The economic effects of the 2009 nationwide Egyptian pig cull on the meat and Sewage waste management industries

8/12/2019 The economic effects of the 2009 nationwide Egyptian pig cull on the meat and Sewage waste management indu

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What economic effect did the nationwide pig cull have on themeat and SWM industries in Cairo, and on the incomes of

the Zabaleen?

IB Extended EssaySubject: Economics

Word Count: 39!

Student: Aly Gohar

999

Supervisor: Mr ! "addon


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Aly Ihab Gohar IB Extended Essay #inal $ra%t

Abstract

&his paper exa'ines the case o% the (abaleen) Cairo*s Christian +aste

collectin, co''unity! &he (abaleen ori,inally collected ,arba,e in%or'ally) sellin,

recyclable +aste to recyclin, %actories) and usin, or,anic +aste to %eed their

livestoc-) pi,s! .o+ever) a%ter the E,yptian ,overn'ent ordered the slau,hter o% all

the pi,s in E,ypt) the (abaleen lost their 'ain sources o% inco'e lost the incentive to

collect or,anic +aste) +hich created 'any proble's in the re,ion!

"he research #uestion that rises from this is what economic effect did the

nationwide pig cull have on the meat and SWM $solid waste management%

industries in Eg&pt and on the incomes of the Zabaleen'Studies +ere conducted in

the nei,hborhood o% the (abaleen) +here they +ere intervie+ed! Additional

in%or'ation +as ac/uired %ro' other sources) such as 'eat storeo+ners and other

sta-eholders o% the 'eat industry! It appears that by cullin, the entire population o%

pi,s in the country) the E,yptian ,overn'ent induced the %ailure o% the 'eat industry)

as prices o% all substitute 'eats increased as a result o% the decrease in the supply o%

por-0based products! With this ca'e the potential decrease in E,ypt*s G$") as por-

exports increased dra'atically over the last six 'onths! Additionally) the %ailure o%

the SWM industry +as also induced1 due to a sudden pile up in +aste around he city

o% Cairo a%ter the (abaleen lost the incentive to collect or,anic +aste!

Both /ualitative and /uantitative data indicated that the inco'es o% the

(abaleen 2due to the loss o% their 'ain sources o% inco'e) and sudden chan,es in

de'and %or labor in the SWM industry3 have been experiencin, 'ajor %luctuations

since the cullin, in April 4559!

Word count: 467

4


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Table of Contents

(bstract''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''')

"able of Contents'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''3

*ntroduction''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''

Methodolog& used to collect data''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''+

Economic effects of the nationwide pig cull'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''!Changes in demand and prices in the meat industr&'''''''''''''''''''''''''''''''''''''''''''''''''''''''!ossible decrease in the Eg&pt-s ./'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''01Mar2et ailure in the waste management industr&'''''''''''''''''''''''''''''''''''''''''''''''''''''''00/ecrease of mar2et failure and increase in the demand for labor in waste

management 4 the e5pertise of the Zabaleen''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''0

luctuations of the incomes of the Zabaleen before and after the culling''''''''''''0!

Conclusion'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''09

6ibliograph&''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''')0

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Introduction

&he (abaleen are a co''unity o% close to 65)555 Coptic Christians that) %or

years) have been responsible %or the daily collection o% the )55 tons o% 'unicipal

solid +aste that Cairo*s inhabitants produce daily! ;5095< o% the +aste collected

daily by the (abaleen) is recycled or reused=2a %i,ure 'odern +aste 'ana,e'ent

syste's +ould aspire to reach3) as the or,anic +aste +as used to %eed the (abaleens*

livestoc- 2pi,s3) and the inor,anic +aste) such as plastic and 'etal) +as sold to

recyclin, %actories around Cairo to be reprocessed!

In April 4559) as a precautionary 'easure to prevent the outbrea- o% s+ine %lu

in E,ypt) the E,yptian 'inistry o% a,riculture ordered that the entire population o%

E,ypt*s esti'ated 755)555 pi,s be culled! &he cullin, be,an soon a%ter) in the

be,innin, o% May 4559! &his +as devastatin, to Cairo*s ,arba,e collectin,

co''unity) the >(abaleen*) as theses pi,s +ere their 'ain sources o% inco'e!

