Egypt developed into a world economy during the nineteenth century. This was as a result of the complete transformation of the agricultural sector that saw cotton become Egypt`s main cash crop. Development in agriculture was accompanied by numerous changes ranging from Egypt`s social structure, land tenure institutions to the agricultural practises and techniques employed. This paper seeks to discuss at length the Egyptian agriculture, the importance of agriculture to Egypt and the different changes that has been experienced in the agricultural sector at large. Moreover, it aims at verifying the importance of cotton farming in Egypt and the level which the deteriorating state agriculture has reached (Richards).
The 19th century saw the implementation of the perennial irrigation system. This replaced the basin irrigation system. There was also a shift from the crop rotation system. The basin irrigation system was adopted Egypt a long time ago and can be traced to the era of pharaohs. There were several reasons as to why the basin irrigation system was useful in Egypt. Firstly, the floods were a source of nutrients. As such, soil fertility was maintained and the basins required little or no fertilizer at all. Secondly, accumulation of salts in the soils was prevented due to the intermittent flooding of the higher fields. Thirdly, crops sown after the floods needed minimum land preparation. The basins were also beneficial to Egyptian farmers as the lands laid fallow for a reasonable period prior to the arrival of the floods. This was not only essential to the soils biologically but also chemically and physically as it became aerated, heated up and cracked. However, the basin system of irrigation favoured only certain types of crops that did not require plenty of water during summer. The system also required a lot of labour to water fields during summer. Cotton required a lot of water during summer and could not be grown well under the basin system of irrigation. The emergence of cotton as Egypt growth engine and main cash crop led to the transformation of irrigation system to perennial irrigation system
The development of the perennial irrigation system began way back under Muhammad Ali and his successors but was completed by the British. Perennial irrigation system needed the construction of canals, dams and dikes so as to increase the water level in the canals during the summer period. Increased water level as a result of perennial irrigation system not only increased the area over which cotton could be planted but also reduced the amount of labour required to water fields during summer. Labour required was drastically reduced due to the reduced distance between the water source and the fields. In addition, increased water during summer also gave peasants an opportunity to grow cotton more often than before. Land use also became intensified. This led to the switching to a two year crop rotation from a three year crop rotation and reduced production of beans (Richards).
Nevertheless, these transformations had adverse effects which led to a tremendous decline in average cotton yield. The decline in average cotton yield is attributed to insect attacks, a rise in water table and deterioration of soil due to reducing the fallow period. The rise in water table not only enhanced soil sanitation through evaporation and capillary action but also killed the deep cotton plant roots. The shift in rotation also led to reduced cotton yields as it poured more water on the land and made the beneficial effects to soil such as aeration, nitrifying of bacteria as a result of increased fallow period to be lost. There was an urgent need to improve the drainage system as this would improve soil aeration, prevent high water levels and reduce colloid formation.
Nevertheless, the British failed to offer sufficient public drainage systems due to lack of adequate funds. The British could also not rely on taxes as a source of revenues for constructing the drainage. This is because increased land taxes could lead to widespread peasant bankruptcy and land loss. The long run effect of agricultural intensification was the retention of the 3 year rotation by rich farmers as the peasants adopted the two year rotation period. This was despite the adverse effects of the two year rotation period. The peasants adopted this method or rotation due to lack of adequate information on the adverse effects of the drainage problem. The peasants were also more concerned about a consistent food supply rather the maximization of profits. Therefore, it followed that peasants were at the border of subsistence. The adoption of the 2 year rotation period was also as a result of lack of mortgages and other credit facilities. Unlike the wealthy pasha who had access to credit facilities, the peasants shied away from the banks due to various reasons. Firstly, they were charged higher since they borrowed small loans and this resulted to very high administration costs. Secondly, the loans were collected by tax collectors. The peasants feared the tax collectors due to the harsh treatment they underwent through. Therefore, the peasants borrowed from the village moneylenders. They were heavily indebted since the village moneylenders charged very high interest rates. Thus peasants struggled to clear their debts and as a result preferred short run strategies such as a 2 year rotation period. Peasants not only faced high interest rates but also faced the threat of foreclosure which could result into land loss. Rural crime became very rampant due to the strong desire by the peasants to hold more land and maintain their subsistence requirements. However, the two year rotation period led to land depreciation and reduced supply of proteins. They also faced high price chances due to the market volatility. The British technical changes therefore saw the peasants yield reduce as the wealthy pashas yields increased (A. Richards).
Egypt draws a great percentage of its GDP from agriculture and agricultural related activities. Agriculture accounts for more than fifty percent of Egypt`s exports. It is the major source of employment and also accounts for about thirty percent of the GDP. Furthermore, the industries and services offered in Egypt are directly interlinked to agricultural based activities. However, there has been a great decline in the exportation of cotton and rise since 1974. The decline in the amount of cotton exported is traced back to the political decisions and policy choices made during the Nasser regime and the Sadat`s quasi liberated government system. The problems experienced currently in rural Egypt can be based on the contradictions of state government. Firstly; the Nasser regime which took over a highly commercialized, densely populated and capitalist rural economy employed three principles to reorganize agriculture. These principles included price policies, land reforms and investment decisions. The land reforms adopted greatly eliminated inequalities in land ownership. However, peasants were not seriously mobilized due to the social ideological concept. Nevertheless, the government was able to tackle some issues such as irrigation maintenance and pest control. In addition, selected seed, fertilizer and tractor services were provided by the government at subsidized prices. Nonetheless, there was emergence of extensive practice of black market as a result of increased bureaucracy. The system thus favoured mainly rich peasants as they were always the first to benefit from any scarce resources available.
