ECONOMIC ASPECTS OF LAND TENURE IN EGYPT By Hassan Aly Dawood A THESIS Submitted to the School of Graduate Studies of Michigan State College of Agriculture and Applied Science in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Department of Agricultural Economics 1950 P R E F A C E Before coming to the United States, the author was employed by the Fellah Department of the Egyptian Ministry of Social Affairs. For six years he was responsible for the Department's rural reconstruction program in two of the Rural Welfare Centers established in 19^1. While re­ siding in the villages, sharing with the "Fellaheen" their own type of life and studying their different social and economic problems, he became more and more conscious of the importance of the land tenure system and its effects on the living standards of rural people. His interest in this subject has continued to grow and helps explain his decision to write a dissertation on "Economic Aspects of Land Tenure in Egypt." The study has two objectives: (1) To analyze the land tenure system prevailing in Egypt, and examine its effect on the country's economy. (2 ) To stimulate more interest in and more comprehen­ sive research on the subject of land tenure in Egypt, and to indicate the types of information and data needed for analytical purposes that still need to be gathered and reported in Egypt. This is a secondary objective, but as important as the first one. In dealing with the major objective, a general back­ ground about Egypt is given first. This includes the geographical setting, a historical background and a brief account of the development of the country’s economy and the place of agriculture in it. The balance of Chapter 1 is devoted to a discussion of the factors affecting the supply of agricultural land in Egypt. In Chapter 2 , the demographic position of Egypt and the effects of this situation on the demand for land are dis­ cussed. Chapter 3 is devoted to an analysis of the land tenure system in Egypt. The origin and evolution of the land tenure system are described as is the present day situation. With the aid of the limited data available, the economic aspects of the system are then analyzed. The following points are emphasized: (l) The agricultural ladder and the acquisition of land in Egypt. .(2 ) Costs, returns and efficiency on different sizes of farms. (3 ) Effects of the system on land use and on the national agricultural output. (4-) The agricultural laborers in Egypt, (5 ) The standard of living. (6 ) The farm tenancy problem. Possible measures for improving the tenure system are considered in Chapter Chapter 5 iB “the summary and con­ clusion of the study. Lack of reliable data has been a major problem through­ out this study and the findings would have been more conclusive had more reliable data been available. The data used have come mostly from census books and other secondary sources. The unpublished investigations of the Fellah De­ partment provided a valuable primary source of data and proved invaluable to the author. The author wishes to acknowledge his indebtedness and to express his sincere gratitude to all who generouely helped in the preparation of this study. He is particularly indebted to the members of his Advisory Committee for their encouragement and helpful guidance; and to Dr. Ralph C.Huston. Dean of the School of Graduate Studies. Dr, Herman J.Wyngarden, Dean of the School of Business and Public Service, and Dr. Lawrence W. Witt, Chairman of the author's Advisory Com­ mittee, for giving the author not only the guidance, en­ couragement and help they give to all their students, but for facilitating matters, at the time when the Egyptian Government for a time cut its aid, so that he could remain in the United States to finish his studies. To Dr. Raleigh Barlowe, who not only gave generously of his time in reading the entire first draft of this man­ uscript and making many valuable suggestions, but also was kind and patient enough to correct and rephrase several sentences, he desires to express appreciation for help and encouragement. Of his countrymen, the author is particularly indebted to Dr. Ahmed Hussien, former Director of the Fellah Department and present Minister of Social Affairs, for his continuous guidance and encouragement. To the Staff of the Fellah Department for their supply of most of the first hand data used in the study, and finally to "the Fellaheen of "Mahallet Ziad" with whom he worked four years in the village reconstruction program and to whom he owes much of what he knows about the Egyptian village, the author is sincerely grateful. Hassan A. Dawood East Lansing.Michigan February, 19§0 TABLE OF CONTESTS PAGE Chapter I Egypt, A General Background A. Geographic Setting (1) Location (2 ) Area (3) Topography (4) Soil (5) Climate (6 ) Water Supply, Irrigation and Drainage. (7 ) Mineral Resources 12 17 B. Historical Background 19 C. Economic Background, the Development of Egypt's Economy and the Place of Agriculture in It. (l) Introduction .2) The First Period (179S-1SS2) 3) The Period from 1SS2-1922 14) The Period After 1922 24 24 24 35 41 D. The Supply of Land and the Factors Affecting It. (1) Introduction (2 ) Factors Affecting the Supply of Land in Egypt (A) Rainfall (B) Irrigation (C) Drainage (D) Technology (E) Urban Land Use (f) Political Factors II The Demographic Position of Egypt and the Demand for Land A. Introduction B. Composition and Characteristics of the Egyptian Population (1) Population Growth (2 ) Population Density and Man-Land Ratio (3) Raoe, Nativity and Religion 1 1 2 4 6 9 49 4§ 49 50 51 54 56 56 59 61 6l 61 62 65 67 II (4) (5 ) (6) (7 ) (S) (9) C. III Rurality Age Distribution and Occupational Status Marital Status Vital Statistics Migration Sex Ratio Effects of the Demographic Position on the Demand for Land (1) The Population Pressure and the Position of Landowners inEgypt (2 ) The Need for Governmental Regulation. The Land Tenure in Egypt A. The Evolution of the System B. The Present day Situation (1) Land Ownership in Egypt (2) The Agricultural Ladder and the ' Acquisition of Land (3 ) Costs, Returns and Efficiency on Different Sizes ofFarms (It-) Effect of the System on Land Use and on the National Agricultural Output Page 69 72 75 SI SjJ 90 92 92 101 101 103 103 12J ljj4159 C. Some Results of the System (1) Agricultural Laborers (2) The Standard of Living 1^-6 1^6 1^-9 D. The Farm Tenancy Problem inEgypt (l) Conditions Contributing to Tenancy and Tenancy Trend in Egypt Concentration of Land Holdings in few Hands Average Size of Land Holdings and Average Size of Farm Families in Egypt Lack of any Restriction on Land Ownership High Land Values Lack of Efficient Farm Credit System The Wakf System Lack of Industrialization 151 152 152 153 155 15415^ 155 155 < Ill Page (2) Some Economic Implications of Tenancy in Egypt Tenancy and Efficiency of Production Tenancy and Soil Conservation Tenancy and Optimum Size of Unit Tenancy and Optimum Uge of Labor Resources (3 ) Landlord-Tenant Relations in Egypt Forms of Rent Payment Cash Rent Share Rent Rent in Kind Cash and Kind Rent Length of Leases Kinds of Leases and How They are Negotiated Intermediaries Security of Occupation,Compensation for Improvements and Penalties for Deterioration 157 157 159 loO l 6l 162 162 163 16 m166 167 166 166 169 170 IV. Measures for Improving the Land Tenure System . in Egypt 172 A.Introduction 172 B.Direct Measures 17^ (1) Increasing the Area Under Cultivation 174(2) More Equitable Distribution of Land Holdings 17^ More Efficient Sizeof Operated Unit. 173 More Equitable Landowner-Tenant Relations 162 Indirect Measures 16^ (1) Education 164(2 ) Industrialization 166 Migration 166 Birth Control 169 V, Summary and Conclusion 191 Appendix 200 Bibliography 219 LIST OF TABLES PAGE TABLE 1. Distribution of the Productive Area in Egypt. 3 2. Seasonal Distribution of Crops in Egypt. 3 3- Rulers of Egypt 3^C0 B.C. to 1950 A.D. 20 4. Production and Prices of Cotton in Some Selected Years. 33 5- The Extent to which Different Industries SatiefijMlthe Country’s Need in 1939- ^ 6. Items of Imports in 193$ Expressed as Percentages of 1913 Iffiports. 47 7- Density of Population in Egypt. 66 5. Distribution of Population as to Religion 1937. 69 Distribution of Population According to Age Groups in 1937- 74 9. 10. Sex Ratio in the Different Parts of Egypt 1937. 75 11. The Occupied Population in Egypt 1927 and 1937. 76 12. Crude Birth Rate for Selected Countries. 84 13. Fertility Ratio in Egypt in Different Census Years. 66 14. Consumption of Staple Articles 1925-1938. 94 15. Average Number of Work Days per Average Egyptian Farm Laborer by Provinces 1545. 96 16. Land Ownership in Selected Years. 110 17. Land Ownership in 1945. 113 IS. Number and SiseB of Farms in Egypt 1945. 116 . Costs 19 and Returns on Different Sizes of Farms in Egypt in 1938. 130 4 APPENDIX TABLES PAGE TABLE 1. Land. Acreage in Egypt 1929- 200 2. Mean Temperature in Egypt in Centigrad.ee . 1945 . 201 Relative Humidity in Egypt 19^5* 202 4. Millimetres of Rainfall in Egypt 1945- 203 5- Mean Hours of Sunshine per Day in Egypt. 204 6. Nile Discharges at Aswan and Their Rain Equivalents 205 7. Department of Mines and Quarries Revenue 1932-1946. 206 S. Monthly Mean Discharges of the Nile and Its Principal Tributaries in Cubic Meters per Second 1912-1937- 207 Population Density in Different Divisions of Egypt. 20 S 10. Population Classified as to Nationality. 209 11. Marital Status in Egypt. 210 12. Birth Rate in Egypt 1901-1945- 211 13. Death Rate in Some Selected Countries. 212 14. Death Rate in Egypt 1901-1940. 213 15. Infant Death Rate in Some Selected Countries. 214 16. Expectation of Life in Some Selected Countries. 215 17. Causes of Death in Egypt. 216 16. Kinds, Amounts and Values of the Agricultural Imports in Egypt 1937 and 1947 . 217 The Principal Units of Egyptian Measures. 218 9- 19. i M A P OF THE NILE BASIN Scale II S.000,000 A R A Bjl. A CHAPTER I Bgypt, A General Background A. - Geographical Setting 1. Geographic hocation At the crossroads of Africa, Asia and Europe lies Egypt, one of the oldest countries that history has ever known. It is comprised of three distinct parts: (I.)-Egypt proper, which consists of the northeastern corner of the African continent, extending from the Mediterranean Sea southward to parallel of 22° of north latitude, and from the Suez Canal, Gulf of Suez, and the Red Sea westward to about the meridian of 25° of east longitude. (2.) The Peninsula of Sinia, which geographically is a part of the continent of Asia, and which extends from the Suez Canal eastward to a line joining Rafa on the Mediterranean Coast to Jk Taba near the head of the Gulf of Akaba. (3.) A number of small islands located in the Gulf of Suez and the Red Sea. Egypt proper is composed of the Valley and the Delta of the Rile River, which pierces the desert belt that stretches across the Northern Hemisphere from the Atlantic Ocean to the heart of China. Beyond the Nile Valley to the east lies the Arabian or the Eastern Desert; to the west lies the Libyan or the Western - 2 Desert which contains here and there some fertile oases. The country is bounded on the north by the Mediter­ ranean Sea, on the west by Tripoli and the Sahara Desert, on the south by the Anglo-Egyptian Sudan, on the northeast by Palestine and to the east by the Red Sea. 2. Area The total area of Egypt is about 386,000 square,miles, or more than three times that of the British Isles. Of this area only about 13,500 square miles are cultivable. Canals, roads and date plantations, etc., cover 1,900 square miles; the surface of the Nile, marshes, lakes, etc., account for 2,850 square miles and the rest of the area is just desert. This means that the cultivable area is limited to approximately three y percent of the total area of Egypt. This productive area in2/ volves around 8,353,421 feddans. For various reasons only about two-thirds of this area is now under cultivation. Table 1 shows the distribution of the productive area in Egypt in 5/ 1941. X/ See Appendix Table 1. y The feddan is the Egypt measure of land area. It equals 1.038 acres. 