THE CHRONICLES ECONOMIC AND BUSINESS HISTORY RESEARCH CENTRE CHRONICLES APRIL—JUNE 2006, VOLUME 1 / ISSUE 4

The American University in Cairo TABLE OF CONTENTS

The Editor’s Note 2 EBHRC CH R O N I C L E S From our Archives

Editor: Dina Khalifa Hussein Documenting Egypt: Between 3 Glass Houses and Coffee Shops Director, EBHRC: Prof. Abdelaziz Ezzelarab We Don’t Make Them Like We Used to: Memoirs of Mahmoud Amin Al Aalem, 6 Project Officers: Vanguard of Egyptian Communists Mostafa Hefny Mohamed I. Fahmy Menza Administrative Assistant, EBHRC: Historical Perspectives Yasmeen Samir Introduction to the Land 9 Young Scholars Contributors: and the People of Egypt Zeinab Abul-Magd Lina Atallah The Spillover of Mohamed Ali’s Modernization 15 Wael Ismail Drive in the Sudan (1820-1885) Karim El-Sayed Muhammad Tal’at Harb: Guest Contributors: A Bourgeois Intellectual 18 Prof. Ibramin Elnur Prof. Robert Tignor

Layout &Design: Magda Elsehrawi History in the Making Egypt’s Last Effendi: On the Government Logo: 22 Nadine Kenawy Efforts to Privatize Department Stores

Things to Note While Reading the Financial Times: ******* European Economic Nationalism 25 Taking the Lead About EBHRC EBHRC Supporting Institutes: Center for Middle East Studies, Harvard University Business Not as Usual Near East Studies Program, Princeton University “Please Sir, I Want Some More!” The Dilemma of Aid, Development 28 Middle East Center, University of Pennsylvania and Rebuilding in Darfur Middle East Center, University of Washington Global Business Center, Business School, Book Review University of Washington Running on Empty: Financial Crisis Office of Provost, AUC 31 and Political Power in Mubarak’s Egypt Office of Dean of BEC, AUC Economics Department, AUC

EBHRC Collaborating Scholars: EBHRC forum Prof. Ellis Goldberg, Summary and Program 36 (University of Washington) Prof. Roger Owen (Harvard) Prof. Robert Tignor (Princeton University) Our Archives 38 Prof. Robert Vitalis (University of Pennsylvania)

Cover image by Magda Elsehrawi

1 THE ARTICLES FEATURED IN THE CHRONICLES REPRESENT THE OPINION OF THEIR AUTHORS, AND NOT NECESSARILY THAT OF THE EBHRC EDITOR’S NOTE

EDITOR’S NOTE...

istory is not dead. This is an assertion one of our colleagues made while trying to portray an idea for this issue's cover page. Historical statues exchanging places with the modern day man might be one of the readings of this complex claim. Yet one is left with a belief that history His one of the best narrators of our contemporary realities. The ancient Nile River, for instance, is witness to the identity and survival strategies of its people. Prof. Robert Tignor is working on a brief general history of Egypt. In this issue, he generously shares with us an early draft of the first chapter of his new book. Introduction to the Land and People of Egypt takes us back to the origins of human habitation in the valley of the Nile. Further south, the river takes us to Sudan, whose proximity to Egypt has flooded it with spill over of good and vice. Turkiyya (Turkish) in Sudanese colloquial “donates extreme injustice and aggres- sive attitude,” as Prof. Ibrahim Elnur highlights in his article. Elnur argues that despite the popular discourse of injustices accrued during Mohamed Ali’s rule in Sudan, spillover of his modernization drive cannot be negated. As for modern day Sudan, the dreams of modernization and peace are in tragic disarray.

Lina Atallah gives an account of the war-torn Sudanese province of Darfur. Repercussions of the conflict translate into a long list of brutal death rates, vio- lence and a dilemma of aid dependency. Atallah raises concerns of the grow- ing culture of dependency on donor agencies and NGOs in what she calls a “dis- torted economic environment.”

Like historical statues, we generally stand still and observe brutalities of civil wars, economic and political distortions in the Egyptian and Arab scenes. Nevertheless, we try, through the pages of this publication, to pin point some of the pitfalls. From the arrant nature of the current political regime, to the discriminatory glob- al economic trends against the developed world, we collect the debris of the present’s violent collision with history. This issue includes nine articles that begin in the early habitation of the Nile valley and end in modern day Egypt and Sudan.

Dina Khalifa Hussein, Project Officer, EBHRC

2 FROM OUR ARCHIVES Documenting Egypt Between Glass Houses and Coffee Shops...

Dina Khalifa, Project Officer, EBHRC

riting history is an exer- then is not to peer over the crumbling cle will tell a story of a researcher in his cise fraught with prob- edge, but to dig deep into the earth to quest to study Egypt's history, and will lems that are common search for what once, long ago, had shed light over some challenges and to journalists, historians happened within. If it is Egyptian earth, attempts to write and document it. and researchers in gen- then one has to dig even deeper. Weral. Some witness it as it happens and Didier Monciaud is a French researcher, others delve into its remains to search for Studying the Middle East in general and who is interested in the extra-parliamen- truth. In the preface of Robert Fisk's Pity Egypt in particular is complicated. This is tary politics in Egypt's pre-revolution lib- the Nation: Lebanon at War, he explains not merely due to its complex history, eral era. The "history from below," as he why he chose to go to Lebanon during but due to what can metaphorically be called it is an attempt to write the histo- the civil war. He says he wanted to wit- called: a documentation deficiency ry of the workers' movements, the ness history as it happens. He describes syndrome. This syndrome became even Muslim Brotherhood and the left; a histo- how at best journalists "sit at the edge of more severe in the 20th century, partic- ry distinct from the 'elite history'. Since history like vulcanologisits might clamber ularly since the state control era. Egypt's the history of the elites has been, in to the lip of a smoking crater, trying to mammoth, inefficient bure a u c r a t i c some way, exhausted through years of see over the rim, craning their necks to structure, the state's secrecy policies, studying the Middle East, new peer over the crumbling edge through lack of enforceable laws, a lack of free- researchers attempt to write a different the smoke and ash at what happens dom of information act, and wide- history. Histories of the marg i n a l i z e d , within." This is not an easy job, but things spread corruption, are some of the rea- marginal history or history on the margin become even more complicated when sons behind the lack of proper docu- are all synonyms of the new approach- the volcano's flames die out. The job mentation of its modern history. This arti- es used by researchers. 3 FROM OUR ARCHIVES

Egypt has a long turbulent history, since interviewing Egyptians has its special Mohamed Ali, on the issue of docu- ramifications. "Who are you? What is mentation. According to Pro f e s s o r your background? Where are you “... the archival sci- Khaled Fahmy of New York University, f r om?" These are classical questions the government archives were created posed by interviewees. Their percep- ence has almost in 1822, when Mohamed Ali passed a tion of the researcher has a tremen- decree to establish a Daftar Khanna, to dous effect on the course of the inter- died in Egypt, leav- be used as an archival depository that view. Nevertheless, in a nation with his- the state could go back to. In 1954, a tory of oppression and corruption, oral ing no way out for law was passed to establish a National history might be its way out. People Archives, which, as Fahmy mentioned, alone could narrate the contemporary researchers but to still governs to a considerable degree. history of the Middle East. The law entrusted the National Archives consult foreign, to collect material pertaining to Chances are slim for re s e a rche rs to Egyptian history and established a inspect state archives, especially when mostly colonial, supreme council to regulate the docu- attempting to write an alternative histo- mentation process. Fahmy argued that ry of the contemporary Middle East. In imperial archives ...” the laws did not assert any legal pun- Egypt, the national archives are open ishments for government officials who to re s e a r chers wishing to study the refuse to abide by the regulations of court records of 19th century Egypt for handing over the documents to the example. This is not attainable if a It is a common practice to use British National Archives. He added that researcher wishes to study the Egyptian and other foreign archives as sources through such laws and the constitution, state archives on the 1973 war or even for writing about the Middle East. A the state is obligated to guarantee the when studying the sugar industry, or classic problematic in this approach is right of publication, and freedom of any topic that the state considers the fear of writing a colonial literature. press. The state is further obliged to pro- 'strategic.' Nevertheless researchers resort to these tect scientific academic research (arti- archives due to the lack of compre- cles 48 and 49)- hence a legal basis for hensive national archives that are the right to information, even if weak, available for researchers. According to does exist. “... The Center for P r ofessor Robert Tignor of Princeton University, there is a need for historians The right to information constantly Documentation of to get out of the imperial archives; “we stands in opposition to secrecy policies need to write the history of Egypt from by the state. Even though in 1970s, pres- Cultural and Natural Egypt itself, not from the British, French idential decrees have identified a and American archives (1).” He added grace period between 30-50 years Heritage (CULTNAT) that even though the 20th century has after which government documents elapsed, there exists almost no book in have to be made public, the laws have was established any language, in which there is a sub- become dormant. Fahmy stated that stantive use of archival Arabic docu- some argue that there are no docu- under the auspices ments on 20th century Egypt. There is a ments deposited in the National need here to distinguish between two Archives since the 1920s, others argue the current Ministry different kinds of documents. There are that no deposits were made since the published materials, such as banks’ 1940s. Therefore, he concludes that the annual reports, newspapers, etc. In a rchival science has almost died in of Communication addition, there are the ‘confidential’ Egypt, leaving no way out for documents. These are, in the case of a re s e a r chers but to consult fore i g n , and Information bank, things like the regular board of mostly colonial, imperial archives. directors meeting minutes. Such ‘confi- Technology. dential’ documents are, as Tignor stat- The problem of writing a 'history from ed, what historians ought to get into. below', by re s e a r chers such as Located on the Monciaud, is the lack of even these colonial archives. Monciaud men- outskirts of the city, tioned that British documents on the Muslim Brotherhood or the Egyptian left it is headquartered “... Egypt has a long are not available for researchers. Thus, the main sources of information are in the icily turbulent history, newspapers, periodicals, memoirs and oral history. These sources are also not ultramodern and since Mohamed Ali, bias-free. scantly populated on the issue of Oral history has a long convoluted trail of subjectivity and inter- p e r s o n a l Smart Village ...” documentation...” dynamics that are beyond the scope of this article. Yet, Monciaud explained to us how being a French researcher

4 FROM OUR ARCHIVES

Thus, Monciaud explained how news- however, is that there are no problems ensuring that there topics are 'govern- papers and periodicals are one of the facing CULTNAT. They have no associa- ment-friendly'. main sources when studying the non- tion with problems of documentation m a i n s t r eam history of 20th Century and freedom of information that face C U LT N AT thus does not solve the Egypt. He mentioned that Nasser's era researchers. One would think that a researchers' quest for documentation. has wiped out multiplicity. project like this would face, as has It may however provide an amusing, Consequently, even newspapers and been the case with and telling, comparison. In the show periodicals in the post-revolution era most researchers, room if its interactive panorama called fell into the tight grip of the state. In clashes with CULTORMA, the visitor is mesmerized contrast, during the earlier liberal era, a gov- by interactive panoramic screens that s o u r ces were more abundant and display Egypt's history. Inside the more diverse. Therefore, it seems that panorama, a click could take you in the Middle East and Egypt in par- inside the tombs of the Karnak ticular, the regime's power has temple and tell the history of impacted the past thro u g h the engravings on its walls. In the restriction it imposes a futuristic city, where on the freedom of CULTNAT is located, the information vis a vis his- concepts of traditional torical documents. documentation and Naturally, it impacts the re s e a r ch are alien. p r esent that it cre a t e s . The CD-ROMs and But it also impacts the interactive soft- future by determining what ware, which they it leaves behind in the form p r ovide on their of documents for future d o c u m e n t a t i o n researchers. Facetiously, one p rojects, are very could imagine that a paper- e l e c t r onically advanced, s h redder is the officials' best clean and organized. The friend. ernment that employs highly developed monitors and secrecy when it comes to screens present an image of history Egypt's current government claims it documents. CULTNAT, it seems, have that is pretty, if awfully superficial. This supports projects of documentation. In found an easy solution. They work futuristic place stands in contrast with line with a global trend that celebrates mostly on things that are ancient and eager researchers and scholars, who things like, E-government, E-com- p r oudly evade anything 'classified.' spend hours studying yellow archaic merce and all that is electronic and Their projects are assignments by the documents in warehouses, archivists’ digital. Digitizing historical documents government or affiliated bodies, thus storage rooms, basements and unpop- is thus promoted. The Center for ular book vendors. Monciaud had Documentation of Cultural and interesting anecdotes of a Frenchman Natural Heritage (CULTNAT) was estab- climbing up the shelves of an old lished under the auspices the current “... The "history bookshop, fetching scarce books. Our Ministry of Communication and trip to the spacious smart village was a I n f o r mation Technology. Its goal is from below," million years apart from Monciaud’s noble; to fulfill the need to preserve ventures into rural Egypt by lousy pub- Egypt's heritage. Located on the out- is an attempt to lic transportation, or his never-ending skirts of the city, it is headquartered in chats with people in Cairo’s coffee the icily ultramodern and scantly pop- write the history shops, all in attempt to find a name or ulated Smart Village .The Smart a story for his research. Village's mission statement claims that of the it is created to attract IT investment in In CULTNAT’s panorama, you realize Egypt. A tour inside the CULT N AT workers' that this mesmerizing project is a very headquarters bedazzles its audience long way from the real lives of the and no doubt foreign investors as well. movements, the Egyptian people, away fro m Monciaud's history from below, and Away from the city, in an IT friendly Muslim Brotherhood certainly far away from solving Egypt's environment, CULTNAT aims at docu- documentation dilemma. menting the heritage of Egypt. With and the left; a assignments from the government and other public institutions, it works on history distinct END NOTES: p rojects to document things like 1. Some of the sources of this article are Pharaonic monuments and even extracted from a workshop held in May from the 18,2004 at the American University in Cairo. Egyptian folklore and makes the results The title of the workshops was: “ Towards available on interactive CDs. The 'elite history' ...” Building an Egyptian Business Arc h i v a l organization even works on preserving Depository.” This session was part of the First manuscripts and documents available AUC Forum on Economic and Business at the national archives. The problem, History of Egypt and the Middle Egypt.

5 FROM OUR ARCHIVES ...We Don’t Make Them Like We Used to ... Memoirs of Mahmoud Amin Al Aalem, Vanguard of Egyptian Communists

Mohamed I. Fahmy Menza, Project Officer, EBHRC

oes the name Mahmoud Amin Al Aalem ring a bell? Perhaps not. But for a man who has spent Dover 60 years in the heart of the Egyptian politics, making friends and foes with people like Taha Hussein, Abbas El-Akkad, Gamal Abdel Nasser, Anwar Sadat, among others, closer scrutiny is surely a worthy endeavor. In fact, the first time I saw Mahmoud Al Aalem was on a TV show. I do not recall what the show was about, but it was probably one of these Nile News programs where promi- nent people are brought on to testify on historical issues. What I do remember well, however, was the engaging manner in which the man presented himself. That, in addition to a brief background of Al Aalem’s capacity as a prominent intellectual, was pretty much all what I had in mind regarding the man, prior to visit- ing him in the course of the oral history project of the EBHRC. Source: Al-Arabi Newspaper, A p p a r ently, there was much issue 995, 5th of February, more to learn yet. 2006, Page 9 6 FROM OUR ARCHIVES

Anglo-Egyptian Treaty, which was this an existential practice they’re ven- viewed as a concession by Mostafa Al turing through that is worthy of investi- “... He views Nahass, Egypt’s Wafdist prime minister gation? In the eyes of the young stu- at the time. dents, Badawy was not a sincere exis- globalization as an tentialist anymore. Shortly afterwards the turning point in Al eventual process of Aalem’s upbringing was to come, asso- THE COMMUNIST ciated with two names that might progress that a p p e a r, at first hand, unre l a t e d : Indeed it was not until he read Lenin Frederic Nietzsche and Al Halaj. After whilst working on his M.A, that Al Aalem mankind has been being introduced to Nietzsche’s mas- became actually fascinated with the terpiece, Thus Spoke Zarathustra, pri- t h e o r etical offering of communism. undertaking for marily through the writings of Zaki Materialism as opposed to the dialectic Naguib Mahmoud, and briefly after the and experimental nature of existential- centuries, yet what’s Sufi play, The Halaj Tragedy (Ma’ssat Al ism became the passion and the driv- Halaj), Mahmoud Al Aalem’s life was to ing force. Marxism was the name of the happening in the change forever. In essence Al Aalem game as he began his teaching career found a lot of resemblance between in epistemology at Cairo University, only world around us the famous “God is Dead” theme of to be fired a few months afterwards Thus Spoke Zarathustra and the phrase when the Nasser regime initiated the nowadays is “Nothing in the musket but God” cited crackdown campaign on Egyptian in the Halaj Tragedy. For him, the two communists, along with some other 30 hegemonic schools of thought, the existential one university professors or so in the mid encapsulated by Nietzsche and the Sufi 1950’s, including Abdelazim Anis and domination, he says, philosophy of Al Halaj, were very Louis Awad. appealing to his liking as they both and not emphasized the essentiality of the human experience and the immense globalization. And, importance of the role of the individual “... Acknowledging in attaining knowledge. Ultimately, with the current through the love of Neitsche and, sub- sequently the discipline of philosophy the leading role Al Egyptian regime, as a whole, Al Aalem decided to join the school of philosophy at Cairo Aalem had within we’re merely a gear University. the communist in this machine ...” A funny yet significant story is narrated here by Al Aalem. When he was still a movement, Anwar philosophy student in Cairo University, his Pro f e s s o r, the acclaimed philoso- Sadat, one of the THE MAN pher Abdelrahman Badawy, had just issued a book entitled, E x i s t e n t i a l strongmen of the When we entered Al Aalem’s house, Philosophy. Excited about reading a regime at the time, simplicity was the overall feature of the volume that was written by his teacher, place. Living by himself after the recent Al Aalem meets with a friend at a café invited him over to passing away of his wife, he was hos- in downtown Cairo as they both pitable and as inviting as can be. Born decide to go through the book togeth- make him abandon into a lower middle class Cairene fami- e r. Much to their astonishment, the ly at the peak of the Egyptian national- book ends up being a fiasco. The rea- ist movement around the 1919 revolu- son being that, in the eyes of the hard- the Communist Party tion, Al Aalem’s childhood was an core existentialists they were, Badawy eventful one to say the least. His father betrays the ethos of existentialism by and join the was a religious leader within the praising materialism as a worthy Jurisprudent Society (Al Game’ya Al approach. Although it was already 2 National Union, Share’ya) and his mother was a typical o’clock AM, the two enthusiastic stu- early 20th Century Egyptian housewife, dents decide to confront their professor predecessor of the originally from the Turkish colony of with their disappointment, aided with Crete, South of Greece. He humorously the help of a few drinks. They simply Arab Socialist Union. describes the dynamics of the house- knock on the man’s door, only to be hold to have been quite similar to the denied access to the house by the Expectedly, Al atmosphere of Naguib Mahfouz’s cele- maid, logically, due to their apparent brated chronicles of the time -with the drunkenness and inopportune timing. Aalem refused and father as the main source of authority in For Al Aalem and friend, the incident the house of course. Al Aalem also was yet one more proof of their the consequences speaks of a very early politicization peri- teacher's "betrayal" of existentialism. od and his early memories of student How could he refuse to convene with were quite grave ...” demonstrations opposing the 1936 them just because they are drunk? Isn’t 7 FROM OUR ARCHIVES

