5. The analysis is done from a cross-country perspective. For the different indicators selected to measure the SDGs, Egypt’s performance and prospects are benchmarked relative to other countries based on a careful consideration of its past, present, and projected levels of GNI per capita.<sup>2</sup> The latter variable tends to be highly correlated with many of the SDGs and the factors that determine their evolution; given this, it is used as a summary indicator of a country’s capacity to provide and efficiently utilize inputs that contribute to progress on the SDGs (i.e., health and education services) and to fulfill target SDG outcomes (such as strong health and education results).<sup>3</sup> 6. Prior to beginning our analysis, we note that the Egyptian government has been proactive in pursuing the 2030 Agenda. In March 2015, Egypt launched its strategy for tackling the agenda, titled “Egypt’s Vision 2030” (Ministry of International Cooperation 2015). The 2030 Sustainable Development Strategy (SDS)<sup>4</sup> highlights the importance of various sectors critical to Egypt’s longterm development and sets out principles and guidelines towards the realization of the country’s developmental goals. With emphasis on the economic, social, and environmental dimensions, the Egyptian government is keen to achieve social justice, innovation, economic development, and a healthy environment in pursuit of improving the quality of life in Egypt by 2030 (Egyptian Government 2017).

7. At the High Level Political Forum (HLPF) in July 2016, the Egyptian government was one of the 22 Member States that exhibited progress towards implementing the SDGs. In sum, the HLPF calls upon Member States to participate as equal contributors in carrying out the 2030 Agenda; further, the forum provides guidance and recommendations on the implementation and follow-up of the 2030 Agenda as well as addresses new and emerging issues related to the SDGs (United Nations 2017). The current study builds upon this extensive body of work by providing an analytical framework that can assist the Egyptian government with conducting an initial prioritization among the many objectives and targets set by the 2030 Agenda.

8. This country note furthermore provides a data-driven analysis relevant to the development of an SDG strategy for Egypt, classified as a lower-middle income country.<sup>5</sup> Over the period spanning 2000-2015, Egypt’s annual per capita GDP growth rate (at constant 2010 U.S. dollars) averaged only 2.1 percent; this can be compared to the average of 4.2 percent for lower-middle income countries, or the world average of 1.5 percent. Although Egypt’s economy performed well during 2003-2008, and demonstrated resilience in response to the global financial crisis, the country subsequently experienced both political uncertainty as well as economic instability in the wake of the 2011 and 2013 demonstrations. The growth rate plummeted following these events and macroeconomic imbalances – particularly, the fiscal and current account deficits, and the government debt burden – sharply worsened.

> 2 While a cross-country perspective provides an important complement to analysis that is centered on an individual country, it is by definition limited to analysis of variables that are available in cross-country databases.

> 3 This does not mean that GNI per capita is viewed as a direct or the only determinant of SDG outcomes; on the contrary, a major challenge for policy makers is to identify policies that improve SDG performance relative to what is expected given the level of GNI per capita. A second challenge is to raise growth in GNI per capita as it indirectly influences country SDG capacity.

> 4 See http://sdsegypt2030.com/?lang=en for a detailed description.

> 5 For the current year, the World Bank defines lower-middle-income economies as those with a GNI per capita between $1,026 and $4,035 (calculated using the World Bank Atlas method). Visit https://datahelpdesk.worldbank.org for more details.

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