Figure 1.-- |
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President Nasser and the Free Officers associated with him saw a projected plan for a Nile River dam at Aswan was critical for the economic development of Egypt. Egypt with a soaring population faced severe economic problems. There were many benefits flowing from the project, including a substantial increase in electrical generation and increased areas to be brought under cultivation through irrigation. It would be the symbol of a New Egypt that Nasser invisioned and promised his countrymen. This was, however, a massive project that would require both foreign financing and technical assistance. It would be the largest construction project in Egypt since the construction of the Pyramids in the Old Kingdom 5.000 years earlier. The United States desired to retain good relations with Nasser and after the Soviet Arms deal saw its influence waining. The United States was still unwilling to supply arms. Thus the United States offered to assist in the construction of the coveted Aswan Dam. The United States agreed to give Egypt an unconditional loan of US$56 million, and Britain agreed to lend Egypt US$14. The British offer was conditiinal on the karger American loan. The World Bank had pledged an additional US$200 million. The World Bank loan, however, carried conditiins. The Banks demanded that that the Egyptian budget be overseen by World Bank officials. Nasser saw these conditions similar to that imposed on Egypt during the British protectorate (1870s). At the same time there were growing problems in the Egyptian-American relationship. Nasser angered American policy makers by recognizing Red China (May 4, 1956). American cotton interests were oposed to rge dam because it would increase Egyptian cotton production. Both the Israel lobby, and the Nationalist Chinese lobby also worked against the proposed loan. Nasser frustrated Secretary of State Dulles' policies. He concluded that Nasser's suposed neutralism was actually enabling the Soviets to penetrate the region. As a result, the United States decided to rescind its loan offer. Secretary of State Dulles met with the Egyptian Ambassador and informed him of the Administration's decesion (July 19, 1956). Subsequentb U.S. statements questioned noth Egypt's ability accomplish the project or repay loans because of the government expenditures on Soviet arms. [Bickerton and Klausner] Soviet diplomats were active in Egypt and other Arab countries at the time. The arms agreement was their first success. The Soviets now offered to both finace the Aswan Dam and provide the necessary technical assistance the Egyptians needed.
Gamal Abdel-Nasser was the main proponent of a pan Arabic socialism. he was born in the poverty stricken Alexandrian suburb of Bacos. His parents were from the south, am area looked down on by northern Egyptians as backward. His father had achieved middle-class status for the family. Masser entered the military college (1936) which had opened its ranks to to lower-class applicants. He graduated and entered the Egyptian army on the eve of World War II (1938). He saw with some reason king Farouk as corupt and backward. He also objected to the continuing British influence in Egypt. He played a prominent role in founding the Free Officers (El-Dhobatt El-Ahrar), an underground organization. Nasser and other Free Officers like sadat were impressed by the NAZIs for their military prowess and fight against the British. Nasser as an army officer, fought in the first Arab-Israeli war (1948). This experience made him a fervent bleaveer in the Palestinian cause. The ineffiency of the Government in waging the war with Israel, was a leading reason leading to the The Free Officers led by General Mohammed Naguib seizing power (1952). From the beginning Masser was the heart of the Free Officers, but General Naguib was a respected senior officer who served as a useful figure-head. King Farouk was forced to leave the country. His son Ahmad Fouad, still a todler, was declared King. The new Government asked the British to leave the country and the last British soldier s left (1954). The Free Officers deposed Ahmad Fouad and declared Egypt a Republic (1953). Mohamed Naguib was the first president. He was, however, a conservative man who saw no need for radical change. Nasser deposed him becoming the second president (1954). Nasser proceeded to launch a social revolution aiming to create a modern, state that could bring Egyptiands out of poverty as he saw socialism as the way to accomplish this. Nasser was a gifted speaker and was able to inspire the Egyptian people with a heady brand of nationalism and socialism. He was not, however, a well educated man. Just as the NAZIs had impressed him and his colleages in the 1930s, the Soviets had impressed them after the War in the 1940s. They saw socialism and economic planning as the way to creade a modern new Egypt. This was not done through any careful study of economics, but rather following an emotional rejection of the British and the West and a vague idea that Socialism was the wave of the future. This same dynamic affected much of the developing world. And a key aspect of Nasser's development plans became a massive new dam on the Nile--the Aswan High Dam.
Egypt was the most populace Arab nation. It was the most developed, sophisticated Arab nation. It was also a very poor country with a soaring population. It faced faced severe economic problems.
