The Egyptian Revolution 1952 Review of Socio-Historical Background
transport and communication, finance and wholesale trade were primary owned by the government while most retail trade, handicrafts and repair, housing,
professional services, and agriculture were privately owned. In 1962, the Egyptian economy had changed. Ownership of the main
branches of economy had been transferred to the government. Government
budgets accounted for 60 percent of the GNP. Efforts to improve the economic system were severely hampered by the losses suffered in the 1967 Arab-Israeli
War. As a consequence, Egypt lost substantial revenues from the closure of the Suez Canal, oil fields in Sinai Peninsula and tourism. The most important thing
here was that those three elements had been important to Egypt’s earning of foreign exchange for its development.
In the wake of 1973 October, the war situation began to change. It brought positive results for the Egyptian economy. In 1975 the canal was reopened and the
oil field in Sinai Peninsula was returned to Egyptian control. It made the situation in Egypt better than before. In a 1974 working paper, President Anwar Sadat set
forth a statement of Egypt’s long-term economic and social objectives. He discussed the successes of the revolution, including the emancipation of women,
the establishment of many public sector enterprises, the Agrarian Reform Law, and advances in education and other social services. He brought Egypt into a
better place although not in all aspects of life. However, population was the main problem in Egypt whose density was one of the highest in the world and it was not
easy to overcome the population at that time. Other problems which still existed
was that Egypt remained a poor and developing country; it was densely populated; migration to the cities and many more.