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11-09-2015, 12:37

Economic changes

Nasser's Egypt saw undoubted economic improvement. As a result of land reform and other economic measures, agricultural and industrial production rose. An important shift occurred in the pattern of Egypt's exports. Traditionally, Egypt's foreign exports had been dominated by cotton. During Nasser's time such exports dropped by 50 per cent, but this was partly compensated for by an increase in the sale abroad of industrial manufactures. Of equal significance was the number of Egyptians who went as oil workers to neighbouring Arab countries. Since these countries, as well as paying the guest workers directly, also paid Nasser's government for the privilege, this provided a substantial income for Egypt. By 1970 there were over 3 million such workers, based mainly in the Arabian Peninsula.

Positive aspects

Despite the disappointments attaching to such developments as the Aswan High Dam, millions of Egyptians did experience a significant increase in the quality of their living and working conditions. By 1970, Egypt could boast a GNP growth rate of over 4 per cent, which, according to World Bank figures, was well above the international average. Among the major benefits for the Egyptian people were:

A growing number of schools and universities were built or improved.

The number of children attending school in Egypt quadrupled during Nasser's regime.

Modern science, which included the teaching of evolution, was developed as a subject in schools and universities.

Housing developments were planned in the major cities.

Clean water was provided in many areas.

New or improved hospitals and clinics were developed.

Negative aspects

The achievement of economic growth was impressive, but there were negative consequences and it is debatable whether the economic gains offset the failure to advance the political and social freedoms that the regime had initially promised. Nasser's government fell short of developing Egypt as an ordered, civil society:

•  Debt increased, making Egypt heavily dependent on the Soviet Union.

•  The expanding state bureaucracy resulted in a costly public sector wage bill.

•  Corruption became endemic in the state institutions.

•  Patronage and nepotism continued to operate as they had before the revolution.

•  Poor financial management resulted in the state incurring large losses.

•  Military costs remained high as a result of the Yemen and the Six-Day Wars.

•  Government controls restricted private enterprise and investment.

•  Population increase intensified overcrowding in the urban areas.

•  To meet the food demands of a growing population, Egypt became heavily dependent on the importing of foreign grain.

•  Authoritarianism was enforced through the mechanisms of the police state.



 

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