Aim: Is Egypt a “typical” decolonizing state?

Muhammad Ali

Muhammad Ali ’ s Egypt StrengthsWeaknesses Agricultural breadbasket - wheat and cotton Egyptian autonomy from Ottomans Modernization efforts begin in education, agriculture, industry (textile mills - cotton is right there! ) Peasants resist modernization Hard to be an Egyptian nationalist as an Albanian Lack of coal, iron Europeans demand free trade, Egyptians can ’ t compete with cheaper English goods

What does Muhammad Ali do right, wrong; what is beyond his control? Compare to Italy, Germany Tries to industrialize, and to protect his “ infant ” industry to do so Hard to be an Albanian “ Egyptian nationalist ” Hard to fight back with the Europeans breathing down your neck; too close to Europe - compare with Japan

Suez Canal: An Investment Gone Bad Egyptian-French collaboration: Egypt borrows the money to build the Canal from the French, then defaults

Suez Canal: An Investment Gone Bad The British step in: British buy up the French debt; send troops to Egypt to provide the Egyptian pasha with economic “ advice ” to pay back loan Lord Cromer: Ruler of Egypt

Suez Canal: An Investment Gone Bad The British step in: British buy up the French debt; send troops to Egypt to provide the Egyptian pasha with economic “ advice ” to pay back loan

Egypt becomes a British “ Protectorate ” Results: Creation of a plantation cash crop: cotton; Peasants driven off land; British control Egypt with just 5000 troops

Period of “official” independence British dominated kings Little economic development Still treated as a colonial economy: agriculture (cotton)

Gamal Abdul Nasser Seizes power in a military coup Nationalizes the Suez Canal (1956) and tilts toward socialist economic policies Fights war against Israel, Britain, France (1956) Attempts at pan-Arabism: United Arab Republic w/ Syria ( ); later discussions with Iraq about unity

Builds Aswan Dam across Nile with help from the Soviet Union (electrification) Aswan Dam from space

Anwar Sadat ( ) Begins rapprochement with the United States Signs peace treaty with Israel; first Arab nation to recognize Israel Egypt becomes second largest recipient of American aid Borrows money from west

Hosni Mubarak ( ) Continues policies of Sadat – Authoritarian government – Alliance with, and aid from, United States – State-controlled capitalist economy – “Crony capitalism” – Small elite, large impoverished peasant and working class

Hosni Mubarak ( ) Foreign debt cut in half due to Egypt’s participation in first Iraq War (1991) Restructures economy following policies of the International Monetary Fund to pay off debt: – Reduced tariffs on foreign goods – Reduced tax rates on wealthy – Privatization of state-owned property – Foreign business-friendly environment – Eliminated food subsidies and other social welfare programs

What does it mean to be “underdeveloped” in 2011? Per Capita Income: Singapore: $57,200 United States: $47,400 Italy: $30,700 Hungary: $19,000 Mexico: $13,800 Brazil: 10,900 China: $7,400 Egypt: 6,200 India: $3,400 Nigeria: $2,400 North Korea: $1,800 Congo: $300

Egypt: a “typical” post-colonial nation? Advantages: Nile River, good agriculture, electrification, historic cultural and geographic center of Middle East, relatively high literacy rate, aid from Soviets, massive aid from US after peace treaty with Israel Disadvantages: Little industry in 1952, high birth rate, long history of despotic government

Egypt: a “typical” post-colonial nation? Authoritarian governments, favored by both superpowers and by foreign “business community” Lots of government favoritism Experimented at times with both state and private ownership Gradual industrialization; some technological development Economy has grown slowly, and standard of living remains low