Putting his beliefs to practice, Al Aalem ited in 1969(1). under Nasser, Al Aalem asserts that the joined the Communist Party and ulti- sincerity and loyalty of Nasser to Egypt mately succeeded in uniting the myriad can’t be questioned, despite the grave communist factions under one flag in “... Over 1000 peo- abuses that took place with him at the 1958. Of course back then the relation- apex. Al Aalem spent most of his subse- ship between the communist movement ple, from all walks of quent years in France and England and the 1952 regime was far from ami- where he taught in Oxford and in Paris cable. Although the 1952 regime came life, were exposed universities for over 10 years before with a socialist agenda, the crackdown returning to Egypt after the death of on the labor movement in 1954 and the to an elongated Sadat in 1981. refusal to retain the democratic life led the communist movement to suspect scheme of torture, EGYPT TODAY the actual intentions of the newly incepted regime. But the Suez crisis of harassment, and What does Al Aalem think of present- 1956 united everybody behind Nasser, day Egypt? He asserts that he is against even the communists, and more or less a abuse for over five the current Egyptian regime entirely. He truce was induced between the com- views globalization as an eventual munist movement and the regime. years in the process of progress that mankind has been undertaking for centuries, yet The last stroke came with the 1958 union penitentiaries of what is happening in the world around with Syria. The union came with an over- us nowadays is hegemonic domination, whelming wave of oppression directed Alexandria, Abu he says, and not globalization. And, with t o w a rd the communist movement in the current Egyptian regime, we are Syria and was imposed from above. merely a gear in this machine. There was a sense of dictatorship and Zaabal, and for exploitation in the regime's administra- three out of the five Upon leaving Al Aalem’s house, the man tion of the Syrian component of the graced us with his salutes, ensuring that newly formed republic, especially with years in the Oasis we should visit regularly. But as I was the Egyptian Abdel Hakim Amer and the walking out of Al Aalem’s in the beauti- army there, a move that was not wel- (Wahat) jail. ...” ful residential area of Garden City and comed by the Egyptian communist going through the ugly police blockades movement of course. that have been ruining the aesthetic deceny and benign amiability of the Acknowledging the leading role Al But sometime in the mid 1960’s, and for place for a few years now, I couldn’t Aalem had within the communist move- a multitude of internal and external fac- deny a sense of frustration. Regardless of ment, Anwar Sadat, one of the strong- tors, Nasser decided to make his peace one's views or political affiliations or what men of the regime at the time, invited with the communist movement, get the have you, are we, as a society, produc- him over to make him abandon the communists out of jail, and may be even ing such people anymore? At the dawn Communist Party and join the National reintegrate some of them in the state of the 21st Century, is our Egyptian poli- Union, predecessor of the Arab Socialist structure. Al Aalem revolved around a ty, if you could call it that, able to pro- Union. Expectedly, Al Aalem re f u s e d variety of posts being the Chairman of duce such a rich human experience? and the consequences were quite the Book Authority, then Head of the grave. Theatre Agency then chairman of the Al Aalem was not a wealthy man who influential weekly Akhbar Al Yom. When could be described as an elitist who was IN & OUT OF JAIL Nasser died in 1970, there was no way disproportionately exposed to western In January 1959, Egypt witnessed a wide for him to stay with Sadat as the presi- cultures and ideas. As a matter of fact scale operation, targeting the commu- dent of course, given their aforemen- he was rather closer to the poorer eche- nist movement. All of those associated tioned confrontation. After all, and lons - as Egyptian as can be. Localized with the communist movement were despite the extreme oppression the and immersed in the hardships of a arrested as political detainees, which, communist movement was exposed to nation, he spent his studentship “read- within the Emergency Law in action at ing” and debating on cafés. He spent the time, meant that these people had his pocket money on literary, philosophi- no legal rights whatsoever. Over 1000 “... At the dawn of cal and historical masterpieces and people, from all walks of life, were ended up being a vanguard of a politi- exposed to an elongated scheme of tor- the 21st Century, is cal movement he believed in, and for ture, harassment, and abuse for over which he was willing to be imprisoned five years in the penitentiaries of our Egyptian polity, and even tortured. Of course he was not Alexandria, Abu Zaabal, and for three the only one. There was an entire gener- out of the five years in the Oasis (Wahat) if you could call it ation that followed that same path of jail. The atrocities practiced by the h a r dship, sincerity, and, importantly, prison authorities against those so-called that, able to devotion to a homeland. The answer, I political detainees were immense. Some am afraid, must be no. We don’t make darkly humorous parallels to the produce such a rich such people anymore! Guantanamo and Abu Gharib may- hems could be made. Indeed human END NOTES: Abdelazim Anis cites some appare n t 1. Abdelaziz Anis’s Rassa’il al-Hob wa al-Hozn similarity with the Nazi torture cells he vis- experience?” wa al-Thawra. Rose al-Youssef. Cairo, 1976. 8 HISTORICAL PERSPECTIVES Introduction to the Land and the People of EGYPT*

Robert Tignor, Professor of History, Princeton University

THE NEED AND THE PURPOSES

One history or many? One people or many? These are the questions that inform this brief history of Egypt from the beginning of human activity in the valley of the Nile down to the present. My hope is that this study will fill a gaping hole in historical writing about this most brilliant country and thereby serve a need felt by ordinary tourists and specialist schol- ars alike. Egypt desperately wants for a good general history. Although few countries have had as much written about their past, hard- ly any book gives an overview. The demand is ever pressing. Tourists clamor for a general guidebook to the rich historical narrative of the country—one that will allow them to set the country’s magnificent histori- cal monuments in an understandable narrative context. Even scholars and experts are eager for a work that will encapsulate the history of periods that are not their specialties. Alas, lit- tle exists. Guidebooks abound, but they tend to specialize in certain periods and particular regions. Most are short on history. The reasons for this gap are not hard to Sketch by courtesy of the *This piece is an early draft of what is intended to be Jeffery W. Veil Website Professor Robert Tignor’s general brief history of Egypt, from the begining 9 HISTORICAL PERSPECTIVES

discern. In many ways Egypt has too with connections to hiero g l y p h i c s , p roductive agricultural land are a s , rich a history, too many distinctive histor- remains a language still in use though would have lain barren. Yet, Herodotus ical periods, each with its own linguistic, confined to a clerical class. Thus, took the Nile and its generous annual ethnographic, and documentary change is obvious. But so is continuity. floods for granted. In reality, the Nile requirements and each with a volumi- Monumental architecture, prevalent in had not always been so beneficent. nous and highly specialized and sophis- Pharaonic times, can still be seen in the Although a Nile River existed for many ticated historical literature. As a result monuments dedicated to Egypt’s mod- millions of years, it was only 12,500 years Egyptologists do not converse with ern leaders. So, too, some would argue ago that today’s Nile took shape. m o d e r nists. Nor do Graeco-Roman does the cult of an all powerful ruler, Earlier Niles, of which there were many, scholars find much in common with whose task it was in ancient times to either brought too much water or too lit- Islamists despite the fact that both sets ensure order, known as ma’at, and pros- tle. They could not have produced the of scholars treat the same geographical perity and whose responsibilities, under way of life that Egyptians have taken for entity and the same ethno-linguistic N a s s e r, Sadat, and Mubarak, re m a i n granted for centuries. They would never community. much the same. Change and continu- have created the splendid cultures that One of the primary goals of this ity, these are the themes of Egypt’s his- have marked Egypt’s long and resplen- study, in addition to rendering the long torical narrative, and they will be writ dent history. and pulsating history of Egypt accessi- large in this study. The Nile is the longest river in the ble to interested and educated read- world, slightly outdistancing the ers, is to determine just how much Egypt Amazon. It is fed by innumerable has changed and how much it has THE NILE RIVER AND streams and rivers, but its most remote remained the same over the more than ITS IMPORTANCE TO EGYPT source rises in the hills of Rwanda, some five millennia of its glorious historical 4,238 miles south of its ultimate destina- experience. For millennia the rhythms of H e r odotus left many truisms about tion in the Mediterranean Sea. Its tribu- Egyptian everyday existence revolved ancient Egypt, not the least of which is taries and main branches flow through around the Nile. And they continue to that the land was the gift of the Nile. eight countries—Rwanda, Burundi, do so even today though the country The Egyptian descriptions in his T h e Tanzania, Kenya, Ethiopia, Uganda, has not experienced annual Nile floods Persians Wars owed much to conversa- Sudan, and Egypt—encompassing for more than half a century. Does the tions he held with priests in Memphis, more than one million square miles, no presence of the Nile River and the rela- Heliopolis, and Thebes during his fifth less than one-tenth of the whole of the tively narrow band of arable land sur- century travels in the country. The cler- African continent. Yet, for a river that rounding the Nile give a unity to the his- ics assured him that their land was “the traverses such an immense area, the tory of Egypt that transcends its many most ancient of mankind.” Certainly, Nile delivers only a tiny quantity of historical periods? Herodotus’s admiration for the people w a t e r. Compared with the mighty Because of Egypt’s unques- and the land was unbounded. He Amazon River in Central America it tioned geographical and strategic described Egypt as a territory that “pos- transports a mere trickle, carrying only importance, at the corner of three con- sesses so many wonders; nor has any two percent of the totals that the tinents (Europe, Asia, and Africa), the (other country) that has such a number Amazon supplies. Its volume is no more land has attracted numerous outsiders, of works which defy description. Not than that of Germany’s Rhine River, often as invaders. The Hyksos, Greeks, only is the climate different from that of rarely thought of as one of the large Romans, Arabs, Mamluk Turks, Ottoman the rest of the world, and the river unlike waterways of the world. Turks, and French, and British person- any other rivers, but the people also, in Although the Nile has innumer- ages (some would now even add the most of their manners and customs, able tributaries, especially in its distant Americans) have ruled over the coun- exactly reverse the practice of locations in central and equatorial try, importing their languages, their pop- mankind.” He noted that women went Africa, three branches do most of its ulations, and their ways of life. But how to markets while men stayed at home to work. First, the Atbara River, descend- effectively did they impose their own weave cloth. Only men were priests; yet ing out of the highlands of Ethiopia, cultures on the men and women who instead of growing hair, which was the carries one-seventh of the river’s total lived alongside the banks of the Nile? practice in Herodotus’s homeland, they annual volume. A raging torrent dur- Certainly much changed over the shaved off their hair. Even more per- ing the flood season when monsoon course of a long and diverse history. plexing to the Greek scholar was the rains and melting snows in the Hieroglyphics passed out of existence, fact that Egyptians ate out of doors and Ethiopian highlands fill its channel, it not to be deciphered until the nine- urinated indoors. becomes a dry w a d i during the non- teenth century through the work of H e r odotus’s precise word s modern linguistic scholars. Much of the about the Nile are worth re p e a t i n g : Pharaonic culture that so intrigues “The Egypt to which the Greeks go in “... scholars and Egypt’s contemporary visitors was their ships is an acquired country, the buried under centuries of sand deposits. gift of the Nile.” Yet his acute percep- experts are eager for It too only came back into prominence tion of the Nile’s centrality to the people through the efforts of a hardy band of of Egypt was only partially right. a work that will scholars known as Egyptologists. Egypt Certainly, without the Nile’s life-giving was once the most Christian territory in waters, the vast territory of Egypt (37,540 encapsulate the histo- all of Christendom. But following the square kilometers today) would have Arab-Muslim invasion of the seventh been little more than desert, interrupted ry of periods that are century Christianity gave way to Islam, here and there by life-supporting oases. though not totally. The Coptic popula- Its 7,500,000 acres of arable land, which not their specialties. tion still constitutes nearly ten percent of today support three crops and consti- Egypt’s total, and the Coptic language, tute one of the world’s richest and most Alas, little exists...”

