February, an interim constitutional was proclaimed that provided the terms for the operation of the government. This constitution noted that people were the source
of all authority but all power was clearly vested in the RCC. Then, RCC created a new political organization called the National Liberation Rally to replace the
banned political parties. In June 1953 the RCC moved to the next step in the conversion of the
political scene. The monarchy was abolished. A republic, with Naguib as both president and prime minister, was declared. The main structural changes were
now in place, permitting the processes of government to function within a new framework. The most crucial factor in Naguib’s period was the emergence of
Gamal Abdul Nasser as the primary force of Egyptian national life. Slowly Nasser’s role as the guiding force behind the revolution began to clarify and
Nasser emerged as the victor a power struggle within the RCC. On 14 November 1954, the struggle for control between Nasser and
Naguib went through several stages. In 1954 Nasser changed Naguid as the president of Egypt. When he led the country, all aspects in Egypt were running
very well. In 1970 Nasser died and was replaced by Anwar El-Sadat. The Sadat period brought changes in the political, social and economic domains.
2.3.2 Political Environment
Nile River was an important source of revenue and a central factor in daily life. Egyptian society had been based to a significant degree on the peasants, the
fellahin, who constitute the vast majority of the Egyptian population. The fellahin was the backbone of the Egyptian system, even if they were relatively deprived
economically and educationally, and in terms of life expectancy, wealth, health, literacy, and most of the other measures of achievement in society.
At the time of the revolution Egypt was a poor country facing a host of social and economic problems: low per-capita income, unequal income
distribution, disease, early death, low life expectancy, and a low literacy rate. The Egyptian Revolution of 1952 was launched to deal with political issues. There
were two class systems in the society, a very rich upper class and a very poor lower class. The upper class consists of bankers, businessmen, merchants, and
landlords controlled the wealth of the country and dominated its political institution. The poor were mostly landless peasants who constituted more than 75
percent of the population. Additionally, they were illiterate and had little opportunity to improve their situation. One of the goals of the revolution was the
achievement of social and economic justice by eliminating the corrupt system and the monopoly of health. The new government attempted to raise the standard of
living of the average Egyptian and to reduce the poverty and disease that had permeated Egyptian society for so long.
2.3.3 Other Economic Sectors
In 1952 revolution was of little immediate consequence to the Egyptian economy. By the end of 1950s government’s attitudes had shifted to favor public
participation in and direct regulation of the economy. In 1961 a series of decrees nationalized all large-scale industry, business, finance, and virtually all foreign
trade. All big businesses were controlled by the government. Modern manufacturing, mining, electricity and other public utilities, construction,