The Nile had always been the central fact of life in Egypt. Th Nile provided the basis for one of the five ealy river valley civilizations. The annual Nile flood provided the basis for high crop yields. It sustained an agricultural system that made Egypt the bread-basket of the Mediterranean world.
Now Nasser conceived of harnassing the Nile to bring EEgypt into the industrial era. Nasser abd his associates a projected plan for a Nile River dam at Aswan was critical for the economic development of Egypt. There were many benefits flowing from the project, including a substantial increase in electrical generation and increased areas to be brought under cultivation through irrigation. It would be the symbol of a New Egypt that Nasser invisioned and promised his countrymen. This was, however, a massive project that would require both foreign financing and technical assistance. It would be the largest construction project in Egypt since the construction of the Pyramids in the Old Kingdom 5.000 years earlier. Nasser sold the dam to the Egyptian people as the sollution to their problems.
The United States desired to retain good relations with Nasser and after the Soviet Arms deal saw its influence waining. The United States was still unwilling to supply arms. Thus the United States offered to assist in the construction of the coveted Aswan Dam.
The United States agreed to give Egypt an unconditional loan of US$56 million, and Britain agreed to lend Egypt US$14. The British offer was conditiinal on the karger American loan. The World Bank had pledged an additional US$200 million. The World Bank loan, however, carried conditions. The Banks demanded that that the Egyptian budget be overseen by World Bank officials. Nasser saw these conditions similar to that imposed on Egypt during the British protectorate (1870s).
At the same time there were growing problems in the Egyptian-American relationship. Nasser angered American policy makers by recognizing Red China (May 4, 1956). American cotton interests were oposed to rge dam because it would increase Egyptian cotton production. Both the Israel lobby, and the Nationalist Chinese lobby also worked against the proposed loan. Nasser frustrated Secretary of State Dulles' policies. He concluded that Nasser's suposed neutralism was actually enabling the Soviets to penetrate the region. As a result, the United States decided to rescind its loan offer. Secretary of State Dulles met with the Egyptian Ambassador and informed him of the Administration's decesion (July 19, 1956). Subsequentb U.S. statements questioned noth Egypt's ability accomplish the project or repay loans because of the government expenditures on Soviet arms. [Bickerton and Klausner]
Soviet diplomats were active in Egypt and other Arab countries at the time. The arms agreement was their first success. The Soviets now offered to both finace the Aswan Dam and provide the necessary technical assistance the Egyptians needed. was.
At a time when Arab-Isreali relations were dereriorating, Nasser escalated the situation by nationalizing the Suez Canal. Nasser gave a major address to a huge crowd at MuhAt
ammad Ali Square in Alexandria (July 26, 1956). This was the fourth anniversary of King Faruk's exile. And it was the site of an 1954 assisination attack on Nasser himself. Nasser had preeranged that when he said the code word "de Lesseps" (the French engineer who built the Canal), engineer Mahmud Yunis who begin to takeover the Suez Canal. Nasser claimed that the Canal's revenues were needed to pay for the construction of the Aswan Dam. The Isrealis struck to precent a joont Arab attack. The British and French Struck to recover the Canal.
Nasser did succeed in building the Aswan High Dam. It was an enormous undertaking. As many as 30,000 workers labored 11 years to build the Dam. The Soviets finabced it and provided the needed technical assistance. The Dam as Nasser promissed provided huge amounts of power. The Lake Nasser Reservoir behind it help irrigate new farm land.
The Aswan High Dam while a major achievement, did not prove to be an answer to Egypt's economic problems. Egypt today continues to be a povert stricken country. One has to ask why Egypt has proven to be such an economic disaster. Surely wasting sorely needed capital in repeated wars with Israel is part of the problem, but here the Egyptians were able to convince the Soviets to pay a good bit of the bill. Rather the main problem was Nasser's decession to turn to socialism and central planning. In Nasser's defense, the failure of siocialism was kess apparent in the 1950s than it is today. A suffocating beaureacracy is another part of the problem. Nasser and the Free Officer's dislike of the British led them to reject some of the keys to building a modern economomy such as the rule of law and free markets. Egyptians today appearing to be rejecting secular sollutions as the Muslim Brotherhood becomes an increasingly important factor in the country's political and social life.
Bickerton, Ian J.and Carla L. Klausner. A Concise History of the Arab-Israeli Conflict, 4th edition.
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