10 HISTORICAL PERSPECTIVES

ally the largest of them all, Victoria—but required, once the waters had drained it redirected river systems and drainage back into the main Nile channel, was for patterns northward toward Egypt and on the peasants to broadcast their seeds to the Mediterranean Sea. Still, the pres- and for livestock to trample the seed “... Does the pres- ent-day Nile had yet to appear. Several under foot. pre-Niles scoured out channels for them- C o m p a r e the challenges that ence of the Nile selves within Egypt as they progressed to faced Mesopotamian cultivators who the Mediterranean though they were had to cope with an altogether more River and the rela- hardly the beneficent river of the mod- formidable set of problem that required ern era. Sometimes, these early Niles elaborate arrangements for controlling tively narrow band w e r e fed by waters from equatorial raging flood waters and creating com- Africa; other times, during periods of plex irrigation works. In the Euphrates of arable land sur- great aridity, the central African connec- flood plain annual floods came at the tion was broken. Occasionally the Nile height of the growing season, and, rounding the Nile dried up altogether, leaving Egypt a hence, the banks of the Euphrates had desert, devoid of all life. Around 800,000 to be heightened to ensure that water to 700,000 years ago, during a wet did not spill on to the fields and destroy give a unity to the phase, the waters from Ethiopia again the crops. In addition, Mesopotamian broke through to Egypt and turned the agriculturalists had to fashion a sophisti- history of Egypt that Nile river basin into a mighty, though cated set of irrigation canals to siphon highly unpredictable river. Then 12,500 off the waters of the Euphrates when transcends its many years ago, during another wet phase, they were at their low point but were the waters of Lake Victoria, fed by the most needed on the land. Moreover, the historical periods? ” other lakes of equatorial Africa, spilled waters did not flow back easily into the out of its basin and plunged northward main river channel, as the Nile did, with to form the White Nile, which joined with the result that the low-lying lands of the the Blue Nile at Khartoum to become the Mesopotamian delta were always at risk flood season. The Blue Nile, also rising in main Nile River on which Egypt’s liveli- of salting up and becoming unusable. the highlands of Ethiopia, is the critical hood soon depended. He rodotus himself noted how source of Egypt’s agricultural prosperity, Mighty rivers are dangero u s benign the Nile waters were. No doubt bringing vast quantities of silt-laden forces of nature. Their floods are often he exaggerated when he observed that waters from the Ethiopian highlands dur- unpredictable. People who reside within “at present, it must be confessed, they ing the flood season and depositing the their flood plains put themselves con- (the inhabitants of the Egyptian delta) rich soil on top of already fertile top soil in stantly at risk. Yet, the earliest, complex obtain the fruits of the field with less tro u- the Nile valley basin. It carries four-sev- societies arose in some of the world’s ble than any people in the world, the enths of the river’s total capacity, much great river basins. The peoples residing in rest of Egypt included, since they have of it during the flood season. Finally the three of these flood plains-- the Tigris- no need to break up the ground with White Nile, crashing down out of Lake Euphrates, the Indus, and the Nile—led the plough, nor to use the hoe, nor Victoria and wending its way northward the way in creating the world’s first to do any of the work which the re s t through the marsh lands of the southern urban-based, hierarchical, and complex of mankind find necessary if they are Sudan, known as the sudd, joins the Blue societies. The breakthroughs to com- to get a crop. But the husbandman Nile at Khartoum. It carries the remaining plex, large-scale cultures occurre d waits till the river has of its own two-sevenths of the Nile waters. It, too, is roughly between 7000 and 5000 years a c c o r d spread itself over the fields critical to Egypt’s annual flood, for it pro- ago. We know little about the Harappan and withdrawn again to its bed, and vides a steady source of water year culture of the Indus River basin; its early then sows his plot of ground, and after round, thereby moderating the main Nile remains were regularly covered up by sowing, turns his swine into it (the swine River and keeping the flood waters from annual floods and new settlements. tread in the corn) after which he being violent and unpredictable, as they Mesopotamia and Egypt are better so often are in other major rivers of the known, and though the similarities in the world. From Khartoum to the histories of these two centers of Mediterranean Sea the Nile flows on, advanced culture, often referred to as “... Egypt desperate- with the aid of only a single tributary, the the cradles of civilizations, are notable, Atbara, and without significant rainfall, their contrasts are even more striking. ly wants for a good some 1600 miles. Yet it leaves enough Many of the differences, not surprisingly, water and rich soil to create in the words sprang from the rivers that the local pop- general history. of one scholar “an elongated oasis” ulations learned to master. stretching all the way from Aswan to the The modern Nile is a marvelously Although few coun- Mediterranean Sea. beneficent and productive river, espe- Before the earth’s crust rose in cially when compared with the tries have had as central Africa to form the Rift Valley some Euphrates. Its floods are highly pre- six million years ago, the waters of cen- dictable. They arrive at the most oppor- much written about tral and equatorial Africa drained tune time for the growing season and toward the Red Sea and the Congo require little hydraulic engineering. The their past, hardly basin. An uplifted Rift changed the Nile’s annual flood crested toward the direction of rivers and drainage patterns. end of the summer months and left its silt- any book gives an Not only did the Rift highlands create the ed waters on the soil just at the very g r eat lakes of equatorial Africa— moment that Egyptian farmers were overview ” Tanganyika, Albert, Edward, and eventu- ready to plant their crops. All that was 11 HISTORICAL PERSPECTIVES has only to await the harvest.” flaked stone tools that suggest that The Nile produced another Homo erectus dwelled in this area as immeasurable benefit, leading seeming- these early hominids, predecessors of ly inexorably to the unity of the land from m o d e r n men and women, moved the Mediterranean Sea to the first t h roug h the African continent before “... Ancient Egypt cataract or rapids at pre s e n t - d a y populating other parts of the Eurasian Aswan. Not only did its currents flow land mass. Unfortunately, no bones has often been northward, but also its wind blew in the have been found so our evidence for opposite direction. Sailors could set their early hominid existence in Egypt rests thought of as a great sails to capture the Mediterranean entirely on the discovery of their tools. b r eezes as they traveled south; they Just when modern men and women— hydraulic society, could coast under the currents of the Homo sapiens--—entered the Nile basin river as they traveled north. Still, unity did has yet to be determined. The earliest requiring a powerful not come easily or quickly. It came settlements known so far date from 7000 about through hard-won struggles, still years ago. They occurred at Merimde central government only dimly understood. on the edge of the Western delta and in the Fayyum region southwest of present- capable of day Cairo. Where these early humans THE FIRST EGYPTIANS: WHO came from is still an open question. regulating every WERE THEY? Some scholars suggest that they arrived from the Libyan Desert during a drying aspect of people’s The earliest records of human out phase when humans flocked into habitation in the Nile Valley date back river basins for sustenance. Others argue lives. In truth, some 400,000 years ago. They consist of for a northeast origin, believing that these people entered Egypt fro m the irrigation Southwest Asia migrating across the Sinai Peninsula. technology was “... The Nile’s annual In their new setting they adapt- ed to the rhythms of the Nile, which they simple ” flood crested toward did without great difficulty. They divided the arable lands into irrigation basins of the end of the quite varying sizes, ranging from 1000 feddans to 40,000 feddans, in prepara- central government was needed for, summer months and tion for the annual flood. Cultivators when it finally came into being sometime divided basins from one another by a round 4000 BCE, was the storage of seed left its silted waters means of simple earthen walls and then grain for the next year and emerg e n c y allowed the waters when they flooded supplies if the floods were inadequate. on the soil just at the into the basins to soak into the soil The state also bore responsibility for main- between forty and sixty days, depositing taining Nilometers, which were placed very moment that silt, before they cut the barriers and per- strategically along the upper reaches of mitted the waters to flow on to basins fur- the river and gave advanced indications Egyptian farmers ther downriver or drain back into the main of when the floods would come and how Nile channel. The sight of the flooded l a rge they would be. A true canal system were ready to plant plain at the height of the flood season did not come into being until the nine- was quite magnificent to behold. Haro l d teenth century when Egypt’s rulers, their crops. All that Hurst, one of the early British hydraulic Muhammad Ali first of all during the first engineers and part of a last generation to half of that century and the British after was required, once see the Egyptian countryside when it was their occupation of the country in 1882, still fully flooded, commented that “in the constructed a series of barrages and the waters had bright sunlight and the temperate weath- dams across the Nile that replaced the er of the autumn in Egypt this was a won- basin system of irrigation, larg e l y d e r ful sight with the desert hills and the unchanged since Pharaonic times, with a drained back into pyramids in the background.” Indeed, all system of perennial irrigation. Whereas in of Egypt’s arable land lay under water ancient times basin irrigation had perm i t- the main Nile chan- save for the mounds on which the villages ted only a single growing season, pere n- nestled. People moved from village to vil- nial irrigation, which made Nile waters nel, was for the lage by means of boats. available the year round, enabled Ancient Egypt has often been Egyptian cultivators to take full advan- peasants to broad- thought of as a great hydraulic society, tage of the fertility of the soil and the cli- requiring a powerful central govern m e n t mate to grow two, sometimes thre e cast their seeds and capable of regulating every aspect of crops per year. What the modern culti- people’s lives. In truth, the irrigation tech- vators had to sacrifice, however, was the for livestock to tram- nology was simple; each village, usually regular deposit of new soil carried in the under the control of local notables, took flood waters from the Ethiopian high- ple the seed under responsibility for its own irrigation arrange- lands. As a result cultivators turned to ments. This did lead to village rivalries and larger and larger quantities of fertilizers as foot. ” disputes, some of which became violent the only way to maintain the fertility and and produced bitter histories. What the high productivity of the land. 12 HISTORICAL PERSPECTIVES

The ancient Egyptians were among like the present-day Egyptians. The Ethiopians. So, too, did Egyptian crafts- those first group of peoples who moved scholar who put the issue of the racial men of the time, who, again according f r om being hunters and gatherers to identity of these ancient peoples square- to Egyptologists, distinguished between engage in settled agriculture and hus- ly on the agenda of researchers was a themselves and peoples to the south, bandry. They were not the first, however. Senegalese writer, Cheikh Anta Diop, whom they portrayed as in their paint- The consensus seems to be that the whose books, particularly The African ings, sculptures, and mosaics as the Egyptians learned the techniques of Origins of Civilization: Myth or Reality, blackest of peoples, while depicting planting seeds and harvesting cro p s marshaled linguistic, literary, and artistic Indians as less so, and Egyptians as mild- either from the peoples of Southwest evidence in support of the theory that ly dark. Asia, usually regarded as the first settled the ancient Egyptians were black Of course, as modern scholar- agriculturalists in the world, or from the Africans. Citing the writings of Herodotus ship has become more sensitive to issues peoples living to their west in present-day on Egypt and asserting that the images of race and physicality and has come to Libya, who were driven into the Nile River on the friezes and paintings of the understand just how intermixed the peo- basin by the growing aridity of the world. ancient Egyptians display unquestioned ples of the world truly are, how little dif- Whichever the case, the Egyptian peas- black African features, Diop asserted ferent genetically the so-called different ant cultivators embraced the new agri- that “ancient Egypt was a Negro civiliza- races are from one another, and how cultural techniques with great alacrity. tion,” adding that “instead of presenting race has been such a historically con- Cultivators, dependent as they were on itself as an insolvent debtor, the Black structed category of identity from the the Nile floods, grew only a single, winter world is the very initiator of the ‘Western earliest times, some scholars eschew crop. The main cultigens were wheat, Civilization’ flaunted before our eyes racial categorizations altogether. They beans, berseem (Egyptian clover), lentils, today.” balk altogether at efforts to affix racial barley, and chick peas. The Egyptians labels to groups of peoples, preferring also possessed domesticated animals, instead to identify peoples not by their notably cattle, sheep, and goats. It was physical appearance but rather by their not until the Amarna period of the New “... High rises languages. If, in fact, one then uses lan- Kingdom around 1200 BCE that the guage as the basis of trying to determine Egyptians invented the simple water suddenly replaced just who the ancient Egyptians were, the bag, fulcrum lifting device, known as the answer seems clear and unequivocal. shaduf, that enabled cultivators to raise mud huts; a civil They were a people who spoke and spring and summer low-water Nile onto wrote what the linguistic scholars have the lands, and so it was not until this service superseded called an Afro-Asiatic or Hamitic-Semitic much later period that Egyptian agricul- language, one of a body of languages ture featured the cultivation of winter the village elders. . . based in North Eastern Africa and crops, such as cotton and additional S o u t h w e s t e r n Asia that numbere d cereals. Moreover, it was not until the . Whereas only among its branches Berber and Chadic Ptolemaic period, in the millennium lead- as well as ancient Egyptian. ing up to the Common Era, that the buf- chiefdoms had Still, this re t reat into identities, falo-driven water wheel, known as the based on language, seems deeply saqia, and the Archimedean scre w occasionally unsatisfying. One should not allow racial allowed farmers to make more than a prejudices to blind one from trying to very modest use of the low Nile waters. appeared, a king offer physical descriptions of the ancient Egypt’s vaunted agriculture, based on Egyptians, and such an attempt can rea- two and even in some case, three crops sat over Egypt....” sonably be made at the present time. per year, did not become a reality until No doubt, new information will come to the Pharaonic period had already come light that will allow scholars to be more to an end. It occurred following Another scholar, Martin Bernal, precise in their descriptions. What now Alexander the Great’s conquest of the took up the same theme in a book with appears to have been the case is that country in 332. the captivating title, Black Athena: The the condition of growing aridity caused But who were these early inhab- Afroasiatic Roots of Classical Civilization. peoples living south, east, and west of itants of the Nile River basin, the men and While not exploring in detail the issue of the Nile River basin to flock into this area women who set about to create one of the racial composition of the ancient where they would be able to grow crops, the most glorious and brilliant achieve- Egyptians, Bernal contended that the herd livestock, and sustain their way of ments in human history? This is a topic Greeks derived much of their cultural life. If this is the case, then the peoples that has intrigued commentators for a inspiration that they then passed on into were, indeed, of mixed African, North long time and generated no end of Western Civilization not from Aryan influ- African, and Southwest Asian origins. intense and heated controversies. The ences but from Egypt and Phoenicia. Moreover, according to one Egyptologist question that has roiled scholars and The entry of Diop and Bernal into with training in physical anthro p o l o g y commentators (and that many persons the sacred domain of the Egyptologists (Bruce Trigger), there were noticeable wish to avoid answering for that very rea- has spurred a vigorous and informative physical differences between the peo- son) is whether the ancient Egyptians set of replies. Here, the consensus seems ples living in Upper Egypt and those living were African peoples, that is to say, peo- so far to be that Diop was wrong in in the delta in Lower Egypt. The Upper ple with black skins. Pre s e n t - d a y claiming that Herodotus described the Egyptians, according to Tr i g g e r, were Egyptians, of course, have olive-colored ancient Egyptians as having black small, had long narrow skulls, dark wavy skins. Most scholars, if they even gave Africans. Quite the contrary, he and hair, and brown skins while those of the any thought to the question of who the other classical authorities made a care- delta and those who congre g a t e d ancient Egyptians were physically and ful distinction between the black-skinned around the region where present-day what they actually looked like, assumed peoples who lived to the south of the Cairo is located were taller and had that they must have looked very much Egyptians and whom they referred to as broader skulls. 13 HISTORICAL PERSPECTIVES

PRE-DYNASTIC HISOTRY lage of el-Badri, its primary location in Its members engaged in hunting activi- Upper Egypt, lasted roughly from 4400 to ties not in order to support themselves 4000 BCE. Little is known about these but as a symbol of their rank and their Egypt’s dynastic history begins four centuries save for the fact that the prestige. Some of this leisured group pro- around 3100 BCE when its first two dynas- Badrians were farmers who cultivated moted long-distance trade as the well- ties came into being and was followed in crops and managed herds. They may to-do sought to obtain luxury commodi- rapid and brilliant succession by the third have domesticated animals on their ties. Specialized artisans pro d u c e d dynasty (ca. 2686-2620 BCE), which left a own, but when they came into contact wares for the rest of society, creating remarkable imprint on human history. In with the more robust domesticated ani- m o re elaborate commodities for the many respects the Old Kingdom, which mals of Southwestern Asia they took well-to-do. The wealthy and powerful covers the years 2686 to 2160 and the them over. They lived in tents made from were now buried in larger, more elabo- third through sixth dynasties and is dealt animal skins. rate tombs. Their bodies were surround- with in the next chapter, sprang into Next came the Naqada period, ed by many of the very same objects of being almost overnight. As one scholar from 4000 to 3200 BCE, taking its name beauty and pleasure that they had put it: “High rises suddenly replaced from the site of Naqada in Upper Egypt enjoyed during their lives. Upper Egypt mud huts; a civil service superseded the where the famous British Egyptologist, at the time had at least three relatively village elders. . . . Whereas only chief- Flinders Petrie, discovered a cemetery in large urban conglomerations: Naqada, doms had occasionally appeared, a 1892 that contained more than 3000 known as the gold town; Hierakonpolis, king sat over Egypt.” Yet, it would be a further south, and Abydos, where the mistake to ignore the build-up to the necropolis of the first kings was located. achievements of the Old Kingdom. The Hierakonpolis was the most impressive of pre-dynastic history of Egypt is important “... The question that the three, possessing a wall that was 9.5 and fascinating though still little known. meters thick in places and inside which What seems undisputed is that already has roiled scholars was an enclosed temple where scholars by 5000 BCE the Egyptian portion of Nile later found the Narmer palette. basin, which had originally been only and commentators Although a leading Egyptologist thinly occupied by fishing and later by (Michael Rice) acknowledges that Egypt herding peoples, yielded to a series of (and that many per- lacked the magnificence that the cities largely autonomous villages. Even more of Sumer had, still he re g a rd s stunning was the emergence of impor- sons wish to avoid Hierakonpolis as a virtual a twin of the tant towns, serving as cult centers for the great Mesopotamian city of Uruk, even worship of local gods, who were propiti- answering for that suggesting some connection and bor- ated in order to ensure the fecundity of rowing between the inhabitants of the the land and bring order to the lives of very reason) is two locations. Perhaps as many as 5000 the peoples. The move to village com- residents lived within the city walls. munities was at this early stage more pro- whether the ancient At the end of the Naqada III nounced in Upper Egypt than in Lower period, some time around 3100 BCE Egypt, especially in the bigger Upper Egyptians were Upper and Lower Egypt were united. Egyptian settlements known as Naqada There are indications that the unification and Hierakonpolis. The south or Upper African peoples, that was not entirely peaceful. The major arti- Egypt sustained its early advance over fact of this era—the famed Narm e r the north was sustained, and ultimately is to say, people palette, prominently displayed in the the communities living in the south found Cairo museum—features a powerful rul- themselves strong enough to unify the with black skins... ” ing figure, who having caught one of his whole of the Nile valley from the first enemies—unquestionably a northerner-- cataract, just south of pre s e n t - d a y by the hair holds a mace over his head Aswan, to the Mediterranean. Upper graves. The burials here were of a quite as he prepares to slay him. Certainly by Egyptians, in addition to having rudimentary nature, consisting of simple 3000 BCE most of the Nile valley from the spawned larger village settlements, also mats thrown over the bodies of the Delta to Aswan was united. The early had the advantage of access to the deceased, which in turn were deposited kings of the first Egyptian dynasty were mineral deposits in the hills of the eastern in pits. Yet, the fact that men and being buried at Abydos, and desert and in Nubia, south above the first women were burying their progenitors, Hierakonpolis had become a great cult cataract. No doubt, these resources rather than exposing them to the wild center where the god, Horus, was wor- also enabled the Upper Egyptians to animals, suggests that these early shipped. Although Egypt’s cities were fashion a more diversified economy and humans regarded themselves as differ- not as large as those in Mesopotamia, it polity. Yet, Egypt’s geographical and ent, more exalted, than the rest of the would be wrong to think that Egypt cultural duality, so clearly marked out animal world, perhaps even able to sur- lacked cities as some scholars once con- between the narrow river basin lands of vive into an after-life. Even at this early tended. Like the Harrapan culture in the Upper Egypt and the sprawling delta date, Egyptians buried the dead on the Indus valley these early urban are a s lands of Lower Egypt was not extin- west bank of the Nile, where the sun set, were covered up by annual Nile floods guished during the unification or after it. presumably in hopes that like the sun, the and later settlements. Already then, by It was to remain a feature of Egyptian his- dead, too, would arise, ascending into a the time that the famed third dynasty tory through all time. new life after death. arrived on the scene, Egypt was a unified Egypt’s pre-dynastic period has By the Naqada II phase, life in polity and had already begun to devel- conventionally been divided into histori- Upper Egypt had become more com- op a monumental style of royal architec- cal periods. The first of these, known as plex. Social and occupational hierar- ture. It employed elaborate burial pro- the Badrian period, named after the vil- chies existed. A leisured class emerged. cedures for the royalty.

14 HISTORICAL PERSPECTIVES The Spilloverof Mohammed Ali's Modernization Drive in the Sudan ... (1820-1885)

Egypt-Sudan Map. Courtessy of

Ibrahim Elnur, Associate Professor of Political Science, AUC.