3/ The figures for the cultivated area in more recent years are: 1943 5,331,189 feddans 1944 5,698,110 " 1945 5,730,323 " 1947 5,822,000 " 1948 5,822,000 " 3 Table 1. - Distribution of the Productive Area in Egypt* Cultivated Private ownership Government " Public Utilities All Kinds 4,989,206 153,329 38,197 5,185,732 Total Uncultivated 930,096 1,384,235 853,358 3,167,689 5,919,302 1,542,564 891,555 8,353,421 * Source: Annuaire Statistique de poche, 1945. Egyptian Government, Ministry of Finance , Department of General St at: Much of the uncultivated land in the Del ta is below sea level. Because of the perennial irrigation, system, by which two or three crops are obtained from a piece of land per year, the crop area in Egypt far exceeds the cultivated area. While the cultivated area in 1948 was 5,822,000 feddans, the crop.area was 9,165,274 feddans. Table 2 shows the seasonal distribution of crops in Egypt. Table 2. - Seasonal Distribution of Crops in Egypt* Average 1935-39 Summer Crops Winter Crops Flood Crops Gardens Total 2,586,985 3,965,592 1,665,255 63,538 8,281,421 1948 2,953,111 4,427,112 1,700,816 84,235 9,165,274 * Source: Agricultural and Economic' Statistics. Bulletin in Arabic by The Department of Agri. Econ. & Statistics, Egyptian Ministry of Agriculture, 1949. A line drawn just south of Cairo (the capital of the country and the largest city in Africa) divides Egypt into Lower Egypt or the Delta and Upper Egypt or the Nile Valley. latter part is sometimes divided into two parts. This The area from Cairo to Assyut which.is called the Middle Egypt, and the area from Assyut to the Anglo Egyptian Sudan which is called Upper Egypt. In 1938 60 percent of the cultivated and 70 percent of 4/ the productive but noncultivated lands lay in the Delta. 3. Topography The topography of the country is fairly simple. To the south of Cairo the Valley of the Nile is enclosed by rocky cliffs which rise in places to heights of over 300 meters above the river The arable land of Upper- Egypt occupies the flat floor between the river and the bounding cliffs. The width of the Valley varies from less than a kilometer, south of Aswan to more than twenty kilometers between Assyut and Cairo. To the north of Cairo, the arable land spreads out in the fan shaped formation of the Delta which is a level, richly cultivated plain sloping gently towards the sea. It is formed by secular deposits of alluvial mud carried by the water of the river from the heights of Abyssinia. The country between the Nile Valley and the Red Sea is known as the Arabian Desert. It is not a vast monotonous plateau like the country on the other side of the river. It presents a great diversity of physiographical features, the most marked one 4/ Foreign Agriculture, U.S.D.A. June 1941. being the rugged and high mountains, composed chiefly of igneous and metamorphic rocks, which run parallel to the Red Sea with peaks of over 7,000 feet high. They are much nearer the Red Sea than to the Nile, and the area between them and the Nile is composed of of plateaus of sandstone and limestone, dissected by wadis of great depth and length with some wild vegetation and occasional wells and springs. The southern part of the desert is richer in wells and springs than the northern part. The Libyan Desert to the west of the Nile constitutes one of the most arid and inhospitable regions of the world. surface rocks consist of limestone and sandstone. Its In the north the limestone predominates while sandstone predominates in the southern part. It contains a number of depressions wherein wells and springs furnish water in sufficient quantity to irrigate small areas and to support populations of several thousands. Payton province The which could be considered as a big oasis, although irrigated from the Nile, and the Siwa Oasis lie below the level of the sea. Between these two lies the vast Kattara depression which embraces an area of some 19,300 square kilometers below sea level and descends at its deepest point to a depth of 134 meters below the Mediterranean. The economic possibilities of the Kattara depression as a source of hydro-electric power are being studied. The ground of the Sinai peninsula is flat and sandy on the Mediterranean coast. It rises gradually to the south for about 250 kilometers into a highly-dissected limestone plateau. 5/ It is located 50 miles southwest of Cairo. The southern third of the peninsula is composed of rugged granite mountains intersected by deep ravines. Springs and wells are found in fair abundance in Sinai. The few islands located in the Gulf of Suez and the Red Sea are not of much importance. 4. Soil One of the chief -elements of Egypt's agricultural wealth is soil fertility. As has been mentioned the soil of the Valley and the Delta of the Nile was formed when particles broken off from hard rocks in the upper parts of the Nile by the heavy rain and other weather agents were carried in a state of suspension by the current and deposited in Egypt in the annual floods. As time goes on these annual deposits add to £/ the thickness and fertility of this soil. The Nile alluvium containing alumina (about 48$) and calcium carbonate (18$) is believed to increase at the rate of 4.5 inches a century. So fine are its particles that at places it becomes almost a stiff clay. It ranges in thickness from 55 to 70 feet, and underneath it lies a series of yellow quartz sands, intermixed with pebbles, gravel and clay, tne rocky base of which £/ The following analysis of matter suspended' in the Nile water during flood time, for an average of two years, is given by G. P. Poadan, and P. Fletcher, Egyptian Agriculture, Cairo, 1910. has not yet been disclosed by borings. The Egyptian soil is by no means -uniform. The heavy soil particles carried by the current are usually deposited first,while the finer particles are carried further. For this reason the / Egyptian soil mechanically, ranges from a coarse sandy oT gravelly to a stiff black soil containing as much as.sixty percent clay. The soil of the Delta is mostly of the latter group and is the most productive in the country. From the chemical point of view, the Egyptian soil is rich in potash, less rich in phosphoric acid and deficient in organic .matters and. nitrogen. Farmyard manure provides a good source for organic matters but not enough is used to compensate'for the exhaustion caused by the increasing use of the perennial irrigation and double and triple cropping practices. Because of this, the agricultural output of Egypt is entirely dependent on'the use of large quantities of fertilizers. Sodium and calcium nitrates make up the bulk of the normal imports of fertilizers. They with other nitrogenous fertilizers constitute more than 80 percent of the fertilizer imports. During the second World War Egypt Potash Soda Lime Magnesia Phosphoric acid Carbonic acid Oxide of Manganese Oxide of Ironand Alumine Organic matter Insoluble matter and sand Total 7f Cf. Encyclopedia Brittannica Vol. 8. p.33. 0.53 0.57 5.07 2.68 0.25 0.73 0.25 25.56 8.54 51.54 100.00 s experienced many difficulties in securing its normal supplies of fertilizers. The use of the hydro-electric power of the Aswan Dam in production of fertilizers is expected to care for this situation. §/ Under the old "basin system" of irrigation it was easy to maintain fertility without much need for fertilizers. The reason for this was that the rich layer of silt deposited annually hy the river on the soil was enough to compensate for the soil constituents lost in the previous crop. Also the short agricultural season permitted a long period of summer fallow. The steady increase in perennial irrigation has the follow­ ing disadvantages as far as soil fertility is concerned: (1.) The soil is deprived of the benefits of the old system mentioned above. (2.) The cultivation of two or three crops a year under the perennial irrigation system, instead of one crop under the old system, reduces the soil fertility and calls for greater use of fertilizers. (3.) Spring levels and the water table are raised as a result of the perennial free-flow irrigation system and the depth of the soil is reduced accordingly. This situation can be cured only by extensive drainage. Soil conservation problems are still of secondary importance to the Egyptian authorities. However, there are many powerful factors working against soil conservation. 8/ See section on Water Supply below. The more essential 9 of these are: (1.) The loss of much valuable mud with the water which pours into the sea during the annual flood season. In Cronchley's estimation, the value of this annual loss is about four million dollars. (2.) The rising water table. (3.) The common practice in the Egyptian villages of using much dried manure as fuel rather.than as fertilizers. The problems are of considerable importance and should attract the attention of the Egyptian economists as well as Egyptian soil scientists. Unless something is done on these points, the famous fertility and productivity of the Egyptian soil will continue to diminish. 5. Climate Part of Upper Egypt is within the tropics, but the greater part of the country is north of the Tropic of Cancer. Being a big Oasis in a desert area, Egypt naturally has the desert’s climate. Thanks marine influence, however, to the Nile and the moderating the country has all the advantages and none of the disadvantages of a desert climate. These three agents, the desert, the Nile and the marine influence work to­ gether to give Egypt its peculiar climate, a maximum of dryness and sunshine with a continuous supply of water throughout most of the year. Near the coast the marine influences are felt, but as one goes south this influence diminishes. Thus Alexandria is warmer than Cairo in winter and Suez is warmer than places in the Nile Valley 500 kilometers farther south while they are cooler in summer. The winter season which lasts from late in November to early in March is usually snort and mild. summer is hot and long. On the contrary, the The mean temperature at Alexandria varies between 57°F. in January, the coldest month and 81°P. in July, the hottest one. At Cairo the mean temperature is 53°F. in January and 84°P. in July. The mean termperature by months on a regional basis is reported in Appendix Table 2. The relative humidity varies also from place to place with a sharp contrast between the sea coasts and the interior. former the air is more In the humid in summer t_ian in winter, but gen­ erally there is not much variation throughout the year. The lowest degree in Alexandria is 67 in uecember and the highest one is 75 in July. In the interior the degree of humidity varies consid­ erably and It is higher in winter than in summer. In Upper Egypt, the lowest degree Is 26 in June wnlle the highest is 51 in Jan­ uary. The relative monthly degrees of numidity on a regional bases is given in Appendix Table 5. Except in a very narrow strip along the mediterranean coast, rainfall in Egypt is scanty, irregular and of little economic value. At Alexandria and along the Mediterranean cos.si; rain falls in the winter time with an annual precipitation of 8 inches. the cultivation of a few crops of grain 97 Re da Khalil.' Food and the Egyptian Popplatiofn Doctorial Dissertation, narvard un. 1946. 