nbsp;98% of our water needs &ndash; and the threat posed by rising temperatures and decreasing rainfall, with overpopulation putting pressure on water availability. The anticipated&nbsp;<a href="https://aps.aucegypt.edu/en/articles/773/beyond-statistics-the-human-security-implications-of-the-grand-ethiopian-renaissance-dam">negative impacts</a>&nbsp;of the filling and operation of the Grand Ethiopian Renaissance Dam on the Blue Nile, the main tributary of the Nile, further exacerbate the threat of water poverty.
<h3 dir="ltr">Desalination with renewable energy </h3>
<a href="https://www.iea.org/commentaries/desalinated-water-affects-the-energy-equation-in-the-middle-east">Two-thirds</a>&nbsp;of desalination plants in the Middle East are powered by fossil fuels. The desalination process requires about&nbsp;<a href="https://www.sciencedirect.com/science/article/pii/S1876610217301686/pdf?md5=dfe318617b29a72b1dd557ab692e3a53&amp;pid=1-s2.0-S1876610217301686-main.pdf">10,000 tons</a>&nbsp;of fossil fuels to produce&nbsp;<a href="https://www.sciencedirect.com/science/article/pii/S1876610217301686/pdf?md5=dfe318617b29a72b1dd557ab692e3a53&amp;pid=1-s2.0-S1876610217301686-main.pdf">1,000 m3</a>&nbsp;of water per day, which contributes significantly to greenhouse gas emissions and global warming, in turn exacerbating water scarcity. The current desalination program therefore aims to convert new desalination plants to renewable energy sources &ndash; such as solar or wind &ndash; to avoid the adverse climate impacts of traditional desalination.
On the other hand, disposing of desalination waste has negative environmental impacts, as the highly saline waste &lsquo;brine&rsquo; is&nbsp;<a href="https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2012/IRENA-ETSAP-Tech-Brief-I12-Water-Desalination.pdf">discharged</a>&nbsp;into the sea, or diluted and sprayed over open areas. This issue has thus far not been addressed in the current plans.
<h3 dir="ltr">Costly plans</h3>
Water scarcity has prompted the Egyptian government to resort to costly solutions despite the economic crisis, with the project&rsquo;s cost expected to reach <a href="http://www.amcham-egypt.org/Presentations/HighlightsfromWater%20MinistersAprl2Speech.pdf">EGP900 billion</a>. The cost of the first phase of desalination plants in the draft National Water Resources Plan (NWRP) 2017&ndash;2037 is estimated at&nbsp;<a href="https://press.us9.list-manage.com/track/click?u=3f7bc576715ca1a70edef2788&amp;id=3868dc3ad3&amp;e=aeeff8f0df">USD3 billion</a>, out of a total project cost of&nbsp;<a href="https://press.us9.list-manage.com/track/click?u=3f7bc576715ca1a70edef2788&amp;id=3868dc3ad3&amp;e=aeeff8f0df">USD8 billion</a>. The European Bank for Reconstruction and Development and the International Finance Corporation will support the preparation and assessments of these plants.&nbsp;
At the same time, the integration of renewable energy in the desalination process may help to rationalize the cost of plant operations. Because renewable energy technologies are expected to&nbsp;<a href="https://www.nhm.ac.uk/discover/news/2022/september/net-zero-cheaper-and-greener-than-continuing-use-fossil-fuels.html">become cheaper</a>&nbsp;than fossil fuels within a decade, the cost of energy, which accounts for&nbsp;<a href="https://www.sciencedirect.com/science/article/abs/pii/S0011916420310304">half</a>&nbsp;of the operating expenses of desalination plants, will also fall. In light of the high cost of project implementation, the effective use of renewable energy for desalination may in the future ease the financial burden on the state and its economic dependence on international financial institutions.
<hr>
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"Adasa" is a weekly policy digest by Alternative Policy Solutions. "Adasa" provides an analysis of a select number of policy developments and their effect on inclusive development and socioeconomic change
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عدسة

Adasa

إدارة الموارد المائية

Water Management

جودة التشغيل

Quality of Employment

الطاقة

Energy

تغير المناخ

Climate Change

العمل والتوظيف

Labor and Employment

 العمالة غير المنتظمة ومشاريع تحلية المياه في مصر.

Irregular Workers and Water Desalination Plants

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