The American University in Cairo

ECONOMIC AND BUSINESS HISTORY RESEARCH CENTRE CHRONICLES

JULY 2005, VOL 1/1

The Editor’s Note 1 The Director’s Note 1 h Index - “Al-Dalil” 3 May 2005 Forum Industrial Revolution Crippled by Lack of Innovation 5 r A Historical Glance at the Egyptian Textile Industry Before it Migrates 7 An Egyptian Car Called Fiat: Egypt’s Experiment in the o Automotive Industry 9

Fouad Sultan: A Champion of Economic Liberalism 11 The Rentier State in The Middle East: Oil…& Others? 13 n Hearing the Voices of Egyptian and African Firms 15 Seminar Series Listening for History: A Report on “Oral History: Scope, i Fidelity and Methodology” 17 Young Scholars Papers

A Tale of Two Banks; A Bank’s History in Perspective 21 c Documenting the History of the Century-Old Café Riche 23 Heliopolis: Beyond the Centenary 25 l Appendix: Archives 27 e Announcments 28 s EDITOR’S NOTE... he Economic and Business History Research Centre (EBHRC) CONTRIBUTORS originated while embracing a spirit to provide a forum through Twhich young graduates interested in academic research can Editor: Dina Khalifa explore a wide scope of research topics via the various activities of the Centre. EBHRC’s The Chronicles is yet another medium through Copy Editor: Prof. John Salevurakis which the goal of promoting historical research, particularly in eco- nomic and business history, is sought. Business history, being a virgin Director, EBHRC: Prof. Abdelaziz Ezzelarab field in Egypt and the Middle East, is a perfect match for a centre that brings together the voices of the past through oral history and Project Officers: Mostafa Hefny the young researchers. A pool of activities: An annual May Forum, Wael Ismail a seminar series and a Young Scholars Conference, crystallize the Karim El-Sayed activities of the Centre. Reporting them launches the first issue of Dina Waked The Chronicles.

Young Scholars Contributors: The Chronicles is meant to provide a space for EBHRC’s historical Lina Attalah records outside archival boxes to reach a wider crowd. Beyond the Mohamed I. Fahmy Menza closed seminar rooms and workshops, The Chronicles becomes an outlet for the researchers to share their reflections on the various Layout &Design: Magda Elsehrawi issues that they come across in their work. Borrowing from a grow- ing collection of oral history records, a rich material craves to be Logo: exposed and such a publication becomes a convenient channel. Nadine Kenawy While digging through the narratives of the past, the present still haunts us. Amid enthusiasm to explore new projects, EBHRC ******* embarked on a project of producing an index for contemporary economic and business news items, namely “al-Dalil.” A reflection About EBHRC on this project is included in the first issue of The Chronicles. Like the EBHRC Executive Committee: index project, The Chronicles is also a forum to shed light on signifi- Prof. Ahmed Kamaly cant current economic and business affairs. Prof. Nagla Rizk Prof. John Salevurakis This issue begins a journey of producing a periodic publication that Prof. Herbert Thompson reports on the Centre’s activities and provides to the reader rich substantive pieces of writing that bounce between the history and EBHRC Supporting Institutes: the present. Center for Middle East Studies, Harvard University Dina Khalifa, Project Officer, EBHRC Near East Studies Program, Princeton University Princeton Institute of International and Regional Studies (PIIRS) Middle East Center, University of Pennsylvania WORD FROM THE DIRECTOR... Middle East Center, University of Washington his month, the Economic and Business History Research Centre Global Business Center, Business School, (EBHRC) will complete its first year of existence. In our first year of University of Washington Toperation, we worked in several directions to fulfill our mission of Office of Provost, AUC acting as a centre for documentation and research in the eco- Office of Dean of BEC, AUC nomic and business history of Egypt and the Middle East.

EBHRC Collaborating Scholars: Oral History was one of our most vibrant activities in terms of its Prof. Ellis Goldberg, outcome and the energies it claimed in background re s e a rc h , (University of Washington) interviewing, transcription, and liaising with interviewees for text Prof. Roger Owen (Harvard) a p p roval. We already have on hand some 64 hours of re c o rd e d interviews with former high state officials, economists, corporate Prof. Robert Tignor (Princeton University) executives, businessmen, and entre p reneurs. Some 25% of these Prof. Robert Vitalis re c o rds have already been transcribed and are at diff e re n t (University of Pennsylvania) phases of obtaining interviewees’ permission to make them avail- able for re s e a rchers. There are two areas that need enhance- ment during the coming year as far as oral history is concerned: 1 bringing up the process of transcription to a level closer rate affairs through intense extractions from selected to par with interviewing and beginning systematic papers and magazines. Since this was taken on trial indexing of the contents of various interviews and tran- basis, we confined ourselves to three Arabic daily scripts. papers and three weekly publications (two in Arabic). Our attempt resulted in some 60-page index that cov- Another vibrant area of activity is Young Scholars ers March 05, to which we gave the title al-Dalil (‘The Research. Our pool of ‘Young Scholars’(YS) includes Directory’ or ‘The Guide’). The experiment showed that over 60 names of recent graduates with active or this is an activity that requires a very substantial share of potential involvement in the centre’s activities. The most available resources at the expense of other activities active among them are the four Project Officers who that involve the direct gathering of material or con- are employed on full time basis to conduct the various ducting research. We accordingly decided to discon- activities, including oral history, conference organiza- tinue it until such time when we could assemble a team tion, and publications. This year, together with other YS, dedicated mainly to this particular work, possibly under they conducted methodological and field research on some special funding arrangement. topics that included the study of business history in US academia and its relevance to Egypt, entrepreneurial As The Chronicles comes close to its first appearance, initiatives in large enterprise, as well as case studies of our role as a Service center for researchers is beginning small businesses, suburban development projects, and to be realized. We are just starting to receive requests foreign business communities. Field research involved from scholars and graduate students to access the fairly intensive use of oral history and new archival material presently in our possession. This has begun material. recently as awareness of our existence began to spread through the previous activities as well as other During the spring semester, some of the results of this contacts with scholars and institutions at home and re s e a rch were disseminated through a series of abroad. We expect this demand to increase with con- Seminars and Conferences that also provided an tinued activities and communication, particularly with opportunity to explore the employed methods and to the circulation of The Chronicles among interested address new areas of inquiry. A revised version of some scholars and centers. of this research will be presented in MESA 05 in a panel titled ‘Egyptian Business History: New Sources, New We hope that The Chronicles will be a venue for spread- Methods and New Directions’. ing awareness of our existence and interacting with our readers and potential constituencies. Through this As explained in another section of The Chronicles, venue, we hope to acquaint the readers with our stock EBHRC was the outcome of meetings held during the of source material, keep them abreast of fresh additions ‘First AUC Forum for the Economic and Business History to that stock, and investigate possible research ques- of Egypt and the Middle East’ that was held in May 04. tions that this material could open up. In addition, we In keeping up with this tradition, the centre organized will be using it to make calls for papers and a news bul- the ‘Second AUC Forum for the Economic and Business letin on the center’s activities in general. Furthermore, History of Egypt and the Middle East’ in May 05. Through through a close scrutiny of current periodicals on Egypt a number of closed workshops with former ministers, and the Middle East, we will try to make of T h e corporate executives, and business people, the Forum Chronicles a tool for following ‘history in the making’, so involved the accumulation of fresh source material on to speak, through news and focus captions that cap- Egyptian industrialization and industrial policy, tourism, ture current events of historical significance in public and the textiles and automotive sectors. The use of this policy, economics, and business affairs. gathering as a forum for accumulating fresh material highlights its unique nature in contrast to other scholarly Finally, there remains a word of due thanks. Like all else gatherings. that EBHRC has done in its first year of existence, The Chronicles comes out by the energies and hard work of During our first year of operation, our Archival Collection the center’s crew of young Project Officers: Karim El- relied mainly on documents which we acquired in the Sayed, Mostafa Hefny, Wael Ismail, Dina Khalifa and course of field research, as well as donations of docu- Dina Waked whom we are losing to Harvard Law School ments or publications by our expanding list of contacts soon. It is their energies that carried the center through- particularly those generated through oral history efforts. out this year, and it is to them that it owes whatever is There were also a few occasions when we acquired reported between the covers of this magazine. The documents and rare publications by direct purchase Chronicles comes out as a final piece of their work this from second hand book and general dealers. In the year, helped as usual by the never failing support and coming year, we will continue to rely on these sources, art-creativity of Magda El Sehrawi who has always but will also attempt to explore the prospects for obtain- acted as part of the center’s family even without offi- ing private papers of state or corporate officials through cially belonging to it. direct contacts with their descendents. Abdelaziz EzzelArab, Director, EBHRC Earlier this year, we also tested the possibility of produc- ing a Monthly Index of Egyptian economic and corpo- 2 Orascom Construction Industries (OCI), Company announces Capital Taxi Project, 04 operating results and projects under construction in Cairo Local Council Arab markets (al - H a y a t , March 7, p. 15); The company approves new tariff for calls for a General Assembly meeting on 15 March the Capital Taxi project 2005 to discuss issuing LE 1.45 billion bonds. with EGP 3 for first (al-Boursa al-Misriya, supplement to al-Ahram fare and EGP 1 for al-Iqtisadi, March 7, p. 8); The Company’s each kilometer. GDRs witness an upsurge due to the release (a l - A h r a m , Ma r c h of the company’s financial statements. a(l - 1, p. 14); ‘Alam al-Yum, March 8, p. 15); Record Cairo gover- profits pushes share to new high levels. norate opens (al - M a l , March 13, p. 7); Egyptian Company the floor for GDR’s traded in London Exchange witnessed tender on the considerable activity in accordance with “Capital Taxi trading of stocks in Egyptian exchange. The Project” via com- trading in Orascom Telecom, Orascom panies in coordi- Construction Industries and the Commercial nation with the International Bank are most active. al-‘Alam( al- Ministries of Finance Yu m , March 15, p. 15); OCI to issue bonds for LE 1.45 and Transportation. billion. (al-‘Alam al-Yum, March 16, p. 1, p. 9); (a l - A h r a m , March 9, p. 9)

librarian walks in on respectable, bespec- of contemporary happenings lends their work imme- tacled middle-aged man ravaging the diacy and purpose. A picture of the present shapes top shelves in the introductory economics the economic historian’s portrait of the past, giving it section at a large university’s library. She relevance not only to the scholar, but also to govern- offers her assistance. Panting, panicking, ment, entrepreneurs and the layman. heA declares, “I am an economist. I've been teaching at this university for the past ten years. I'm attending a At the Economic & Business History Research Centre a business meeting tomorrow, and I need to know how concrete link between issues in the Egyptian econo- the economy has changed in the past ten years." my and the center’s collection of historical material on same is constructed through al-Dalil, a monthly The above is an old joke on the remoteness of the index of broadly defined economic and business economist told -more often than not- by economists. news emanating from six leading publications. The historian’s residence in beautifully imaginary ivory towers of rosy narratives is as palpable and common Al-Dalil is a record of history as it happens. With an eye a charge. The accusations are not groundless. For his- to accessible readability, the editors synthesized the torians and economists a connection to the real world myriad of news stories into coherent entries that tie isolated