10/ Cf. Encyclopedia Britannica, 1946. Vol. 8 p. 53. i 11 along the coastal strip of land to the v/est of Alexandria, where river water is not available. This area, which has little signif­ icance so far as agricultural production is concerned, at the present time, was famous time. Further for its grain and wines in the Roman south the amount of rainfall rapidly decreases, and south of 31°N it is practically negligible. - - At Cairo the annual rainfall approximates less than two inches. In the desert rain falls even more rarely, but from time to time heavy storms buirst, causing sudden floods ravines. in the narrow Appendix Table 4 gives the average monthly and annual rainfall in Egypt on a regional basis. Snow is unknown in the Delta and the Nile Valley, but falls from time to time on the tops of the Red Sea hills and the mountains of Sinai. One of the main characteristics of the climate of Egypt is sunshine, Egypt is sometimes called the country of the sun and the Nile. Its sky is almost clear throughout the year, except on the Mediterranean littoral where it is a little cloudy during the winter season. The duration of bright sunshine on the Mediterranean coast and in Middle Egypt increases from seven hours a day in January to twelve and one-half hours in June In Upper Egypt the duration is longer. Appendix Table 5 shows the mean hours of sunshine monthly on a regional basis. As has been mentioned three factors have cooperated to give Egypt its peculiar climate namely: the seas, the desert and the Nile. It remains now to show the role which the Nile plays. 11/ Reda Khalil, o£. cit. 11/ In the absence of the Nile, be an arid desert. Egypt with its low rainfall would The constant supply of water brought by the Nile from the Equatorial region farther south is the cause of Egypt’s agricultural wealth. Appendix Table 6 translates the Nile discharges at Aswan in terms of rain over the cultivated area of Egypt. Much of Egypt’s water supply is usually left to go to the sea, especially in the flood time. If something could be done to utilize every drop of water the Nile brings to Egypt, the country’s national production would certainly be greatly increased 6. Water Supply, Iri’igatlon and Drainage Probably nowhere in the world is there so large a pop­ ulation per square mile depending solely on agriculture and so free from the risk of drought, as in Egypt, the Nile on whose This is because water the fertility and prosperity of Egypt and the northern part of Sudan ai*e entirely dependant. iation in the water supply of The var­ the big river at different seasons of the year is of vital importance to Egypt and the height of the flood has been recorded annually as the chief event of the 12/ year since at least 3600 B.C* The waters of the Nile system have their areas, first, those brought down from the source in two Lake’s plateau in east central Africa by Bahr El Jebel which meets with Bahr El Ghazal, coming from the west, at Lake.No, to form the stream known as the w of White Nile. Some miles below, the Cf. Encyclopedia Britannica, Vol. 16 p. 484. White Nile 13 receives its first eastern affluent, the Sobat. Second, those brought down by the tributaries rising in Abyssinia, the greatest of which is the Blue Nile that joins the White Nile five hundred and twenty miles below the mouth of the Sobat river. Since rain falls on the Lake’s plateau nearly all the year with the heaviest average in the months from January to April and again in October and November, while it falls on the Abyssinian mountains only from June to September, the water supply of the L a k e ’s -plateau is almost constant throughout the year, while that of the Abyssinian tributaries is a seasonal one. That latter supply is the source of the Nile flood which reaches its maximum at Cairo, at the beginning of October. After that it diminishes rapidly leaving the country dependent on the supply of the White Nile and the water stored by the Aswan dam. The history of irrigation in Egypt is as old as the history of the country itself. The flood or the basin irrigation system was the one used in Egypt up until the beginning of the nineteenth century. Under this system the Delta as well as the valley received flood waters and grew only a single winter crop each year. As a part of his agricultural program, Mohammed Aly (1805 - 1849) started converting the Delta to a perennial irri­ gation system. In order to grow cotton, he found that water is needed regularly from the spring until the time of harvesting. This was not the only problem to be solved, but some way had to be found by which the water could be controlled and prevented from flooding the Delta in summer while the crop was still standing. 14 To him the solution lay in two programs: (1.) Heightening of the river banks to prevent-the water from flooding the fields. (2.) Deepening and widening the Canals of the Delta, so that water could be taken from the river to remote areas where it could be lifted artificially to field level. Vifith the help of forced labor he accomplished what he aimed to do. But he found that the cost to the state as well as to the public was very high. At the same time he was attracted by an alternative approach to the problem. He found that it would be cheaper and easier to raise the level of the water in the river so that it would flow naturally in the canals rather than to continue the annual cleaning and deepening of the canals. just north of Cairo, was started in 1843. The Delta barrage The completion of this and other barrages marks the beginning of a fundamental change in the land utilization system in Egypt. \ The introduction of perennial irrigation in the Valley ! ; (Upper Egypt) came with the completion in 1873 of the Ibrahimieh I Canal which takes water from the Bile at Assyut. [ i j ; irrigates an area of about 513,000 feddans. This canal By 1899 the area under summer irrigation reached 1,700,000 feddans. Perennial irrigation spread rapidly during the early years of this century. In 1902 the construction of the Aswan Dam on the site of the first cataract was completed. The Assyut barrage in 1902, the Zifta barrage in 1903 and the Esna barrage in 1908 we re also constructed. The first heigiitening of the Aswan Dam in 1912; added much to its water storage capacity. In 1919 Sir M. McDonald J 15 estimated that the area under cultivation in Egypt was about 13/ 5,200,000 feddans distributed as follows: Area in Feddans Total Lower Upper Egypt 3,000,000 Egypt 2,200,000 5,200,000 The second Perennial Basin 3,000,000 1,000,000 4,000,000 1,200,000 1,200,000 heightening of the Aswan Dam in 1933, the completion of the Gabal El Awliya Dam near Kartoum in Sudan in 1937 made possible the reclamation of a large area Delta and the conversion of another basin to perennial irrigation. 1st barrages at Naga Hamadi from the basin system and in the area in Upper Egypt from The completion of the Fouad the helped transfer an to the perennial system. area of 500,000 The possibility for further increasing the area under cultivation through irrig­ ation projects will be discussed later. Although drainage projects are as vital as in a country like Egypt, the importance generally realized prior to 1914. irrigation drainage did not irrigation of drainage was not Under the basin system of constitute a problem. In fact, it was neither practiced nor needed, since the basin system provided the means by which the water table is naturally lowered. soon as the flood recedes, and when the river is As very low, the surplus ground water drains back into the river and the surface soil dries, under the perennial irrigation system the old 15/ Selim, H. K. Twenty'"Year's of Agricultural Development in Egypt, Government Press, Cairo, Egypt 1940. ^ 16 natural way of drainage is no longer usable, and the subsoil water has to be drained by some method. Drainage, besides being a way to dispose of the sub­ soil water, is also indispensable in the reclamation of the uncultivated lands of Egypt which usually, contain salts injurious to growing plants. been easier were it not for The drainage problem would have the low elevation of the Delta which makes natural drainage impossible and which necessitates the use of pumps in the drainage of the northern parts of the Delta. The increasing use of perennial irrigation adds to the problem since unforturately the construction of drainage 4/ works has not kept pace with irrigation works. It is the opinion of most scientists who have studied the causes of failure of the cotton crop in some parts of Egypt in some years, that high subsoil water is the main cause for cotton crop failures. w In 1929, figures representing the irrigated and the drained land in Egypt, by major regions were as follows: Specification Acreage Irrigation Perennial irrigation (by gravity) 2,529,255 Perennial irrigation (by lifting) 2,551,598 Total perennial irrigation 4,680,653 Basin irrigation 1,149,452 Total 5,830,106 Drainage By gravity 2,279,210 By humping 952,894 Total 3,232,104 Source: El Zalaky, M.M. An analysis of the organization of Egyptian Agriculture and~~Tts Influence on national economic and social institutions. Doctoral dessertation, University of California, 'Betfeley, 1941. 17 The ever increasing area occupied by the drains constitutes another acute problem in the Egyptian economy which should be studied carefully. This, besides decreasing the almost fixed area of cultivable land in Egypt, is a big hindrance to the use of Mechanical equipment in the Egyptian agriculture. The use of the covered drains may pro­ vide a remedy, but they are still used only basis and more on an experimental study is needed to find a cheaper way of con­ structing them. The drainage problem is a neglected one in Egypt. The country desperately needs a well formulated drainage policy. Drainage districts-patterned after those used in the United States of America for the same reason or for irrigation or soil conservation, with the technical aid and supervision of the government, may provide a solution to the problem. 7. Mineral Resources As was indicated earlier only 3 percent of the total area of Egypt is cultivable while the remaining 97 percent is mostly desert. Although almost 99 percent of the Egyptian population live in the Nile Valley and the Delta, leaving only one percent in the deserts, the deserts are not devoid of mineral wealth. It is true that the workable deposits so far known are few, but it is also true that no geological studies have been made of much of the desert region* during the last eries to come. The many new discoveries made fifteen years give the hope of more discovIn his booklet, The Mineral Resources of Egypt, ^ 18 Mr. El Alfy, an Egyptian consulting mining engineer, cited the gradual and steady growth of the revenue of the Department of Mines and Q,uarries from 1933 to 1946 as a criteria of the growth of the mining industry itself. The figures are pre­ sented in Appendix Table 7. Mineral deposits in Egypt are numerous, some of them are exploited, while the others are not. High transportation costs constitute a considerable problem and this hinders' the' growth of the mining industry. This is the reason why most of the fields under exploitation are located near the Gulf of Suez where the sea provides a good, cheap means of trans­ portation. The possibility of developing this industry in Egypt will,discussed in Chapter 4. An inventory of the so far existing mineral deposits in Egypt will include the following: phosphates, manganese, gold, talc, iron ores, chromite, graphite, tungsten ores, tin, kattlin, sulphur, lead, zinc, molybdenum, copper, nickel, tit­ anium, beryllium, thorium, calcium compounds such as limestone, marble, gypsum and anhydrites, silica and silicates which includes building sand, clays, fuller's earth, asbestos, ben­ tonite and zircon, barium, strontium natron, salt and petro­ leum. Other stones which are provided by the different quar­ ries have many economic uses. 19 B. - HISTORICAL BACKGROUND Excluding the period of the Pharaohs which is thought to cover the period from the year 5400 B.C. till the year 525 B.C., the history of Egypt shows a long period of foreign domination stretching unbroken from the Persian Conquest in 525 B.C. to the nineteenth century. During this long period of approximately twenty-five centuries Egypt was never ruled by Egyptians. The Persians, the Macedonians, the Ptolmies, the Romans, the Arabs, the Turks, the French, and finally the Britishers, all have ruled the country for some time and changed hands from one to the other. Table 3 gives the nation­ ality of the different powers who ruled Egypt successively from the time of the Pharoahs till the time of Mohammed the founder of Aly the modern Egypt, The Egyptians who lived during these 25 centuries suf­ fered from severe economic exploitation by the ruler. Those in the army and the higher ranks