The government also used the purchasing and pricing policies to collect rural taxes. This system posed two serious problems. Firstly, agricultural outputs such as fruits, milk, vegetables and meat lacked controlled prices. Secondly, richer farmers evaded the regulations due to lack of competent and honest cadres. Rich farmers also shifted from controlled crops to uncontrolled profitable crops. Crop allocations and controlled prices had an adverse effect on the general Egypt`s national economy. Production of cotton greatly reduced and Egypt lost foreign exchange as a result. The Nasser government should have strived to ensure its` directives are realized. This could only be achieved through mobilizing the landless workers and poor peasants to refrain from corrupt deals. Overconcentration on land reclamation also had some adverse effects. All in all, there was a great investment in agriculture during the Nasser regime as compared to the Sadat`s regime. The major investments that stand out during this period are land reclamation, construction of the Aswan dam and the relative neglect of the drainage problem. As such, agricultural investment increased to 16.8 per cent from 11.6 per cent. There was also increased use of pesticides and fertilizers during this period and a general rise in capital formation.
The Sadat`s era led to the decrease in the overall yield from agriculture. This was due to the increased dominance of the rich peasants, use of selective price controls, evasion of crop quotas and allocation of inputs corruptly. The neglect of the drainage problem also began to serious show its` effects during this period. Large tracts of land were affects and the quality of soil deteriorated drastically. The government borrowed finances with an aim of correcting the drainage problem due to large capital investment required and financial constraint. However, construction of the drainage installation lagged as a result of labour bottlenecks, lack of cement, inadequate transportation equipment and lack of enough cement. The labour bottlenecks were as a result of brain drain in the country. The specialized engineers and skilled labourers’ preferred higher paying jobs. Sadat`s liberalization policies on the rural labour markets also contributed to the migration of skilled workers to other countries. Rural urban migration was also enhanced during this period due to the government subsidies on food which were more operative in urban centres. Migration has led to labour shortages and increased urban consumers. Therefore, the effects of Sadat`s policies led to a general decline in the performance of the agricultural sector.
Egypt`s agriculture trade deficit is attributed to the different elements. Firstly, the rise in urban population has led to increased domestic demand of for rice and wheat. Secondly, there has been a generally increase in the demand for high income elastic commodities. This is as a result of the combination of urban growth and economic liberalization. Thirdly, the price explosion for wheat during the Sadat`s era led to devaluation of the dollar as a result of increased levels of inflation. Fourthly, cotton which was the principal export drastically reduced as a result of corruption in cooperatives and increased price controls. Production of rice and wheat was also reduced. In addition, the drainage problem worsened. This, together with the lack of fodder for animals led to a decline in the growth of crop yields.
All in all, Egypt currently heavily depends on imports of flour, wheat and other products. This is despite the fact that it was once recognized as a land with abundant food and plenty agricultural products. The exports of Egypt also keep lagging behind leading to huge trade deficits. Problems faced by Egypt currently ranges from high rates of inflation, high rates of unemployment, low productivity to increased population growth rate.
Egypt`s high birth rate leads to high demand of consumables. The country`s high level of demand has led to increased importation which has resulted into an unbalanced trade deficit. The agricultural sector is adversely affected by the taxing of agricultural commodities through pricing export crops. This has acted as a disincentive in the agricultural sector leading to reduced production of cash crops such as wheat and cotton. The agricultural sector also faces the problems of monopolized supply of credit, seeds, pesticides and fertilizers. It also faces lack of competition in the parastatals, coerced delivery of under-priced crops and the monopoly of the Egyptian government in marketing cash crops (Richards).
Despite all these drawbacks, Egypt gains a lot from agricultural products. For instance, cotton is a source of employment. Growth of cotton has led to the establishment of numerous industries which are agricultural related such as textiles. The growing of cotton offers opportunities for both skilled and unskilled labour. Therefore, it offers a platform for employment opportunities in the plantation farms, textile industries and the financial institutions that offer services to agricultural sector. Cotton is also a main foreign exchange earner to Egypt. Egypt exports cotton to other countries and benefits from foreign exchange. This increases the percapita income of the citizens. The taxation of cotton is also a source of revenue to the government. The revenue obtained from taxation can be used in infrastructural development, offer pubic goods and services and to maintain peace and order in the country at large. Investment in cotton has also attracted foreign investment in Egypt. Foreign investment not only enhances economic growth but also increases the job opportunities in a country. There is also spill over effects to other sectors. This is due to increased demand of products and services of other sectors. The foreign industries and firms are also taxed heavily as compared to the local firms. This increases the revenue obtained through taxation. In addition, foreign investment increases competition. Competition is very important as it reduces consumers exploitation, ensures production of quality products and efficient services.
In conclusion, Egypt gains a lot from cotton and agriculture in general. The benefits of cotton and agriculture at large to Egypt include increasing job opportunities, attracting foreign investment, source of government revenue and foreign exchange. Agriculture in Egypt has gone through different faces with a major shift from the basin irrigation system to perennial irrigation systems. There has also been a change in the rotation period and a major intensification of agriculture. Nevertheless, the agricultural sector still faces various challenges such as monopolization of loans, seeds, fertilizers and insecticides by the government.
Works Cited
Kamel, Seif . Cotton: One of Egypt's Most Famous Exports. 21 August 2011. 21 December 2012
Miller, Brian Wale. "KING COTTON: A STUDY OF THE EGYPTIAN COTTON ECONOMY." 8 December 1999. http://filebox.vt.edu. 16 December 2012
Richards, Alan. Land and Labor on Eqyptian Cotton Farms. Santa Cruz: University of California, 1979.
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