&he ?nited @ations and World .ealth r,aniation had advised a,ainst this

cullin, be%orehand) ar,uin, that no cases o% the .=@= virus had yet been reported in

the country) and that the virus +as not trans%erable %ro' pi,s to hu'ans) but rather

%ro' hu'an to hu'an! &hey su,,ested that the E,yptian ,overn'ent %ocus its

resources on disease control on the border) in airports and in seaports! .o+ever) these

su,,estions +ere dis'issed and the ,overn'ent insisted that all the pi,s in the

country be eli'inated1 ho+ever >+ith 849 cases reported in Au,ust) the cullin,

clearly didn*t prevent the spread o% the disease*4! &his stirred up 'uch con%lict

bet+een E,ypt*s Musli' and Christian co''unities) +ho clai'ed that the

,overn'ent culled the pi,s %or political reasons) in an atte'pt to rid the country o%

ani'als that are considered unholy by the Musli' %aith) +hich occupies the 'ajority

o% the E,yptian population!

&he underlyin, research /uestion is +hat econo'ic e%%ect did the pi, cull have

on E,ypt*s 'eat and +aste 'ana,e'ent industries) and the inco'es o% the (abaleen!

=$uene) Wanda! 285!=!45593! &he abaleen &he +orld*s bi,,est recyclin,co''unity Donline! Available:

https:FFsch+are'ilch!+ordpress!co'F4559F5=F85Fthe0abaleen0the0+orld0bi,,est0

recyclin,0co''unityF! D=4!!45=54Stac-) ia'! 28!9!45593! #or E,ypt*s Christians) "i, Cull has lastin, e%%ects Donline!

Available: http:FF+++!cs'onitor!co'FWorldFMiddle0EastF4559F5958Fp=6s5=0+o'e!ht'l! D=4!!45=5

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'ore challen,in,!

In addition) especially in poor households li-e those in Garba,e City)

in%or'ation related to inco'e and %inancial status is o%ten considered very personal

and should not be revealed to the public! In E,yptian culture) as-in, /uestions aboutinco'e) debt and personal assets is o%ten considered o%%ensive! &hat is +hy) +hile

intervie+in, the (abaleen in both %ocus ,roup discussions and one0on0one scenarios)

the author +as very care%ul to +ord such /uestions in +ays +here there +ould be no

'otive %or the intervie+ee to +ithhold any in%or'ation! #or exa'ple) instead o%

%indin, exact inco'es o% individuals then avera,in, the' out) those +ho +ere

intervie+ed +ere ,iven di%%erent ran,es in +hich their inco'e 'i,ht %all! &his

allo+ed the author to see ,eneral trends in the distribution o% inco'e be%ore and a%ter

the cullin,) ho+ever it did not sho+ 'uch 'ore than that! Althou,h this +as not

necessarily a proble') it 'ade it di%%icult to ac/uire accurate /uantitative data!

As a result o% the +ay the >Spirit o% Houth* @G conducted its previous study

on the inco'es and expenses o% the (abaleen) only a li'ited a'ount o% /uantitative

data +as used in this study) to ensure accuracy and reliability! &he data that +as

selected see'ed to be 'oderately reliable and lo,ically sound!


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Economic effects of the nationwide pig cull

#e+ branches o% sciences and arts provide as insi,ht%ul a vie+ on ho+ the

,lobal co''unity operates in a 'odernied society) as does the study o% econo'ics!

Econo'ists use both theory and practice in atte'ptin, to deter'ine ho+ people

produce) buy and sell scarce resources +hen tryin, to satis%y their unli'ited +ants!

.o+ever) seein, as there are a +ide variety o% 'ar-et scenarios around the +orld) it

+ould be incorrect in assu'in, that 'odern econo'ic 'odels can be applied in every

circu'stance! @evertheless) econo'ics is considered a concrete base o% -no+led,e

and can prove very bene%icial +hen atte'ptin, to analye and predict econo'ic

behavior around the +orld!