of the bureaucracy were almost without exception foreigners whose one objective was to squeeze the utmost out of the fellaheen (the Egyptian peasants) from 16/ whom they generally kept rigidly aloof. At the close of the eighteenth century, the Turks were ruling. Their rule, as well as that of the Mamelukes, was a dark and gloomy one. Corruption was the symptom of every phase of the Egyptian life. The Turkish army was 16/ Cf. Issawi, Chas. Egypt, an Economic and Social Analysis Oxford University Press, London, 1947. Table 3» Rulers of Egypt, 31*00 B. C. to 1950 A. D. *- From Year To Year Approximate Length of the Period Pharaohs 31*00 B.C. $25. B.C. 3000 Years Persians 525 B.C. 332 B.C. 200 " Macedonians and Ptolemies 332 B.C. 30 B.C. 300 « 639 650 11 Period Name Romans 30 B.C. Arabs 639 868 200 " Different Islamic States 868 12^0 1*00 ” Different Mamelukes and Turks 12^0 1798 500 ” French 1798 1801 3 " Mohamed Aly and his successors 1805 to date — Limited sovereignty under Ottoman Empire 1801 1882 81 " British domination 1882 1922 1*0 '* Independence 1922 — -^-Source: Lehie'ta, M., The Economic History of Egypt in'Modern Times, in Arabic, Cairo, Egypt 191*1*, and other sources. undisciplined, the treasury was bankrupt, and the general condition ran into complete confusion. France took advantage of this opportunity and Napoleon invaded the country in 1798 and defeated the Mamelukes at the battle of Embaba. Although he began his rule by preaching his innocent intentions of liberating the Egyptians from the Mamelukes, and started or planned many reforms, he did not succeed in winning the favor of the Egyptians who thought that the French were even worse than the Turks and the Mamelukes. In the same year of the invasion, the French fleet was destroyed in Abukir, near Alexandria by the British fleet under Nelson. Following this the French army was defeated and by the close of 1801 the last French soldier had sailed from Egypt. During the years succeeding the evacuation of the French, things were as bad as they could be and remained so till Mohamed Aly became the viceroy of Egypt in 1305. He, being commandant of the Albanian militia of the Turkish army in Egypt, was chosen by the Egyptian people to become viceroy. Although the choice was confirmed by the Turkish sultan, Mohamed Aly succeeded in driving the French, the British and the Turks themselves out of the country. The Mamelukes, who disturbed him for some time, were not only completely defeated, but a goodly number of them were massacred by his followers in 1811. From that time on he ruled undis­ turbed and was able to found the dynasty which has since ruled Egypt. 22 In the days of Mohamed Aly numerous changes took place. He develoiJed new Industries, reformed agriculture, and increased the size of the army. Wages for the lower ranks of labor were greatly increased while food prices only sligntly increased. Although he remained an Asiatic autocrat he introduced the con­ stitution in 1326 and recognized a council of state and a cabinet minister. Under him a drastic centralization and re­ organization of the“government took place. Mohamed Aly was succeeded by his sons and relatives. Most of them had doubtful ability and were very extravagant. The Suez Canal project, which was started at the time of Said, caused two different types of trouble to the still unestablished state. First, it brought entanglements with England, and second, it was the original cause of the Egyptian debts which reached huge figures in the time of Said’s successor. Ismail was able to secure the title of Khedive and full legislative and fiscal autonomy within the framework of the Ottoman laws. Thus by 1875, Egypt may be described as a practically independent kingdom. Although the Egyptians were used as soldiers by Mohamed Aly, they were treated as an inferior race and most of the ranks were closed to them. high Unfortunately his successors pushed that policy still farther and the result was the Arabi revolt which was the first real manifestation of Egyptian nationalism. This movement, which might possibly have benefitted the nation, was cut short by foreign intervention of the British and the French which was the first stage of the foreign occupation. This took at first the form of a joint Anglo-French control, then France backed out, leaving G-reat Britain alone in Egypt. The British occupation in Egypt lasted approximately a quarter of a century. Finally the independence movement started by Mostafa. Kamel and later promoted and led by Zaglul Pasha suc­ ceeded. As a result Egypt was granted independence on February 28, 1922 and the title of ruler was changed from Sultan to King of Egypt. But in spite of that, the British army was still in Cairo to protect foreign interests and the Suez Canal. In 1936 an Anglo Egyptian'treaty was signed by the Egyptians and the Britishers settling some of their points of dispute but leaving other points of vital importance to Egypt without satis­ factory solution. These points, of which the Sudan case is an important one, are the source of the existing dispute between the Egyptians and the Britishers. C. - Economic Background The Development of Egypt’s Economy and The Place of Agriculture in It. 1. Introduction To trace the development of the economy of a country with a history as old as that of Egypt is not an easy job. It takes volumes to cover the whole subject, which is not the main object of this work. For this reason consideration will be confined to the development of the country’s economy since the beginning of the nineteenth century. Major emphasis will be put on explaining the role agriculture played in the economy at different times. It is convenient to divide this period into the following three parts: First, the period from 1798 to 1882 which marks the termination of the Mamelukes* rule, the French invasion and the success of Mohamed Aly in establishing himself as ruler of Egypt, and the rule of his successors. Second, the period from 1882 to 1922. This is the pei’iod of the British occupation. Third, the period from 1922 up until now. This is the independence period. 2. The First Period (1798-1882) Just before the French invasion in 1798, Egypt was a poor,. corrupted, self-contained country. country’s life was as bad as it could be. Every phase of the 25 The Turkish rulers had no interest other than squeezing the poor peasants and workers, and collecting whatever they could collect of the different taxes. The population of the country which had numbered about 7 million in the Arab's time had decreased to 2.4 million. Poverty, maltreatment and the many diseases resulted in a high mortality rate. Agriculture, which was the major source of the country's life, was unhealthy. The tenure system was feudal, or similar to it since no peasant enjoyed property rights. Although the irrigation system used during that time was the basin one, most of the irrigation works were neglected. As a result many of the productive lands lay idle. Industry was very rudimentary and met only the simplest wants. It was carried on by guilds witn apprenticeship rules similar to those that prevailed in medieval Europe. Most of the industries which flourished and assumed a considerable role in the economy before the Turkish rule were dwindling. There were three reasons behind this; (1.) Some Turkish rulers picked the experts in the different Egyptian industries and sent them to Turkey, to help in establishing different industries there. (2.) The taxes to which the different industries were sub­ jected were so heavy that most of them were unable to survive. These taxes were not assessed on any Scientific or just basis, rather they depended on the power of the different guilds. Usually the powerful ones paid the least. 26 (3.) The intervention of the Turkish rulers in the affairs uz/ of the guilds, weakened tnem and wes.kened industry in general. Egypt, being at the crossroads of three continents, gained much from the foreign trade during the first part of the Mamelukes' rule. The most important trade in the world at that time was between Asia and Europe and Egypt straddled the route through which much of this trade had to pass. The rulers often imposed high taxes on the passing trade, taxes that in some of the cases aporoached one-third of the value of the 18/‘ commodity traded. Egypt, also, used to export some of its agricultural products such as wheat, rice and onions. In 1498 the sea-route around the Gape of the Good Hope was discovered by the Portuguese sailor, Vasco Da Gama. was a great shock to the Egyptian economy, This since it became cheaper for the foreign importers and exporters to transport their commodities along the new route. Before this time the tax on the passing commodities had been a main source of revenue in Egypt. Despite the shortness of the period of the French occu­ pation, which lasted from 1798 to 1801, most of the phases of Egyptian life were affbcted by the French ways. The social and the political phases were those affected most. Ho con- siderable change took place in the economic phases of the 17/ The weaving industry was one of the flourishing industries in Egypt during the Arab's time. 18/ Lehieta, M. F. The Economic History of Egypt in the Recent Times. op. cit. j ^ 27 country. The French tried a slight change in the tenure system and imposed many different taxes. No real effort was made to introduce new industries, or encourage the old ones. In the field of agriculture nothing was done, except the inclu­ sive studies which were made by the French scientists who accompanied Napoleon. These inclusive studies were the founda­ tion of the agricultural policy followed by Mohamed Aly a little later. The idea of-joining the Mediterranean and the Red Sea was studied by the French scientists. These studies were of good use when the Suez Canal project was undertaken. Tinder Mohamed Aly a great economic revolution took place. Agriculture, industry and trade were reorganized in such a way as to fit the dream of the progressive ruler. This dream was the establishment of a wide and powerful Egyptian Empire to take the place of the sick and passing Ottoman Empire. His rule was built on two economic bases; (1.) All the economic activities were monopolized by the government which in turn was crystalized in his hands. (2.) Every effort was made to make Egypt a completely self-sufficient country. In spite of the many new industries which were intro­ duced or encouraged, agriculture was the major source of live­ lihood in the country. The proportion of the population engaged in agriculture was larger, than that engaged in industry and trade together and the contribution of agriculture to the 28 government revenue was the largest. in the following fields: Many changes took place the production system, the tenure system, trie irrigation system and the crop system. Production was under the complete monopoly of the government. The farmers were given from three to five acres of land, livestock and seed and were asked to produce the crops wanted by the government. The whole product had to be submitted to the government. After doing so, the value of the product had to be computed by the government’s agents. The prices were fixed by the government and after deducting what the peasant owed the government for taxes, seed, fertilizers and livestock, he usually was given credit for the balance. The peasant never received cash, but the balance was kept with the government to meet the future needs of the peasant. The change which took place in the tenure system will be discussed thoroughly in Chapter III. It is sufficient to 19/ mention here that the Iltizam system was abolished and the government took over all the land. To accomplish this Mohamed Aly pacified the Monltzims by leaving to some of them their own estates which were known as the V/issiya land. He also gave to some of the rich Egyptians and his assistants what was known as the "Abadieh lands" and to his relatives what was known as "Shafalik" W Of. Chapter 3 The Evolution of the Land Tenure System m Egypt. 20/ Lehieta, U.F. op. cit., p. 165. 