I N T R O D U C T I O N While the commonly held view that the J a ’ a l i y y i n Kingdom on the eve Mohammed Ali motives were of Turkiyya (Sudanese name of In scholarly works, school textbooks essentially related to the acquisi- Mohammed Ali’s role in Sudan) is as well as in the popular narratives tion of Sudanese slaves for his new aptly re p r esentative of the whole in Sudan and Egypt the two main a r my and exploitation of the coun- n o r t h e r n or riverain Sudan. Bjorkelo motives for Mohammed Ali’s impe- try’s natural re s o u r ces holds some noted that the socio-political struc- rial project in Sudan was the acqui- c r edence to the immediate objec- t u r e was characterized by a hierar- sition of slaves for the army and tives yet they are overstated. chy of slaves, commoners (peas- gold (El Zahab wa Elrigal). In addi- Access to Northern Sudan mediat- ants and nomads), merc h a n t s , tion to this, Mohamed Ali’s attempt edslave trade was always possible nobles and the king ( 1 ) . The village to forge alliance with the northern without direct control and perh a p s communities were typically made Sudan elite was seriously eroded by far more cost effective. The up of peasant household where dif- excessive taxation that dominated N o r t h e r n Sudan had pre d o m i n a n t l y f e r ences between households in not only popular discourses about a slave mode of production long t e r ms of wealth and status and the “Turkiyya ElZalma”(The unjust b e f o r e Mohammed Ali's conquest. power reflected the unequal distri- Turkish) role, but also the scholarly As willis noted, “the whole social bution of land, water wheels, ani- work that focused dispro p o r t i o n - system of northern Sudan grew to mals and slaves ( 2 ) . It is this socio- ately on resistance and injustices depend on the possession of slaves political structure of northern i n c u r r ed*. This simplistic re a d i n g without whom no property could Sudan, we will maintain, that is seriously understates Mohammed be developed or family main- central to the understanding of the Ali’s grand modernization drive tained”. Bjorkelo (1989) description failed modernization drive of with serious spillovers in Sudan. of the socio-political structure of Mohamed Ali in Sudan. * To date the term Turkiyya in Sudaneese coloquial donates extreme injustice and and agressive attitude.

15 HISTORICAL PERSPECTIVES

Furthermore, it did not take long before tivation with its high water requirement during the time of Mohammed Ali was Mohammed Ali realized that the slave meant extremely high opportunity cost linked to mineral extraction. In 1830, supply promise was not that significant. that was not compensated by the Mohammed Ali obtained eight iro n According to Sikainga (1998) “by the prices and the long hours of irrigation. foundries from England to exploit late 1830, it became clear to This led to serious loss of bullocks “..from reportedly rich iron ore deposits in the Mohammed Ali that the use of the continual fatigue of turning the sa’ - White Nile province. Eight English arti- Sudanese slaves in the Egyptian army giayas and their arrear with the sowing sans and an Egyptian manager con- was a failure. Mohammed Ali attended of their own grain (7).” Mohamed Ali's tributed to the establishment of the to other sources such as gold, gum visit to Sudan brought an early end to foundry. None of them survived Arabic, livestock and ostrich feathers. the forced cultivation of indigo, according to Hill; “death crept in to The slave trade was left to private mer- end a mission which had never had a chants, particularly after the White Nile "When his highness was passing chance of success” (14). opened in the late 1830s (3). t h r ough Dungula’ on his way to Khartoum, all hastened to present A second expedition, led by the him with petitions praying him to free Austrian mineralogist J.Von Russeger in ATTEMPTS AT REALIZING THE them from indigo-growing. He con- 1838, and third, led by Glamorganshire PRODUCTIVE POTENTIAL IN sulted the governor of the province who confirmed that the people are mining engineer John Patric in 1847, AGRICULTURE suffering thereby, so His Highness took equally failed. The two latter expedi- into consideration that these indigo tions, recommended the improvement Mohammed Ali’s emphasis on the real- establishment did not yield any great of the indigenous smelting techniques, ization of the productive potential of profit and made an end of them and “The iron was there but, for want of agriculture in Sudan became explicit released people from sowing indigo transport and skilled labour its working any longer. (8)” since the early days of his role. This is would not pay (15)." Other attempts, manifested in two occasions. In a doc- ument dated February 7th 1825, The package also included both intro- “... Mohamed Ali's Mohamed Ali wrote: "In order, to devel- duction of new technologies (metal- op agriculture in `Sinnar’ which we blows); replacement of Sudanese early experimenta- have conquered with so much Sagias (water Wheel) with the techni- fatigue....we require skilled men for the cally superior Egyptian one, and a tion with new vari- task...Do not neglect this or you will bit- whole team of technicians including terly regret it" (4). Similar message was experienced farmers ( 9 ) . Educational eties of cotton were echoed during his visit to Sudan( 1838- plans included the training of Sudanese 1839). Addressing northern Sudanese, agricultural technicians in Cairo spe- the Pasha called on them to “..be dili- basis upon which cialized Schools (10). Conducive meas- gent and exert your maximum efforts in ures were taken to modify the land the British rule capi- tiling and planting. Agriculture con- tenure system to confirm existing own- tribute positively to pro g ress of your ership rights and to allow for foreign talized in their country and homeland”. Addre s s i n g ownership through government claim the ruler, who was attending the meet- on non-registered lands that became attempt to compen- ing, the Pasha said, “ As for you Pasha, automatically state-owned lands. you have to encourage the locals and Efforts to encourage horticulture includ- to persuade them day and night that ed tax holidays, which was influential in sate for the disrupt- agriculture and cultivation is the road encouraging both northern Sudanese to wealth and prosperity ( 5 ) .” The and foreigner to develop fruits produc- ed cotton trade with P a s h a ’s modernization package for tion (11). Some of these reforms and pro- agriculture was indeed a comprehen- ductivity enhancing constituted the America ...” sive one. It included the introduction of structural foundation of the modern new products and varieties, such as, agricultural sector during the British aimed at introducing modern mining new crops including sugar cane, cot- colonial rule (1898-1956). Iro n i c a l l y , techniques, were not successful either. In ton and indigo and new variety of Mohamed Ali's early experimentation contrast, the introduction of sugar cane wheat and corn(6) . The indigo factories with new varieties of cotton were basis plantation and processing, was re p o r t e d- in Dongla area experienced some upon which the British rule capitalized in ly successful. During the time of Ahmed impressive steady growth of output as their attempt to compensate for the dis- Basha Abu Adlan (1826-1838), a larg e shown table 1: sugar cane plantation with a refinery and rupted cotton trade with America (12). arrack (local rum) distillery was managed Indigo Output in Dungula’ Area by a German foreman ( 1 6 ) . Av a i l a b l e 1833 10,000 Ugga THE SPILLOVER FROM STATE- re c o rds do not explain why this industry 1835 21,416 Ugga failed to survive and expand. In fact, 1837 50,000 Ugga LED INDUSTRIALIZATION OF sugar continued to be a major import MOHAMMED ALI item throughout the period of Turkish rule Ugga is equivalent to 1.248 kg. ( 1 7 ). Traditional spinning and weaving was Source: Humeida, Beshir Kuku (1983): Some Early attempts at building modern well established before the advent of the Feature from Sudan History During Ismael manufacturing units during the two Turko-Egyptian occupation and textiles Role (in Arabic), Graduate School colonial eras (The Turko-Egyptian era, were both exported and imported. Publications, University of Khartoum. 1820-1880 and the Anglo-Egyptian era, H o w e v e r, the establishment of two mod- 1898-1956) were sporadic and had an e rn textile mills and a modern cotton gin- However such impressive gro w t h insignificant impact on the structure of the nery in Kassala proved to be pre m a t u re proved to be unsustainable. Indigo cul- economy ( 1 3 ). The earliest of these attempts and met little success ( 1 8 ). 16 HISTORICAL PERSPECTIVES

Mahadi brought an end to the Turkish 3. Sikainga, Ahmed Alawad (1996): Slaves era by 1885. As Barbour (1961), aptly into Workers: Emancipation and Labor in “... Mohamed Ali’s noted, the Mahadist state “…came Colonial Sudan, University of Texas Pre s s , about just at the time of the Austin, p.12. 4. Mohammed Ali Collection, Egyptian attempt to forge Conference of Berlin. When the whole Museum, LB19MT, No.354, 7th of February, of the African continent was in the 1825, cited in Hill, (1959, p.73). alliance with the p r ocess of being partitioned into 5. Gadal, Mohammed Said (1993): Modern s p h e r es of interest between Euro p e , History of Sudan 1820-1955, (in Arabic), Amal northern Sudan elite Sudan became independent of foreign Publishing Company, Cairo, p.75. c o n t r ol ( 1 9 ) .” The beleaguere d 6. See: Issawi, C. (1954): Egypt at Mid- was seriously Mahadist state (1885-1898), was Century: An Economic Survey; and Gadal obliged to develop many handicraft (1993). 7. Hill, R. (1959): Egypt in Sudan: 1820-1881, eroded by industries to meet severe needs such as Oxford University Press. Oxford, p. 67. these of defense and agriculture. It 8. Ibid, p.67. excessive taxation attempted to develop the embryonic 9. Gadal, 1993, Issawi, 1954 and Magar, 1993 metal fabricating industries, it inherited 10. Magar, Naseem (1993): Misr wa Binaa El that dominated not from the Turkish colonial system. One Sudan El Hadeeth, Marakaz Watheeg wa interesting aspect of the Mahdist state Tarikh Masr El Muassiraa, El Haiaa' El Amaa'Lill only popular policies is the retention of both physical Kittab and human capital inherited from the 11. See: Humeida, 1983, p. 114. 12. Elnur, Ibrahim (1988): Agro - b a s e d Turkish era. Personnel operating, print- discourses about Industries and the Industrialization Impasse in ing unit, small arms manufacturing as the Sudan, D.Phil Thesis, University of Sussex, the “Turkiyya well as accountants and administrators January 1988. were employed in position relevant to 13. For a very interesting and well docu- ElZalma”(The unjust their skills voluntary or involuntary and mented survey of studies on the decline of non-Muslim were actually forced into the local cottage-based industry in the Gezira region during the 1600-1940 period Turkish) role, but Islam(20). Continuous internal and exter- nal wars, prevented further develop- see Pollard (1984, pp.168-180). 14. Hill 1959, p. 57 ment, even of these tiny embryonic also the scholarly 15. Ibid, p.58 industry (21). 16. Ibid. work that focused 17. Ibid. Despite disrupters and discontinuities, 18. Elnur 1988. Mohamed Ali’s modernization drive 19. Barbour, K. M. (1961): The Republic of disproportionately spillovers in Sudan left its marked Sudan, University of London Press, London. impact. From modern education, to 20. See for example: Slatin, R. (1986): Fire and on resistance and enhanced farming practices and tech- Sword in the Sudan, Edward Arnold, London. 21. Gadal, 1982, pp.133-156. niques, embryonic manufacturing units, injustices and new skills in metal working there are ample evidences of initial drive. The incurred ...” Mahadist state turbulent years were indeed disruptive as far as stable growth of new modern activities. The By the end of Turkish colonial rule, nothing Mahadist state, however, driven by its was left of these unsuccessful manufac- pressing needs and endless wars further turing units. The strongest and the most accelerated the process of transform- important impact of the Turkish colonial ing the slavery-dependent mode of rule, was on the handicraft industries. The production and accelerated the trans- need to develop exports and export formation of slaves into workers. The transportation led to a substantial incomplete mission of accelerating this i m p ro v e m e nt in boat building, tanning, process through wide scale land reform s a g i a s (bullock-driven water wheels) was driven to its logical ends by the and the production of agricultural tools, British colonial authorities keen to maxi- using simple production techniques. mize agricultural output. Mohamed Ali's During Osman Bey’s term of office in modernization spillovers were certainly Sennar in central Sudan, a group of incomplete. Using Marx celebrated skilled workers was sent to Sudan to phrase on the incomplete British colo- grow opium, indigo, cotton and to tan nialism of India, Mohamed Ali colonial- hides, with them came blacksmiths, ism of Sudan was incomplete, but cer- masons and carpenters. A strong addi- tainly ushered transformations that tion to the ranks of foremen, cultivator could no longer be halted. and artisans arrived with the appoint- ment of Khurshid as governor in 1826. END NOTES: This was in response to Mohamed Ali’s o rders to the governors of Egyptian 1. Bjorkelo, Anders (1989): Prelude to the provinces. Mahadiyya: Peasants and Traders in the Shendi Region, 1821-1885, Cambridge The Beleaguered Mahadist State University Press, p.4. The armed struggle waged by El 2. Ibid. 17 HISTORICALSPEMINARERSPECTIVESSERIES Muhammad Ta l ‘at Harb A Bourgeois Intellectual

Zeinab Abul-Magd, PhD Candidate, Georgetown University.

ankers do not exist in a cul- Tal‘at Harb. It argues that while Harb tural vacuum. They are part moved from one social class to another of their intellectual and ideo- in a long journey of upward social logical milieu, and often mobility, his ideological underpinnings times they contribute to the changed accordingly. He began his Bcourse of intellectual change. This arti- career as a middle-class conservative cle is about a banker, Muhammad “... this article and ended up as a liberal bourgeois. Tal‘at Harb, known in the Egyptian The article selects three cultural, politi- nationalist narrative as the founder of analyzes the cal, and economic issues to focus on in Bank Misr and a great industrialist, who his discourse: Islamic conservatism, Arab was also a prominent intellectual. His published treatises, political identity, and the place of small books and speeches contributed to the peasants in the process of economic formation of cultural life in Egypt and articles, and progress. reflected intellectual change from the 1890s till the 1930s. This article attempts speeches of SOCIAL FORMATION to trace the development of his thought. It argues that each stage in Muhammad Tal‘at Muhammad Tal‘at Harb experienced Harb’s social ascent yielded intellectual profound ideological change that was change, from being the voice of the Harb. It argues that reflected in his published discourse. This lower classes to be an integral part of change resulted from his movement the capitalist elite. while Harb moved from one social class to the other. Harb was born in 1867, in Qasr al-Shawq, a About the formation of intellectuals, from one social quarter in Cairo, to a father who was an Antonio Gramsci stated: “every social employee in the government railroad c l a s s … c reates with itself, org a n i c a l l y , class to another in administration. His father migrated to one or more groups of intellectuals who Cairo from a small village in al-Sharqiyya give it homogeneity and consciousness a long journey of p rov ince in Lower Egypt, where he of its functions not only in the economic belonged to a rural lower-class family field but in the social and political field upward social that claimed Arab bedouin roots. The as well: the capitalist entrepreneur cre- family owned a small landed property, ates with himself the industrial techni- mobility..” less than ten faddans, of which the cian, the political economist, the organ- father’s share came to less than one izer of a new culture, of a new law, etc faddan. It was a time when small peas- (1).” Building on this argument, this arti- ants where burdened by heavy loans cle analyzes the published treatises, arti- from foreign moneylenders, while the cles, and speeches of Muhammad 18 HISTORICAL PERSPECTIVES

Turco-Ciracssian elite owned the largest who called for the revival of Arabic lan- and finest estates in the country. guage and culture. Harb, as a devout, Financial difficulties due to land loans conservative Muslim with Arab tribal ori- w e r e probably responsible for the “... On the gins, opted for a formula that combined migration of Harb’s immediate family to Islamic conservatism in cultural terms the big city, where Harb met many economic level, with Arab nationalism in political terms. opportunities for social mobility (2). He studied law at the Khedival Law School, the early writings Harb’s articulated his Islamic conser- and there he intermingled with several vatism in rejecting Western cultural pen- colleagues who later became the lead- of Harb reflect a etration; particularly in the way he dealt ers of the nationalist movement against with the question of Muslim women’s lib- British colonialism. After graduation, genuine interest in eration. In 1899, Harb wrote Tarbiyat al- Harb worked at al-da’ira al-saniyya till Mar’ah wa al-Hijab (Raising Wo m e n 1905, at sixty pounds per month (3). the state of small and the Veil) as a response to Qasim When al-da’ira was liquidated, he took Amin’s controversial works on women’s loans and purchased a mansion (‘izba) peasants and the veil and other issues (5). He contested of 180 faddans from the da’ira lands in Amin’s thesis on women’s equality to al-Minya in Upper Egypt. Thus, he urgency of improv- men and maintained that women are achieved an essential step in his social created to take certain roles within the and economic ascent by joining the ing their financial family as wives and mothers per se. large landowning elite. He was appoint- Harb affirmed that calling for unveiling ed to posts at several land companies status in order to Muslim women is part of the Western and worked with large landholders and conspiracy against the Muslim world to investors afterwards. He also worked as improve the weaken it further and to underm i n e an agent (wakil) for a number of promi- Islam itself. Harb believed that Muslim nent Egyptian landowners. These new Egyptian women were targeted as the main tool positions allowed him to establish con- to change the Muslim society and have tacts with prominent Egyptian capitalists economy at it adopt all western habits. Missionary and “Egyptianized” Jewish families that schools are but a place where Western largely dominated trade and several Christian nuns taught Muslim girls about sectors of investment - all contacts on large...” Christianity and manipulated their minds which he would later capitalize in estab- to convert to Christianity. He also assert- lish Bank Misr. Harb maintained a close ed that emulating western women was relation with certain Jewish business families, prominently the Cattauis, from against Islamic law. Men are superior to whom he learned a great deal about women by nature according to the business and economics (4). In 1910, Torah and the Bible as well as the Harb formed a finance company along Qur’an and the Sunnah. Harb rejected with prominent businessmen and mer- Qasim’s views on the veil affirming that chants. He founded Bank Misr, the first women’s veil should cover her entire “... Muhammad national bank in Egypt, in 1920 and body including the face. stayed in charge of it till 1939. Between Tal‘at Harb 1920 and 1939 he purchased a total of Nevertheless Harb’s Islamic conservatism 301 faddans in al-Gharbiyya province in on women’s issues did not mean that he experienced Lower Egypt. also based his political identity on Islamic sentiments. His Arab tribal origins had profound ideologi- EARLY INTELLECTUAL p robably drawn his national sentiments DEVELOPMENT t o w a rds Arab nationalism rather than cal change that Ottoman Islamism. Harb glorified early Arab culture and civilization in writing a was reflected in his On the cultural and political levels, f o u r-vo lume book on the history of the Harb’s early writings reflect a deep con- Arabs and Islam, titled Tarikh Duwal al- published dis- cern with issues of Islamic culture and ‘Arab wa-al-Islam (The History of Arab political identity. During the 1890s, the States and Islam), in 1898. Harb used his course. This change time when Harb published his first works, historical knowledge and eloquence to the Egyptian national identity was in for- a rgue in defense of Islam and the Arabs, resulted from his mation in resistance to colonialism and yet he showed no political loyalty to the Western hegemony. A fierce intellectual Ottomans. He recounted the history of movement from debate was taking place about what the Arabs before and after Islam, begin- would compose such an identity. Calls ning from Arabian Peninsula and its cul- one social class to for an “Islamic identity” were pervasive t u re before Islam. Then he proceeded to among some contemporaries advocat- the period when Prophet Muhammad, the other..” ing pan Islamism and Islamic reforma- his Companions, the Umayads, and the tion under the Ottoman rule (khilafa). Abbasids ruled, concluding with the Arab nationalism was at an early stage Ottoman state. He paid close attention of finding its way to Egyptian culture to the place of reason and rationality in through Syrian and Lebanese migrants, Islamic history. Harb argued that the

