It was an emblematic moment in contemporary Egyptian history, as President Anwar al-Sadat presided over victory in the 1973 Arab-Israeli War. Sadat became an iconic figure, now bestowed the title batal al-ubur (“the Hero of the Crossing”); he awoke a reinvigorated sense of duty and togetherness that had for years began to dissipate. Sadat’s military victory had restored national pride, however, public expectations as to the state of Egypt’s languishing domestic economy started to emerge. No longer could the war effort be considered a valid excuse for the economic ills suffered by all segments of Egyptian society. During the 1960s, Gamal Abd El-Nasser, in an effort to emulate the Soviet Union, had created a huge public sector and an over-regulated state economy. All essential food commodities and large infrastructure investment projects were controlled and centralised, this amounted to widespread shortages and waste. The economy was characterised by low levels of productivity, a lack of an educated workforce and a decaying agricultural sector. Nasser was able to sustain this economic structure through increased levels of taxation, and through printing more money to fund public spending, known as financing by deficit. However,…
