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INFITAH (Arabic : انفتاح‎‎ Infitāḥ, IPA: "openness") was Egyptian President
President
Anwar Sadat
Anwar Sadat
's policy of "opening the door" to private investment in Egypt
Egypt
in the years following the 1973 October War ( Yom Kippur War
Yom Kippur War
) with Israel
Israel
. Infitah was accompanied by a break with longtime ally and aid-giver the USSR
USSR
— which was replaced by the United States
United States
— and by a peace process with Israel
Israel
symbolized by Sadat's dramatic flight to Jerusalem in 1977. Infitah ended the domination of Egypt's economy by the public sector and encouraged both domestic and foreign investment in the private sector . The Egyptian Army's cross through the Suez canal in the October 1973/Yom Kippur War , which most Egyptians considered a strategic victory, gave Sadat the prestige to initiate a major reversal of Gamal Abdel Nasser 's policies.

CONTENTS

* 1 Overview * 2 Shortcomings * 3 See also * 4 Notes * 5 External links

OVERVIEW

Under President
President
Nasser, proponents of statism and a command economy with limited private investment, dominated the political scene. However, by the 1970s, critics believed Egypt's economy, with its large public sector , had evolved into a "Soviet -style system" of "inefficiency, suffocating bureaucracy , and waste." Sadat also wanted to turn Egypt
Egypt
away from its focus on war with Israel
Israel
and devotion of resources to a large military establishment. He believed capitalist economic policies would build a substantial private sector , and alliance with the United States
United States
and the West would lead to prosperity (rakhaa) and eventually democratic pluralism. Infitah was not only ideologically but also politically motivated: by aligning himself with the capitalist West, and the rich and powerful members of Egyptian society, Sadat differentiated himself from his predecessor Nasser while at the same time securing his position in power.

SHORTCOMINGS

The implementation of Infitah is generally considered to have been flawed in its over-ambitiousness and its appearance of having abandoned "solidarity with the poor." The government rewarded its cronies and allies (many of whom became quite rich), and built a power base loyal to the regime with concessions on land, goods and commodities; mandates and contracts to agencies and dealerships, but did little to create free markets and an open economy. The millions of previously poor Egyptians who had joined the middle class under the Nasser regime through education and jobs as doctors, engineers, teachers, lawyers, journalists for the government or parastatals , were left stuck in an "increasingly marginalized, stagnant and low-paying public sector," under Infitah. Infitah was a shock to the Nasser-era middle class, reversing the socialist principles of Nasserism, seeming to revoke policies of free education, social equality, abolition of feudalism , nationalization of land and industry, and progressive taxation . At the same time the public sector continued to dominate the economy. The proportion of the population working for the state grew from 3.8% at the height of the Nasserite era, to 10% (about 35% of the country's entire labor force) after the full thrust of Infitah in the e