19 HISTORICAL PERSPECTIVES

an important treatise on the necessity peasants with the goal of ending for- of founding an Egyptian national bank eign misuse of credit and of getting the (7). It was a product of the first Egyptian lower classes into the habit of investing “... While Harb was National Conference, a platform held money in bank deposits which would by landowners and capitalists. The book then finance profitable enterprises. He establishing himself revived an old argument about the argued that the wealth and political blessings of founding a national bank. power of the British and the French as an entrenched The conference’s committee proposed nations for example were not only to establish a national bank in order to based on the money of large landhold- pillar of the encourage economic enterprises that ers, merchants and industrialists, but would benefit the country and resist the largely on that of its small savers. To capitalists’ usurious practices against peasants advocate such a public proposal, Harb that led to great land losses to the for- followed the state of the Egyptian community, he was eign moneylenders. Harb took charge economy from mid nineteenth century of documenting the idea in an elabo- to the first decade of the twentieth cen- leaving behind rate publication. Although written for tury, indicating how foreign capital sub- an elite audience, the book illustrated jugated the Egyptian peasantry conservative views Harb’s ideological stance with regard through loans sometimes taken against to peasants and the way he envisioned the mortgage of their small farms. This on Islamic culture, their central place in economic practice largely contributed to a progress. decline in the state of peasants and the beholding more to In ‘Ilaj Misr, Harb emphasized that the economy as a whole. Harb quoted main difference between already exist- lengthy excerpts from annual British Arab nationalism. ing foreign banks and a new national reports on the state of peasants and the bank would be in that the latter would issue of loans in particular to illustrate his His concerns target the majority of small peasants point throughout the book. who endured the usurious practices of about small f o r eign moneylender. Existing banks w e re mainly commercial enterprises A BOURGEOIS INTELLECTUAL peasants in that benefited a small group of mer- chants and stockholders, the majority of While Harb was establishing himself as economic progress whom were either foreigners or large an entrenched pillar of the capitalists’ landowners. A national bank would community, he was leaving behind nearly vanished. ..” b e n e - conservative views on Islamic culture , f i t beholding more to Arab nationalism. His concerns about small peasants in Arabs and the Muslims lead the West economic pro g r ess nearly vanished. to its scientific progress. European During the interwar period, after the interaction with the Arabs during Ottoman Empire collapsed in politi- and after the Crusades and in cal terms, Egyptian rhetoric about Andalusia helped them to transfer national identity took new intona- knowledge to the European con- tions. Arab nationalism gained a tent. He went so far as to allege significant place as a main ele- that even religious reformation in ment of Egyptian identity, as seventeenth-century Euro p e opposed to pan Islamism, which resulted in Christian sects influ- lost most of its validity. For enced by the more illuminated Egyptian capitalists, Arabism teachings of Islam. Throughout re p r esented a potential bid for the book there is an implicit economic profit in a new world attempt to defend the system. Harb did not have to Muslims against the orientalist d i v e r ge from his original politi- criticisms(6). On the economic cal sentiments in this re g a rd. In level, the early writings of Harb a public speech delivered on reflect a genuine interest in the occasion of moving Bank the state of small peasants Misr into a new building, in 1927, and the urgency of improving Harb asserted that the bank their financial status in order to used Arabic as an official lan- improve the Egyptian econo- guage in its transactions. He my at large. The rural roots of indicated that it was the first Harb affected his early thought bank to use Arabic officially in on economic pro g r ess in the world. Such a move aimed at Egypt. In 1911, Harb published contesting Western allegations that ‘Ilaj Misr al-Iqtisadi wa it was not an appropriate language Mashru‘ Bank al-Umma (the Economic Remedy Sir Tal’at Harb. of Egypt and the Picture courtesy of National Bank Project), 20 HISTORICAL PERSPECTIVES

for accounting in firms and banks (8). bank, Harb put his emphasis on improv- who could contribute to industrializa- More importantly, during the same peri- ing the status of peasants through good tion. He did speak extensively about od, Harb was more concerned with the credit, the activities of Bank Misr, in prac- agriculture, but mainly on the necessity economic advantages that could be tice, had a different focus. Bank Misr of putting good agricultural policies that associated with Arab nationalism. In acquired the financial support of the would limit agro-imports and mobilize one of his articles, published in 1939, agrarian bourgeois and native and rural resources in industrial projects (15). Harb called for Arab economic cooper- Egyptianized capitalists in its establish- For him the countryside had become a ation. He affirmed that Arabs were one ment. Among its big shareholders were place for good scenery, where the family that shared the same religion, tra- Yusuf Cattaui, the great capitalist Jew, Studio Misr Company could film, and ditions, and habits. They were historical- and large landholders from al-Minya dis- show the world the beauty and wealth ly one unit with abundant human and trict, where Harb himself had his landed of Egypt (16). material resources that needed to be estate (11). Harb and the Bank Misr exploited. Thus, they should embark on g r oup capitalized on the interwar economic cooperation ( 9 ) . After national sentiments, calling for political END NOTES: decades of working with foreign and independence from the British. They 1. Antonio Gramsci, The Modern Prince and Egyptianized capitalists, Harb’s early gained the support of diff e rent seg- other Writings (New York: Intern a t i o n a l conservative attitude in Islamic thought ments of Egyptian society, including stu- Publishers, 2000), p.118. 2. Eric Davis, Challenging Colonialism: Bank faded away. Bank Misr was the main dents coming from rural and urban Misr and Egyptian Industrialization, 1920-1941 s o u rce of capital in intro d u c i n g background who advocated on behalf (Princeton: Princeton University Press, 1983), Egyptian cinema through the Studio of the bank in the countryside. It is obvi- pp.80-91. Misr company (founded in 1925). In the ous from the Bank Misr group’s ventures 3. Ibid, p.91. first Egyptian movies, women certainly that they had little to do with small 4. Ibid, pp. 93-94. a p p e a red with no h i j a b in a totally peasants and their credit situation. 5. Muhammad Tal‘at Harb, Tarbiyat al- We s t e r nized setting and lifestyle. For “Clearly the bank was pro g re s s i v e l y mar’ah wa al-hijab ( C a i ro: Matba‘at al- becoming controlled by, and was serv- Taraqqi, 1899). 6. Muhammad Tal‘at Harb, Tarikh duwal al- ing the interests of, the upper class, (12)” ‘Arab wa-al-Islam ( C a i r o: al-Matba‘a al- writes a historian of the bank. Most of its Amiriyya al-Kubra, 1898). enterprises created between 1920 and 7. Muhammad Tal‘at Harb, ‘Ilaj Misr al-iqtisa - “... On the cultural 1926 were trading companies, credit di wa mashru‘ bank al-misriyyin aw bank al- institutions or firms associated with the umma (Cairo: Dar al-Kutub wa-al-Watha’q and political levels, export of cotton ( 1 3 ) . The industrial al-Qawmiyya, 2002). dream of the bank’s capitalists made 8. Majmu‘at khutab Muhammad Tal ‘at Harb’s early writings attention to peasants’ issues irrelevant. Harb, vol.1 (Cairo: Matba‘at Misr, 1957), p. 218. 9. Majmu‘at khutab Muhammad Tal ‘at reflect a deep con- Similarly, Harb’s discourse on Egyptian H a r b, vol.3 (Cairo: Matba‘at Misr, 1957), economy paid little attention to small pp.95-97. cern with issues of peasants after the bank was estab- 10. Ibid, pp. 126-132. lished. In May 1920, Muhammad Tal‘at 11. For a full list of the shareholders refer to Islamic culture and Harb “Bik” delivered a public speech on the company founding document: “ Marsum the occasion of the bank’s inaugural bi-ta’sis sharika musahima tud‘a ‘Bank Misr’,” political identity...” ceremony, in which he demonstrated Mulhaq al-Waqa’i‘ al-Misriyya, no. 32, 13 April 1920. radical shifts in his economic outlook. He 12. Davis, Challenging Colonialism, p.133. re f e r r ed again to the British off i c i a l 13. Ibid, 144. reports on the Egyptian finances, but 14. Majmu‘at khutab, vol.1, pp.45-61. this time to focus on issues related to the 15. Majmu‘at khutab, vol.3, pp. 84-94. Harb the great banker, resisting eco- Egyptian capital outflow to fore i g n 16. Majmu‘at khutab, vol.1, pp. 203-204. nomic and political colonialism banks and national currency’s depend- became less associated with contesting ency on the English Pound Sterling. He t h r eats of cultural We s t e r n i z a t i o n . further advocated national economic Furthermore, Islamic references for Harb independence and the end of foreign became integral part of his capitalist domination on the strategic sectors in discourse. In his speech in the Egyptian Egypt. Harb criticized the country’s rich, Radio about the Hajj season, he put his who persisted in their way and invested religious sentiments aside and dealt with surplus capital in buying more agricul- the occasion as a merely economic tural lands. He called on the bourgeois one. He took the opportunity to advo- elite to subscribe to the bank to invest in cate for the Misr Maritime Navigation other agricultural, commercial and Company (founded in 1934) that made industrial ventures that would increase the pilgrimage (hajj) journey feasible the wealth of the country (14). About and comfortable for upper-class fami- two decades later, in July 1937, Harb lies. He asserted that in this way the “Pasha” published an article in a l - company and the bank did its best to Musawwar magazine on the hopes and serve Islam and Muslims (10). p r ospects of the pro g ress of the Egyptian economy, and again, there As for his views on peasants, they too was no place for small peasants in his waned over the course of time. rhetoric. Rather, he focused on the Whereas, in writing about a national increasing number of educated youth

21 HISTORY IN THE MAKING EGYPT’S LAST EFFENDI On the government efforts to privatize department stores

Karim El-Sayed, Young Scholar, EBHRC

his year, which marks the 150-year anniversary for Egypt’s biggest depart- ment stores chain, might be the most decisive for its future. The bid made by a Saudi investor, Jamil Abdulrahman Tal-Qanbit, to purchase the Omar Effendi chain for little over five hundred million Egyptian pounds seems to be the concluding chapter in the chain’s history.

Egypt’s largest chain of department stores, with 83 branches all over Egypt- including the chain’s newest branch in the city of Toshki, was founded in 1856 and started operations from the iconic Abdulaziz Street store, which remains the chain’s largest branch. For about 70 years the store oper- ated under the name Orosdi-Back, until it was sold by the original owners and underwent a name change and adopted the more familiar label Omar Effendi in the 1920s. In her article on the urban commercial sector in Egypt, “Sharikat al-Bayt al-Misri: Domesticating Commerce in Egypt, 1931-1956”, Nancy Reynolds explains that “a large number of retail and especially dry goods stores in Egypt were operated in this peri- od by Jewish families … either Sephardi Jews … or Mizrahi Jews who had been part of the indige- nous Jewish communities of Cairo, Tu n i s , Damascus or Baghdad for centuries … who were integrally connected to Egyptian society, and considered ‘Egyptian’ until such an identity was politicized and became untenable after the founding of Israel in 1948”.

Omar Effendi Dep Store, fomerly Orosdi Back & Co. Raoul ran - don, architect, 1909. Courtesy of 22 HISTORY IN THE MAKING

is more serious in its attempts to liquidate its holdings of all five department stores, and they hope that finalizing the Omar “... Omar Effendi’s Effendi deal will break the spell, even if it “... When is the comes at a major cost. financial scorecard Over the past few weeks, government government going for the past three and opposition newspapers alike have been closely attending to what has to present their years reveals been dubbed the “Omar Eff e n d i Scandal”. Yehia Abdulhadi, head of long-awaited com- increasing sales Benzione, another state-owned depart- ment store chain, and a member of an prehensive plan of and revenue fig- ad hoc committee appointed by Hadi Fahmi, Head of the Holding Company the companies ures, in addition to for Trade, to advise the government on the value of the chain, filed a complaint they earmarked for an improvement in with the Prosecutor General accusing Fahmi and the Minister of Investment, privatization? Why Mahmud Mohiddin, of squandering profitability rates...” public funds. According to Abdulhadi, is there so much the committee spent a month until they reached the conclusion that a fair value discretion about With the exception of Sednawi, this was for the Omar Effendi chain is one billion true of all department stores chains that and one hundred and forty million the offers the gov- existed at the time like Cicure l , Egyptian pounds. The committee mem- Hannaux, Adès and Chemla, all of bers were then pre s s u red by Fahmi, ernment receives which were nationalized in 1957. To start according to Abdulhadi, to sign release with, Omar Effendi was among the forms to confirm that the value they for the companies country’s largest department store came up with was only advisory and chains, Reynolds asserts that even that applying a diff e r ent valuation they put up for “when Chemla”, which the writer takes method would produce the more as a case study, “became known as a p p ropriate value for the chain, sale? More impor- one of Cairo’s top department stores, amounting to four hundred and fifty mil- the business remained modest com- lion Egyptian pounds- less than half of tantly, where does p a red with others such as Cicure l , the original value. An article in il-Arabi Sidnawi or Orosdi-Back”, and under newspaper, dated 5 March 2006, com- the money from state ownership the chain continued to mented that at this market value, g r ow. In 1961, there were only 20 approximately one-eighth of the size of selling those com- branches in the chain, this grew to the the country of Kuwait- which is the p resent number of 83, about 40 of aggregate of the surface area of the 83 panies go?..” which are completely owned by the branches in the chain- will be sold for chain. half a billion Egyptian pounds!

Having been caught up in the fever of For almost a year, straight after gradua- appears that this was the technique the street festivities and week-long cele- tion, I worked in the consultancy service used by the government committee as brations that marked the Heliopolis cen- line of the world’s largest financial serv- they calculated the market value for tennial anniversary, I was almost sure ices company with their office here in the land and the capital assets of each that similar preparations were underway C a i ro. The primary objective of that branch separately, thereby arriving at for the century-and-half anniversary of department was the preparation of fea- an inflated figure. a store which, as long as anyone could sibility studies for new projects as well as remember, has always been a nation- providing clients with recommendations A more suitable approach to determine wide household name. on the value of companies and units the value usually considers the compa- they wish to acquire. The process of ny’s profitability and not its assets. This Obviously, however, the govern m e n t determining the value of a company technique is called the “discounted was more interested in putting an end that is still functioning was always diffi- cash flow” method and is based on to its repeated failure to privatize cult, because for non-operational com- elaborate mathematical formulae to department stores -with the first panies the value was simply the market arrive at the present-day value of the attempts to sell stillborn back in 1993. price for its assets [viz. land, property company’s projected revenues in the Ever since it came under management and machinery] since this is the tech- future [for five or ten years, based on of the Holding Company for Internal nique commonly used for liquidation. the industry]. It usually involves multiple Trade in the early 1990s, Omar Effendi H o w e v e r, it would not be the most assumptions regarding the company’s had been on the selling blocks for four a p p ropr iate technique to use if we operations in the future and regarding times. Every time, negotiations and dis- assume the company will continue the inflation and interest rates during the agreements over the value of the com- operations but is merely undergoing a period under study. My little experience pany and its assets never led to a suc- p rocess of restructuring, or even in this line of service affirms that slightly cessful closure of the deal. But it change in management, as is the case changing one of those variables can appears that this time, the government with Omar Effendi. Unfortunately, it produce dramatic changes in the end 23 HISTORY IN THE MAKING result. More significantly, I have learned the discussion threads on some of the that the methodology of the consultan- most-frequented blogs reveal how little cy firm, which is never disclosed, not people actually know about the gov- even to the clients, determines the “... a large number ernment motives from privatization or assumptions made for each specific even the legality of the whole process. I study; the effects of those on the end of retail and think that people have digressed from result too should never be underestimat- the main issue regarding privatization, ed. especially dry and we are currently reduced to debat- ing whether or not the sale value is fair. The fact that in the case of Omar goods stores in Privatization is now an undisputed fact Effendi the method used by the private of life, and the fact that the govern- consultancy firm is more appropriate Egypt were ment holds unilateral authority regard- than the method used by the ad hoc ing which companies are sold, and to committee formed by the Holding operated in this whom, does not seem to bother anyone Company, but that does not mean the anymore. Where this is going, and when value suggested by the firm is necessar- period by Jewish it is going to end is no longer an issue of ily fair. Official statements from the discussion, we simply deal with each Holding Company, to justify the six hun- families … either case as it happens. d r ed million pound discre p a n c y between the two valuations, suggest Sephardi Jews … or In his book Growth Fetish, which criti- that the firm’s figure included provisions cizes third-way governments of the for the new investor to honor Omar Mizrahi Jews who developing world for their obsession Effendi’s commitments to suppliers and with economic growth over more debtors. Nevertheless, this still does not had been part of important development objectives and explain how it is possible for a chain of indicators, Professor Clive Hamilton 83 stores to be sold for five hundred mil- asserts that “a further shibboleth of lion Egyptian pounds, when “the value the indigenous m o d e r n politics is that govern m e n t s of the land and buildings occupied by cannot run businesses profitably: only only three of [its] branches exceeds that Jewish communities private owners have the incentives to amount”, as opposition parliamentarian operate enterprises efficiently. This belief Mustafa Bakri is quoted in an il-Ahram of Cairo, Tunis, has provided the rationale for the wave Weekly article on the second week of of privatizations of public assets March. Damascus or throughout the developed and devel- oping worlds since the 1980s … and any Moreover, it was asserted that the selling Baghdad for reluctance has been met with dire price was reduced as an incentive for threats from international financial insti- the investor to maintain the same oper- centuries … who tutions, including the IMF and credit-rat- ation and to retain the 6000 employees ing agencies … The broad conclusion is of Omar Effendi, but opposition news- were integrally that … publicly owned enterprises per- papers confirmed that the Saudi form at least as well as private ones, investor only promised to keep one connected to and in some cases better … Yet any quarter of that labor force. More signifi- resistance to further privatization- let cantly, it is quite questionable for a Egyptian society, alone calls to re-nationalize some enter- company to be sold for a price that is prises to undo some of the damage almost equivalent to its annual re v- and considered caused by privatization- is met with enues. Omar Effendi’s financial score- howls of outrage, threats of 'capital card for the past three years reveals ‘Egyptian’ until such strikes' and editorials about the evils of increasing sales and revenue figures, in the return to 'socialism'”. addition to an improvement in prof- an identity was itability rates. To me, the biggest surprise regarding politicized and the Omar Effendi deal remains the mag- Whether or not the govern m e n t nitude of commotion it stirred. I do not attempts to sell Omar Effendi will be suc- became untenable recall similar unrest to have ever coin- cessful this time around, and whether cided with other successful privatization the selling price will be higher than the after the founding deals. When the government decided amount suggested by the private con- to withdraw and sell its share in strategic sultancy firm are secondary issues here. of Israel in 1948..” industries and the subsequent infiltration There are more fundamental questions of Arab and European capital into the that remain unresolved; I would even cement, fertilizer and petro c h e m i c a l dare to say that they remain unasked. w h e re does the money from selling industries, no one filed a formal com- When is the government going to pres- those companies go? plaint against the minister. When I saw ent their long-awaited comprehensive the tender offer for the privatization of plan of the companies they earmarked The relative anonymity awarded to the Bank of Alexandria, in last week’s for privatization? Why is there so much bloggers has encouraged many issue of The Economist, I became quite discretion about the offers the govern- Egyptians to express their resentment of intrigued to witness how the public is ment receives for the companies they government actions and decisions, but going to react to that news when it put up for sale? More importantly, becomes more widely circulated.

