Millenia ago Egypt thrived as a global economy because of natural and geographic considerations: Africa's diverse resources could trade with ease from Egypt's location on the northeast corner of the continent; and the drying of the Sahara forced migration to more lush region, such as the Nile River Valley. From the start the economy was planned, meaning a central figure made the economic decisions for everybody. In Egypt's case, the pharaoh appointed a bunch of bureaucrats to oversee all of the industry: Mining, fishing, farming, slavery, warfare, energy, commerce, et cetera.
Unlike Cuba, the government didn't tell people what they could and could not produce. In Ancient Egypt, this was likely a decision made by the innate capabilities of the farmers and of the land itself. Not unlike Cuba,
Egyptian bureaucrats remeasured and reassigned the land to farmers after every rainy season based on past crop yields, assessed the expected crops for the next harvest, collected part of the produce as taxes, and stored and redistributed it to those on the state's payroll.
If your family was successful, you didn't live hand-to-mouth, and could store surpluses for future use. If you were really wealthy the men in your family may have access to the trading route to use extra goods to barter for others on the market. A market is anywhere buyers and sellers meet, and seeing as how Egypt had both command and market economy characteristics, it's what's known as a mixed economy.
To be fair, the percentage of produce and even manufactured goods which reached markets was probably small. Most people living over 8,000 years ago found personal financial gain of marginal importance to the tests of survival of the day. But we already know that international trade provided part of the economic base for the developing Egyptian high culture (e.g., wholesale merchants acting for the crown) that has influenced every civilization since. The extent to which private individuals were involved in trading goods and services cannot be estimated. Major changes to the early barter system began to with the influx of foreigners to Africa's shores, and the introduction of coined money in the Late Period. As expected, market forces (natural Supply and Demand) seem to have played a role above all during the periods when the Government was in upheaval.
Well, the government is certainly in upheaval now. Amid an ongoing promenade of marches, rallies, civil disobedience and riots people of all faiths colors, and backgrounds have gathered to protest a plethora of economic ills; namely the rising unemployment rate, creeping steadily back to 10%; the high cost of food because banks are now closed due to the local instability and the demand for groceries is outstripping the supply to the shelves; low wages have sparked flames of public outrage since 2004, but are gathering oxygen for the long slow burn today; and steadily falling Gross Domestic Product growth when they need it most.
The focal point of all of this righteous angst is President Mohamed Hosni Mubarak, the "Pharaohonic" figurehead in power for the last 30 years. Sounds like Zimbabwe (and President Robert Mugabe) all over again.
What is the eternal unrest that darkens Africa's heart? Despite birthing the
race of mankind, the governments of the Motherland quarrel against the very
people they were formed to serve, making a mockery of the notions of independence, sovereignty and civil and human rights. For years, Zimbabwe was Africa's "Golden Child" excelling far beyond its expectations as a former British colony. Has a history littered with slavery and marginalization based on color and culture poisoned the population of potential leaders of the people? Or are the vices and bad economic decisions of government officials an individual flaw (repeatedly observed) that rests in the heart of the person and not of the people? Is ECONtrepreneurship the responsibility of the person, the government, or the colonizer? We'd love to hear your thoughts.
Our hopes for a brighter Egypt, and thus, a more prosperous Africa.
dls
* Thanks to this summary of Ancient Egyptian Economics for research, Bloomberg BusinessWeek
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