29 In the field of irrigation Mohamed Aly employed some of the French employees who helped him in designing and con­ structing his irrigation projects, especially, that of the Delta barrages. Many canals were dug, many others were deep­ ened and river and canal banks were strengthened. For the first time perennial irrigation was used on a large scale. This helped in prodLicing cotton and sugar cane. The different irrigation programs made the exploitation of a wide area pos­ sible. Between 1820 and 1840 the cultivated area increased from 2,031,905 feddans to 3,856,622 feddans. As far as the farm crops were concerned, the change consisted of the introduction of some new crops and the expansion 21/ of the acreage used for others. Of those crops, cotton was the most important. The production of cotton was increased from 944 Kantars in 1821 to 344,955 Kantars in 1845. Indigo was also a crop which attracted the attention of Mohamed Aly. He Imported new seeds from India and its prodiiction was increased to the extent that it not only met internal needs but some was exported. Wood for lumber and opium for drugs were also products which were encouraged by the ruler. In the field of industry two main changes took place. These were: a W ~ The main crops which were produced in Egypt at this time were: 1. Summer crops; sugar cane, cotton, rice, indigo and sesam. 2. Winter crops; clover, wheat, barley, beans, lentils, flax, onions and garlic. 3. Vegetables; green beans, eggplant, lettuce, cabbage watermelons and others. 30 (1.) The government, as in agriculture, monopolized all the industries. (2.) The introduction of the heavy industries and the big firm system. Mohamed Aly was trying to make a self-sufficient country out of the agricultural Egypt. Besides monopolizing all the economic activities in the country, he imposed pro­ tecting tariffs. His energies carried the Egyptian industry from simple feudal craftsmanship to full blown capitalism at one leap. Arms, machine tools, steam engines, as well as cloth, paper, glass and sugar were produced in his foundries and factories. Trade, internal and foreign, was also in the hands of the government. In this period Egypt had an active balance 22/ of trade. This was because of the increasing productive are^ and because of the production of cotton. Means of trans­ portation were improved, the currency system was overhauled and the exchange prices were fixed. This was, briefly, the economic program of Mohamed Aly. One last word remains to be said regarding taxation. Taxes were numerous and heavy. Sometimes the whip was used to help in collecting them and most of the revenue was spent on the army and navy. In 1833 about 30 percent of the gov­ ernment’s expenditures were on the army and about 15 percent o ,s population increased by 60 percent and that of Alexandria increased 35 percent. Most of the other big cities had the same situation. The second stream is that from Upper Egypt to Lower Egypt, the Delta. Uper Egypt is more densely populated than the Delta and in 1937, excluding the province of Giza which borders the Governorate of Cairo, it was found that over 32,000 persons born:: in Upper Egypt were living in the Delta, against 12,000 persons born in the Delta and were living in Upper Egypt. This intex*nal migration is not strong enough to balance the labor shortage which is suffered during some seasons by the northern provinces especially "Gharbia''. This shortage calls for recruiting of agricultural laborers which are called in Egypt "Tarhella" from the heavily populated provinces. The economic and social implications.of tnat will be discussed later on. Also the reliance on migration as a relieving factor for the population pressure in Egypt will be discussed in the chapter on “ Remedies". G. - Effects of the Demographic Position on tne Demand for Land 1. The Population Pressure and the Position of Landowners in Egypt As v/as indicated earlier Egypt is still an agricultural 93 country with the majority of its people relying on farming for their livelehood. In spite of the progress made in industrial­ ization industry does not as yet present much of an alternative source of employment for the Egyptian population. Unless industry receives considerable impetus and protection from the government in the future it will probably continue to be sub­ ordinate to agriculture as a pillar in the country's economy. In agriculture land plays a more Important role, as a factor of production, thati that it plays in any other industry, and, assuming no or only slight technological progress, an agricultural country with limited cultivable area will always suffer a decreasing standarc. of living unless it xias a stag­ nant population. The lav; of diminishing returns will always set a limit above which the product produced from a definite land area can not be increased regardless of increasing appli­ cation of labor and capital in the production process. is one of the countries in this position. Egypt Its response to technological changes has not brought spectacular Increase in production, Its cultivable area nas increased very slowly especially since the beginning of the second decade of this century (because of physical limitations and the slow devel­ opment of irrigation and drainage projects), and its prpulation is increasing rapidly despite the heavy toll of deaths. The result is an ever increasing population pressure on the means of subsistence and a continuous decrease in the standard ^ of living of the majority of the Egyptian population. Because of the slowness of land reclamation during the interwar period, there was only slight increase (2 percent) in the cultivable area. However, due to the conversion of about 200,000 feddans to perennial irrigation there was an increase of about 10 percent in crop land area. Area 1919 Cultivated area Crop area 1939 • 5,200,000 Feddans 7,710,000 " Percentage increase 5,310,000 Feddans 8,450,000 " 2 10 During this period the total population increased from 12,751,000 in 1917 to 15,933,000 in 1937, an increase of 25 percent. With this increase, population growth far outstripped the expansion of both the cultivated area and the crop area. The net result was a ..ieci'ease in the standard of living of the Egyptian farmer. This can be ascertained by studying the consumption figures for the interwar period which are presented in the following table. Table 14. - Consumption of Staple Articles 1925- 1958 (Ave . 1920'-37 = 100)* Year Tobacco 1925 1926 1929 1950 1933 1934 1937 1938 111 110 113 105 77 81 86 89 108 109 111 98 76 90 X X Coffee Tea Sugar 87 76 117 109 124 145 143 139 106 114 148 130 99 145 124 124 x Figures not available * Issawi, Chas. op.cit. p. 55 14/ Issawi, Chas. op.cit . p. 55 Meat 107 107 102 101 101 97 94 97 Textiles 116 88 105 92 105 101 105 95 Cereals 105 103 105 104 90 97 95 99 95 All the indices, excluding sugar and tea, showed a decreasing trend. Figures on sugar are misleading and should not be taken on their face. Sugar was not and to a considerable extent still is not a peasant’s commodity. The consumption of cereals which constitute the back­ bone of the peasant’s diet showed a decreasing trend. meat and textiles showed the same trend. That of This decreasing trend could appear more dramatic if computed on a per capita basis, since the trend of total consumption was down in spite of the increase in the number of mouths to be fed. Despite the different opinions concerning population pressure in Egypt, it seems obvious that there is a surplus agricultural population which could be taken away without ad­ versely affecting the national agricultural product. sor Cleland, Profes- basing his estimate of laoor requirements on actual observation, found that under the existing methods it was possible for a peasant’s family to cultivate an area five times the average area cultivated by that family. This means that the national agricultural product could at that time nave been produced by as little as one-fifth of the labor force used in its production. Professor Cleland considers that a safer estimate of the surpluswould be one-half of the 1957 farm population, lie also maintains that with half the degree of mechanization found on American fawns, 10 percent of Egypt’s farmers could do the work now done. 15/ Clelahd,' W.'l. Population Plan for Egypt, L. Egypte Conter£poraine, hay 1959. 96 Additional light is sned on tns subject by the inves­ tigation made by the Fellah Department of the Egyptian Minis­ try of Social Affairs concerning the average number of days a farm laborer works every year in the different provinces. The result of tnis study can cy summarized as follows: Table 15. - Average No. of Work nays per Average Egyptian Farm Laborer, by Provinces, 1S45. Province Man 'Woman Boy or Girl Gharbia Dakahlia Beheia Monufia Sharkia Giza Ben Suef Ivlinia Assyut Kenna Aswan 185 220 210 210 180 220 200 180 150 120 115 140 135 170 140 145 210 160 170 190 160 115 100 100 90 Average No. of work days 182 Average N o . of unemployed days 185 - 120 160 160 100 - 144 144 221 222 This investigation, which confirms Professor Cleland*s observations, indicates that agriculture in Egypt is overloaded with a surplus of population, and that industry and other economic activities do not present an alternative to farming, and are not able to offer emplo.yment to the increasing popul­ ation. This has resulted in a great number of unemployed people, a great number of partly employed, a very low wage and very low 97 standards of living. The majority of the farm people are poor, undernourished, illiterate and a victim of two or three diff­ erent diseases. This is primarily a result of heavy population pressure and reflects the operation of the Malthusian Doctrine. Unfortunately the future is not any brighter, and unless drastic measures are taken bj the government to alleviate the problem, things will grow worse. In Part "B1' of this chapter it was indicated tnat the birth rate is not decreasing and that it will continue for some cultural reasons to be very high. On the other hand it is my opinion that with the spread of medical sei’vices to the villages, which has taken place on a wide scale since the beginning of this decade, the death rate will go down faster than the birth rate. This will comp­ licate the population problem further and unless something is done to check it, epidemics such as malaria, typhus and cholera will continue to visit Egypt from time to time to harvest their immature crop of poor human beings. This population pressure menns an ever increasing demand for.land. Land is essential in farming and finds no substitute in capital or any other factor of production. According to the secular law of diminishing return, even with the technological improvements in agriculture, the point must eventually be reached at which the law will begin to operate, and unless the supply 01 cultivable land in Egypt is increased by some way, or the fast growth in population is checked by some way also, the pressure will be intensified. pressure are very important. The implications of that On the one hand it adds to power and the privileges the land owners have in the social and economic world, which is reflected in the race for the owner­ ship of land by those who accumulate money, and in the ever increasing prices of land which reaches, in some cases unbeliev­ able figures. On the ocher hand it adds to the depressed and weakened position and bargaining power of the agricultural laborers who own no land, which is reflected in the very low wages they get and the very low standard of living they enjoy. 2. The Meed for Governmental Regulation The vast majority of the farm people are either farm laborers or owners of very small tracts of land. These people, more than 90 percent of the farm population and about 66 per­ cent of the total population of the country, live miserable lives and suffer many inconveniences. To raise theii* standards of living some kind of governmental control of landed property is needed. As Renne Y/rites: "Property is a social trust, and the individual is nothing more or less tnan a steward taking care of the property during the period when society approves and permits such stewardship. The social right to regulate private property is basic to the institution of property itself." In controlling property rights two objectives should be kept in view:(l.) raising the standard of living of the farm 16/ R enne, op.cit. p .151. 