24 HISTORY IN THE MAKING . . . T h i n g s t o n o t e w h i l e y o u a re r e a d i n g t h e ‘ F i n a n c i a l T i m e s’. . . European Economic Nationalism Taking the Lead

Wael Ismail, MA Candidate, The American University in Cairo..

he past couple of months bore witness to a number of changing variants on the global economic level. After a couple of years of econom- Tic growth especially in a number of e m e r ging markets, most pro m i n e n t l y China and India, new players are start- ing to emerge in spheres where their p resence was not felt before. Larg e conglomerates are expanding outside their regional geographical territory in the south into the north. For many years, we have witnessed the advance of large corporations from the developed world to the less economically devel- oped one. However, we are witnessing now the advance of firms from China, India, Egypt, and the UAE, only to name a few. These companies, which are amassing enormous amounts of wealth in their respective regions, are taking their cause globally, to the backyard of large established multi-nationals. Source: Financial Times Cartoons 25 HISTORY IN THE MAKING

This era is fertile in terms of economic was later sold to the American com- Mittal Steel, owned by the Indian fam- and business developments. We are pany Chevron at a much lower price. ily Mittal, has recently made an off e r s u r r ounded by debates on globaliza- The US was obviously weary of selling to buy European steel manufacture r tion, and how the world is becoming American based petroleum compa- A r c e l o r. The deal was met with one small electronic village, but only nies to the Chinese. The two cases staunch opposition, especially by with the third millennia, have we re a l l y clearly highlight that even pre a c h e r s L u x e m b u rg and France. Luxemburg ’ s started to feel tangible manifestations of free market economies can not at opposition was due to some sort of of these phenomena. For any observ- times practice what they preach. romantic attachment to an industry er who is intrigued by the business that once helped the country join the world on a theoretical level, the A successful case of a “Southern ” ranks of Europe’s advanced Financial Times is one of the best economies. As for France, a large seg- c h r onicles in this field. Day to day ment of Arcelor’s workers are Fre n c h events that might pass us by un- nationals. Neither the Indian off e n s i v e noticed are numerous in the pages of nor the European opposition has sub- this “global” newspaper. Only when sided, with the issue taking a political these events are strung together can f o r m after it was discussed by heads of we truly take a better look at the field “... we are state in France, Luxemburg and India. of international business. A number of The main argument the European are t r ends have started to take shape witnessing now the adopting is that the two companies over the last months, one of which is come form two diff e rent cultures and the abovementioned emergence of advance of firms b a c k g rounds and are primarily fearf u l l a r ge conglomerates from the under- that the merger would only cripple the developed South to the global busi- from China, India, newly created company. If the deal ness arena; others include the rise of goes through, the merger of Arc e l o r economic nationalism in one of the Egypt, and the UAE, and Mittal will create a world steel stalwarts of capitalism in We s t e r n industry, producing more than the E u rope and the increased consolida- only to name a few. sum of its three closest competitors. tion in almost all economic sectors world wide. The latter has witnessed a These companies, These deals do not highlight the rise of wave of mergers and acquisitions just any Southern companies, but deals (M&A), most prominently, in the which are rather companies with either stro n g e n e r gy and telecommunication sec- g o v e r nment backing, as in the case tors. The most interesting of these amassing of Dubai Ports, or multi-billion dollar t r ends is the encroachment of family businesses (India’s Mittal, and “ S o u t h e r n” companies on “Northern ” enormous amounts Egypt’s Sawiris both members of markets. This unusual flight of capital Forbes list of the top 100 billionaires). It that is moving against the stream has of wealth in their is obvious that these companies come its re p e r cussions. Most recently we f rom diff e rent backgrounds, never the had just witnessed the debacle that respective regions, less they have operated under the took place after the Dubai based u m b rella of the capitalist system and ports company; Dubai Ports acquire d are taking their a re fiercely competitive in a form e r l y the British P&O, only for the Americans “ N o r t h e r n” dominated terrain. More to wake up and find that 6 of their cause globally, to o v e r, the deals show a recent wave of ports, formerly managed by the latter, economic nationalism that has been will be managed by a Middle Eastern the backyard of especially strong in France, even country from the same Gulf re g i o n though the French seem to object to that produced the architects of the large established the labeling. France, in addition to the 9/11 attacks. As soon as news bro k e A rcelor deal, has worked hard to stop out, the American public and eager multi-nationals..” the sale of a number of companies, C o n g r essmen took what seemed to especially in the energy sector, to for- be a simple political deal and turn e d eigners and even European buyers. it into a national security issue. After The French Prime Minister appro v e d weeks of debates and negotiations, the merger of two large utility compa- the Dubai based company off e red to nies (Gaz Du France and Suez) almost sell the six ports it inherited from its company breaching the line of over night after rumors of a takeover British pre d e c e s s o r. The outcome was E u r ope was that of Orascom Te l e c o m . f rom an Italian company loomed on later seen as a disaster to the US’s The CEO of the company, Samih the horizon. The French legislators image as a patron of free enterprise Sawiris, created an investment vehicle have also recently passed a number and markets by a number of its own called Weather and acquired Italy’s of new laws giving their own compa- financial houses. t h i rd lar gest mobile operator. To many, nies protections from any hostile What happened in the Dubai Ports the deal is merely a step before the acquisitions in the future. The Italians, case was a more publicized replica of regional company, with 50 million sub- in specific saw the move as a re g re t- what took place earlier when a scribers under belt, enters other table re t u r n to protectionism and as a Chinese company (Cnook) in the E u r opean countries such as France, t h reat ening move to the unity of the e n e r gy sector off e r ed to buy the Spain, Greece, and the Netherlands. E u rope an Union (EU) and its sacre d American company, Unical. The latter Another family operated business, values.

26 HISTORY IN THE MAKING

One cannot look at the return to the of cheap labor whether in China or principles of economic nationalism with- India for example. Recent protests in out noting the strong wave of consoli- France against a proposed new labor dation taking place across the world. It law concerning the youth have clearly seems that every new day will witness shown that even in Europe capitalism the creation of a business giant; with has many meanings. Labor is not willing M&A deals creating ever expanding to relinquish the battle against the busi- entities able to compete and afford the ness world. According to one columnist, challenges of an ever changing global the recent events reveal, “…[a] serious economy. This year the value of M&A gap in political and corporate under- deals have reached US$10 billion/day standing of the human consequences mostly in Europe and especially in the of a capitalist model that considers utilities and energy sectors (1). Economic labor a commodity and extends price nationalism, which has been predomi- competition for that commodity to the nantly apparent in the case of Arcelor entire world (3).” and the merger between Gaz du France and Suez, rose to the forefront Observations about the business world precisely due to the ferocity of investors cannot be confined to the pure logic of under this economic outlook. Managers numbers, figures, and stock market are more eager now to carry out acqui- trends. Businesses do not operate in a sitions, especially with the backing of vacuum and hence their conse- their investors who see the decline in quences have re p e rcussions on the banks’ interest rates as the perfect pre- e n t i r e global society. Consolidation text for more expansion. France, one of might mean more synergy, more profits the major pillars of the EU, seems stead- and less costs but it will also mean an fast in its attempts not to let its culture increasing burden on the classes that and most importantly its language be create this profit. The fact that many lost in whichever union. Recently, companies from the South are taking President Chirac walked out of an EU their business to the North, does not meeting simply because one of his mean that their mother countries are compatriots from the business sector “... These deals do swimming in rivers of wealth. China’s chose to speak in English rather than in own miracle can not be perceived with- French, stating that it was the language not highlight the out looking at the social costs that cer- of the business. Economic Nationalism tain classes bore so that the country has not only been seen in France but in can record such growth rates in the past other countries as well, such as Spain, rise of just any years. The role of businesses has defi- where the country was determined to nitely risen to prominence in re c e n t maintain one of its utility companies in Southern compa- years especially with their vast exposure the face of a possible merger with a nies, but rather throughout the world; some have used German company (2). their image to create wealth for their shareholders, whilst others are trying to Consolidation seems to be the next log- companies with s p r ead the wealth around, but the ical step for many large companies, world can not simply depend on the even though it may differ from one sec- either strong gov- benevolence of the few, while the rest tor to the other. But on the general continue this selfish cycle of profit seek- scheme, more and more companies ernment backing, ing. So next time you are reading the are opting for consolidation in pursuit of Financial Times, or any other news cost reduction and synergy. Synergy is as in the case of paper, look behind the numbers, look the keyword of the era. Consolidate behind the names and try to see the businesses, cut back on costs of admin- Dubai Ports, or people who will be living in a world istration, and most importantly on labor, dominated by a few companies. is the adopted mode of operation. So multi-billion dollar far, consolidation has become synony- mous with labor lay offs. family businesses END NOTES: The combination of most of these trends (India’s Mittal, and 1. Once More Unto the Breach, Dear Clients, that are starting to surface, shed more Once More.” The Economist, April 8th 2006. light on the current state of the capital- Egypt’s Sawiris both 2. Refer also to “Italian banking gambit ist world system. Labor is no longer reveals Poland’s unease.” Herald Tribune, bound to one country and is unlimited members of Forbes March 25-26, 2006. The news piece reveals now. No wonder that larg e Polish opposition to an Italian offer meant to Multinational Corporations (MNCs) are list of the top 100 m e r ge the country’s two largest bank’s shifting their operation to the South. The together. South has a comparative advantage in billionaires). ..” 3. Pfaff, William. “Capitalism Under Fire . ” Herald Tribune, March 30th 2006. the words of David Ricardo in the form

27 BUSINESS NOT AS USUAL “ P l e a s e s i r, I w a n t some m o r e !” Between War and Peace: The Dilemma of Aid, Development and Rebuilding in Darfur

Lina Atallah, BBC producer, Darfur Lifeline Programme

Adam al-Tijani, a 14-year old internally given a racial connotation as the displaced person in one of Darf u r ’ s Janjaweed are mainly Arab tribes and refugee camps, west Sudan, stood out “... one of the most the rebels come mostly from non-Arab amongst the crowds of children sur- tribes. However, it is important to note rounding him and shouting, Khawaga! effective that the population of Darfur is quite Dayrin Gyrush! ( F o reigners! We want diverse, with no less than 36 Arab and money!). In a stunning testimonial, campaigns for non-Arab African tribes, which have Adam spoke about his hopes for the given the region quite a hetero g e- future. He said how much he wanted to awareness on neous makeup. Meanwhile, this racial return to his original village, and find an connotation of the conflict still high- honorable job there, through which he HIV/AIDS in a lights an ostensible dilemma in and his family can live properly. “The Sudanese identity. bread of the khawaga will never be community that has enough for us.” He said. “We will have OUTREACHING DEPENDENCY to find our own bread.” only been Adam’s testimonial stands out as it The khawaga is represented by interna- stigmatizing the sounded different from all what one tional aid agencies, as well as United can see or hear in Darfur in the after- Nations organizations, which have disease and the math of the conflict and the advent of come to offer an emergency response aid response. This advent has pro- to the Darfur crisis. The crisis has erupted need for duced a classic case of dependency in February 2003, but its roots date back amongst people. But international aid to a more distant date, as there has knowledge about versed into the region cannot be con- been an on-going conflict between sidered the sole contingent causing this sedentary farmers and nomadic cattle it was led by the dependency, but it has brought to the h e r ders over water re s o u rces and surface a profound problem of environ- access to land. As the dispute was Hakamat. The mental devastation that has resulted brought into the realm of politicization from a less than an appropriate rela- and the issue of marginalization of the Hakamat are tradi- tionship between the natural environ- people of Darfur by the central govern- ment and the people of the region. ment was brought up, severe fighting tional local singers Continuous movements in search for took place in the region. The main food mostly caused a jeopardized rela- adversaries were government backed who enjoy an tionship between Man and nature militias, largely re f e r r ed to as the here, which has brought about tribal Janjaweed (Arab fighters on horses) incomparable conflicts, weakened basic services, and the people of the region, who desertification and overc ro w d i n g lined up behind two main dissenter social authority in around fertile areas. The absence of movements, the Sudan Liberation Army proper state support, as an institutional and the Justice and Equality Darfur ..” resource that can enhance Movement. The conflict was further

28 BUSINESS NOT AS USUAL this relationship through various pro- craft a small enterpriseout of their prop- scale informal trade activity inside the grams, has only deepened the prob- erty, while they benefit from the free camps, manifest in the opening of small lem, while no alternatives were found. services offered inside camps. shops and restaurants.

A c c o rding ly, the growing culture of AN EMERGING The miscommunication between food dependency has not only being trans- donors and beneficiaries further compli- fused amongst the direct beneficiaries, SMALL ECONOMY cates the problem. For example, those namely the internally displaced (IDPs) donors are strongly advised to who live inside temporary re f u g e e The reliance on the NGO’s presence decrease certain portions of their distri- camps, but also the hosting communi- has hence created more than a situa- bution packages during harvest sea- ties have been equally engaged in tion of dependency, of which the sons. The trade activities performed by what has become a radically distorted façade is one where people are persist- IDPs in distributed food have been neg- economic environment. ently asking the khawaga for some atively affecting the normal economic more. The emergent alternative eco- revival that comes after harvest and One apparent example is the monthly nomic activities performed by benefici- which should be the basis of an incipi- basic food distribution, carried out by aries are another less apparent and yet ent, more independent economy. several aid organizations in all IDP existent component in the picture . However, those calls find no avail, and camps. Despite the organizations’ elab- Dependency here takes a complicated the goods distributed by the organiza- twist with an emerging little economy in tions stand in an awkward competition which the prime aim is with the local goods, most of the time survival. This economy is driving the latter out with their lower based on aid and can prices and, often, better quality. totally be reversed in its absence. While it brings people one active step A PARTICIPATORY APPROACH higher from simply receiving the distributed While it is hard to conceive of a means goods, it is still falling in to salvation, especially in a post-conflict the framework of emer- period, there is an imperative essence gency response and that cannot be trivialized or neglected. does not necessarily Working on enhancing community par- contribute as a basis for ticipation is probably the best a stronger self-sufficient approach that an international organi economy in the future. For example, the abun- dance of treated water New arrivals in the Ottash IDP camp, due to the conflict in Darfur. re s o u r ces inside the Courtsey of ©UNICEF/2006/Shehzad Noorani camps, in comparison “... Continuous with outside, has led IDPs orate system of tracking down their to seek a source of income through this movements in beneficiaries through simple head free commodity. Instead of filling two counts to complex registration cards jerry cans of water on a daily basis that search for food that are not easily issued, still a lot of should suffice their needs, they procure unregistered members of the hosting additional amounts of water with which mostly caused a communities manage to sneak in and they fabricate bricks that they sell in the take a share in the cake. In fact, in local market outside the camps. In turn, jeopardized rela- many cases, people from the hosting water remains a scarce commodity in communities, leave their houses either the camps, causing a plethora of nega- tionship between in the main cities or in the villages and tive effects, such as disease. opt to live inside the camps, so that they Man and nature can benefit from an economy that is The basic food distributed on a monthly largely based on a one way flow of basis is yet another point in case. While here, which has goods. Besides food, water is a scarce certain international donor agencies for commodity especially in Northern foods have monolithic policies regard- brought about tribal Darfur. But most of the camps’ needs less of the nutritional culture of their ben- have been saturated by treated water eficiaries, a lot of IDPs end up with conflicts, weak- through hand pumps built by aid agen- wheat as part of their monthly pack- cies, and hence the advent of people age, an alien component to them, as ened basic servic- from the city to share in this abundant they are not used to it in their diet. commodity in the camps and which is Moreover, most of them do not own es, and over- of radical importance for livelihood. mills to facilitate the use of this wheat. Meanwhile, the deserted houses are not So, the emergent practice amongst crowding around simply left unattended. In fact, the pres- beneficiaries is to use this distributed ence of the NGO’s has incre a s e d wheat as a purchasing commodity, in fertile areas....” demand for real estate and rents have exchange for which they can get other reached sky levels. Hence, those who more urgently needed goods. The prac- leave their houses to live in IDP camps tice has led to the creation of a small- 29 BUSINESS NOT AS USUAL

