From Ankara to Marakesh by Hans Emanuel Tuetsch

Author:Hans Emanuel Tuetsch [Tuetsch, Hans Emanuel]
Language: eng
Format: epub
Tags: Social Science, Regional Studies
ISBN: 9781138194830
Google: FoXxDwAAQBAJ
Barnesnoble:
Goodreads: 27511528
Publisher: Routledge
Published: 2016-03-29T00:00:00+00:00

In support of his nationalization policy Nasser quotes no less a person than the Prophet Mohammed: ‘Originally Islam was the first socialist state founded by Mohammed, who was the first prophet to use a nationalization policy … The Islamic nation formed the first socialist state and after the Prophet it continued on the road of socialism under the Caliphate of Abu Bakr and Omar. In the Prophet’s time and the subsequent period they took from the rich to give to the poor. In Omar’s time the land was nationalised and distributed to the peasants.’1 According to Nasser the surrender of property to the poor, prescribed by the Koran, deserves high praise and should serve as an example. His views are a curious mixture of modern social policy and ideas derived from primitive Islam.

Socialization in Egypt did not begin as a result of Nasser’s defeat in Syria, but it has changed in character since. In a sense the nationalization policy goes back to the days of the Suez conflict, when the Canal Company was expropriated. As a reprisal for the military attack, French and British property was confiscated and the state laid its hands on Jewish fortunes. After the murder of Lumumba, Belgian property was nationalized. In a large-scale Egyptianization campaign additional restrictions were placed on foreign property. Profit-making newspapers were taken away from their owners. After July 1961 the speed of nationalization increased.2 The first victim was the cotton trade, which brought the most important export article under direct state control. Then all trading agencies had to consent to enforced state participation. On July 20 1961, the nationalization of all banks and insurance companies, as well as of another 400 big enterprises, took place. At the end of October maritime shipping was also nationalized, and ships of private companies became public property. In August 1963 Nasser decided to nationalize all trade and to regroup the small outlets into greater units, controlled by the state. An estimated 450,000 tradesmen were hit by this decree.

After the Syrian crisis Nasser proceeded to confiscate the private property of several hundred persons. Nationalization went hand in hand with other measures against property. It was decreed that everybody who held shares worth more than E£10,000 must accept government securities for the excess. Income was not allowed to exceed E£5,000.3 A progressive income tax was introduced, as well as a special ten to forty per cent tax on rents. In a new land reform the upper limit for landed property was reduced to 100 feddan and the maximum allowed to be rented was lowered to fifty feddan. The following table taken from the Economic Bulletin Vol. XIV, No. 3, 1961, of the National Bank of Egypt, shows the extent of the land distribution under the revolutionary laws. After the implementation of the law of 1961 only 5,000 proprietors will own 100 feddan each.

1952

1961

After implementation of 1961 law

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