In addition to ,eneral 'icroecono'ic ter's and concepts such as de'and and

supply) other concepts such as 'ar-et %ailure and 'acroecono'ics +ill be used to

explain the e%%ects and conse/uences o% the cullin, on the 'eat and +aste

'ana,e'ent industries and ho+ it a%%ected the inco'es and livelihoods o% the

(abaleen!

Changes in demand and prices in the meat industry

A%ter the E,yptian ,overn'ent ordered the slau,hter o% the close to 755)555

pi,s in E,ypt in May 4559) it co'es as no surprise that the supply o% por- products in

the country suddenly plu''eted! &here%ore) under the conditions o% Ceteris Paribus6)

the supply curve o% por- products shi%ted to the le%t) indicatin, a decrease in supply!

&his caused the e/uilibriu' price o% por- products to rise dra'atically) as seen in the

%ollo+in, de'and6and supply;,raph:

/emand and Suppl& of por2 products

Ceteris "aribus is atin %or >all other thin,s bein, e/ual*! It is a very use%ulsi'pli%yin, device) +hich allo+s econo'ists to clearly explain ho+ an econo'ic

theory +or-s!6

$e'and is the +illin,ness and ability o% a consu'er to buy a product %or a certainprice at a certain ti'e period;Supply is the +illin,ness and ability o% a producer to supply a certain /uantity o%,oods at a ,iven price in a ,iven ti'e period

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As the supply curve shi%ted %ro' S= to S4) the e/uilibriu' shi%ted alon, the

de'and curve $! &his caused the e/uilibriu' /uantity to decrease %ro' = to 4 and

the e/uilibriu' price to increase %ro' "= to "4!

As a result o% this sudden decrease in the supply o% por-) the de'and %or bee%

based products be,an to rise si,ni%icantly over a six0'onth period a%ter the cullin,9!

&his +as because bee% and por-0based products are close substitutes) +hich could

easily be consu'ed instead o% one another in the event that the price o% one increased!

&he price o% por- products had increased as a result o% the decrease in its

supply and there%ore consu'ers diverted to bee%0based products as a cheaper

alternative! .o+ever) ironically) as the consu'ption and de'and %or bee%0based

products be,an to increase) eventually) so did the price! &his can be explained by the

%ollo+in, de'and and supply ,raph:

/emand and Suppl& of beef products

9Intervie+ +ith Ah'ed Abdelrasool) o+ner o% El #ath .alal 'eat stores

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Since the chan,e in de'and +as not due to a chan,e in price) but rather an

external %actor) i!e! the decrease in the supply o% a close substitute) the de'and curve

o% the de'and and supply ,raph %or bee%0based products shi%ted to the ri,ht)

indicatin, an increase in de'and! As the de'and curve shi%ted) the e/uilibriu' point

shi%ted alon, the supply curve) chan,in, the /uantity %ro' = to 4 and the price

%ro' "= to "4!

"rices o% other substitute subse/uently rose in the sa'e 'anner! In this sense)

it can be said that the E,yptian ,overn'ent induced the %ailure o% the 'eat industry)

since consu'ers +ere no+ bein, %orced to pay hi,her than the value o% the product

they +ere buyin,) +hich is a ne,ative externality o% production) as MSC is hi,her

than M"C! &his creates a +el%are loss) +hich indicates that the 'ar-etFindustry is not

at its socially e%%icient level o% output!

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Possible decrease in the Egypts GDP

A%ter the cullin,) the por- industry see'ed to have disappeared into oblivion1

the %e+ specialty stores that use to sell por- based products +ere either ,oin, out o%

business or be,an sellin, substitute 'eats! &ho'as "ia) a +ell0-no+n E,yptian

pia %ranchise) %a'ous a'on, E,ypt*s Christian co''unity %or its use o% por-0based

pepperoni and other por- related products in its %ood) stopped usin, s+ine related

products soon a%ter the E,yptian ,overn'ent addressed that there +as a ris- o% bein,

in%ected by the .=@= virus throu,h the consu'ption o% por-1 a state'ent +hich the

W. 2World .ealth r,aniation3 had previously dis'issed as bein, incorrect! Soon

a%ter) the %ranchise lost 'ost o% its business) as its tar,et 'ar-et +as 'ainly Christians

and %orei,ners! It is no+ adjustin, itsel% to attract ne+ business) speci%ically %ro'

E,ypt*s Musli' society) by usin, halal 'eats=5in their pia!