have been made to capitalize on this national state of affairs, is politically culture, the reality of livelihoods inside rewarding “... the growing cul- the IDP camps adds checks everyday. Al-Fadil Ibrahim, an IDP in northern In any event the cutting of UN and other ture of dependency Darfur camp, has been asked by the NGO’s funds in Darfur is detrimental. UNICEF to guard one of the water With an emergency and recovery situa- has not only being pumps the organization built for the tion that has not come to a settlement camp. The UNICEF, for its part, has been yet, with the continuing of the fighting trying to explain to Al-Fadil and his fel- on the ground and the slowing down of transfused amongst lows that the water pump is their prop- peace negotiations in Abuja, a retreat is erty and that they should dedicate time definitely premature. Moreover, a more the direct benefici- for its maintenance and sustainability. delicate process of returns and resettle- Al-Fadil is half convinced. He is happy to ment will also kick off, which requires a aries, namely the think of the availability of a water pump shift in emergency response approach that can make his life easy, along with by the shifting NGO’s to a more devel- internally displaced his neighbors’, but he cannot avoid opment-oriented situation, at least to wondering how he will earn his bread to reverse the negative effects of those (IDPs) who live fulfill the needs of his family. NGO’s presence and the re s u l t i n g dependency. This is particularly needed inside temporary Still, the area of community participa- in the absence of a strong local nation- tion remains a promising one. For exam- al movement that can rally people refugee camps, but ple, one of the most effective cam- around the aspiration of reconstruction, paigns for awareness on HIV/AIDS in a crushing fear and rebuilding hope. also the hosting community that has only been stigma- tizing the disease and the need for Many hold an optimistic view vis-a-vis communities have knowledge about it was led by the the resettlement process in Darfur, given Hakamat. The Hakamat are traditional the short period of displacement, which been equally local singers who enjoy an incompara- has not been long enough to kill peo- ble social authority in Darfur. Only they ples’ skills or will to return. Yet, with the engaged in what could send productive educational gloominess that surrounds the question messages through their impro v i s e d of who will be the main player, and the has become a rad- singing, encouraging the community to impossibility of only one power taking put hands together in fighting the grow- over; be it the central government, the ically distorted ing disease. The organizing NGO’s role SLA, the UN, the African Union or anoth- has been little more than a small inter- economic vention in the process, thus emphasizing the value of cultural heritage and environment....” indigenous knowledge in leading an effective developmental endeavor. “... Here in Darfur, zation can adopt during its brief opera- tion in a conflict zone like Darfur. This TOMORROW? between conflict enhancement may seek a national awakening at the grass roots levels as its With the loss and fear that the some and peace, dis- main goal and should stem its essence 1.86 million IDPs and the rest of the pop- from elements in the local culture as the ulation of Darfur have suff e r ed, an placement and most guaranteed means of sustainabili- inevitable sense of cynicism has grown. ty for this awakening. This cynicism has been further intensified return, there should A few organizations started working by the lack of information or even misin- around the goals of capacity building formation. Pending question marks sur- be a pause for and community participation, especial- round the status of humanitarian aid this ly given the cutting of funds and hence year- the reality is that many operations thought....” many operations, and the generally have been terminated, funds have decreasing international humanitarian been cut, and a lot of staff have been interest in Darfur in 2006. Utilizing the asked to leave the area. Many relay this cutting in funds to a UN strategy to force native skill sets of IDPs in agricultural er party, people’s role becomes of ever activities as well as handicrafts (palm the government to accept its presence as a peace keeper by showing the more important. A similar experience of weaving), some NGO’s have created a active community involvement in few income generating activities. worst product of its absence. Still, President Omar al-Bashir has vehement- rebuilding is just unfolding in the south. Meanwhile, community participation Here in Darfur, between conflict and remains a tricky area. ly rejected a UN military intervention. He has said that “Darfur will become a peace, displacement and return, there should be a pause for thought, a men- There is a cultural background to com- graveyard for any foreign troops ventur- ing to enter,” in an attempt to sound tal process, where actors are communi- munity participation and collective ty members, led by a shared aspiration action manifest in harvesting and reha- nationalistic. This rejection of the UN peacekeeping forces is two fold, align- to regain their shattered tranquility and bilitating houses flushed away by floods take another stab at life, perhaps a for example. While some endeavors ing itself with general public anti-west- ern sentiments, which, given the inter- braver one. 30 BOOK REVIEW Running on EMPTY Financial Crisis and Political Power in Mubarak’s Egypt

Mostafa Hefny, Project Officer, EBHRC

“Ana mashy fee milk el-hokooma” [I’m walking on the government property]

t is what a vagrant would offer in and more significant, would be that defense of his unwelcome pres- those same citizens are being care l e s s ence. The phrasing is so embed- with their words. Surely they mean ded in popular Egyptian discourse public, rather than government, pro p- that decades of repetition in erty. Through the apparatus of the Ieveryday life, cinema, theater and fic- state a government administers com- tion have not prompted an examina- mon property, the citizens’ pro p e r t y . tion of its implications. It seems an The language does not accurately innocent enough sentence. One reflect their status. is just as likely to hear it screamed in protest by a tramp The stranger would be wrong. forcefully compelled to relocate by stuffed henchmen in dark Rule in post-revolutionary Egypt has glasses and suits, or hissed by a been many things, but always authori- slick male harassing at a pass- tarian. Socialist discourse was not ing female -both, incidentally, p r ominent as the Free Officers consoli- i n c r easingly common dated their coup after 1952 and their urban scenarios. But ideological and political leanings recurrence has dulled w e r e not immediately clear. In prac- the critical faculties. tice, authoritarianism preceded ideol- A stranger unfamil- ogy. The military officers appro p r i a t e d iar with the popular action long before they Egyptian setting a p p r opriated property. Pause now to is likely to make re m e m b e r the occasion, and location, two observa- of the free officer’s first authoritative tions: First, the display of power in Egypt. Recall that citizens of Egypt, the occasion was the trial of labor both sinner and leaders Khamis and El-Bakry on the sinned against, factory site of Misr plants in Kafr El- exhibit an ina p - Dawar in 1952 in what was practically p r opriate identification with a public execution – violence dire c t e d vagrancy. Second, against the watching laborers as it was

Image courtesy of 31 BOOK REVIEW

against condemned men. No such vio- administer this apparatus; an actor sum of its revenues and spending to go lence was directed against groupings steering an organization inside which u n re c o r ded in its annual budget. In later marked as enemies of the regime there are groupings, conflicts and con- effect, the regime was ready to sacri- – landowners, capitalists and even roy- tradictions. This demarcation is vital fice the cohesion of state apparatus in alists were spared a similar fate. There is inasmuch as writings on the state and order to meet a short term need and broad consensus that the presidency of the Egyptian state in particular, have avoid a confrontation. Second, in Gamal Abdel-Nasser was a period in enshrined it as a mythical being allowing for the creation of funds out- which the interests of laborers and endowed with permanent characteris- side official government records rather peasants were far prominently weighed tics such as centralization, often then amend the system, the Mubarak in the devising of policy then they were, deemed an inevitable geographic regime is following a pattern it had dili- and are, in subsequent periods. necessity exemplified by the rule of gently been stuck with over the quarter Violence against its own base becomes Mohammad Ali and even the pharaoh century it has been in charge – a delib- understandable when we consider that Mena. The divergence in terms is nec- erate aloofness to pressure and immo- the maintenance of authoritarian rule essary to disperse this nonsensical myth- bility that has been the defining char- has always been a primary goal for the ical permanence. Conversely, focusing acteristic of its survival. One is generally regime. The regime will grant privileges on a political regime obfuscates the safe if one is entirely without initiative to patrons but would not answer the fact that a ruling group is constrained and in studying the institutional lethargy demands of a political base. by cumbersome structures and institu- f o s t e r ed by the Egyptian regime it Some of this must have seeped into the tions in its goals and maneuvers. becomes clear that the principle dialect. Citizenry and vagrancy are method with which the Mubarak conditions interchangeable according regime has ensured its survival against to the whims of the wielder of power, incremental pressure has been a delib- the regime. The difference between erate policy of doing absolutely noth- the rule of the majority of the people “... The idea of the ing. and rule on behalf of the majority of the people is fundamental and has been rentier state is big, The reactive policy has been a point of recognized as such – “the govern- pride for the regime which has taken to ment’s” ownership of everything in the simple and of marketing its “caution” and “wisdom”, public domain is then symbolic of the particularly with regards to international regime’s sustained grip on means of seemingly infinite and regional issues. On the domestic coercive power. front, the stasis has been enabled by explanatory the “rentier” character of the Egyptian This grip is at the center of “il-Nizam il- state. Qawi wa il-Dawla il-Daifa” [The Strong power....” Regime and The Weak State], where The idea of the rentier state is big, sim- Samer Soliman illustrates how the ple and of seemingly infinite explanato- Mubarak regime [1981-] has fastened ry power. Rentier states accrue revenue its hold on Egypt even as the corporatist In 1981 Hosni Mubarak inherited a state from resources in processes in which lit- system of patronage it had inherited apparatus that had expanded under tle productive economic activity is from Nasser and Sadat wilted and atro- the rule of Anwar El-Sadat. For his part required. The classic examples are the phied. There’s little consideration of the Mubarak allowed the expansive trend oil-rich states of the Gulf in which a tiny verbal constructions of vagrants and to continue and, irrespective of the offi- portion of the population, much of it a citizens; the book belongs to a dying cial pronouncements and new eco- foreign contingency, is employed in the species of writings on political economy nomic philosophies they justify, the economic exploitation of a natural when the collection, taxonomy and Egyptian state has continued to resource – in this case oil. The wealth analysis of facts preceded dramatic expand in the last twenty-five years. This generated is at the disposal of the state conclusions – a temperate aff a i r. occurred in a manner sometimes delib- which then distributes this income to Soliman writes a history of the Egyptian erately obscured by a regime mindful groups most loyal to the regime in con- regime through the record of its declin- of demonstrating a firm hold on spend- trol. It is a neat formula that explains the ing financial position. It’s a document- ing to international agencies – which political stagnation and endemic cor- ed narrative of how Mubarak’s men from the late 1980s onwards held a ruption in the oil rich Arabian Gulf and, were deprived of rentier resources to sway over the regime that no domestic though scarcely acknowledged, pro- p u rchase the acquiescence of their grouping ever peacefully achieved in vides commentators with moral satis- bureaucratic political base, how they the post-revolutionary period. Soliman faction in pointing to the pitfalls of attempted to reform the state’s finan- writes of special funds through which “unearned” wealth – the curse of the cial apparatus, how they completely government spending was siphoned in black gold. It is with this type of wealth failed to do so, and how they main- a manner that went undocumented in that post-revolutionary Egyptian tained their hold on the country regard- the government’s national budget fig- regimes have been able to patronize less of that failure. It’s a success story. u res. This temporary stitching of the or, bluntly, buy the support of potential growing cleavages in the workings of political opponents. For a re g i m e An important distinction between the g o v e r nment is characteristic of the devoted to indolence and political regime and the state is made. The state regime’s way of doing things and is of apathy of the population, the support it is the sum of institutions, charters, prac- g r eat and grave importance. First, required from its base – the bloated five tices, laws [official and otherwise] and faced with a potential crisis, the gov- million strong bureaucracy – was mere- possesses continuity beyond individuals. ernment sacrificed the golden rule of ly a negative support in the form of The regime is the group of people that financial accounting in allowing the continued nonparticipation.

32 BOOK REVIEW

that was the centerpiece of its 1960- It always helps to be lucky. Soliman 1965 five year plan. The plan however cites a Reuters news story on the grim was never renewed in 1965 and from prospects of the Egyptian government, “... Citizenry and then on Egyptian regimes, including which had suspended payment of its Nasser’s which accepted donations external debt. The story, written in 1990, vagrancy are f rom Arab governments after 1967, predicted the imminent bankruptcy of have been able to float on the still the state. Two week later, Iraq invaded conditions waters of a patronized and hence pla- Kuwait and half of Egypt’s extern a l cated bureaucracy. debt was cancelled in return for its par- interchangeable ticipation in a coalition to expel the Even as he sketches the skeleton of the Iraqi army from Kuwait. But it hasn’t according to the Mubarak regime as a lethargic overlord been all down to luck – sometimes of rentier/patron state, Soliman seems clever, often obtuse and frequently vio- whims of the to harbor some skepticism towards the lent, the Egyptian regime has clumsily rentier thesis. His critique is indirect, ren- descended on a strategy for a survival wielder of power, dered as it is in the benign dispassion- in a polity whence it is no longer able to ate tone in which the study is written purchase apathy. the regime. The and composed entirely of his citing of doubts expressed by other writers. His Consider the sophisticated manner in difference between doubt is welcome and displays an which the judiciary has been treated (1). a w a r eness of the implications of In a country where the regime held a the rule of the accepting of what is ultimately a totali- firm grip on the legislative branch of tarian theory that leaves little room for government, reducing it to little more majority of the nuance and subtlety; if the authoritari- than a cosmetic role, it has granted the anism of the Mubarak regime can be judiciary a relatively large degree of people and rule on explained entirely by the rentier char- independence. This has in turn acter of the state it administers, what siphoned off political protest to the behalf of the reason is there to study the changing courts where angry citizens have sued tactics of the regime which, however the government and often attained majority of the important, must be subsumed into the favorable rulings. The executive branch overall model. Indeed the very thesis to would then arbitrarily decide which rul- people is which Soliman slowly builds is one in ings to put into effect and which to which the regime triumphs over the ignore. Less clever has been the former constraints of the rentier model. The prime minister, Atef Obied’s decision to fundamental and dictatorship of the wealthy patron with- rely on a hidden and regressive inflation in the framework of the rentier state tax, which only put the government has been recog- thesis is only possible as long the state’s into a hole it would eventually have to treasury can sustain the demands of find a way out of at a postponed date. nized as such ....” the patronized. As the stream of rentier The strategy was indicative of behav- wealth dries up, the regime’s coercive ioral pattern in which no decisions were p o w e r, its autocratic character too Egypt is not an oil-rich state. In his rich must diminish. This has not happened in theoretical introduction to the book, Egypt. Soliman cites important works on the “... Political rentier state, including Hazem Beblawi’s It is just as well that Soliman takes the and Luciani Giacomo’s pioneering The time to make the case for the resurgent discourse is linked Rentier State in the Arab World pub- discipline of Political Economy that fine lished in 1987, and economist Galal fusion of political science and econom- to annual revenues, Amin’s application of the model to an ics in which economic facts and politi- Egyptian context. Amin had argued cal realities are constant restraints on state violence to that Egypt of the 1970s fit the definition the tendency towards abstracted of a rentier state because its economic whimsy of deceptively complete theo- budget deficits, performance, indeed its political stabil- ries in either discipline. The Stro n g ity, was largely contingent on interna- Regime and The Weak State is political and gradually a tional aid, remittances from Egyptians economy par excellence in which the working abroad and funds from the regime’s political maneuvers are con- Suez canal – all sources to which stantly cast against the annual “Final narrative of survival domestic productive activity is irrele- Declaration” released by the Ministry of vant. For his part, Soliman stretches the Finance and other pertinent financial emerges to which rentierism back to the Nasser era data from international financial institu- whence the regime used wealth tions and governorates. Political dis- the rentier/patron appropriated in the nationalization of course is linked to annual revenues, private capital to recruit and patronize state violence to budget deficits, and model had only a growing bureaucracy. Nasser’s gradually a narrative of survival regime was not lethargic, it attempted emerges to which the rentier/patron been a gateway....” an ambitious industrialization program model had only been a gateway.