99 laborers and amall land owners who make more than two-thirds of the total population, and (2.) attaining an adjustment between the rights of the individual and the society as a whole that will not discourage or destroy.private initiative. Governmental control and regulation is neither unusual nor untried. It has been tried by the governments of many other European countries and even by the United States, the most capitalistic country at the present time. It limits and mod­ ifies but need not work at cross purposes with the free enter­ prise system. Rather it is merely a measure to save the system by correcting isolated abuses or weaknesses especially in the fields where competition has been drastically restricted so that the laws of supply ana demand no longer operate as they are supposed to. In fact government interference is basic for the survival of democracy which is a compromise between 17/ individualism and equality. It is called by Nathan Robertson the "Safe Enterprise System1'. Robertson in one of his articles cited the many controls and interferences the United States government exercises over different segments of the country’s economy and spoke of this safe enterprise system as follows: "This safe enterprise system is almost, as different from the one that Adam Smith talked about, or the system we once had as the economy of Nazi Germany or of Soviet Russia. But it is just as American and goes with democracy and liberty as natur­ ally as the original". 17/ See, Nathan Robex’tson, "Vi/hat Do you Mean, Free Enterprise?" Harper’s Magazine, November 1948, p. 70. 100 Even in Egypt the government exercises many regulations in many of the other segments of the country's economy, and there is nothing against subjecting landownership to regulations which might result in more prosperity and a higher standard of living for the majority of the.people. Very small tracts of land, as well as very large estates, shovild be discouraged, what Egypt needs is more family farms which will add to the solidarity and the welfare of the farm people, and which, as will be shown in Chapter 3, could add to the productivity and the wealth of the country as a whole. 101 CHAPTER III THE LAMP TENURE SYSTEM IN EGYPT A. - The Evolution of tne Land Tenure System From the Pharaonic days down to the Arab invasion, ownership of land in Egypt was vested in the ruler. the The culti­ vators were allowed to cultivate the land and enjoy its product on payment of the land tan y/nicii was levied on each village as a whole, while the permission to cultivate the land was a privilege which could be withdrawn at any time, the distribution of the cultivated area and the tax to be -paid was left to the villagers tnemselves. under the Arab rule, Egypt was considered as "Kharadj land" which had to pay the land tax imposed by the ruler. Another kind of land, in the Arabs ’ conception, was the Ouchouri land which is privileged and pays only the tithe. The farmer was allowed to cultivate tne land, so long as he paid the tax. But he had no right of ownership. The land could be taken from him at any time for public 'works without compensation, and he had 110 right to dispose of it by any means. si/hen he died his heirs had no guaranteed right to receive it. under Turkish rule, the Moultizims were responsible for the collection of a land tax. Each of them was responsiole for an area which consisted of a certain number of villages. This system was a family privilege handed down from father to son. The Moultizims were land called Wissiya land, allowed a certain area of tax-free and had the.right to corvee1 the 10 2 farmers of M s district to cultivate M s land. Tiie Rizka lands supported anotrier kind of land tenure which prevailed during the rule of the Turks. These lands were large estates given in the name of the Sultan to officers and high officials and were exempted from payment of taxes. Another large group of tax-free land was formed by the creation of Wakfs, or religious foundations. This type of land could not be alienated, and the government had no power over it. The revenues of the Wakfs could be constituted to the benefit of one person, the members of a family, or for other philanthropic purposes. Yi/Vien Mohamed Aly defeated the Mamelukes and established himself as the ruler of Egypt in 1805, he changed the whole economic system. Ms So far as the tenure system was concerned, first attack was on the "Iltizan" system, the land tax col­ lection. In 1808, Mohamed Aly requested the Moultizims or tax collectors to state their annual profit from their operation. They, fearing that he intended to demand bigger contributions from them, estimated their profits as low as possible. The smart ruler abolished the system and granted the ivioultizims a life-pension based upon their estimated profits, then co3.1ected by the government agents. Taxes were Within a few years most of the Ivioultizims had died ana their pensions were exting­ uished. The Wissiya estates which were in the hands of the tax collectors were left to them. But when tne Mamelukes were com­ pletely defeated in 1811, their private estates, as well as the 103 Wissiya lands of the Upper Egypt's koultizims were confiscated by the ruler. By doing so, Mohamed Aly became the owner of practically all the land in the country. titles to land fell into his hands. In 1814, the last The moultizims of Lower Egypt were allowed to retain their land, but later the land tax was imposed on them. The right of succession to Wissiya estates was allowed by decree in 1855 and in 1359. The Law of ’'ivioukabala11, which covered the Wissiya lands, left them practically as the Kharadj taxed land. The Rizka lands, grants of tax-free land made in the name of the Sultan, were taxed by Mohamed Aly and under the law of 1858 were assimilated with Kharadj lands. In 1813 a general cadastral survey was made and the cultivated land was divided between the farmers. Prom three to five feddans were inscribed in the farmer's name on the official registers. This did not mean that the ownership of the land itself v/as granted to the farmer. Because it was definitely laid down that the ownership of all the land was vested in the government, and the farmers acquired an usuf­ ructuary right only. They had no right to sell or mortgage the land and it could be taken from them by the government fox1 any reason without compensation. But the farmers were usually permitted to use and exploit the land so long as they paid their taxes. The fact that each farmex’ had his cultivated area in­ scribed in tne official registers was a step in the direction of individual ownership, which development was actually taking 104 place throughout the rule of Mohamed Aly. In 1846, the holder of a piece of land was given the right to mortgage his land, or to transfer it to another person. The principle of ownership in land was further affirmed by Mohamed Aly when he granted some of the rich notables areas of uncultivated land in full ownership and tax free for a period of ten years, on condition that they bring the land under cultivation* this land was known as the !,Abadieh land". Foreigners were usu­ ally forbidden to become owners of land. But some of the Abadieh lands were given to rich foreigners by Mohamed Aly who emphasized their right to ownership of land by giving them a certificate of ownership. Their right to hold land was finally confirmed by Imperial decree from Constantinople in 1867. Mohamed A l y ’s second point of attack was on the Wakf system. He amended the system, by putting his hands on all the land entailed for philanthropic purposes. In return he financed those works from the government budget and he gave the managers of the Wakfs annual pensions U In 1854, the year in which Said ascended to Egypt’s throne, the registration of land was further refined. The village sheikhs who had handled the registration had abused their power, A new decree stated that all transfers of land must be made by contract registered in court. The principle of family inheritance also was legalized at that time. V Mohamed Aly turned the throne over to his son Ibrahim in 1848. Ibrahim died that same year and was succeeded by Abbas who died in 1854. Mohamed Aly died in 1849* 105 Land left by the parents was inherited by the male issue, but women of the family might be granted the land under certain circumstances. In 1858 the inheritance principle was further affirmed and the transfer of land was authorised to the heirs of the tenant without distinction of sex. with the Islamic law. Thisw as in accordance It was further stared that any tenant who had cultivated the land for a period of five successive years, without any delay in paying taxes, should become the owner of the land without any dispute. By tbjfc time the tenant had the right to mortgage, sell or leave the land by inheritance to his heirs. ownership. This does not differ much from the right of full The only limitation was that the state reserved to itself the right to expropriate the land without giving any ind enmity. In 1865 a decree was enacted which required each tenant to obtain from the provincial court a certificate stating that he is the life tenant of the land he occupied. The finial step in legally recognizing the tenant’s right to full ownership in the land he occupied was.taken by the Law of Moukabala in 1871. This law, a desperate attemp on the part of Ismail and his minister of finance to raise money when they found it diff icult to borrow from the foreign financiers, gave land owners 10 6 who paid six years in advance: (1.) Absolute property rights in the land on which they had paid advance taxes, (2.) reduction of the land h a to one-half; and (5.) interest at 8.5 percent on the amount of money paid in advance. y The law covered both the Wissiya and the Abadieh lands. It was repealed and x^e-enacted in 1876 and finally abrogated in 1880; y and anotner decree was passed granting full rights of ownership in land on which the Ivioukabala had been paid in whole or part. Finally this was confirmed by the Law of Liq­ uidation in 1880. In 1869 a decree was enacted inheiritance. changing the rule of It stated that on the death of a tenant his prop­ erty would be registered in the name of his eldest son. The product of the land, however, would be divided among all the members of the family. But this law was abrogated in 1881 and I the succession was decreed to be according to the rules of the Islamic lav;. The legal machinery for registration was completed by the establishment of the Mixed Courts in 1875. And by 1881 practically all of the land in Lgypt had passed in full owner­ ship to its holder. 2/ Lebieta, M. op.cit. p. 522 3/ Cronclxley, A.E. The Economic Development of Modern Egypt. Longmans, Green and Co. London 1938. In 1899 the land tax was standardized at about 29 percent of the annual rent with a maximum of 164 P.T. feddan. y on any Between 1892 and 1907 a complete eadastral survey was made of the country and a new schedule of tax rates wa s ■intro­ duced and came into operation in 1912. The principles of tax­ ation formulated at that time continued in operation until they were amended in 1939. The 1939 amendment fixed the rate of taxation at 16 percent of the estimated annual rental value of the land.. These new rates remained in operation until they were again amended in 1949. In this brief history of the evolution of the land tenure system in Egypt; two very important things can be noted: (1.) Whereas communal ownership of land, which is the mark of a backward order of society, and which hinders the develop­ ment of better methods of cultivation, 'was abolished and gave way to the rights of private property at an early date in Western Europe; in Egypt the rights of private property did not develop until the second half of the nineteenth century. (2.) That the concentration of land holdings in few hands, while the majority of the farm people are either laborers or owners of very small pieces of land, had its origin in the in­ equality of the opportunity fox1 getting land which prevailed during the Turkish rule, and continued to prevail with some mod­ ifications dui*ing the more recent times of the country’s history 4/ P.T.