3 Qualified Industrial Zones Protocol (QIZ), QIZ Consumer Protection, The doubles our exports to the US. This is noted Minister of Foreign Trade & as The Ministry of Foreign Trade and Industry Industry issues decree to ensure hands out 397 certificates to companies for QIZ that food industries abide by purposes. (al-’Alam al-Yum, March 1, p. 11); international standards and pro- Egyptian businessmen voice demands to remove tect consumer rights in efforts obstacles against implementing QIZ al-‘Alam( al- to promote exports. (al - A h r a m , Yu m , March 7, p. 11); An undisclosed Egyptian March 1, p. 17); The Committee textile company has imported 1,000 tons of for Consumer Protection in the Israeli cotton and negotiates for another 1,500 cars sector of the Chamber of tons shipment. (al-‘Alam al-Yum, March 12, p. Commerce called for the impor- 10);The repercussions of the application of QIZ tance of sticking to the specs and the plan of penetrating American markets. of local and exported goods by (al-Ahram al-Iqtisadi, March 14, p. 3); A num- companies. (al-Ahram, March 4, ber of 397 Egyptian companies are sched- p. 7); The Prime Minister uled to start exportation next week to addresses the anti-trust the U.S. as part of the QIZ agree- law and draft law on the ment. Ongoing debates rage on the consumer’s protection. real benefits of QIZ. a(l - A h r a m (al - A h r a m , March 4, p. al - I q t i s a d i , March 14, p.14); The 1) Minister of Foreign Trade & Industry investigates granting 120 million pounds for the factories that are negatively affected by the agreement. (al-‘Alam al-Yum, Ma r c h Shell Egypt, Shell uti- 19, p. 1); An analytical op-ed piece lizes technology for deep- declares that the missing price in water exploration for natu- the QIZ protocols is foreign invest- ral gas in 3 exploratory ment. A similar case is found in Jordan, wells off Mediterranean coast. where the agreement has brought the country (a l - A h r a m , March 2, p. 17); The $500 million in investments. A call for Company takes 30% share in redesigning export policy to exploit the agree- Western Desert concession with ment is also made. a(l - M a l , March 20, p. 4); Tharwa Petroleum Company (45%) The ministry of Foreign Trade and Industry and Petronas (25%) (al-‘Alam al- researches new mechanisms of supporting Yu m , March 7, p. 1;a l - A h r a m , exporters that do not fall under the QIZ agree- March 7, p. 17; al - H a y a t , March ment. (al - A h r a m , March 20, p.16); Competition 7, p. 15) and price wars rage between the exporters in the QIZ. (al-’Alam al-Yum, March 28, p. 4)

news items to related stories in two parallel categories: A complete index for the month of March 2005 now a subject index in which a collage of topically related exists. It is the model that EBHRC will follow to produce stories are assembled and a company index in which an expanded version when the resources become news items relating to a specific enterprise are available for the laborious, methodical but rewarding grouped together. The entries are edited to form a process of extraction, synthesis and editing of all daily chronological narrative of a subject or company, as economic news from Egypt and the Middle East. reported by selected publications within the month.

The number of publications has been limited to six (three of which are specialized) during this experi- mental phase of production. As the center acquires the resources necessary to raise the number of publi- cations, additional perspectives on the news events that shape the economies of Egypt and the Middle East will provide the many-angled view that is the rasion d’etre of this project.

4 MAY 2005 FORUM INDUSTRIAL REVOLUTION

CRip LEd by LACK

of i n n o v a t i o n

Wael Ismail, Project Officer, EBHRC.

nder the umbrella of the speak in the personal narrative industrial prospects, that was so Second AUC Forum, the workshops, was primarily due to his evident in the previously conduct- Economic and Business multi-faceted career in industry. ed , only appeared in the Q & A History Research Centre The other workshop followed the period. The topic of Research and (EBHRC) organized a same format hosted His Excellency Development (R&D) that was to Uworkshop based upon the person- Mr. Fouad Sultan, former Minister of dominate the workshop was al narrative of His Excellency Eng. Tourism and Civil Aviation. The two broached by Dr. Heba Handoussa, Mohammad Abdel-Wahab, for- f i g u res were appointed to the former advisor to various Ministers mer Minister of Industry. This work- cabinet in the mid-1980s and left of Industry and founder of the shop was entitled, “Egypt in office by 1993. Other than docu- Economic Research Forum (ERF). Industrial Quest.” This form of work- menting their narratives, these R&D as well as the general con- shops is considered an expansion workshops were meant to show- cept of innovation and technolog- of the currently adopted method case different individuals working ical advancement ( as well as its by the centre based upon one on in the same period under one gov- impact on industry) were the main one interviews. It was enriched by ernment. It was believed that this points discussed in the session. the attendance of executives from workshop would also highlight a Although Eng. Abdel-Wahab tack- various industrial sectors as well as paradox that speaks loudly about led other issues, including the i n t e rested scholars and a period filled with important yet famous General Motors deal in the researchers. subtle changes uncharacteristic of 1980s, the proposed Egyptian p o s t - revolutionary or post-infitah Nuclear power station and Eng. Abdel-Wahab was one of the eras. Law203/1991, every other topic, first people who agreed to partici- question or answer seemed to pate in oral history interviews con- Eng. Abdel-Wahab spoke for come down to the issue of R&D. ducted by the centre and his almost 40 minutes. However, his choice, as one of two guests to passion while talking about Egypt’s 5 MAY 2005 FORUM

benefits. Primarily, it allows several able to adapt and create tailored individuals with a dispersed spec- equipment to suit Egyptian needs. “to the rest of the trum of interests to ask questions His efforts were crowned by the and extract information from these projects Egypt won to export sugar , valuable figures in a manner unat- factories to both Sudan and Iran WORLD tainable in other ways. Further, the through international bids. audience will not usually confine technology itself to merely asking questions or This obsession with R&D exhibited commenting, but will add histori- by Eng. Abdel-Wahab is deeply has become a cal substance to the ensuing rooted in the line of thinking that debate. Former Minister of promotes a production mentality “commodity” Planning Dr. Ismail Sabri Abdullah's based upon a “value-added” interjection is a prime example. He framework rather just pro d u c i n g in the went about comparing the role of mere outdated old replicas. To the traded the Economic Development rest of the world, technology has O rganization (EDO), which he become a “commodity” traded in international headed in the late 1950s, to the the international markets and with- holding companies set up under out acquiring and nurturing this markets law 203/1991. commodity at home; Egypt will not be able to join the advanced The narrative that was given by world. He indicated that current and without Eng. Abdel-Wahab was not only Egyptian industrialists are well acquiring and based upon his time as Minister of aware of what is taking place in Industry, but was extended to the world. However, they remain include previous experiences totally ignorant of what is going to nurturing this whether in the military industrial happen in the future. They insist on complex or later on as a head of a linking their “manual labor” with commodity at home; number of companies. It seems, foreign technology and thus inhib- however, that his spell as Minister it local original thought from ever was colored by his willingness to prospering and growing. Egypt will NOT BE promote local industry and intro- duce to it the required level of innovation and development ABLE to join the needed to transform what he “this workshop called “simple production units” into an integrated set of industries advanced able to compete in the interna- would also highlight tional arena. It is more than appar- ent to those familiar with Eng. a PARADOX that WORLD...” Abdel-Wahab’s background that he was influenced by his work at the military industrial complex. He, speaks loudly When Dr. Gouda Abdel Khalek, of course, once referred to the Professor of Economics at Cairo complex as the sole entity with about a period University, asked about the missing industrial activities in Egypt. link in Egypt’s industrial strategy, FILLED with Eng. Abdel-Wahab did not hesi- A believer in Egypt’s indigenous tate to indicate that it was the capabilities from real world experi- absence of the R&D mentality. The ence rather than through abstract important yet importance of these types of work- notions of patriotism and glory, shops is that they bring the archi- Eng. Abdel-Wahab remained an subtle changes tects of Egypt’s past economic ardent advocate for a number of structure closer to a specialized policies meant to create and uncharacteristic and interested audience more increase demand for locally pro- curious about what actually took duced goods and R&D activities. of place rather than working to fit He was responsible for the adop- post- certain historical events into a pre- tion of a number of laws designed determined theoretical paradigm. to increase interest in those activi- revolutionary or Needless to say, this form of col- ties. By promoting the production lecting oral history through an of capital equipment, he meant to post-infitah eras...” enlarged format has a number of create a strong engineering force 6 MAY 2005 FORUM a HISTORICAL Glance at the EGYPTIAN Textile Industry before it M I G R AT E S .. .

Dina Khalifa, Project Officer, EBHRC.

he Textile Industry between MD of the Egyptian Knitting and Ready Made Private and Public Hands" Company. Dr. Heba Handoussa, founder of was the title of the historical the ERF, served as the chair of the session and workshop taking place on the two hour workshop swayed between the May 14th as part of the reminiscences of the old cotton bourse, the Second“T AUC Forum on Economic and Business pre-revolution liberal era, the predicaments of History of Egypt and the Middle East. With nationalization and the current path back to three panelists who are experts in this industry: private control. Thus, the diversity of Mr. Louis Bishara, creator and chairman of a d d ressed topics formulated an historical BTM, Mr. Mounir Ezz El Din who is the chairman, overview of an industry standing as Egypt's MD and founder of the Egyptian Irish Co. for most important and also a view of Mohamed Linen and Dr. Bahaa Raafat, chairman and Ali's impact upon modern Egypt.