.ala Morcos) o+ner and 'ana,er o% Maison Marcos) stated in an intervie+

that she is ,oin, out o% business) as the 'eat she used to sell +as %ro' the pi,s o% the

(abaleen) +ho +ere the 'ain suppliers o% her store! @o+ that there +ere no 'ore pi,s

in the country) she +as %orced to allocate her resources else+here!

&he sudden drop in the availability o% por-0based products +as not only a

proble' %or these businesses) but 'ay have also been a proble' %or the E,yptianecono'y as a +hole! Many o% E,ypt*s Christians be,an buyin, i'ported por-0based

products) since there +ere no local products! &his +as not bene%icial %or the E,yptian

econo'y) as it 'ay have resulted in a decrease in G$"! Alain Anderton*s >Econo'ics

%i%th edition* de%ines G$" as >a 'easure o% national inco'e that includes the value

o% indirect taxes and exports and i'ports*! &here%ore) the %or'ula %or G$" is:

I% i'ports increase) then subse/uently net exports +ill decrease) +hich +ill there%ore

cause a decrease in G$"! In other +ords) buyin, i'ported products is a %or' o%

'oney bein, +ithdra+n %ro' the country*s circular %lo+ o% inco'e 2lea-a,e3) +hich

'eans that that country +ill have less 'oney to spend!

=5Meats that are per'itted to be eaten under Isla'ic la+ 2por- is not a halal 'eat3

=5

./7 Consumption 8 *nvestments 8 .overnment Spending 8 $E5ports 4 *mports%


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Market Failure in the waste management industry

#or a lon, ti'e) the E,yptian ,overn'ent has been tryin, to privatie Cairo*s

solid +aste 'ana,e'ent syste's) yet it has al+ays %aced the proble' that is the

(abaleen*s tendency to +or- in%or'ally) ,oin, round the city) collectin, ,arba,e

door0to0door! &he ,overn'ent tried to solve this proble' by hirin, t+o 'ultinational

co'panies) Italian ac- Jose Co'pany and Spanish #!C!C==) to be responsible %or

Cairo*s solid +aste 'ana,e'ent! &hese co'panies operated by installin, du'psters

in streets and alley+ays and) since both co'panies si,ned on in 4554) approxi'ately

8< o% the 555 tons o% 'unicipal +aste that Cairo produces daily=4has been

collected everyday! .o+ever 8;< o% the +aste collected +as collected by the

(abaleen ) +hich 'eant that the 'ultinational co'panies +ho +ere responsible %or

the collection o% Cairo*s +aste +ere) in so'e 'anner) bein, subsidied by the

(abaleen) in the sense that they +ould collect a portion o% the +aste the co'panies

+ere responsible %or collectin,) there%ore reducin, their costs!

.o+ever) +hen the ,overn'ent slau,htered the pi,s) +hich +ere the 'ain

source o% the (abaleen*s inco'e) the (abaleen had no 'ore incentive to collect

or,anic +aste) as they no lon,er had any livestoc- to %eed! &here%ore) to be 'ore

econo'ic) they started separatin, the or,anic +aste %ro' the inor,anic +aste as they

+ere collectin, it) and started du'pin, all the or,anic +aste in alley+ays in and

around the du'psters! &he 'ultinationals) +hich had been operatin, in Cairo at a

constant rate %or years) +ere no+ %acin, a 'assive pileup o% +aste around their

du'psters=8!&his proble' slo+ly be,an to ,ro+ into one o% the +orst pollution

proble's Cairo has ever %aced1 +aste +as pilin, up any+here the (abaleen could

%ind! Kacant par-in, lots had turned into ,arba,e du'ps and streets ree-ed o% rottin,

%ood! &he du'psters scattered around the city by the 'ultinationals had obviously not

been able to -eep up +ith the re%use a%ter the nation+ide cull o% pi,s! &his created a

'ar-et %ailure in the solid +aste 'ana,e'ent industry in E,ypt!