- Egyptian paistre. It equals .01 of the Egyptian pound. 10 8 B. - The Present Day Situation 1. Land Ownership in Egypt .With the removal of the last restrictions on ownership of land at the close of the nineteenth century, owners acquired the equivalent of fee simple rights in their estates. This development brought a keen race for land ownership, a race based on the social as well as the economic implications of land own­ ership, Even those who accumulated small amounts of money bought themselves whatever area they were able to pay for. The number of landed properties increased from 767,000 in 1896 to 1,557,000 in '1913, an increase of 103 percent. that time the number has been steadily increasing. the rate of increase has been decreasing. Since However, Between 1913 and 1929 the rate was 40 percent, between 1929 and 1939, it was 14 percent, and between 1939 and 1945 it was 5 percent. By 1945, the number of landed properties had increased to about 2,606,000. On its face this increase looks lika a desirable change. Unfortunately this is not the case at all. To begin with these figures are not an adequate guide of land ownership in Egypt for the following reasons: (1.) These figures indicate the number of landed properties and not that of proprietors; thus it is possible that one land owner may own sever>al properties in different villages and as a result, he would be counted as two or three proprietors, according to the number of villages he may own land in. Many of the big owners own land in more than one village and sometimes in more than one province. As a result, the numb ex1 of big land owners reported is usually exaggerated. (2.) In many cases when the head of the family, under whose name the property is registered, dies the heirs divide the property between themselves but fail to register this fact with the court. As a result, the whole -property continues to appear in the official books as one unit owned by one owner, which is not true. This practice considei’ably changes the picture of land ownership in Egypt by making the number of land owners, particularly the small ones, appear smaller than it should be. Also, this increase In the number of landed properties is mostly accounted for by the Increase in the number of the very small ’holdings which do not provide, by any means, a minimum subsistan.ee level. The owners of these properties are usually employed as part time laborers. Table 16 shows the change in land ownership from 1890 to 1945. The Increase in the number of the very small holdings Is clearly shown by Table 16. bhile the total number of hold­ ings was increased from 767,000 in 1S90 to 2,606,000 in 1945, the number of small holdings of less than five feddans increased from 611,000 to 2,447,000 in the same period. This means that the number of holdings with five feddans or more increased from abour 156,000 in 1396 to about 159,000 in 1945. This very Table 16. - Land Ownership in Lg;>ot in Some Selccted Years-x<- oluCui 1396 No. of holdings 767,000 % increase in Lumber All mold­ Area in Feddans 3,002,000 ings % increase in area Average size of Hold­ ings (Fed.) 6.5 Less than one Feddan No. of Jloldin ••5 increase in Nw/nbciArea in Feddans % increase in area Less than 5 ’edeisms Ho. of Holdings fj increase in Humber Area in Feddans % increase in area 1913 1.557.000 1033 5 .293.000 5.3% 3.1 9l3,000 1/ 611,000 99l, 000 i'o. of Holdings iU-,000 7' increase in Humber 1,elo,000 Area in Feddans 6 increase in area L.06 ,000 1.1111.000 131 .1 . 1 .1. 1. 19.000 1[2.65 1 133,000 -/ 1 ,633,000 -1 0 5 1929 2,176,000 li0% 5,79tl,000 9.55 2.7 1939 2,132,000 ill ?,337,000 1915 2,606,000 55 5,881,000 0 .7 5 0 .8 9 2 .1 2 .3 1,176,000 575 1 ,752,000 569,000 1.05 702,000 2 .019.000 2 .323.000 135 1.706.000 20.15 159 1.915.000 .125 2.117.000 59 1 .969.000 2.89 116,000 1.15 1 ,671,000 -1.85 117,000 0.75 1,771,000 6% ill, 000 O.!T ' // b 1,759,000 7.79 195 23.15 1,811,000 l-'*;/ 07753,000 75 12,000 12,000 13,000 13,000 13,000 Ho. of holdings increase in Humber -7.75 5 .3 5 2,133,000 2,192,000 2,21.1.1,000 2,327,000 2,160,000 Area in Feddans 0 pa -25 2 .2 5 % increase in area -6.35 -^-Source: Computed by the author iron iigures tahen from Annuaire Itatistique op..cit. p.290 , Issavri., Qhas. op.cit. ;o. 73 ar.d other sour ces. 1/ lipares not available. orr 50 and up Ill slight change is accounted for by the increase in the number of the holdings of 5 - 49.5 feddans which was 144,000 in 1896 and 147,000 in 1945. The number of holdings of fifty feddans and up was 12,000 in both 1896 and 1945. Another important fact which should not be overlooked is that in 1945 about 75 percent of the holding in "less than five feddans" group were less than one feddan in size. The total area of all the holdings of five feddans and up was 4,008,000 feddans in 1896 and slightly decreased to 3,912,000 in 1945, while the area of the holding of less than five feddans increased from 994,000 to 1,969,000 feddans in the same_period, an increase which absorbed not only the whole increase in the cultivable area, but also the reduction which took place in the area of the other holdings. Thus the result of the past fifty years of unrestricted ownership of land has been an enormous increase in the number of the very small holdings which can not provide a minimum subsistence, while the number and area of the medium and the large estates has remained the same or encountered only negligible change. This has not been a desirable trend, because even though it has brought an enormous increase in the number of owners, most of them live on subsubsistence units and still have to work as laborers in order to survive, and actually are not much better off. On the other hand, this situation involves waste of time and hinders technological progress in agriculture. 112 The average size of holdings in the country steadily decreased from 6.5 feddans in 1896 to 2.3 in 1945? As Table 17 shows* file ownership picture differs considerably for each of the three different groups of land owners, namely: the nationals, the foreigners and the Wakfs. In 1945 there were about 2,582,000 national land owners owning 4,838,000 feddans with an average holding of 1.9 feddan, about 19,000 V/akfs owning 661,000 feddans with an average holding of 34 feddans, and about 4,600 foreigners owning 382,000 feddans with an average holding of 83 feddans. In 1945 the very small holdings of less than one feddan numbered 1,844,212_out of 2,605,917 or about 71 percent of the total. Holdings of 1 - 1.9 feddans numbered 358,959 or 13 percent of the total and those of 2 - 4 . 9 feddans numbered 265,782 or 10 percent of the total. This makes the total number of all the holdings less than five feddans about 2,446,953 or 94 percent of the total. In terms of area the picture was different since all the holdings of less than one feddan accounted for only 753,173 feddans or 13 percent of the total area, an average size of 0.4 feddan per holding. The area occupied by the holdings of 1 - 1.9 feddans was 498,495, 8 percent of the total area or an average of 1.47 feddan per holding; and that occupied by holdings of 2 - 4.9 feddans was 717,813 fed­ dans or 13 percent of the total with an average of 2.72 feddans. The whole group of holdings of less than five feddans occupied 1,969,481 feddans or 34 percent of the total area with an average Table 17• Distribution of Land Ownership in Eg.ypt in 19U5# Number of Holdings Total No. % of total Group Area in Feddans Total No. % of total Average size of Holdings (feddans) Less than one fed. 1,3 V*, 212 1 - 1,9 feddans 338,959 263,782 2 - 1*.9 » Total - less than 5 feddans 2,1*2*6,953 71.00 13.00 10.00 753,173 1*98,1*95 717,813 13.00 8.00 13.00 0.1*0 1.1*7 2.72 9l*.00 1,969,1*81 3li.00 0.80 85, oil* 1*0,969 11,720 9,301* 6,638 5.oo 1.60 o.5o 0.1*0 0.25 57o,l?i* 561,111 281*, 800 357,975 1*57,521* lo.oo 9.00 1*.80 6.10 7.90 e>.7o 13.69 21*. 21 38.1*7 68.25 153s69^ 5.75 2,231,581* 37.80 11*. 52 0.15 0.25 **35,122 360,71*3 21*3,521* 106,261* 76,1*21* 1*59,918 1,679,995 7.00 6.10 1*.10 1.80 1.20 8.00 28.20 100.00 5,881,060 100.00 5 10 20 30 50 - 9*9 feddans -19.9 " -2 9 .9 « -1*9.9 " -9 9.9 " Total 5 - 99.9 Feddans 1(50 - 199.9 Feddans ' ’7,121 200 - 399.9 " 1,189) 1*00 - 599.9 rt 1*79) 160) 600 - 799.9 " 800 - 999.9 " 85) More than 1000 ” 235) Total-100 and up 5,289 Grand Total ^Source: 2,605,917 0.10 --- T37.-77------------308.16 508.1*0 663.96 897.92 1957.00 318.85” " 2.25 Computed by the author from figures taken from Annuaire Statistique, op,cit, p. 290-91 and other sources. holding of 0.8 of one feddan. At the same time the number of all holdings whicr. were between 5 and 99.9 feddans was only 153,695 or 5.75 percent of the total number. They occupied an area of 2,231,584 feddans or 37.8 percent of the total area and had an average size of 14.52 feddans. The number of all the holdings which were a hundred feddans or more was only 5.269 or 0.25 percent of the total. They occupied an area of 1,679,995 feddans or 28.20 percent of the total area and averaged 318.85 feddans in size. Thus while 0.25 of all the land owners (and probably less than that for the reasons men­ tioned before) owned 23.2 percent of all the area, 94 percent of the owners (and probably more than that for the reasons mentioned before) owned only 34 percent of the area. This unbalanced ownership situation is a chief cause of the very low standard of living which the majority of the farm people in Egypt have. It also is the stumbling block in the way of the technological progress in the field of agriculture. If analysis is made in terms of sizes of farms, instead of holdings, it also appears that the size of the average Egypt­ ian farm is very small. It shoula be indicated first that the term farm, as used in the agricultural census of Egypt, has a different meaning than that used in the united States. The agricultural census of Egypt 1929 defines the Egyptian farm as follows: The farm from the point of view of the census, is any land used partly or* wholly for production of crops or breed­ ing of trees. It is superintended by one person whether by the right of ownership or by lease. centrated or scattered. for vegetables. The cultivated area may be con­ The farm may be an orchard or a field It may incluae crops, fruits, or pasture, y ms to the area, the consultative committee for the census in Egypt found that the distribution of property in Egypt nec­ essitates the enumer sting of all farms however small, as the number of those who own small areas Is too large to be over­ looked. The classification of a farm involves no minimum in­ come requirements. According to the Egyptian ministry of Agriculture, y the total numbe,: of farms In 1947 was 1,000,063 and the area those farms occupied was 6,036,879 feddans. Thus the average size of the Egyptian farm was about six feddans in 1947. 1929 this average was also six feddans. In The complete picture of number and sizes of farms In 1947 was as in Table 18. Although the average size of the Egyptian farm was about six feddans In 1947, which is a small size compared with the average size of farms in the other advanced countries, actually the majority of the farms were far smaller than tills average. Farms of less than one feddan represented more than 37 percent of the total number of farms In the country. Those between 1 - 1 . 9 feddans accounted for about 20 percent of the total and those which of less than five feo.dans for more than 80 percent of the total with an average size of 1.40 feddans. 5/ El-Zalaky,' M.