7 MAY 2005 FORUM

The pre-revolution era has been characterized by cos- agement even after nationalization. Dr. Raafat mopolitanism, free market, competition and the crest explained how in 1954, management had a vision to of the private sector. Thus, while attempting to trace bring an expert from Belgium in order to implement an the origins of the textile industry, Mr. Bishara remem- industrial plan for the company. This plan was later bered the categories of Egyptian cotton in the bourse, adopted to organize most of the textile factories after "I can still hear it in my ear," he said, "Karnak, Zagura, nationalization. Thus Dr. Raafat maintained that nation- Saklaridis…the finest of cotton. That was a free market." alization does not have negative effects if coupled with Whether Egypt's textile industry was doomed by its long good management. In addition, he stressed that the staple cotton and by constant attempts since greatest harm was done by the authorities who cen- Mohamed Ali to use high quality cotton in the produc- tralized the management of the textile companies, rais- tion of low quality goods was a question that Professor ing a banner of “we have to govern them all.” Roger Owen of Harvard University put forth. Professor Owen re-iterated how, in the light of the laws of 1920, With a labour-intensive industry such as that of textiles, Egypt was not allowed to import low quality cotton and the status of workers was invariably a topic of this dis- thus, being unable to face competition, textile mills cussion. Mr. Ezz El Din explained how the labor laws were doomed to sell- after 1952 disrupted the ing mainly in a pro- relationship between the tected Egyptian mar- “Beside the workers, the employees ket. In response, and and the factory. He elab- given the very limited orated that the workers and specialized cotton dilemma, the no longer worked for pro- demand for long sta- duction incentives. He ple cotton, the pan- recalled how he was elists addre s s e d n a t i o n a l i z a t i o n constantly being trans- attempts by the cur- ferred between the vari- rent regime to encour- of the 1960s ous companies. Such a age the production of strategy led to a short and medium decrease in the employ- range cotton as well was a MAJOR POINT ees’ loyalty to the place the importation of of pro d u c t i o n . cheap Asian varieties. in the path of the Conversely, Professor Ellis D r. Raafat and Mr. Goldberg of University of Bishara pre s e n t e d Washington argued that interesting remarks on i n d u s t r y . . .” Law 317 of 1952 gave the matter with the for- workers more rights to mer voicing the fear retain their jobs and thus that engineers might meddle with the genetic nature increased the loyalty to firms. Dr. Raafat justified the of Egyptian cotton by replacing it with the short, lower over staffing as a result of the labour laws by arguing quality cotton. Bishira noted that, due to the Egyptian that, since everything was then controlled by the pub- climate, attempts to cultivate lower quality cotton lic sector, a fired worker would have no alternative often fail. place to work. He then added that it became the management’s responsibility to efficiently use its human Aside from the cotton dilemma, the nationalization of resources. On an ending remark Dr. Hadoussa stated the 1960s was a major point in the path of the industry. that, despite the pitfalls of the state control era, one Even though the state control era constituted only 15 thing that can be praised is the presence of a vision. years of the industry’s history (1961-1974), it still domi- There existed, in essence, “a bill of right that brought nated the discussion when addressing industry hurdles. people around it even in the industrial complex.” By Dr. Handoussa stated that nationalization was particu- contrast, vision is what is currently lacking in our modern larly detrimental to the dyeing and finishing industries socioeconomic system. and that, even today, it is very difficult to revive them. There was a general consensus that management In an earlier interview with Mr. Bishara, he described the played an important role in the fate of the industry. global trend of the textile industry as migratory toward Issues of credibility and managerial competence were the south due to its labour intensive nature. Thus, before addressed when Mr. Ezz El Din asserted that chairmen it migrates, it operates in a relatively open economy of textile companies were replaced by military officers and free market. Simultaneously however, the textiles who lacked the essential industry knowledge and experts call for an industrial vision by the current gov- focused on organizational discipline. In contrast, Dr. ernment and competence on the part of the new busi- Raafat shared his experience in the Misr-Rayon Co. nessmen engaged in the technical aspects of the which stood as a successful example of good man- industry. 8 MAY 2005 FORUM An Egyptian Car Called F i AT Egypt’s Experiment in the Automotive Industry

Wael Ismail, Project Officer, EBHRC.

ne of the Centre’s workshops in its second industry. Most scholars, researchers and even practi- annual forum was dedicated to an industry tioners attributed this adventure to reasons such as Othat has long been cloaked by controversy, political glorification associated with the production failures and high expectations. This is, of course, the of a domestic car whilst others theorized that it was automotive industry. Although this workshop was needed for the creation of viable and strong designed to study an industrial sector, it even- feeding industries. The debate tran- tually reviewed the ebbs and flows of a scended the specific example of El company that has become synony- Nasr Company which constant- mous with the car industry in Egypt, El “this workshop ly stimulated the debate. Nasr Company for Automobiles. Other issues discussed The invited panel consisted of El was to study an included the nature of the Nasr Company chief executives designed car industry and its rela- Eng. Dr. Adel Gazarin, Eng. tionship with its feeding Abdel Moneim Khalifa, and industrial sector, industries as well as the Eng. Magdy Abu Zeid. Other c u r rent status of speakers came from differ- Egypt’s automotive ent backgrounds, including it eventually reviewed the sector. Eng. Ali Tawfik from the feeding industry and Mr. ebbs and flows Eng. Magdy Abu Ziyad Nashif re p re s e n t i n g Zeid, the current MD the view point of multina- of a company that has become for production and tional companies. Dr. Heba marketing affairs at El Handoussa, whose insight SYNONYMOUS with the Nasr Company spoke and ability to connect scat- passionately about a t e red narratives, enriched car industry in EGYPT, company being driv- the debate by chairing the en to bankruptcy by a panel. continuing legacy of El Nasr Company for misguided policies The enterprise history of El Nasr imposed by the govern- Company shaped the course of Automobiles...” ment. The company, which the workshop. However, the work- c o n t rolled the automotive shop also addressed the history of the market in Egypt since its cre- car industry in Egypt beginning with a dis- ation in 1960 through the mid- cussion of the establishment of Ford 1980s, was plagued by a number of Company for assembling cars in the early 1950s and decisions that burdened it. These included finishing with a discussion of assembling companies in assigning the company too many projects with various the 1990s. The historical presentation also touched international companies and having too many work- upon a point that received little attention. This point is ers left wandering aimlessly around the streets of the that Egypt’s automotive industry stemmed from the factories when work was slow. Further, the company military desire to supply its own need for trucks and was deprived of valuable investments necessary to buses. This is a statement that truly sheds new light on compete in such a market where only the most effec- the reasons behind delving into this capital-intensive tive and innovative of companies survive.

9 MAY 2005 FORUM

This is due simply to the fact that such an industry is exposed these executives and even workers to the based upon technological breakthroughs and huge world markets thus offering a chance that could have capital investments. Eng. Khalifa, former chairman of been impossible without the company. Although the El Nasr Company indicated that R&D, “was totally losses of the company and its failures are well docu- neglected and that the concept was not truly appre- mented and quantified, its gains are still unexplored ciated.” This forced the company to remain ever and are most probably largely unquantifiable. bound to foreign licenses and know-how. The ques- tion that was on every one’s mind was triggered by Dr. Addressing the latter question Eng. Abu Zeid stated Handoussa when she asked the panelists to explain that the dissection of El Nasr Company in 2000 into why Egypt failed while so many other developing four divisions was meant to hasten the process of pri- countries such as Turkey, Korea and Tunisia vatization. However, the burdens of all the succeeded. Mr. Nashif as the most projects were consolidated into the adamant advocate of free enter- passenger car division thus crip- prise stated that the failure pling the ability of the com- “was a natural result for a pany to operate in the government- run compa- market. The passenger ny.” The other speakers car division, which is attributed the disap- “we will be now an independent pointments to the company, currently lack of government ranks second in the support which is, market in terms of naturally, unlike FEELING the sales. However, what took place in since the the above-men- a n n o u n c e m e n t tioned countries. of the sale of El The govern m e n t of in Nasr in 1996, the did not invest in El wind CHANGE company lost its Nasr Company for Fiat contract and almost 14 years was left only with which is a horrifying p roduction of the fact putting in mind the Egypt” Turkish Shahin automo- nature of the automotive bile. The recent decrease industry. Another important in customs duties, however, fact to point out is that the com- did not bolster the position of pany operated for a very long time the company as it became more in a government-controlled setting where it exposed to foreign competition. almost lost whatever abilities it had to stay in tune with the needs of the local and external markets. Dr. The general image of the El Nasr Company and the Gazarin indicated that the company and Egyptian entire automotive industry in Egypt was perceived dif- firms at a certain point in time lacked, “the art of ferently by the panelists. Mr. Nashif, stated, “we have exporting.” This inability was nurtured by the govern- to be realistic, nice people do not win battles.” His ment and forced the industry into a track paved by outlook stems from a multi-national background and improper calculations and a lack of vision for the is innately critical of Egyptian policies that do not offer future. the right incentives for investors to enter the market. He called for a clearer understanding of what multi- The final part of the workshop was dominated by two nationals need via the adoption of a number of inno- questions asked respectively by Dr. Abdel Aziz vative and creative strategies catering to the needs Ezzelarab, Director of the Centre and Dr. Nagla Rizk, of these giant conglomerates. This gloomy approach Associate Pro f e s s o r, and Chair of the Economics was not shared Dr.Gazarin who stated that, “soon we Department at AUC. Ezzealrab’s question was con- will be feeling the wind of change in Egypt” which will cerned with the appraisal of the firm’s experience usher in a new era for the automotive industry. The thus far and Rizk’s aimed towards knowing future steps focus of the future might not rest in passenger cars but and plans for the industry. In response to the former it might be in the bus or truck manufacturing indus- question, Dr. Gazarin, reiterated statements that we tries. had heard previously in one of our interviews with him. He stressed the importance of El Nasr Company as an institution helping to create a cadre of executives that are currently running the Egyptian automotive industry. He further added that El Nasr Company

10 MAY 2005 FORUM F uad Sult n: A CHAMPION of Economic

Karim El-Sayed, Project Officer, EBHRC

he first session of the Second information he gave about specific AUC Forum on Economic & business ventures, like the infamous Business History of Egypt & General Motors offer to rent the the Middle East featured a It was evidently p roduction lines of Al-Nasr talk by His Excellency Mr. “ Automotive Co., the first of its kind TFouad Sultan, the former Minister of privatization deal of public-sector Tourism and Civil Aviation and this lack of hotels, but also his insight as a presently the CEO of Al-Ahly for Minister in the government that Development & Investment (ADI). support from adopted the IMF-suggested Mr. Sultan was invited to share his Economic Reform and Structural experiences in the National Bank of Adjustment Program (ERSAP). More Egypt and later the Central Bank inside the importantly, one benefited even with the International Monetary m o re from listening to a stro n g Fund (IMF). His experiences in the CABINET that advocate of economic liberalism cabinet with scholars, university who has been consistent, through professors, economic historians and eventually his writings in the press and his pio- young researchers also contributed neering decisions and actions, in to this session. led Mr. Sultan to promoting the need for reform and structural readjustment of the legal Following numerous pre l i m i n a r y regulatory framework to allow for meetings between Mr. Sultan and leave his greater economic freedoms while the EBHRC staff, in which Mr. working within a system that strong- Sultan's long and varied career was OFFICIAL post, ly resisted change. re c o rded and documented, Mr. Sultan agreed to meet with a P rofessors Robert Ti g n o r, fro m selected group for an open discus- and return, Princeton University, and Heba sion that capitalized on the special Hadnoussa, founder of the vantage point he had overlooking Economic Research Forum, both many events and major transfor- "gladly," a rgued that the decision to mations relevant to the business appoint Mr. Sultan to the Ministry of and economic history of Egypt. He Tourism and Civil Aviation in the presented a wealth of primary infor- to the business 1980s was an astute move from the mation, and added greatly to the government leadership. Effecting a EBHRC collection of source materi- gradual transformation required Mr. al. community Sultan's pioneering intellect and consistent advocacy for economic Listening to Mr. Sultan, one benefit- in 1993...” liberalism. Nevertheless, it was ed not only from his insight and the mandatory at first to provide testing 11 MAY 2005 FORUM