Mar-et %ailure is +hen a 'ar-et is not able to e%%iciently allocate its resources

in an opti'al 'anner! &his usually happens +hen businesses do not produce at the

==A%dal) .assen! 2$ate ?n-no+n3! Case Study o% E,yptDonline! Available:

http:FF+++!e'ro!+ho!intFcehaF'ediaFpo+erpointFE,ypt!pps!=4In,e ardinois and Arnold van de Llundert) r,anic +aste ptions %or s'all

scale resource recovery 2A'sterda' and WAS&E consultants) =9983) p!98=8Intervie+ +ith $r aila Is-andar

==
http://www.emro.who.int/ceha/media/powerpoint/Egypt.ppshttp://www.emro.who.int/ceha/media/powerpoint/Egypt.ppshttp://www.emro.who.int/ceha/media/powerpoint/Egypt.pps


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socially e%%icient level o% output) +hich is +here 'ar,inal social cost 2MSC3 is e/ual

to 'ar,inal social bene%it 2MSB3! I% a 'ar-et is able to produce at this socially

e%%icient level o% output) then the 'ar-et is atpareto optimality) +hich exists +hen it

is i'possible to 'a-e so'eone better o%% +ithout 'a-in, so'eone else +orse o%%=7! I%

a 'ar-et is unable to produce at this level) then the 'ar-et is i'per%ect and

co''unity surplus=is not 'axi'ied) creatin, a +el%are loss! &his is exactly +hat is

happenin, in the SWM 2Solid +aste 'ana,e'ent3 industry!

=7

ocelyn Blin- and Ian $orton) >Econo'ics course co'panion*) 2ox%ord universitypress) 45563) p!=87=co''unity surplus is the +el%are o% a co''unity and is 'ade up o% consu'ersurplus and producer surplus

=4


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Decrease of market failure and increase in the demand forlabor in waste management the epertise of the

!abaleen

As the 'ar-et %ailure in the SWM industry slo+ly be,an to increase) the

E,yptian ,overn'ent be,an to be concerned %or the health and hy,iene issues that

be,an to arise %ro' this proble'! &hey approached the 'ultinational corporations and

de'anded that they uphold the contract they si,ned years a,o and %ind a +ay to

collect 5< o% Cairo*s daily +aste) be it by increasin, the nu'ber o% ti'es ,arba,e

truc-s rolled out on the streets or by buyin, 'ore truc-s and e'ployin, 'ore ,arba,e

collectors=!

At %irst) the 'ultinationals did not co'ply +ith the ,overn'ent*s de'ands) as

they ar,ued that the pollution crisis +as the %ault o% the state %or not bein, strict

enou,h on ,arba,e disposal re,ulations! .o+ever) a%ter nu'erous ne,otiations) the

'ultinationals a,reed to enlar,e their +or-%orce) to ensure a sustainable 5< +aste

collection rate!

As the 'ultinationals be,an enlar,in, their +or-%orce) the de'and %or labor in

the SWM industry had increased! &he 'ultinationals i''ediately turned to the

(abaleen! &he (abaleen +ere the only people in the Cairo and Gia district that +ere

experienced in the %ield o% collectin, +aste and +ere in need o% +or- to be able to

supply %or their %a'ilies! ther lo+ class;F E,yptians) 'ainly o% the Musli' %aith)

+ere +or-in, in other pro%essions such as in%or'al 'aids or butlers) 'os/ue

careta-ers and door'en %or buildin,s in the hi,her0class areas o% Cairo) a'on, other

pro%essions!

&his increase in de'and %or labor in the SWM industry proved to be bene%icial

%or those +ho +ere +illin, to +or- %or the 'ultinationals) i!e! the (abaleen) as it lead

to an increase in +a,es!

Change in demand for labor in the SWM industr&

=Intervie+ +ith $r aila Is-andar

=7


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Since the increase in de'and %or labor +as not due to a chan,e in MJ") but +as in

%act caused by an external %actor) the ,overn'ent de'andin, an increase in de'and)

the de'and %or labor curve shi%ted to the ri,ht) indicatin, an increase in de'and %or

labor! &he shi%t o% the MJ" curve 'oved the e/uilibriu' point %ro' A to B") +hich

indicates an increase in +a,es an in the /uantity o% labor +illin, to +or- %or the

'ultinationals at that +a,e! &his ca'e as a relie% to the (abaleen as they had been

stru,,lin, to provide %or their %a'ilies ever since the cullin,! I% they +ent to +or- %or

the 'ultinationals) they +ould be able to receive stable inco'es to ,et bac- so'e o%

the livelihood they lost +hen they*re 'ain source o% inco'e +as ta-en %ro' the'!

