Egyptian Capitalism

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Capitalism is an economic and political system in which a country’s industry and trade are controlled by private owners rather than the state for profit. The Egyptian economy has undergone organizational changes in the last two hundred years. In 1800, the Egyptian society consisted generally of peasants producing for their own benefit, consumption and tribute payments. This tribute went to tax farmers who ruled the countryside. Nowadays, Egypt has a capitalist economy in which production is organized by firms. The majority of the population must work for wages. The aim of production has become profit rather than satisfaction of needs. The result of these changes in the Egyptian economy are due to the changing requirements of the advanced capitalist economies theory suggesting that in the 19th century the search of European capitalist industry for raw materials reoriented Egyptian agriculture production towards the market rather than home use. Industrial production in Egypt was encouraged by finance capital from the 1920’s on.

The Nasser Era (1952-1960) Nasser’s years ruling Egypt represent a socialist transition. Egypt at that time continued on the same pattern of development as before: capitalist industrialization. During the 1960’s the state owned the principal means of production and tightly controlled the rest. The Egyptian economy was state-capitalist. The state merely acted on behalf of private capitalists who were actually in control and Egypt was

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