g rounds for those ideas and to member of the technical commit- It was evidently this lack of support i n t roduce them into a sector in tee that reviewed the General from inside the cabinet that even- which they would not cause severe Motors offer. He remembered how tually led Mr. Sultan to leave his offi- repercussions on the population or the decision to turn down the offer cial post, and return, "gladly", to the even public outrage. It was then was more political than financial business community in 1993. necessary to apply these ideas because there were top-level polit- Although by then ERSAP had been more widely to other sectors once ical concerns for the repercussions adopted (and some might argue they were accepted. This is quite upon the labor movement and the that the overall climate was more telling of the vision Mr. Sultan had e n t i re society from securing this conducive to change), Mr. Sultan and always promoted in the press deal. This arrangement was, of argued that this was not the case. and made him the likely candidate course, the first of its kind, in terms He considered that Egypt had for initiating the reform. It is also of scale and outreach. been forced to accept the ERSAP telling of the magnitude of resist- because of major financial prob- ance he was likely to face in order It is quite interesting to note the dif- lems and because of the huge to affect those changes. ferent interpretation His Excellency incentives the US govern m e n t Eng. Muhammad Abdel Wa h a b , offered. At the same time, howev- Mr. Sultan remembered how the who was the guest speaker in the er, members of the Egyptian gov- decision to appoint him to the second session of the EBHRC ernment were neither welcoming tourism sector was justified as it was Forum, gave about the General of this "reform" nor ready to imple- the sector least distorted by social- Motors deal in particular. While the ment it. ist policies and the one with the contrast in ideology and approach smallest social implications on soci- between Mr. Sultan and Eng. Abdel Not surprisingly, talks about reform ety. Moreover, it was explained to Wahab was quite apparent to any- turned the debate from the past to him that the results of his decisions, one who attended both sessions, it the present. Dr. Karima Korayem, whatever they may be, would not was the debate about the General from the Faculty of Economics at cause outrage in the Egyptian soci- Motors deal that highlighted those Azhar University, held diff e re n t ety. Therefore, he was invited to distinctions. More o v e r, it is quite views from Mr. Sultan and argued apply the ideas he has been pro- interesting to note that the terms of that the current reforms are not moting for so long in this sector to Mr. Sultan and Eng. Abdel Wahab enough and are most of the time test his ability to transform it. as ministers overlapped for almost 8 too weak to regulate the market. In years and yet they had diametri- addition, she stated that market As Minister, Mr. Sultan felt the need cally diff e rent views about the economies still need strong regula- to encourage private investments economy in general and the public tory laws to restrain the influence of in the tourism sector. This he did by sector in particular. private capital, to protect the con- selling land in Sinai, at very low sumer rights, to limit monopolies prices, to investors willing to con- and to maintain the social services tribute to the infrastructure of the and welfare. These are things area and turn uninhabited areas “we have which are clearly lacking in the cur- into potential international tourism rent Egyptian system. Mr. Sultan spots. He also accomplished this argued that ERSAP was successful, goal by selling public-sector hotels yet to begin but concurred that the economy to private and foreign investors still needs the structural adjustment who are willing to renovate the the true quest component, which always lagged buildings and add to the ro o m behind economic and monetary capacities. Mr. Sultan re c o u n t e d reform. He even suggested some the severe media campaign that for a REAL and further amendments to the consti- was waged against him and the tution providing a proper climate ensuing decision from parliament for investment. This would be to form a committee to investigate proper accomplished via a restructuring of the compatibility of his decisions the legal regulatory framework with the constitution. t r a n s f o rm a t i o n starting with articles in the constitu- tion that give primacy to the public M r. Sultan's role in the General into a sector which do not promote pri- Motors deal, first as CEO of Misr Iran vate investment. Finally, with the Development Bank (which was the recently suggested reforms in the main financier) and later fro m customs and tax structures, Sultan inside the cabinet, incited another noted that we have yet to begin round of public dissent. Eng. Abdul market the true quest for a real and proper Monein Khalifa, the former CEO of system...” transformation into a liberal market Al-Nasr Automotive Co., was a system.

12 MAY 2005 FORUM

The Rentier State in The Middle East: OIL…& Others

Mohamed I. Fahmy Menza, Dialogue Coordinator, AUC

first encountered the term “Rentier State” in an economics lecture, most probably given by professor Galal Amin. All I could make out of it then was the apparent correlation that the word “rentier” had with the word “rent”. As few weeks later, I was assigned by another economics professor to conduct a brief research project on the status of the Egyptian economy as a rentier economy in the post-1991 era. Only Ithen did the true meaning of the term begin to germinate in my mind. My initial intuition was mostly correct. Derived from the original word “rent”, the concept of a “rentier econo- my” refers to an economic system that mainly depends on rent in acquiring its resources. Hence, in the context of a thematic discussion tackling the concept of the rentier economy/state and the connotations pertaining to it under the auspices of the Economic & Business History Research Centre (EBHRC), a multidisciplinary panel was held with contributions from professor Ellis Goldberg of University of Washington and professor Robert Vitalis of University of Pennsylvania along with a few other scholars and students. This brief review is a summary of the major points and subsequent debates of the panel with particular focus upon Goldberg’s presentation regard- ing to the concept of the rentier state.

Goldberg’s Rentier State “The “rentier effect”

In his presentation, Goldberg offers a comparative as defined by synopsis of the concept of the rentier state. In short, he believes that the concept of the rentier state eluci- dates the lack of democracy and economic devel- , opment within the countries that are major producers GOLDBERG is a of oil. The “rentier effect”, as defined by Goldberg, is a condition that is necessary as well as sufficient for the CONDITION emergence of dictatorships and economic system fail- ures. But one must ask if this must always be the case. that is necessary In fact, it could be argued that the prevalence of a rentier economy is a potential cause for the appear- as well as sufficient for ance of an authoritarian system, due to the reasons that are well put by Goldberg. Primarily, the acquisi- the emergence of tion of the main resources of the state within a limited number of economic sectors, mostly oil, and the lack of viable wide-scale economic activities that incorpo- dictatorships rate a sizeable portion of the society eventually over- empower the rulers at the zenith of the political system. T h e re is also empowerment, under such circ u m- and economic system stances of lower level politicians that manipulate the revenues generated from the rent-oriented resources. failures...” 13 MAY 2005 FORUM

prospects of an authoritarian political system erupting Deficient Approaches? within a rentier paradigm are amplified. However, it would be an intellectual shortcut to assume that, Contemplating the approaches with regards to the based upon the existing examples of rentier states rentier effect, Goldberg established that two basic (which could mostly be described as un-democrat- scopes of analyses prevail. First, there is the case study ic/authoritarian systems) that all rentier states have to approach which aims at setting a chain of causal rela- be consequently authoritarian ones. Internally, within tions that end with a variety of findings on the direct the boundaries of the state, a rentier economy could effects of the rentier economy on the political system. be a potential factor for the ascent of a dictatorship. Logically, this approach could be successful if the sub- However, within the international arena, the outcome ject of concern is a single country with an extant nar- seems somehow more definitive.

We could more safely assume the direct causality of the rentier effect when considering international poli- “Internally, within THE tics. A certain role will then have to be imposed upon the country of concern. This role is that of the distributor boundaries of the state, a ren t i e r of non-permanent resources over the international market. Such a role could result in a mixed signal of ec o n o m y could be a POTENTIAL pros and cons for a rentier state within the global mar- ket. Conversely, it might reflect an increasingly essen- factor for the ascent of a tial role for such a state especially if the source of the rent is a commodity like oil which has unquestionable D I C T A T O R S H I P ...” political and economic significance. Simultaneously, however, this might also imply a fragile status for such a country within the global market when taking into rative that can be traced and tested. Yet, it would be account the volatility of oil prices. rather hasty to presume that these findings could be generalized. If we merely tackle the general hypothe- The rentier state and the Middle East sis of a rentier effect on case-by-case basis, the case- study approach is naturally viable but hardly yielding Now, a few points could be pivotal if we are after a universalizable results. m o re comprehensive understanding of the re n t i e r effect. Most importantly, a broader and more inclusive Then there is the “Large N” approach described by conceptualization of the term “rentier economy” is Goldberg which employs a set of statistical/empirical needed. Comprehending the rentier state as a single data from a plethora of countries with various eco nation that is primarily dependent upon rent in acquir- nomic and political circumstances. This data set is then ing its resources seems insufficient. The scope of the analyzed in order to attain a correlation between the analysis could be widened to include other sources of domination of a rentier-oriented economy and the income along with oil. For instance, the overwhelming emergence of an authoritarian governing system. Of dependence of certain states upon the services sector, course, the loopholes of such an approach are numer- including tourism and other naturally endowed ous. Standing on its own, a sheer empirical approach is resources, could also place them within the category not sufficient to comprehend the causalities leading to of a rentier state and broaden the focus of research to the dominance of certain economic/political trends. incorporate a more all-encompassing view of the term. For example, two different countries that depend on oil This could actually aid us in tracing the actual effect of revenues as a primary source of income, to more or less rent on the economic/political paradigm of states. In similar degrees, and end up with seemingly undemoc- short, rentier economies do not have to be oil or even ratic polities at a certain timeframe could possibly be commodity producing economies per se. subject to two entirely different sets of factors that yield the emergence of authoritarianism within them. The consideration of the rentier effect on the political systems of the Third World should be praised for tapping Can we trace a rentier effect? an area that is predominantly unexplored. In the con- text of the Middle East, and especially in the milieu of the prospective democratization of the region in the Apparently, the two approaches outlined earlier do aftermath of 9/11, this area of research is rather unsul- not seem sufficient if we are to attain an objective lied. Most of the recent scholarly attributions have analysis of the potential effects that a rentier economy focused attention on issues of culture, or more specifi- might have upon the political system of a certain coun- cally Islam, and the role it could potentially play within try. Hence, one must ask if it is mandatory for an the political equation of nation-states in the region. An authoritarian system to emerge in a rentier economy alternative question could be “Is it Oil?” as opposed to paradigm. I would argue that it is not. Indeed, the “Is it Islam?” 14 MAY 2005 FORUM