&his increase in the +or-%orce in the SWM industry +as not only bene%icial to

those +ho +ere able to ,et e'ployed) but +as also bene%icial to the industry as a

+hole! It) in %act) decreased the 'ar-et %ailure) brin,in, it closer to the socially

e%%icient level o% pareto opti'ality!

/ecrease in mar2et failure of SWM industr&

=


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When the 'ultinational corporations enlar,ed its +or-%orce by buyin, 'ore truc-s

and e'ployin, 'ore +or-ers) they increased their costs) +hich in turn shi%ted the

M"C curve up+ards) ,ivin, the >M"C O labor costs* curve! &his lead the

'ultinationals to leave a /uantity o% 4 +aste uncollected) +hich is closer to the

socially e%%icient /uantity o% +aste uncollected! &his lead to a decrease in +el%are

loss and) there%ore) an increase in co''unity surplus! &his +as because MSC +as

only ,reater than MSB %or the /uantities o% 0 4 o% uncollected +aste) rather than

the /uantity o% 0 = o% uncollected +aste in the ,raph sho+in, the ori,inal 'ar-et

%ailure!

=


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Fluctuations of the incomes of the Zabaleen beforeand after the culling

Ever since the .=@= scare in 4559) the inco'es o% the (abaleen have been

%luctuatin, /uite %uriously) as the events that too- place %ro' April 4559 to uly 45=5

have had a stron, i'pact on their li%estyle and livelihood!

Be%ore the cullin,) +hen the (abaleen still had their pi,s) they +ere earnin,

close to E 9555 pro%its per annu'=61 n avera,e) a (abal 2one o% the (abaleen3

+ould receive E 8 a day %ro' clients and recyclin, %acilities) +hich adds up to

about E =8)555 a year) and about E =5)555 a year %or sale o% pi,s! Costs o%

transportation o% the +aste +ould b e about E 75 a day) +hich a'ounts to about E=7)555 a year! &he (abaleen +ould spend their pro%its 'ostly on e/uip'ent and truc-

repairs! What +as le%t on these pro%its +ould be used to support the avera,e (abal*s

%a'ily! I% not 'uch pro%its re'ain) then %a'ilies +ould have to ta-e drastic 'easures

to save 'oney) such as pullin, their children out o% school!

A%ter the cullin,) +hen the (abaleen decided to only ta-e the inor,anic +aste

%or recyclin, and to du'p the or,anic 'aterials) the ,overn'ent assi,ned a lar,e

piece o% land in the outs-irts o% Cairo to act as a re,ional +aste disposal plant! A%ter

the ,arba,e pile up in the city +as at a critical level) the (abaleen +ere %orced to send

the or,anic +aste they collected to this %acility) rather than leave it in alley+ays and

around du'psters! At that ti'e period) the (abaleen had experienced a dra'atic

decrease in their inco'e) as they had lost their pi,s and +ere only able to ,et 'oney

%ro' their clients and %ro' recyclin, %acilities) +hich added up to about E 45)555 a

year=;! &heir costs had increased a%ter the cullin,1 each ,roup o% (abaleen +ere

spendin, about 4 +or- days +orth o% 'an hours 2=7 hours3 separatin, the or,anic

+aste %ro' the inor,anic +aste) loadin, the or,anic +aste on their truc-s and

transportin, the it to the +aste disposal sites each day! Jecent studies have sho+n

that) on avera,e) a +hole +or-in, days in 'onetary ter's a'ounted to about E 4)

and there%ore the (abaleen +ere losin, about E 5 each day) +hich adds up to E

=6);55 a year +orth o% costs) in addition to the vehicle 'aintenance and %uel costs!

