ABSTRACT
This chapter examines the sources, dynamics, and contradictions of Egypt's restructuring of its foreign policy orientation. In the 1970s, Egypt restructured its foreign policy orientation, and the restructuring reflected a trade-off between economic and political objectives as perceived by Egypt's primary decision-maker, President Anwar Al-Sadat. Economically, Egypt moved away from Gamal Abdel Nasser's Arab socialism and toward liberalization of the economy and the encouragement of private capital. In the 1970s economic factors played a crucial role in the determination of Egypt's foreign policy objectives. The Egyptian record in the 1970s demonstrates the tensions resulting from a limited resource base, the pursuit of an activist foreign policy, and increasing economic troubles at home. Economic difficulties contributed to the evolution of a more inward-looking and less activist foreign policy. The impact of economic factors can be summarized as follows: Egypt's limited resources put a constraint on its government and made Egypt more dependent on foreign aid and more vulnerable to external influence.