Hearing the Voices of Egyptian A f r i c a n & FIRMS

John Salevurakis, Assistant Professor, Economics, AUC

n obvious feature of Dr. Tignor’s “The turned their attention to business firms”. The latter Business firm in Africa” as presented in the groups, however, do not speak directly to the issues opening panel of the EBHRC’s 2005 May being addressed by business historians. There exists, Forum, is the belief that “the firm” is a a c c o rding to Tignor an “empirical disconnect” . largely neglected area of historical and Tignor notes that major works dealing with the parti- Aeconomic inquiry. We are, as Tignor immediately tion of Africa focus upon the role of great European notes, largely ignorant of firm activities in Africa. This banks in an implied partnership with governments ignorance exists in spite of the fact that the business rather than firms explicitly. This encourages, or per- firm played a substantial role in the partition of Africa, haps reflects, a tacit acceptance of ideologies con- its development, and its decolonization. Firms were, sistent with dependency theory. Micro level empirical according to Tignor, there at the “major moments” in work however, has undercut “dependency theory”. African history but are still ignored. This neglect is part- For example, firm level data (particularly focusing on ly due to the culture of Economics departments Bank Misr) according to Tignor and others, shows that which, according to Tignor, are reluctant to accept economic diversification and industrialization in Egypt economic historians as “proper economists”. At was not solely obstructed by western actions as posit- Princeton, for instance, economic history courses are ed by dependency theory but also discouraged by taught almost entirely by faculty who may develop micro level decisions. only a passing interest in the topic. Given that these feelings exist with respect to the economic history of An analysis of firm level data will, as stated by Tignor, the U.S., it is therefore, unsurprising that so little atten- allow the formation of a more complete picture of tion should be paid to African or European firms. African and Egyptian independence from European influence. American academics, in their generality, As evidence of this neglect, Tignor notes that, using are therefore engaging in the “re-imperialization” of JStor, only 91 articles in The Business History Review the third world. This generality is reflected in the igno- even mentioned “Africa”. Only three of these rance these historians have of both general and firm focused on the firm and could be viewed as having level data. It is therefore, the task of the EBHRC to pro- their foundation in primary sources. Similarly, a search vide such information. of The Journal of African History only yielded 131 arti- cles possessing the search term “firm”. The leading Mostafa Hefny’s discussion of Tignor’s paper immedi- economic history journals, while having a great num- ately referred to it as “deceptive, probably decep- ber of articles dealing with Africa, also rarely refer- tively simple”. Yet, according to Hefny, a radical enced the firm specifically. The rare exceptions to this argument is also being made that we are in need of were articles dealing with the Atlantic slave trade. an “entirely new narrative of Africa”. Tignor is noted as advocating a view of financial practice on the firm According to Tignor, we know that “a lack of coordi- level as a cause of the Bank Misr Collapse while nation exists between business historians and ‘african- adherents to dependency theory focus on govern- ist’ or ‘middle eastern’ scholars who have recently ment data and would naturally view Bank Misr

15 MAY 2005 FORUM

historians”. Is it possible that business schools impart skills that we have yet to develop? Tignor is also “economic described by Owen as a bit “too cavalier” in his embrace of micro-level analysis. Owen asserts that the neglect of firm level data does not mean that a diversification somehow less descriptive vision of the world is acheived. There are, in essence, questions that only and industrialization in macro level analysis can answer. In short, one method of analysis or one focus cannot describe the world in its entirety. For example, Owen notes that Tignor fails Egypt was not solely to mention legal factors leading to economic change. Legal changes over time can, of course, by encourage or discourage development. The “family obstructed Western firm” is also as a topic of study that may be useful as actions as posited by an even more pronounced micro-level of analysis. Owen sought, in his comments, a generalist approach that had been neglected previously in our discussion dependency theory and he simultaneously asked if we might possibly be even more focused in our analysis than Tignor’s paper but also discouraged by micro suggests. level decisions...” D r. Abdelaziz Ezzelarab then acknowledged the importance of family businesses, particularly in Egypt. business practices as incidental to the process of He noted a particular curiosity with regard to why broader colonial forces. Hefny wonders if the aban- Egyptian family businesses fail to extend their lives donment of dependency theory amounts to “blaming beyond three generations. He wondered if this was the victims”. While historians of Africa have rarely writ- something cultural or political. Family businesses have ten about the Egyptian bourgouise, Hefny simultane- been improperly and properly planned historically by ously notes a belief that most of this class were self sometimes taking into account the abilities of second serving and working with colonialists. They were truly and third generations to manage firms and by some- rent seekers. The tale of these less than heroic men in times failing in this regard. The emphasis that this combination with a macro level analysis may, for panel ultimately came to place upon the family firm Hefny, “give Egypt and Africa her voice”. If only this strongly illustrates the point that, while the firm is a neg- history were written. lected as a topic of discussion, there are finer levels of analysis that should also be undertaken. Generality is I adopted the position that there exists a possible justi- clearly a relative term. fication for the traditional avoidance of firm level data. The firm represents an important avenue for analysis but may be neglected due to the possible academic costs involved in the collection of such “If only this history data relative to the perceived potential benefits. If the historian or economist has ready access to macro- level data and the firm data is believed unlikely to were written... ” yield a substantially different picture of the historical incidents, clearly there are relative benefits to focus- ing one’s attention upon the broader image. Similarly, According to EzzelArab, it is a fundamental task of the it seems probable that firm level data is much less like- EBHRC to gather documents and make them avail- ly to physically survive the time separating the histori- able as subjects of research. The oral history project cal incidents themselves and the historian seeking to will, of course, serve as a valuable archive and simul- explore them. Firms are transient in nature and it taneously as a research tool. There are, however, also seems likely that their records must be as well. broader and equally fundamental research questions which exist for those of us in academia as well as busi- Dr. Roger Owen then noted that Tignor’s article and ness. Given this, it is important that we talk to the busi- the comments preceeding his own expose the impor- ness community in Egypt to provide guidance. A goal tance of trying to “locate the EBHRC somewhere”. of the EBHRC, as illustrated by a later session in the We must ask ourselves, according to Owen, “What May forum 2005, is a bilateral relationship with busi- does it take to make a successful EBHRC project?” We ness. To those in power, we can provide a broad must also question whether we, as economic histori- sense of history that has been achieved through both ans, are lacking something relative to true “business macro and micro level perspectives.

16 SEMINAR SERIES LLISTENINGISTENING for HistoryHistory A REPORT ON “Oral History:

Scope, F I D E L I T Y and M e t h o d o l o g y ”

Mostafa Hefny, Project Officer, EBHRC

irst comes the method. In any process there also oral accounts, the center’s director AbdelAziz exists an overarching goal and a set of findings. Ezzelarab and the Project Officer Wael Ismail, refined FHowever, the former is only generally defined and a technique that was as much a conscious choice of the latter is inevitably unknown. It is the method, the method as one mandated by a rough landscape. Yet process through which we tend to aspirations that the method, tailored by EBHRC to its needs in an defines an institution. Egyptian environment, is not without traditions of its own. It was never an ambition of this undertaking to Within a newly established center, and the Economic become a premier practitioner of oral history in the & Business History Research Center (EBHRC) maybe so field of Egyptian business and economic history. described, the above would be words to live by. They H o w e v e r, after amassing 63 hours of re c o rd e d are however little more than an ideal which the world accounts by 22 of its leading figures, that is precisely diametrically inverts. We learn by doing. The child on what EBHRC has become. a bicycle, the student of language and indeed the administrator of a research enterprise, must embark As a mainstay of the anthropologist’s modus operan- on an initiation with an unsure step. di, oral history’s considerable tradition is more inclined towards service to that social science. It remains EBHRC, as the reader may be well aware, is less than nonetheless, in the parlance of another social sci- one year old. What is novel about the center, and ence, fungible. It is a tool which may be molded and perhaps news to the reader, is that the center is the remolded. Given its centrality to the center’s historical first of its kind in Egypt. The delights of probing virgin documentation, a deeper understanding of the territory, of being no one’s apprentice, are mitigated implications of its use, the possibilities it presents us as by the fact that being a pioneer brings the added researchers, its limitations, prejudices, nuances, prac- responsibility of charting a possibly tre a c h e ro u s tices and advantages became imperative. course never before attempted. The situation com- pels one to not only define his role within the land- “Oral History: Scope, Fidelity and Methodology” (28th scape, but to fashion the landscape itself. of March, 2005) was the first seminar in EBHRC’s series on methodological issues in the practice of econom- Hence, oral history. This writer has been in the position ic and business history. It was an occasion for a reflex- of witness as those responsible for the collection of ive process examining the center’s sculpting of oral

17 SEMINAR SERIES

accounts in an Egyptian, economic context. The ect in early 2004, with interviews of Egypt’s former emphasis was placed upon the ideological and Minister of Industry and Prime Minister Aziz Sidqi. In methodological considerations of oral history as this interview, a general question was posed and pondered by earlier practitioners and authors. The the subject was allowed to expound in whatever aim was not merely to place the practices of direction he deemed appropriate. The result was a EBHRC in a larger context for comparative purpos- spillage of substance amid loudly bellowed opin- es. By encouraging debate within a seminar for- ions which are evinced in EBHRC’s first annual mat, we hoped to hone the techniques of oral his- forum in May 2004 when capsules of the interviews tory and subsequent historiography. The seminar, were presented in workshops attended by interest- originally planned over two sessions, was planned ed scholars . However, the general focus provided with the ambitious aim of exploring everything by the broad framework of inquiry on the industrial- related to oral history. From exploring the esoteric ization in Egypt was lost. A tweaking was in order. issues surrounding the epistemological pathways accessible to the interviewer/historian to legal The center regrouped in September of 2004 after issues concerned with the disclosure of information several months of reassessment. Time served only to obtained to practical concerns of transcription and confirm the primacy of oral history over the center’s storage of records, there were no boundaries. mission. This is a nation still without a tradition of free access to documents. Oral accounts are not with- The horse had followed the cart as far as planning out their objective advantages over written docu- and practice were concerned. With this seminar, ments, but this is a case where talking to the deci- however, we were determined sion makers and administrators that now EBHRC’s principle activ- was less a qualitative choice than a necessary one. Those ity was to be pulled in the direc- “Those are the tion most in line with the needs a men men are the guardians of a his- year of experience with all man- GUARDIANS of a tory that has never been made ner of characters had crystal- available to scholars, let alone lized. The seminar aimed to con- history that has the public. Specialized, as they struct the center’s oral history never been made often are, many remain inno- apparatus. cent of the historical value of AVAILABLE TO SCHOLARS, their experiences. A cohere n t synthesis of the testimony of offi- It was a small affair. The center’s let alone the ” p roject officers undertook to public cials, bureaucrats, administra- present and discuss major works tors and businessmen serves as in the field. The books discussed were The Voice of a prism through which an historical perspective will the Past: Oral History by Paul Thompson, The Death almost certainly be entirely original. of Luigi Trastulli and Other Stories: Form and Meaning in Oral History by Alessandro Portelli, and Then there is the quandary of time. Oral history may Envelopes of Sound : The Art of Oral History by be richer source material than accessible written Ronald J. Grele. In addition to the texts, one of the documents, but its sources are human, fallible and p roject officers, Karim El-Sayed, talked about mortal. It is a delicate but unavoidable fact that Columbia University’s method of collecting oral his- the guardians of invaluable accounts of economic tory. EBHRC’s own methodology is an adaptation and business endeavors are in the twilight of their of this method. The center’s director joined with the lives. project officers, young scholars associated with the center, Professor Emeritus Robert Tignor of Princeton An invaluable history of Egypt may perish with these University, and Steve Urgola of the AUC’s own Rare men. Much has been written on the varied tech- Books Library. niques of oral history as conducted in the rest of the world but, in addition to designing an oral history All present had a stake in a functioning and practi- method appropriate to the field and to an cal oral history. The discussion was therefore unlike- Egyptian context, EBHRC had to contend with ly to remain at an abstract level for long. Indeed, unforgiving pressures of time. The accounts could the beginning of the proceedings was marked by be synthesized in accordance with an elegant or Wael Ismail’s account of the center’s own experi- even practical theoretical framework. They were ence with the technique. perishable.