&his +as 'ainly in a six0'onth ti'e period a%ter the cullin,! In that ti'e) 'any

%a'ilies +ere %orced to pull all their children out o% schools) and could not a%%ord %ood

=6Arabic "o+er"oint presentation ac/uired %ro' the >Spirit o% Houth* @G=;#ocus ,roup +ith (abaleen

=6


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at the ti'e and had to scaven,e %or it in the +aste they collected=9!

When they +ere e'ployed by the 'ultinational corporations) as stated

previously) the (abaleen experienced increases in their inco'e once 'ore) yet that

inco'e +as no +here near the sa'e a'ount as the inco'e they received +hen they

+ere +or-in, in%or'ally %ro' door0to0door45!

&his in%or'ation can be seen in the %ollo+in, ,raph) +hich sho+s the avera,e

real inco'e per (abal in the last 4 years:

=9ne0on0one intervie+ +ith one o% the (abaleen %ather o% and husband o% 4

+ives45Intervie+ +ith $r aila Is-andar

=;


19/21


Conclusion

"he initial research #uestion was what economic effect did the nationwide

pig cull have on Eg&pt-s meat and SWM industries, and on the incomes of theZabaleen! ?lti'ately) it appears that the cullin, induced the increase in prices o%

co''odity 'eats in the country) accordin, to basic supply and de'and theory! &he

%ailure o% Cairo*s SWM industry +as also induced) as the sudden increase in

uncollected +aste around Cairo) because o% the (abaleens* recent lac- o% incentive to

collect or,anic +aste! &his created an external cost that +as not accounted %or by the

'ultinational corporations! &he result o% this +as the enlar,e'ent o% the

'ultinationals* +or-%orce) in order to -eep up +ith collection rates that had beena,reed upon +ith the E,yptian ,overn'ent) +hich subse/uently increased the

de'and %or labor and) there%ore) the avera,e +a,e rate per e'ployee! &he result o%

this has been the recent %luctuation o% the inco'es o% the (abaleen) +hich created

%inancial proble's %or 'any o% the') causin, the' to ta-e drastic 'easures to save

'oney!

As stated previously) as the de'and %or labor in the SWM industry increased)

'ost o% the (abaleen started +or-in, %or the 'ultinationals) instead o% collectin,

,arba,e uno%%icially on a door0to0door basis! #ro' this rises one unresolved /uestion

+hat is held in store %or the (abaleen in the %utureP &here has been 'uch

controversy ,ro+in, in E,ypt on +hether usin, the 'ultinationals to collect Cairo*s

+aste is an e%%icient allocation o% the country*s resources1 'any people ar,ue that) by

cullin, E,ypt*s pi,s) the ,overn'ent had e%%ectively eli'inated an essential service

that +as nearly cost0%ree to the country! &hese people ar,ue that by hirin, the

'ultinationals) the ,overn'ent is only increasin, its 'assive a'ount o% internationaldebt! .o+ever) there are those +ho are opposed to this) and believe that it is

necessary to %or'alie an industry that 'ay) at any ,iven 'o'ent) plu''et or ,ro+

out o% control!

It is still not clear +hether the SWM industry +ill continue to be controlled by

these corporate oli,opolies) or +hether the industry +ill %all bac- into the hands o% the

hi,hly co'petitive (abaleen! Jecently) the ,overn'ent has indicated that it 'ay

atte'pt to create a syste' that +ill %or'alie the service o% the (abaleen) +hich could

be o% bene%it to the (abaleen) as this could help increase their avera,e real inco'e!

=9


20/21


.o+ever) no such actions have been ta-en and no co''it'ents have been 'ade!

45


21/21


Bibliography

A%dal) .assen! 2$ate ?n-no+n3! Case Study o% E,yptDonline! Available:

http:FF+++!e'ro!+ho!intFcehaF'ediaFpo+erpointFE,ypt!pps

Anderton) Alain! >Econo'ics %i%th edition*) 2Gra%icas Estella) 455;3) p!754

$uene) Wanda! 285!=!45593! &he abaleen &he +orld*s bi,,est recyclin,

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In,e ardinois and Arnold van de Llundert) r,anic +aste ptions %or s'all scale

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Documents

The economic effects of the 2009 nationwide Egyptian pig cull on the meat and Sewage waste management industries