ABSTRACT
Reliance on the Nile River’s waters has shaped the economy and history of Egypt and Sudan, making them quite distinctive within the broader Arab community. For many periods in its long history, Egypt was the preeminent regional power, and a prosperous one as well. While the Industrial Revolution left Egypt far behind northern Europe economically and in political power, Egypt was at mid-twentieth century still within striking distance of southern European standards. In 1950, Egypt’s income per person was 80 percent that of Greece and 45 percent that of Italy, and Alexandria was arguably as rich as Athens or Naples. However, the Arab socialism instituted by President Gamal Abdel Nasser slowed growth and entrenched Egypt’s bureaucracies, which have resisted change ever since 1974, when President Anwar Sadat launched the country on the path toward a market economy. Reforms have been fitful, as has been growth. In 2005, Egypt’s income was a mere 11 percent that of Greece and 6 percent that of Italy, a drop since 1950 by a factor of seven in relative income. Sudan, long Egypt’s poorer cousin, has since 1999 seen its fortunes improve thanks to oil, though that could change if Southern Sudan becomes independent as seems likely.