Oral history, he explained, was indicated in situa- And so interviews continued through the fall of tions whence little or no history had been previous- 2004. The learning-by-doing approach also contin- ly recorded. The center had meandered into its ued, but experience had refined the apparatus to present set of practices beginning, as a pilot proj- include an initial meeting with the subject in which

18 SEMINAR SERIES

a free flow of memory was encouraged with the sub- ceptible in The Death of Luigi Trastulli and Other Stories: ject having been made aware of the framework of F o rm and Meaning in Oral History by Alessandro inquiry which, in turn, had been refined to addressing Portelli. In this post-modernist work, the author declares the relationship of finance and Egyptian industry. The himself to be more interested in the collective memory interviewers would then listen to a recording of the ini- of a politically significant incident rather than the facts tial session and formulate a series of questions that of the incident itself. The approach, argued AbdelAziz connects the subjects’ experience with the framework Ezzelarab, is an entirely valid one if the object of study of inquiry. This procedure governed the reminiscences were a people’s collective “immaginare” rather than to the general topic without unnecessarily curtailing an account of the forces that shaped history. He fur- potentially valuable information that had not been tar- ther suggested that this sort of work would ideally serve geted beforehand by the interviewers. a literary purpose.

The apparatus was taking shape. Subjects were, on the The yawning shear between text and experience was whole, surprisingly cooperative and generous with their somewhat narrowed during the discussion Envelopes time. There did, however, remain an unfortunate “sta- of Sound : The Art of Oral History, inasmuch as this tus” issue which necessitated that the center’s director anthology of essays written by practitioners of oral his- be present at all the interviews. The novelty of the tory raised issues that the EBHRC crew could now con- enterprise and the subjects’ lack of previous experi- sider as regards their own activities. Questions of objec- ence with scholars (the very thing that makes their tes- tivity and subjectivity or professionalism and cordiality timony so valuable) meant that they could not entrust had become sufficiently tangible over a year’s worth their accounts to anyone who they considered a dele- of interviews. Wael Ismail talked of the center’s experi- gate. This problem has yet to be resolved by EBHRC. Its ence with the initially circumspect Aziz Sidqi with whom magnitude has only increased as subjects provided the interviewers were eventually able to establish a the names of colleagues and the pool of accounts repertoire that yielded not only a more munificent rec- grew ever larger. ollection and more sessions granted for later interviews but also valuable documents and a list of people that It remains one of the problems unique to the center’s he thought would make good subjects. experience. The contrast of that experience with the written texts on “Oral History” as a subject was perhaps the preeminent theme during the seminar session. Indeed some of the texts expressed an entirely differ- ent understanding of the method and purpose of oral history.

Consider the first title discussed, The Voice of the Past: “for all the loss of Oral History by Paul Thompson, a complete textbook on the subject. Marrying a technical approach with an argumentative one, the author offers a highly read- i n f l e c t i o n and tone able work that provides instruction to the collector of oral accounts whilst making an argument in favor of oral history as a valuable medium. In doing this, how- JUSTIFIABLY ever, he betrays an ideological presumption that limits the use of the book to the center. For Thompson, an predicted by critics oral historian himself, the technique of oral history is first a democratizing process that gives voice to the mar- ginalized and inarticulate. It yields a counter-history of this method, the through which a political position is exercised. His senti- ments are noble, but limiting to the possibilities of the presentation of a technique and leading inevitably towards an anthro- pological approach to a community’s history. On hear- ing the arguments presented by the author, Robert written transcript Tignor pointed out that there are far more inarticulate to the has proved to than articulate people. Their history would necessarily interviewee be an aggregate account. In Tignor’s view, it is the his- tory of those that have provided leadership and entre- be an incredibly preneurship that is of most interest. He did however offer the caveat that the definition of business should be broadened as much as possible. rewarding STEP...” The relevance of the texts, or perhaps their lack of rel- evance, to the center’s experience was still more per- 19 SSEMINAREMINARSSERIESERIES

The of that tory program. The preeminent center of its kind in the “ world. Columbia, enables its interviewees to amend a transcript of their documents. It enables them to add, edit and delay the publication of its contents. This e x p e r i e n c e empowering of the interviewees made the final written transcript a definitive document that is later made with the written texts available for researchers. During 2005, EBHRC was able to absorb some of that on experience by offering a copy of the transcript to sub- “Oral History” jects to edit at their pleasure. The extant divide between the spoken colloquial Arabic and the written as a subject was p e r h a p s Classical Arabic had to be bridged in transcription and was more complex than anything envisioned by the preeminent theme Columbia. Yet, for all the loss of inflection and tone jus- tifiably predicted by critics of this method, the presen- during the tation of a written transcript to the interviewee has proved to be an incredibly rewarding step. More than seminar session” just providing space for an editing and expansion of their comments, some of the men interviewed were moved to see their stories treated as text; as historical documents. The transcripts enable the interviewees to see the fruits of the sessions and the goals of the inter- This then triggered a discussion of the interviewer’s viewer. Trust then becomes that much easier to estab- stance and demeanor towards his subject. Inevitably, lish. the EBHRC crew has learnt that the relationship is not wholly transferable from one subject to another. Hence, we return to the method. It was never first, at Indeed, the project officers noted that in transcripts of least not temporally. It develops with time. It is first only some of the early interviews there existed a dialogue in importance. Eventually, the efficacy of the method between the interviewer and interviewee. This is not determined the center’s field of inquiry and the scope necessarily a flaw in the process. Robert Tignor, who of its ambition. Eventually the center will be defined by favors an opaque, professional stance in an interview, it. conceded that “the fourth interview should be better than the first” and that such an improvement would be dependent on a growing trust between interviewer and subject. Seminar Series For his part Dr. Ezzelerab argued that the dialogue approach to oral history may be deficient inasmuch as Four sessions were conducted, part of EBHRC’s it adds an additional layer to the oral accounts. This Seminar Series (March 28 – May 11) entitled layer exists between the interviewer and the subject in “Molding Paradigms in Economic & Business addition to the one between the subject and the facts. History” as an effort to place some of the center’s Researchers who would later consult the transcripts of practices into a broader philosophical context these interviews will likely trample upon the interjections and to expose those practices to constructive crit- of the interviewers as unnecessary appendages to be icism. cleared away rather than as an enrichment of the material. As a procurer of primary documents whose 1. Oral History: Scope, Fidelity and Methodology uses in potential research remain open-ended, EBHRC (28th of March, 2005) must heed such concerns. 2. Alternative Economic Views on Business The method is more the product of toil than instruction Entrepreneurship (7th of April, 2005) and planning. It is however refined by and sharpened by instruction and planning. On the practical, if end- 3. Paper Mansions: Cliometrics, Positive Economics lessly convoluted, matter of storage and transcription, and Economic History (3rd of May, 2005) EBHRC utilized the experience of others by molding it to suit its environ- its lingual environ to be more precise. 4. On the Practice and Relevance of Business History (11th of May, 2005) In his capacity as director of EBHRC AbdelAziz Ezzelarab had traveled to Columbia University in January of 2005 to observe the workings of their oral his- 20 YOUNG SCHOLARS PAPERS

A Tale OF TWO BANKS: Bank’s History in

Wael Ismail, Project Officer, EBHRC

here is a quote mounted on one of our office nomic history classes, while wandering through the walls that stares at you every time you walk in. It streets of downtown Cairo and within the framework reads, “Historians are dangerous people.” They of popular culture. However, the picture seemed to be are dangerous because they hold the keys to filled with contradictions and ambiguities that I have the past and consequently, whether conscious- decided to explore in the paper I presented during lyT or not, shape our memories, views and perceptions February’s Young Scholars Seminar. of this past. Over time, certain constructed images acquire a sense of holiness surrounding them. These visions of the past become accepted truths not to be questioned or revisited. Banque Misr and its legendary “Over time, certain founder Talat Harb Pasha are most probably the most vivid examples of such images in contemporary Egyptian history. The bank has always been seen as CONSTRUCTED images the defender of Egyptian nationalism and pride while the man, who has taken on nearly mythical propor- acquire a sense of tions, has been called the founder of the modern Egyptian economy. holiness My own image of Talat Harb and Banque Misr was formed during my undergraduate years through eco- surrounding them...”

21 YOUNG SCHOLARS PAPERS

a field to dismantle the woven myths around those holy images of the past that we so long preserved untouched. To study Banque Misr is to be faced with a “It became colossal body of literature praising the bank as a bas- tion for economic nationalism and its founder as a visionary patriot of unwavering beliefs. To look more CLEAR that closely at the matter, one might find a business enter- prise headed by a prudent businessman and support- ed by a large number of landowners. Comparing the latter description with the former flatters neither the viewing a firm bank nor its founder. The aim of my paper, however, is by no means an attempt to dethrone neither Talat Harb nor Banque Misr. It is merely an over ambitious from beyond its endeavor meant to cast light over this enormous establishment that has played such a vital role in the balance sheets economic history of contemporary Egypt. The adoption of my comparative approach was and designed to use the enterprise at the micro level to gazing more better understand the macro level in which it operates. T h rough comparing Banque Misr with Germ a n y ’ s Universal Banks, the study was fraught with pitfalls in deeply into its comparing two distinct banking experiences at differ- ent stages of evolution. However, such an approach was needed in order to clearly highlight the study’s activities through an goal. This goal was an exploration of the difficulties that exist when attempting to compare certain eco- nomic experiences occurring in one country to those INTER-DISCIPLINARY happening in another. It was through comparing Banque Misr and the social classes that supported it with their German counterparts that this paper approach would attempts to reach such a conclusion. reap substantial Entrepreneurship was one of the main themes that were highlighted through the adopted approach. It became clear that viewing a firm from beyond its bal- benefits for ance sheets and gazing more deeply into its activities through an inter-disciplinary approach would reap substantial benefits for researchers. This method allows researchers” them the opportunity to explore unfamiliar territory with more deliberate steps. The entrepreneurship of Talat Harb and the Egyptian landowners was truly high- lighter when compared to those from Germ a n y . Moreover, this comparison opens up the debate about The paper was titled, “A Tale of Two Banks, Germany whether there exists a single type of entrepreneurship and Egypt’s Plight for Industrialization.” The reason or whether the concept is flexible according to the behind this endeavor was to study the macro environ- environment surrounding it. ment that gave birth to such an entity at the hands of such a man. Through a comparative approach that To embrace a subject such as Banque Misr is no easy was chosen to shed some light upon larger issues and task and this study does not claim to have even begun themes, I began the process of reading secondary to touch the surface of the topic. It merely attempts to sources coupled with what little primary material I highlight and discuss certain issues that were dominant could gather given my time constraints. in the mind of the author. However, it is time for such an arduous and detailed study to take place. A study At the heart of the paper rest two important elements. that is willing to go beyond the curtains of myth and The first of these is the importance of business history as journalistic flattery to truly chronicle both the lives of a field capable of absorbing and analyzing different the man and the bank is necessary. In the absence of issues via sociology, history, political science, and such work, the influence of Talat Harb and Banque Misr through utilizing hard financial figures. The second of will never be truly appreciated. these elements is to be found in the utilization of such

22 YOUNG SCHOLARS PAPERS

Documenting the History of the Century-Old Café Riche

Dina Waked and Karim El-Sayed, Project Officers, EBHRC

nyone familiar with the contemporary political history of Egypt, or is familiar with present-day downtown Cairo, will surely be familiar with Café Riche. It, there f o re, did not re q u i re much thought for us to decide on a "subject" for our paper.A This paper, "Café Riche: A Small Business in a Large Environment", represents our first attempt at writing enter- prise history and, at the same time, represents our rebellion against the mainstream approaches of enterprise history.