33 BOOK REVIEW

groups in Upper Egypt throughout in nessmen, opposition writers, such as the the 1990s. liberal Ibrahim Essa in the widely read anti-Mubarak weekly El-Destour and “... Soliman writes a The Mubarak regime has hit upon a leftist Nabil Zaki of the socialist Al- strategy for survival, but its strategy has Tagamuu party, took to citing Soliman’s history of the never been part of cohesive plan – book. For them the matter was one of indeed if anything it has leaned upon an unholy alliance between wealth Egyptian regime this strategy after it failed, and failed and power with which the state would completely, to achieve its stated goals. transfer public assets to the private through the record On the question of taxation, Soliman holdings of loyal businessman protect- documents the failure of the successive ed by parliamentary immunity. In truth of its declining governments to implement plans in a this not an altogether accurate repre- 1991 tax bill. Efforts in this regard are sentation of the picture the author financial position. continuing, and as of April, 2006, a new finally paints, which is perhaps more law has come into effect and the intriguing. For Soliman, the 2000 parlia- It’s a documented regime’s propaganda machine has mentary elections clarified matters for been working overtime on selling the the regime. Businessmen, running as narrative of how tax to the population. Yet many of the independents and often facing the factors behind the failure of the 1991 g o v e r nment’s candidates, most of drive remain, namely lack of legitimacy whom were bureaucrats, managed to Mubarak’s men and credibility of the regime and the capture a 77 seats – more than double were deprived of arbitrariness with which laws are imple- what the political opposition managed mented- which, in effect, makes tax to capture (2). evasion the rational choice even for rentier resources to the risk averse. As for violence; the dis- What these parliamentary victories sig- course and the intent had been to redi- nified was that in an atmosphere of purchase the rect state funds to the south, where the political re p ression fostered by the regime had argued that poverty was regime, and with state patronage on acquiescence of the root of widespread radicalism in the wane, it was capital, in its most the region. In any case, as document- basic, monetary, form that secure d their bureaucratic ed by Soliman, funds were never redi- political victory. Essa and Zaki maybe rected to the south in any substantive correct in their reading of the alliance political base, how way – and it appears the regime has of businessmen and regime as a gener- relied only on violence to defeat radi- ally opportunistic enterprise. What they they attempted to calism that seemed endemic to the do not capture however, but what region. Even the relative independ- Soliman hints at, is the very real fear reform the state’s ence that the regime had granted the that must have gripped bureaucrats judiciary now seems to be on the wane inside the regime as they saw the rise of financial apparatus, as judges are currently embroiled in a businessmen, some of whom managed high-stakes propaganda war with the to upset very strong government can- how they com- regime over a new law on judicial inde- didates. The Mubarak regime’s adop- pendence. tion of businessmen into the party in pletely failed to do parliament and at the ministerial level All history is the history of unintended maybe a marriage made with a more so, and how they consequences. It seems that all of the sinister ethos; of keeping one’s friends Mubarak regime’s plans to face its close, and one’s enemies, or potential maintained their financial crisis and its ability to patronize enemies, closer. its base have fallen into disarray. And if hold on the country it could no longer placate its base, then perhaps the fault lay with the regardless of that base – and just as Gabriel Marquez’s patriarch sought a new people to rule, “... the very thesis failure. It’s a here the regime came upon the strate- gy of shifting its political base to a new to which Soliman success story....” group altogether. slowly builds is one It is in his discussion of this shift that Samer Soliman’s adaptation of his Phd in which the regime taken unless absolutely necessary. thesis became a talking point in the Violence on the other hand has always opposition press. The phrase he uses is triumphs over the been a tool to which the regime has compelling and makes for a good resorted with less hesitation than eco- headline: he talked of the “Political constraints of the nomic policy. No clearer example of Purchasing Power of Private Capital”. this exists than the low level war Observing that the majority of the ruling rentier model....” between the Ministry of Interior’s securi- National Democratic Party’s candi- ty forces and Islamic fundamentalist dates in the 2005 elections were busi- 34 BOOK REVIEW

rendered, there is a moral argument ently minded segment of the judiciary rep- embedded but never stated in the the- resented by the elected leaders of the “... One is generally sis. One cannot help but sense a cer- Judges Club. tain disappointment by the author at 2. Officially, opposition parties managed a total of 16 seats between, but the figure the deal in which vast portions of the safe if one is entire- does not include members of the Muslim Egyptian population gave up their Brotherhood who were forced to run as ly without initiative political rights in return for patronage independents because of their unoff i c i a l by a regime that would only adopt status. The brotherhood managed to cap- their cause to the degree to which that ture 17 seats in the 2000 elections. and in studying the undertaking ensured its survival, and it is survival now that represents the limits of institutional lethargy the ruling group’s ambitions.

fostered by the The verdict that the regime has suc- ceeded in facing an existential crisis Egyptian regime it remains a qualified one. It has been “... there is a moral able to retain its authoritarianism even becomes clear that as circumstances have forced it from its argument stupor into a complicated series of the principle political gymnastics that have forced it embedded but into a more hazardous alliance than method with which most observers suspect. In gauging the never stated in the dexterity of its recent maneuvers one the Mubarak would do well to consider that the thesis. One cannot regime’s authoritarian nature may well regime has ensured come back to haunt it and its new ally. help but sense a This maybe an occasion to summon its survival against the strange parable of the frog and the certain incremental pres- scorpion: disappointment by On one bank of a wide river a scorpion sure has been a approaches a frog and asks for a lift the author at the across the water. deliberate policy of deal in which vast “I can’t do that,” says the frog, “You’ll doing absolutely sting me.” portions of the nothing....” “It is not in my interest to do that,” says Egyptian popula- the scorpion, “for if I do that we both will drown.” tion gave up their The regime has survived its financial Faced with the impenetrable logic of political rights in crises. But its abandoning of a bureau- the argument, the frog agrees to carry cracy quickly slipping into poverty is the scorpion on its back. As they return for patron- unlikely to pass without major political approach the middle of the raging repercussions. The prospect of domes- waters the frog feels a sharp and age by a regime tic groupings effecting the machina- painful thrust into its back. The scorpion tions of power exposed by The Strong has stung the unsuspecting frog. Regime and The Weak State are what that would only make it such an exciting read. It is a “Why did you do that?” cries the frog in adopt their cause lean volume written in clear language despair, “now we both will die.” but makes for compulsive reading pre- to the degree to cisely because it re i n t r oduces the “I can’t help it,” replies the scorpion as Egyptian population and domestic pol- they sink, “it’s in my nature.” itics to the equation. There is a sense of which that vitality absent in academic works that have resorted to emasculated dis- END NOTES: undertaking course of deceptively comprehensive 1. Prior that is to the ongoing confrontation world-systems theories, and indeed the with judges over alleged government insti- ensured its rentier systems thesis. One senses that gated fraud in the 2005 parliamentary elec- traces of the daily news and tastes of tions which were nominally overseen by the survival....” everyday life were high on the list of judiciary but in which there was widespread interference by the executive branch and ingredients that finally took shape with thugs. Judges have spoken out against sev- this book. Then there’s another quality eral of the more outrageous instances of that cannot be ignored – in spite of the fraud which has in turn led to a propaganda professionalism with which this study is war between the regime and an independ- 35 EBHRC FORUM

THIRD AUC FORUM ON ECONOMIC AND BUSINESS HISTORY OF EGYPT AND THE MIDDLE EAST

It gives us great pleasure to hold the ‘Third AUC Forum on Economic and Business History of Egypt and the Middle East’, which our centre is organizing from May 4 to May 8.

This year’s Forum will have seven sessions as follows:

Three sessions in our ‘Guest Speaker’ interactive workshops with three distinguished guests from the corporate community as well as the field of scientific research. Each will be devoted to an overview of the life and career of the distinguished guest speaker, and an attempt to place this in the broader social, political, and economic context. Each testimony will be followed by open discussions. These sessions follow several hours of recorded interviews.

Two sessions in our ‘Historical Workshop Series’ on the institutional history of the Federation of Egyptian Industries and of scientific R & D institutions in Egypt. These sessions will host distinguished keynote speakers who have played and / or continue to play a leading role in either the Federation or R & D institutions. This comes as part of growing interest at our centre to develop close documentation and studies on key institutional bodies in the Egyptian economy and society.

A session in our ‘History in the Making Series’ which will be devoted to a discussion of the impact of TRIPs on the Egyptian pharmaceutical industry. This session will host distin- guished panelists from the Ministry of Economy, leading private enterprise pharmaceu- tical companies, concerned NGOs, and scientific research. This series reflects the inter- est at our centre in not confining our concept of history to past events, but extending it to include contemporary developments of historical significance.

A closing session devoted to a discussion of Samer Soliman’s recent publication, al- Nizam al-Qawi wal-Dawlah al-Da’ifah. Distinguished Egyptian political economists will comment on the thesis in this work. This comes within an attempt by our centre to keep abreast of ongoing contributions to understanding Egyptian political economy, and towards developing an agenda for research in the economic history of Egypt.

36 FORUM PROGRAM

THURSDAY, MAY 4 The Third AUC Forum

10.00 am -12:30 pm on Economic Guest Speaker Series and Business History Dr. Adel Gazarin: The Industrialist of Egypt and between the Public & Private Domain Ex-Chairman, Federation of Egyptian Industries (FEI); the Middle East : ex-Chairman, al-Nasr Automotive Co. 6th Floor, Hill House, Main Campus May 4-8, 2006

3:00 pm - 5:30 pm Historical Workshop Series; SATURDAY, MAY 6 Institutional History 12:00 pm - 2:30 pm Institutional History of the Federation of Guest Speaker Series Egyptian Industries: Recalling the Past Dr. Mohamed Taymour: -Mr. Samir Allam, Chairman, Allam Contracting Co.; Chairman, Chamber of Building Material Industries (FEI.). Between Professionalism -Mr. Abdel Moneim Seoudy, ex-Chaimran, Federation of Egyptian & Entrepreneurship: Industries (FEI). Striking a balance? -Mr. Galal El-Zorba,, Chairman, El Nile Co-founder and Chairman of EFG-Hermes Co., Chairman, Federation of Egyptian Industries. Rare Books Library -Mr. Abdel Moneim Seoudi, ex-Chairman, Federation of Egyptian Industries (FEI) 4:00 pm - 6:30 pm 6th Floor, Hill House, Main Campus History in the Making Seminar Series Egyptian Pharmaceuticals SUNDAY, MAY 7 & Intellectual Property Rights -Mr. Hossam Bahgat, Director, 9:30 am -12:30 pm Egyptian Initiative for Personal Rights. Guest Speaker Series -Dr. Moustafa El-Hadari, Chair, The Scientist in Public Office: CBIC for Pharmaceutical Industries Support -Dr. Mohamed Bahaa Fayez, Dr. Mustafa Kamal Tulba [Founding Chairman, Ex-Chairman, National Research Center. The Academy of Scientific Research and Technology; -Dr. Hisham Ragab, Deputy Minister of Trade Founding Director, United Nations and Industry for Legislative, Environment Program (UNEP)] Legal Affairs and Internal Trade. & Dr. Mohamed Kassas [Professor Emeritus Rare Books Library of botany at the University of Cairo and a member of the Egyptian Academy of Science] Blue Room, Greek Campus MONDAY, MAY 8

3:00 pm - 5:30 pm 7:00 pm – 9: 30 pm Historical Workshop Series; Perspectives on Contemporary Institutional History Egyptian Economy Research & Development A Discussion of Samer Soliman, in Egypt: A Receding Horizon? al-Nizam al-Qawi wal-Dawlah -Dr. Mohamed Bahaa Fayez, al-Da‘ifah (2005) – Towards a research Ex-Chairman, National Research Center. agenda on Egypt’s contemporary history -Dr. Mahmoud Barakat, Ex-General Manager, Discussants: Arabic Atomic Energy Authority. -Prof. Galal Amin, AUC -Dr. Hani El-Nazir, Chairman, National Research Center. -Prof. Mostafa Kamel El-Sayed, AUC -Dr. Mahmoud Saada, Ex-Vice Chairman, Academy of -Dr. Dr Mohamed El-Sayed Saeed, Deputy Scientific Research & Technology. Head of Al-Ahram Centre for Strategic Studies Blue Room, Greek Campus -Amr Ismail Adly, Ministry of Foreign Affairs -Mostafa Hefny, EBHRC 37 Blue Room, Greek Campus OUR ARCHIVES

OUR ARCHIVES... ORAL HISTORY RECORDS: he following are samples of the documents contributed to EBHRC to be part of its archival depository. Donors of documents vary elow is a list of EBHRC’s oral from individuals to institutions. In addition documents received history interviewees. The list T excludes the interviewees of vary from original to copy forms and some old documents were pur- B theYoung Scholars projects. chased from a collector of old papers and artifacts in downtown Cairo. Donor name followed by a description of the documents will INDUSTRY, OIL, AND PUBLIC POLICY be found below: Eng. Mohammad Abdel Wahab Eng. Fouad Abu Zeghla Eng. Abdel Megeid Asal Aziz Sidqi: Cooperative Society 1959). 2. Bahth ‘an Wasa’il Tanmiyyat al-Tijara al- Eng. Adel El Danaf Dakhiliyya wa Mada al-Nuhud Biha Dr. Adel Gazarin Ministry of Industry Publications: (Paper on the means for Developing Dr. Mahmoud Helal 1.“al-Thawra al-Sina’iya fi ‘ahad ‘ashar Internal Trade and The Extent of Eng. Abdel Moneim Khalifa ‘aman 1952-1963.” ( Eleven Years of Promoting It) 1961. Eng. Farouq Shalash Industrial Revolution). 3. Taqrir ’an Rihlat Mohammad AbdelAziz Dr. Rouchdy Said 2. “Dalil al- Sina’a fi Misr fi thalathin sana Zayed Ra’is Majlis al-’idara lil-kharij ’an 1952-1982” ( Guide to Industry in Egypt in Eng. Ibrahim Salem Mohamedein al’Mudda min al-’usbu’ al-’akhir min Dr. Aziz Sidqi 30 years). ’uktubar hatta al-’usbu’ al-Thalith min December Sanat 1965 (Report on Dr. Ismail Sabri Abdullah Dr. Hasan Abbas Zaki Banque Misr Publications Mohammad AbdelAziz Zayed’s [Chairman of The Alexandria Commercial Company] Trip Abroad [Duration: Last BANKING, INSURANCE, AND FINANCE 1. Sixtieth Anniversary 1920-1980. Week of October 1965 – Third Week of 2.Diamond Jubilee 1920-1995. Mr. Mahmoud Abdullah September 1965]). 3.Golden Jubilee 1920-1970. Dr. Salwa El Antari 4. Taqrir ’an Rihlat Mohammad AbdelAziz 4. Part 3 of Talaat Harb’s collection of Mr. Ali Dabbous Zayed Ra’is Majlis al-’idara ila al-Yaban speeches 1939. wa al-Wilayat al-Mutahida wa al-Miksik Mr. Mohamed El Barbari (Report on Mohammad AbdelAziz Dr. Abdel Aziz Hegazy Café Riche Documents, Zayed’s [Chairman of The Alexandria Mr. Ali Shahin Commercial Company] Trip to Japan, The Mr. Fouad Sultan Official Douments: United States and Mexico [Duration: Dr. Bahaa Helmy 1. Maslahit il-Dara’ib il-‘Aqariyya records October/November 1966]). Mr. Hasan Hafez 1905 5. Taqrir ’an Rihlat Mohammad AbdelAziz 2. Official copy of Maslahit il-Dara’ib il- Zayed Ra’is Majlis al-’idara lil-’aswaq al- PRIVATE ENTERPRISE ‘Aqariyya records 1907. Qutniyya fi ’urupa al-Gharbiyya (REPORT 3. Récépissé de déclaration pour un étab- Mohammad AbdelAziz Zayed’s Mr. Mansour Hasan lissement public: 16 October 1914. [Chairman of The Alexandria Commercial Mr. Mohamed Taymour 4. Formal Declaration to the Office of the Company]Trip to The Cotton Markets in Mr. Ashod Papazian Assistant to the Chief of Police: 9 May Western Europe [Duration: June 1968]). Mr. Adel To'ma 1916. 6. Taqrir ‘an Ma‘rad Suq Bari b-Italya Mr. Henry Francis 5. Déclaration pour l’ouverture d’un étab- (REPORT The Bari Exhibition, Italy Cheristo lissement public: 9 May 1916. [September 1970]). Mr. Nadim Elias 6. Inspection Report: 16 May 1916: Chief 7. MINESTERIAL ORDER: The order is the of Abdin Police Precinct. permission granted to Zayed to attend Mrs. Laura Kfoury 7. Internal Note: Cairo City Police: the Bari Exhibition as Deputy Governor of Mr. Mounir Ezz El Din For/Commandant C.C.P.: 8 July 1919. the Central Bank. Dalil al-Wukala’ al- Mr. Zeyad Nashef 8. Internal Note: Confidential: Tijariyyin bil-Iqlim al-Misri, 1960 (Directory: Dr. Bahaa Raafat Commandant C.C.P.: For/Acting Trade Agents in the Egyptian Province, Mr. Hasan Ragab Commandant C.C.P.: 20 July 1919. 1960.) The directory is published by “The Mr. Louis Bishara 9. Contract: 14 July 1921, Déclaration General Union of Chambers of Eng. Ali Tawfik pour l’ouverture d’un établissement pub- Commerce” lic: 4 November 1942. RESEARCH AND DEVELOPMENT 10. Petition submitted by Mr. Abdel Malak Purchased Documents: Mikhail Salib: 22 May 1962, which cites the Dr. Mohamed Bahaa Fayez transaction contract with Avayianos, regis- 1. Land Contracts: Three land contract Dr. Mahmoud Saada tered in 1962. registered in the court of Alexandria in Mr. Ali Hebeish 11. Letter from Russell Bey to Camp 1889, 1890 and 1893 under the Khedives’ Dr. Mostafa Kamal Tulba Commandant of the British Officers, Head government. Dr. Mahmoud Barakat Quarters: 26 February 1918. 2. Stock Certificates: Credit Foncier Mr. Smaer El-Mofti Mohammad AbdelAziz Zayed Egyptien 1951, Societe de Biere “Les Pyramides” 1956, Egyptian Federation for EGYPTIAN ECONOMISTS AND Agricultural Products 1943. Receipts: Three INTELLECTUALS Papers/Reports: receipts from the Piastre Project for the 1. Muzakira bi-Sha’n ’usus al-Tijarah al- Revival of Egyptian Industries (mashru’ il Dr. Heba Handoussa Dakhiliyya wa al-Kharijiyya fi al-Mujtama‘ qirsh). Dr. Galal Amin al ’Ishtiraki al-Dimukrati al-Ta‘awuni 3. Letter from Michel Politis to Assistant to Dr. Mohamed Duwaidar (Memo Re: Foundations of Internal and the Chief of Police: 9 May 1916. Dr. Mahmoud Amin El Allem External Trade in the Socialist Democratic

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