The report is largely concerned with the problem of poverty and income distribution. The authors analyze the human development process in Egypt by considering the impact of different reform policies on socio-economic variables with a focus on the Economic Reform and Structural Adjustment Program (ERSAP). In addition, the report describes the specially tailored Semi-Participatory Assessment Survey (SPAS), which focused on exploring people's perceptions regarding living conditions, as well as attempting to understand their behavior and attitudes. The report finds that poverty changes in Egypt are highly sensitive to economic growth. Economic growth would enlarge the opportunities for the poor to enjoy the benefits of increases in output. Hence, the report concludes, poverty reduction requires enhanced growth.