While intellectual developments in the field of business his- From top: tory managed to widen the scope of this hybrid "discipline" Café Riche and include sufficient emphasis upon the role of society, this double-doors - was carried out by providing alternatives to (and not by from the modifying) the discipline's forerunner to be found in the outisde; inner study of enterprise history. Until today, writing the history of restaurant, the a business unit, as suggested by the prominent practition- walls scattered with photos of ers, should depend solely on numerical and statistical prominent analyses of the firm. By focusing light upon the significant Egyptian role played by non-quantifiable macro economic, social, figures cultural and political factors in influencing the performance of any given business entity, we attempt to raise some doubts about the comprehensiveness of enterprise histories which depend solely on financial or statistical data. We argue that it is feasible to prepare an appropriate business historiography using non-quantitative (perhaps even non- quantifiable) elements of the macro environment.

There are several reasons why we chose Café Riche in par- ticular for this exploratory historiography. The windows of Café Riche that greet patrons claim that it was "established in 1908". Combine with this reality the pivotal position that the Café held in Egypt’s political and cultural scene during the1960s and 1970s and we were driven to choose Café 23 YOUNG SCHOLARS PAPERS

Riche over similar business enterprises as the subject of our research. We were further driven by the apparent change in the nature of the establishment and the "Café Riche: A Small deterioration of it’s position in more recent times. We wanted to study the factors in the macro economic Business in a Large and political environment that might explain the changes in the function and nature of Café Riche and Environment" also explain the performance patterns of the entity. , We identified several issues that, when thoroughly examined, should give a comprehensive historiogra- represents our 1st phy of Café Riche. These included the changes in the nature of Café Riche that varied given changes in its commercial functions or activities and the defining attempt at writing characteristics of the Café's client base. Moreover, it seemed important that we pinpoint transformations in and, at the the greater social, cultural, political and economic enterprise history environments and their effects on the performance of the Café through client frequency, make-up of the same time, represents our clientele base, and the status of downtown Cairo. We were very lucky to find that the owners of Café rebellion Riche have managed to build an amazing archive of primary sources documenting the history of the estab- lishment. A collection of land deeds, official licenses against the mainstream for different operations (coffee shop, bar, theatre and restaurant), ownership transfer contracts and confi- dential correspondences between the Cairo City approaches Police and British Army Headquarters was available. In addition, a tre a s u re of secondary sources written of enterprise history...” about the Café exists. These items include newspaper and magazine articles, books, scholarly research stud- ies and a pair of master's theses as well. From those Allies army officers demanding western-style restau- documents, we were able to find out that, in the late rants. This change was also made to capitalize on the 1910s and early 1920s, Café Riche had a famous out- fact that the owner was professionally trained as a door theatre that hosted a plethora of renowned cook. Am Filfil recounted how Avayianos himself would artists. Among them was “Sult_nit al-Tarab” Mounira il- go to the meat market to choose the different cutlets, Mahdiyya, and a young starlet whose name would and that for at least a couple of years would do the later be known to the whole Arab world, Umm cooking himself, while his wife overlooked the cashier Kulth_m. This is a fact relatively unknown. More impor- case. tantly, those documents helped explain why the abovementioned operation of Café Riche was Professors Galal Amin and Malak Rouchdy discussed stopped before the end of the decade. the paper when it was first presented at the EBHRC Young Scholars Forum on the 28th of February, and Our work, nevertheless, revolves around oral accounts they both emphasized the significance of going from the owners of Café Riche, owners of other bistros beyond mere documentation of business perform- and downtown restaurants, as well as customers of ance while writing enterprise history. Professor Amin Café Riche who were conscious of the changes expe- stressed that "through business history you can tell the rienced by the Café. We were very fortunate, there- whole story of Egypt because through business history fore, to be able to get accounts from customers who you can discover all sorts of marvelous details". While started frequenting the Café in the early 1940s. We our primary objective in writing the paper was to sug- were even more fortunate to record the reminiscences gest an alternative approach to writing enterprise his- of Am Filfil who has been there day-in day-out since tory, one that does not rely solely on numerical and 1943, almost 20 years before the present owners, and financial data, the fact is that focusing on a particular would be the best to report on the development of the element throughout time to deduce greater develop- Café. It was from Am Filfil, for example, that we ment in the larger environment was at the back of our learned that the owner of Café Riche, George Basile minds. We intend to develop this element of our work Avayianos, the last non-Egyptian owner and manager for the Middle East Studies Association annual meet- of the Café, decided to expand its operations to ing. It is here that the paper is featured in a panel dis- include a small restaurant besides the coffee shop and cussing "Egyptian Business History: New Sources, New bar. Because of the Second World War and with bat- Methods and New Directions in Research". The meet- tlegrounds in Egypt, the country was full of British and ing will take place in November 2005. 24 YOUNG SCHOLARS PAPERS Heliopolis: Beyond theCentenary

Dina Khalifa, Project Officer, EBHRC Lina Atallah, Journalist, The Daily Star

alking through the authentic Avenue des Pyramides, the heart of Heliopolis, the newly painted basilica along with its surrounding buildings are proudly pos- ing for photographers from all over the Wworld. May 2005 is when the city is celebrating its cen- tenary and inviting people to remember how it brave- ly evolved from a barren northeastern desert into the old historic city of Heliopolis.

Just around the corner from where the celebrations took place stands a 100-year-old company building established by the Belgian industrialist Baron Edouard Empain, the founder of the suburb. This building is the nucleus around which revolves the urban masterpiece of Heliopolis which demands the focus of our research agenda. Behind the flurry of the celebration, the fact remains that the company deteriorated and the sub- urb faces urban malfunction making its residents nos- Heliopolis photographs by Alaa Eddin al-Dajani. talgic for the idealized image of their city. Photographs featuring clock wise: Corba's bawaki (arches), Mosque of midan il-gami', Notre-Dame Basilica and tramway, In the Fall of 2004, with the centenary on the horizon, a a sculpture from Baron Empain's Palace, and Giza Street off project to write the history of such a place gripped us. midan il-gami'. Our fascination with oral history prompted us to write the history Heliopolis through the memories of its peo- both tackle what was a large private capitalist enter- ple. Further, we believed that beginning our study with prise and what remains, an urban cre a t i o n ” an exploration of the founding of Heliopolis Oasis Unfortunately, not much of the HOC is left today. Company (HOC), a Belgian enterprise pioneered by Renamed to be the Heliopolis Company for Housing the Empain dynasty, would be useful in understanding and Urbanization after its nationalization in the 1960's, the nature of this urban project. Similarly, the stories the company has refashioned itself, with different per- recounted by the city's residents are also useful as yet sonnel, different documents and different practices another portrayal of Heliopolis, with all that it repre- amounting to a different role. All of this occurred sents in uniqueness, beauty and also faults. Our despite keeping the same headquarters dating back research revolved around three interdependent play- to 1906. According to Engineer Maged Al Maghrabi, ers: the place, the business and the people. urban planning manager in today’s HOC, many of the In an introduction to his study, Héliopolis, Genèse company’s documents traveled with the Empain d’une Ville, (Heliopolis: the Genesis of a City), French dynasty back to Belgium following the nationalization historian Robert Ilbert wrote, “to study Heliopolis is to of the company. 25 YOUNG SCHOLARS PAPERS

The HOC was a focal point in the city and not merely resided in Heliopolis since 1945, called it an a business entity seeking profitability in construction “Alexandria in its own way.” and land investments. According to Omar Al Hosseiny, an engineer who studied Heliopolis from the urban For Nour Claire Assaad, who lived in Heliopolis since development perspective, the HOC provided certain 1939, a mention of the Heliopolis Palace Hotel would nuclei for development that highlighted the endeav- directly remind her of the dancing nights and the for- or's successes. "First, there were architectural nuclei," mal dress codes which demanded a hat and gloves. he said, referring to Corba in the Heliopolis was, according to her, an heart of Heliopolis. Corba is also attraction to race goers on Sundays. the Italian word for curve which is "During the Cairo fire, The race course was, of course, appropriate since it is known for its exclusive to a certain upper social curved arches. Corba is also race courses were class. People from everywhere used known to the suburb’s residents as to come and watch it from outside. Al Bawaki as it protects them from STOPPED as they were a Ali Shahin, who lived in Heliopolis suns rays during their morn i n g since 1947, shared this visual memo- shopping promenades. Another significant symbol ry of thousands of dubious charac- nucleus was represented by land- ters standing outside the course, as mark constructions in Heliopolis. of class inequality at a they could not afford the tickets. Other prime examples of this are, time when "During the Cairo fire, race courses of course, the Heliopolis Palace were stopped as they were a signifi- Hotel (now turned into the presi- Egyptians could cant symbol of class inequality at a dential palace), the hippodrome time when Egyptians could take no (or the horse race court), the basil- take no more of it," more of it," said Shahin. ica and the Baron Palace. Al Hosseiny mentioned the impor- Standing in harit il-furn, close to tance of the building rules, widely known as the cahier midan il-Game’ is the shop of Samir Abdel Tawab, an de charges. These were prepared by the company old resident. He showed us where the gates of the and applied to its own construction projects as well as HOC workers’ block once stood. With a triumphant investors' projects. This centralization guaranteed a voice, he then explained how Gamal Abdel Nasser unified and homogenous flavor for the urban creation. opened the gates, how he nationalized the foreign companies, brought them to the people and how he With a hand in the tramway's administration, as well as gave Egypt back to the Egyptians. water and electricity supplies and the broader con- struction operations, the HOC was Heliopolis’ origin even gave our very repeatedly described as a munici- journey of exploration a unique fla- pality itself. It was obviously per- “to study v o r. The Arab Bedouins or what ceived to be an integral part of the Mahmoud Abu-Diguiga, a resident n e w b o rn city. Between the era Heliopolis is to both of Bedouin origins, called al-‘Urban dominated by the Belgian compa- what enjoyed special treatment and sta- ny and that dominated by nation- tackle tus in Heliopolis. According to him, alization lay historical socio-eco- was a LARGE anyone who got on the metro nomic changes that shaped dressed in Bedouin clothes never Egypt’s history and accord i n g l y privatecapitalist had to pay the fair. The reason for that of Heliopolis. These changes this special treatment stemmed a re manifest in a collection of enterprise and from the relationship between the diverse memories by its residents. Bedouins and Heliopolis in a geo- what remains, an graphic sense. The Bedouins were Older residents had a rather nostal- the original inhabitants of Heliopolis gic memory of the early days of urban cr e a t i o n ” when a desert. Empain was able to Heliopolis. They remember a place create a relationship with them so that was then more representative that they helped him with the of Empain’s so called “dream”. It was a place that guarding duties of the company establishments. In they cherished for so many years. Blissful were his child- return he would extend the water pipes whenever they hood years in Heliopolis, according to Franco-Egyptian had to move farther into the desert due to the urban writer and newspaper editor, Robert Solé, who spent encroachment. his foremost 17 years in Heliopolis. “It is a city that origi- nally tended to be a luxurious oasis and that turned out With such a unique history and origin, Heliopolis’ cen- to be a mixed city, where different social classes came tenary was little more than a cosmetic touch of atten- to settle down. It was even a cosmopolitan city where tion with neither the ability to revive its urban strategy people of different national origins, religions and lan- nor reclaim the prestige to Empain’s company. Yet, guages came and established themselves.” Solé, who despite everything, Heliopolis still stands with glamour.

