Egypt’s downward spiral started with Nasser

Sol W. Sanders  

Fleeting memory – and perhaps proof that if there are lessons of history, they are never learned – is that there is almost no mention of “Nasserism” or “Pan-Arabism” in the current reporting on Egyptian chaos.

Yet for two decades a young army officer out of nowhere, Gamal Abdel Nasser Hussein, towered over Egypt, the Arabs – and even the broader Muslim world – allied to the Soviet Union and preaching shortcuts to modernization. Today his politics is scarcely mentioned among the 400 million Arabs much less in the rest of the world. That could only be, what with a third of Egypt’s 90-million under 15, nearly three-fifths under 30, most at best semi-literate – a population that increased at least 25 percent in the last two decades.

President Gamal Abdel Nasser, right, in 1964 with the Soviet Union's Nikita Khrushchev.  /Photo HH
President Gamal Abdel Nasser, right, in 1964 with the Soviet Union’s Nikita Khrushchev. /Photo HH

Yet as that motto over the U.S. Archives says, the past is prologue. Nasser’s 1952 revolution and two decades of military misrule contributed to the current tragedy in so many ways. Like successor politicians, even in the Western democracies – one too close to home – Nasser preached “comprehensive” solutions to the myriad problems of what was once the breadbasket of the Roman empire with its triple-cropping and rich Nile River silt soil. The corruption and incompetence of the pseudo-liberal parliamentary monarchy which preceded him, the first effort at a stable, modern society in one of the world’s oldest civilizations, was so imperfect he said it had to be overthrown by what turned out to be sheer demagoguery.

For as the reality of the depth of Egypt’s problems sank in, Nasser turned to preaching unity among the Arabs – a groundless concept so often promised and failed. Ethnicity, geography, wealth and history – even religious concepts — divide the Arabs at every crisis as is the case just now. But with the adulation of millions, Nasser turned to implacable hatred of the most effective modernizing force in the region, Israel, with disastrous results in three wars.

Simultaneously, in his rush toward Soviet-style socialism, he purged Egypt of its centuries-old ethnic minorities, the Greeks, the Armenians, the Genovese, the Venetians.

The Jews had already fled, the wealthier to France, the poorer to Israel. This “middle class” had nourished the caravan trade for centuries and were the factors of its agricultural economy and nascent industrialization.

Moreover, Nasser’s pan-Arabism excluded and threatened Egypt’s indigenous Coptic Christians, quintessentially Egyptian and close to 15 percent of the population.

From Upper Egypt fellahin peasants to Alexandrian and Cairene landlords and entrepreneurs they were disproportionately wealthy, said to control 50 percent of the country’s riches. Age-old animosities were revived with continuing persecution persisting to this moment.

But unlike other indigenous Mideast Christians, perhaps as many as 15 million Egyptian Copts are not just going to pack up, and fade away. Obviously they have played a significant role in turning back the first wave of the Islamic radicals under ousted President Mohammed Morsi and his dissembling Muslim Brotherhood fanatics.

But Nasser’s tortured economy inheritance persists.

It would be hard to exaggerate its current failings, exacerbated, of course, by the instability of Egypt’s version of the Arab Spring. Having long ago descended into the abyss, Cairo has to import 40 percent of its food. It runs a trade deficit equivalent to an astonishing fifth of its gross national product [GDP].

The government’s credit rating has collapsed. Price controls and subsidies had seduced the population into uneconomic waste of domestic oil and gas moving toward a tenth of the GDP. The official 10 percent unemployment [25 percent among the young] is notional. Crony capitalism – including the military – distorts virtually every market. Recourse to the International Monetary Fund’s cash has been held up by its unsavory reputation – whether deserved or not – with the Egyptian polity. But in any case, the IMF still needs a road map for some sort of return of stability.

Through modern times Egypt has been a top destinations for international tourists – in 2010, 5.5 million came spreading $14 billlion. With growing international travel, that had doubled from a decade earlier. And it was despite an ugly 1997 massacre of 62 foreign tourists at Luxor – the center for expeditions to the Valley of the Kings ruins, a Pharonic history dating as far back as 5,000 years.

One of the tipoffs of the total incompetence — if not its true nature — of the ousted Morsi regime was the appointment of a former Islamic terrorist as governor in the region until public outcry immediately drove him out. He was a member of the outlawed Al Gama’a al-Islamiyya organization alleged to have perpetrated the outrage. Their bloodthirsty assassinations of public officials – including implication in that of Nasser’s successor Anwar Sadat – have suggested a tacit alliance with Osama bin Laden’s Al Qaida. Although officially renouncing violence, Al Gama was heavily represented in the parliament elected last year. Its one time leader, the blind sheik Omar Abdel-Rahman who directed the first attack on the New York City Trade Center in 1993, is now in a U.S. prison. But he refuses to renounce violence and probably still plays a role in convoluted Egyptian Islamicist politics.

The continued political crisis has wreaked havoc on tourism, of course, And with one in every 12 in the labor force working with visitors, the bonds between reestablishing order and its reputation abroad is essential for any resurrection, even temporarily, of the economy.

Nasser’s death in 1970 and the subsequent break with the Soviet Union by his successor, another military leader Sadat, ushered in reform. Chaperoned by President Jimmy Carter, Sadat made his famous peace visit to Israel. He turned to the U.S. and the West and the Persian Gulf oil mini states for what has been billions of dollars in economic and military aid. – $19 billion alone from Washington, still on the hook for $1.3 billion annually.

The ’90s finally brought a serious effort for economic reform, to dismantle Nasser’s legacy. But much of Egyptian industry is still in uneconomic and corrupt government companies in a bloated public sector. Even before the recent political explosion, inflation and unemployment with huge military outlays pushed a growing public debt. Only the three million Egyptians working in other Arab countries and their remittances, the lifeline of the Nile’s irrigation waters, an off and on export of gas to Israel and Jordan, and the relative trickle of tourism – and massive aid, of course — has kept the country afloat. [A nasty additional cloud on the horizon is the threat of riparian countries on the upper reaches of the Nile to void British colonial imposed divisions which benefited Egypt and the Sudan downriver disproportionately.]

It would be a fool’s errand to predict what comes next. The long descent of Indonesia’s once highly efficient plantation-colonial economy under the demagogic Sukarno and the collapse of Burma’s pre-war colonial agricultural exports under the rule of the mad Ne Win and his successors proved there is no bottom in pre-industrial societies. Southeast Asia is not Egypt, of course, although the once common relatively easy life of the tropics suggests comparisons.

Egypt’s long history of synthesizing totally different intellectual currents and absorbing economic abuse like a sponge give some faint hope. But, for the moment, the future could not seem bleaker.

Sol W. Sanders, (solsanders@cox.net), is a contributing editor for WorldTribune.com and East-Asia-Intel.com and blogs at yeoldecrabb.wordpress.com