After a long period of stability, Egypt’s agricultural sector experienced sudden change due to the 1973 oil price increases and Anwar Sadat’s Open Door economic policies. Workers left rural Egypt for the cities and high-wage jobs in the oil-exporting countries. The resulting “labor shortage†and rising real wages in agriculture coincided with a

The inverse relationship between farm size and productivity is accepted as a "stylized fact" of agriculture in developing countries. This study uses Egyptian fieldwork data to examine factors creating this relationship, and the impact of economic and technological change on the relationship.

Agriculture was the basis of the Egyptian economy when Muḥammad 'Alī, "Founder of modern Egypt," was appointed governor of Egypt by the Ottoman sultan in 1805. Dr. Rivlin's purpose is to discover if Muḥammad 'Alī had a well-conceived agricultural policy of lasting significance for the development of Egyptian institutions. The conclusion reached after careful analysis of the problem from every facet is that far from having an agricultural policy per se, Muḥammad 'Alī merely utilized the agricultural wealth of Egypt for the purposes of personal aggrandizement and the attainment of a position of great power and independence for himself and his descendants within the Ottoman empire. The measures taken by Muḥammad 'Alī affecting land tenure replaced one class of landholders by another to the detriment of the peasant class and the religious institution. Although the Pasha can be credited with changing the Egyptian economy from a subsistence to a cash crop economy by the investment of capital in the development of agriculture, the financial benefits gained thereby accrued primarily to the Pasha himself. Instead of using these profits for economic purposes, Muḥammad 'Alī embarked upon a program of military adventurism that eventually undermined the economic life of the country and brought only limited political gains to Egypt. Muḥammad 'Alī's domestic policies established the social and economic pattern which prevailed until the Egyptian Revolution of 1952 and are largely responsible for many of Egypt's present problems. Dr. Rivlin's study is of major importance to students of the contemporary Egyptian scene, and should serve as an object lesson for present planners in underdeveloped countries. -- from dust jacket.