26 APPENDIX

OUR ARCHIVES DOCUMENTS: he following are samples of the documents contributed to EBHRC to be part of its archival depository. Donors of docu- ments vary from individuals to institutions. In addition documents received vary from original to copy forms and some old Tdocuments were purchased from a collector of old papers and artifacts in downtown Cairo. Donor name followed by a description of the documents will be found below: Aziz Sidqi: Ta‘awuni (Memo Re: Foundations of Pyramides” 1956, Egyptian Federation Internal and External Trade in the for Agricultural Products 1943. Receipts: Socialist Democratic Cooperative Three receipts from the Piastre Project Ministry of Industry Publications: Society 1959). for the Revival of Egyptian Industries 1.“al-Thawra al-Sina’iya fi ‘ahad ‘ashar 2. Bahth ‘an Wasa’il Tanmiyyat al-Tijara (mashru’ il qirsh). ‘aman 1952-1963.” ( Eleven Years of al-Dakhiliyya wa Mada al-Nuhud Biha 3. Letter from Michel Politis to Assistant Industrial Revolution). (Paper on the means for Developing to the Chief of Police: 9 May 1916. 2. “Dalil al- Sina’a fi Misr fi thalathin Internal Trade and The Extent of sana 1952-1982” ( Guide to Industry in Promoting It) 1961. Egypt in 30 years). 3. Taqrir ’an Rihlat Mohammad AbdelAziz Zayed Ra’is Majlis al-’idara lil- Banque Misr Publications kharij ’an al’Mudda min al-’usbu’ al- ORAL HISTORY ’akhir min ’uktubar hatta al-’usbu’ al- RECORDS: 1. Sixtieth Anniversary 1920-1980. Thalith min December Sanat 1965 2.Diamond Jubilee 1920-1995. (Report on Mohammad AbdelAziz elow is a list of EBHRC’s oral 3.Golden Jubilee 1920-1970. Zayed’s [Chairman of The Alexandria 4. Part 3 of Talaat Harb’s collection of Commercial Company] Trip Abroad history interviewees up until speeches 1939. [Duration: Last Week of October 1965 – B June 2005. The list excludes Third Week of September 1965]). the interviewees of theYoung 4. Taqrir ’an Rihlat Mohammad Scholars projects. Café Riche Documents, AbdelAziz Zayed Ra’is Majlis al-’idara ila al-Yaban wa al-Wilayat al-Mutahida Official Douments: wa al-Miksik (Report on Mohammad INDUSTRY 1. Maslahit il-Dara’ib il-‘Aqariyya AbdelAziz Zayed’s [Chairman of The Eng. M. Abdel Wahab records 1905 Alexandria Commercial Company] Trip Eng. Fouad Abu Zeghla 2. Official copy of Maslahit il-Dara’ib il- to Japan, The United States and Mr. Louis Bishara ‘Aqariyya records 1907. Mexico [Duration: October/November Mr. Mounir Ezz El Din 3. Récépissé de déclaration pour un 1966]). Dr. Adel Gazarin établissement public: 16 October 1914. 5. Taqrir ’an Rihlat Mohammad Eng. Abdel Moneim Khalifa 4. Formal Declaration to the Office of AbdelAziz Zayed Ra’is Majlis al-’idara lil- Mr. Zeyad Nashef the Assistant to the Chief of Police: 9 ’aswaq al-Qutniyya fi ’urupa al- Mr. Bahaa Raafat May 1916. Gharbiyya (REPORT Mohammad Mr. Hasan Ragab 5. Déclaration pour l’ouverture d’un AbdelAziz Zayed’s [Chairman of The Dr. Rouchdy Said établissement public: 9 May 1916. Alexandria Commercial Company]Trip Eng. Ibrahim S. Mohamedein 6. Inspection Report: 16 May 1916: to The Cotton Markets in Western Dr. Aziz Sidqi Chief of Abdin Police Precinct. Europe [Duration: June 1968]). 7. Internal Note: Cairo City Police: 6. Taqrir ‘an Ma‘rad Suq Bari b-Italya PLANNING For/Commandant C.C.P.: 8 July 1919. (REPORT The Bari Exhibition, Italy Dr. Ismail Sabri Abdullah 8. Internal Note: Confidential: [September 1970]). Commandant C.C.P.: For/Acting 7. MINESTERIAL ORDER: The order is the Commandant C.C.P.: 20 July 1919. permission granted to Zayed to attend BANKING 9. Contract: 14 July 1921, Déclaration the Bari Exhibition as Deputy Governor AND INANCE pour l’ouverture d’un établissement of the Central Bank. Dalil al-Wukala’ al- F public: 4 November 1942. Tijariyyin bil-Iqlim al-Misri, 1960 Mr. Hasan Abbas Zaki 10. Petition submitted by Mr. Abdel (Directory: Trade Agents in the Egyptian Mr. Mahmoud Abdullah Malak Mikhail Salib: 22 May 1962, which Province, 1960.) The directory is pub- Dr. Salwa El Antari cites the transaction contract with lished by “The General Union of Mr. Ali Dabbous Avayianos, registered in 1962. Chambers of Commerce” Mr. Mohamed El Barbari 11. Letter from Russell Bey to Camp Mr. Ali Shahin Commandant of the British Officers, Mr. Fouad Sultan Head Quarters: 26 February 1918. Purchased Documents: INSURANCE Mohammad AbdelAziz Zayed 1. Land Contracts: Three land contract Mr. Hasan Hafez registered in the court of Alexandria in Papers/Reports: 1889, 1890 and 1893 under the RIVATE USINESSES 1. Muzakira bi-Sha’n ’usus al-Tijarah al- Khedives’ government. P B Dakhiliyya wa al-Kharijiyya fi al- 2. Stock Certificates: Credit Foncier Mr. Mansour Hasan Mujtama‘ al ’Ishtiraki al-Dimukrati al- Egyptien 1951, Societe de Biere “Les 27 ANNOUNCEMENTS

AN N O U N C M E N T S

EBHRC CALL FOR PAPERS FOR THE YOUNG SCHOLARS’ CONFERENCE, FEBRUARY 2006 Third AUC Forum he Young Scholars Conference will be held line so that constructive feedback may be pro- on Economic on an annual basis in February. Original vided. Tresearch by young scholars and associated and Business graduate students will be the fulcrum around Your work will be discussed and witnessed by History of Egypt which the conference’s events will be organized. large group of dedicated scholars from AUC and The will accept proposals for papers to be pre- other universities. Presenting your work in this and the sented no later than the 15th of November. forum may also serve as a dry run for internation- Middle East: al conferences and publication. This was the The facilitation and support of independent case with last conference whereby three of the CALL FOR research by young scholars interested in the eco- papers presented are now being prepared for nomic and business history of the Middle East, p resentation at the prestigious Middle East PARTICIPANTS has become one of the principal components of Studies Association (MESA) Conference in EBHRC’s raison d’etre. Young scholars are a con- Washington DC next November. Their authors siderable asset to the center as a resource for were encouraged to submit their work to MESA he Third AUC Forum ideas and initiative. A significant portion of this only after they presented it first last February in on Economic and Business History of pool will likely embark on careers in research, the Young Scholars’ Conference. T Egypt and the academic or otherwise. Their involvement with the center at this stage makes available the It may be the case that you are interested in tak- Middle East is due to unique opportunity of launching an inquiry that ing part but still feel in need of a tangible entry convene in May 2006. they may well choose to revisit many years from point for your research. Should this be the case At the present time, we seek research or dis- now by building a long term relationship with the then perhaps the following list of broadly demar- cussion papers from center. cated subjects that EBHRC is currently working on for Egypt and the Middle East may prove to scholars, researchers, EBHRC had always planned to make available its be fertile ground for your efforts: and oral history records to researchers from around other interested parties for sessions on: 1) the world. The center has thus far conducted ses- 1- Enterprise History (eg. El- Nasr Motor compa- Experiences of business sions with tens of people in government, industry ny) and enterprise. Said records represent a histori- 2- Institutional History: (e.g. Egyptian Federation history research centres cal source material never before made avail- of Industries). and/or 2) able to any researcher regardless of their stature 3- Biographical projects on policymakers, busi- Approachesto Middle Eastern or experience. The records can be made avail- nessmen and entrepreneurs. business history. able to young scholars should they choose to 4- Histories of Business Families. use them. 5- History of a small business or businesses Abstracts up to 400 6- Sectoral Topics: (e.g. a history of the textile words are welcome by The scope of the material is not limited to that industry in Egypt). December 15, 2005. derived from the center’s own collections. As 7- Labor History p recedent by February’s three-day event, there’s great potential in linking apparently soci- Think about the above as potential topics for For further information ological, cultural and political topics to the consideration rather than strict guidelines. please e-mail: region’s economic and business history. Feel free [email protected] to submit a written proposal for the paper you ... We look forward to your queries and ideas. wish to present at the conference. It would be fruitful to submit your material before the dead- EBHRC Crew

PAPERS BY: Gratitude for ATTEND OUR PANEL 1 . Prof. Robert J. Vitalis, University of Pennsylvania: "Captive Narratives: On the the special IN MESA 05! History of Firms and States in the Middle East asstance of: (and Beyond)" " Egyptian Business History: 2. Karim El Sayed and Dina Waked, EBHRC, Dr. Ismail Sabry New Sources, New Methods AUC: "Café Riche: In Pursuit of a Non- Abdallah Quantitative Business Model: Implications of Eng. Mohamed Abdel- and New Directions in M a c ro Changes for Small Eateries in Research" Wahab Downtown Cairo" Dr. Galal Amin 3. Lina Atallah and Dina Khalifa, EBHRC, AUC Dr. Sharif Elmusa Date: Sunday, November 20. " A Brave New City! Heliopolis: Place, Business Time: 2:00-4:00 pm. and People" Dr. Adel Gazarin 4. Mostafa Hefny, EBHRC, AUC: " The Business Dr. Heba Handoussa Chair: Prof. Roger Owen, Harvard University. History Voyager: Revisiting Western Methods in Dr. Amr Mortagy Discussant: Prof. AbdelAziz EzzelArab, EBHRC, the Light of Oral History Accounts of Egypt's Dr. Malak Rouchdy AUC. Industrial Experience" 28 Offices: Rooms 307, 313 A, 314, 315, Old Falaki Telephone: 797 5603 / 5602 Email: [email protected]