~ op. cit. ’ 6/ Egyptian Ministry of Agricultureal, Agricultural and Economic Statistics op.cit. 39. Table 18. Number and Sizes of Farms in Egypt in 1987* Group Less than 1 Feddan 1 - 1.9 " 2 - 2.9 " 3 - 3.9 11 8 - 8.9 " Total less than 5 feddans 5 - 9.9 " 10 - 19.9 ” 20 - 89.9 ” 50 - 99.9 " Total 5 - 99.9 " 100 -199.9 " 200 - 899.9 " 500 - and up Total 100 and up Grand Total ■BSource; Number of Holdings % of total Total No. Area in Feddans Total No. g of total 173,69* 208,132 112,691 69,828 85,781 37.37 20 .III 11.27 6.98 8.58 153,180 275.887 265,289 238,628 199,622 2.58 8.57 8.39 3.89 3.30 0.81 1.35 2.35 3.36 8.36 806,120 100,11*2 50,583 27,683 8,778 80.61 10.01 5.05 2.77 0.88 1,128,566 6B8,853 689,081 833,987 608,918 18.69 11.38 11.82 13.81 10.02 1.80 6.88 13.63 30.12 68.91 187,186 8,053) 2,011) 733) 6,W 18.71 2,812,795 566,113 598,17h 9lil,231 2,095,518 86.59 P.21 _ ' 9.92 15.59 38.72 1 ^000,063 0.68 0.68 100.00 6 ,036,879 100.00 Average Size of Farm 15.03 68.9I 297.85 1288.08 OT.35” ' 6.03 Computed by author from figures taken from Agricultural and Economic Statistics, op.cit.' p. 39. o\ On the other nancl, farms of between 5-99.9 feddans accounted for about 18 percent of the total and had an average size of about 15 feddans, while those over a hundred feddans represented only about 0.7 percent of the total and averaged about 308 feddans in sise. The situation can be summarized as follows; About 80 percent of the Egyptian farms have an average size of 1.4 feddans, about 19 percent of them have an average size of 15 feddans and less than one percent have an average of 308 feddans. In terms of area the picture is different, since 80 percent of the farms of less than five feddans occupied only about 19 percent of the total area, the 19 percent.of farms which were between 5-99.9 feddans occupied about 46 percent of the area and the remaining less than one one percent of the farms occupied about 55 percent of the area. Besides the very small size of the Egyptian farms, almost all of them have another characteristic which concerns the farm layout. Owing to many reasons, of which inheritance customs is one, most of the farms are made up of numerous tracts, sometimes of very impractical size and sometimes at great distance from each other and from the farmer's house. This situation involves the following troubles: (1.) Farming practices such as moving manure to the fields and other similar things usually take more than due time. (2.) Irrigating ditches and drains usually take a consid­ erable part of the farm land. This fragmentation and dimuta­ 118 tion of farm areas constitutes a serious obstacle to the pro­ gress of drainage works In Egypt. (3.) A great deal of energy is lost in the unavoidable farm boundary disputes. (4.) Many roads are required to give every farmer access to his various strips which are spread over the village grounds. Many writers are inclined to blame the Moslem law of inheritance for this tendency towards subdivision and fragmen­ tation. This is not the determining factor, however, because the law does not prohibit anyone of the heirs from buying the whole farm so long as the price is distributed, between the heirs according to the regulations of the law. There are three main causes for continued fragmentation and stfodivision of farms. They are: (1.) The culture of the people, which overestimates the value of land ownership to the extent that the farmer desires to acquire any piece of land even if it is very small and even if he puits himself into life-long debt. (2.) The lack of an efficient farm credit system, which would provide some heirs with the funds needed for payment of . the other heirs’ share in cash. (3.) The shortage of cash which most of the heirs exper­ ience and which makes them unable to buy the share of the others. These throe factors nave worked side by side in bringing about the present landownership situation in Egypt. The effi­ cient solution would be to tackle them all at the same time. 119 As to who owns the land in Egypt the census book of 1945 gives the figures Area in Fe d . 1. Total land in private owner ship Land owned by nationals Land owned by Foreigners 2. 5,259,580 4,867,681 381,899 63.0 665,965 8*0 V/akfs Vyakfs managed by Ministry of Wakfs Wakfs managed by individuals 149,945 516,020 3. Land owned by the Government 1,505,302 4. Land for Public Utilities 29.0 915,898 1/ Grand Total % of total 8,336,745 100.0 Thus 63 percent of the tcfcal cultivable area was in the hands of private owners, 8 percent was V/akfs, and 29 percent was in the hands of the government. Out of the 29 percent which were in the hands of the government 11 percent was re­ served for public utilities and a small part of this reserved land was temporarily leased for cultivation. Most of the gov­ ernmental land is administered by the Bureau' of Public Domain §/ and it is mostly uncultivated land which is now oeing reclaimed. Land is owned privately either by individuals or corp­ orations. However, the part owned by corporations is very small and consists of either newly reclaimed land which will be sold to the individuals, or lands taken from individuals by fore­ closure and held temporarily until it can be sold again to indivAnnuaire Statistique, This figure includes 8/ In 1945 uncultivated Bureau was about one on. cit. p. 289. iroded and free of tax land. land under the administration of this million feddans. iduals. Corporate farming is not common in Egypt. Although the 7;akfs occupied only S percent of the cul­ tivable land, they occupied more than 10 percent of the land under cultivation. V/akf land is inalienable and there are two kinds of V/akfs. (1.) Land dedicated to some religious or philanthropic purpose. This is known as V/akf Khairi and occupies around 100,000 feddans. (2.) Lands which are entailed in favor of heirs in per­ petuity. Wakfs occupied more than 500,000 feddans of this kind of land. This system of land tenure gives rise to many evils and calls for* urgent reform. Characteristics of individual owners are not given any attention in the census takings thus far available. Figures concerning the exact number of owners operators, part owner operators and absentee landowners are not available. Other characteristics, such as the sex of owners, the age of owners and the occupational status of owners also are not known. It is a common practice in Egypt for wealthy profes­ sional employed persons to invest their accumulated capital in land. Many of the medium size farms belong to this group and are usually rented out. Many of the old retired govern­ ment officials, instead of receiving their pensions, got a piece of government land. These owners, having no experience in farming, usually live in large cities and either rent their farms or hire a manager. How much background for farming the 121 the owners had v/hen they became owners is not known. situation applies to their tenure experience. The same There is nothing in the available data that shows how long the owner spent on the different rungs of the agricultural ladder. hata regarding the relationship between the amount of rent collected and the landlord’s other earnings or income also are unavailable. These statistical shortcomings are realized by all who try to study the land tenure problem in Egypt, particularly the Fellah Department of Ministry of Social Affairs which has suggested numerous refinements in land tenure data to the Bureau of Census. It is hoped that all or at least most of these, shortcomings will have been taken care of in the tabu­ lations on general census of 1947 which are not as yet available. Most Egyptian farms sure acquired through purchase, inheritance, or combination of these two methods. It is imposs­ ible with the data on hand, to disern the proportions acquired through each of these methods. important method of acquisition. But inheritance is the most Except in areas reclaimed land, purchase is no frequent. of newly The reason may by the very high prices charged per acre, coupled with the social prestige put on landowner ship which makes the people keen to preserve their land and pass it from father to son. As to the different tenure grn ups in Egypt, as in all the other countries which sanction tne right of private owner­ ship in land, there are three basic tenure groups, namely; land­ owners, tenants and laborers. 122 In 1937, the last year for which census data are available, the number of the different tenure groups was as follows.*1. 2. 3. 4. Farmers operatingtheir own farms Farmers oper*atingrented farms Family laborers Wage laborers 959,975 210,385 l,226,887g/ 1,457,267“/ 'these figures are thought by many of the Egyptian authorities to be unreliable and do not give a true' -picture about the situation* Many of the owners who owned a very small piece of land and who at the same time rented another piece, were probably classified as owners, a practice which deflated the number of renters. According to the figures, the group of landless ag­ ricultural laborers not only outnumbered any other group,’but also outnumbered the ov/ner operators and the renters combined. Besides, they Increased -very rapidly from 659,883 in 1927 to 1,4-57,267 in 1957, an increase of about 121 pei*cent, wnile the number of owner operators and renters Increased from 963,233 in 1927 to 1,170,360 in 1937, an increase of only 21 percent. This continuous increase in the number of landless laborers presents a most serious problem in the Egyptian economy. The recent, but yet unpublished investigations of the Egyptian Ministry of Agriculture show that tenancy is becoming -ic-Annuaire Statistique de Poche, op.cit. p. 10 9 ! "Not "including the females whose number was 170,562* 123 more extensive in the country. In 1948, out of the total of 5,942,978 feddans,under cultivation, tenants operated 3,500,583 feddans or almost 59 percent. No other recent figures concern­ ing the numbex1 of tenants, kinds of tenancy, and the size of farms operated by the tenants are available. 2. The Agricultural Ladder and the Acquisition of Land The concept of agricultural ladder, despite its limit­ ations, provides a useful tool for analysis in.studying the 10/ farm ownership process. It involves a number of separate steps or rungs on which one advances from the bottom to the top as he gains experience and accumulates funds to become a farm owner. Vi/hile it is usually agreed upon that in the United States there are four fundamental rungs which are character­ ized by the letters P (for unpaid family labor) - H (for hired hand) - R (for renter) and 0 (for owner), in Egypt there are only three main rungs. Those can be characterized by H (for hired laborer) - T (for tenant) and 0 (for ov/ner). Unpaid family laborers do not constitute a distinguished group in Egypt since they do not differ much from hired laborers and they derive most of their income from working on other big farms. They are rather considered as a subgroup of hired laborers. Those three main groups which stand on the different Toy "See' J.F. Timmons & R. Barlowe, Farm Ownership in the Midwest. Research Bulletin 561. June 1949, A.E.S. Iowa State College, Ames, Iowa, p. 892-93. 124 rungs of the ladder may be further divided into subgroups. Under the first one, which represents the owner, come the following subgroups: (1 . Owners of a whole debt-free farm. (2 . Owners of part of a debt-free farm. Owners of a whole mortgaged farm. w Ov/ners of part of a mortgaged farm.— ' (4. Owners of a small debt-free farm who rent in some (5. land at the same time. (6.) Owners of small mortgaged farm who rent in some land at the same time. C3. Under the tenant grovip comes the following subgroups: (1.) Gash renters. (2.) Gash and s hare renters,. (3.) Share renters who pay to the owner a fixed amount of the product. (4.) Share renters who pay to the owner a percentage of the product. And under the hired laborers group come the following subgroups: (1.) (2.) (3.) (4.) Tamallia Family laborers Hired laborers Migratory laborers Subject to the known limitations of the concept of the ladder, this classification of groups and subgroups implies the gradation of financial standings as well as independence of control. Thus at the very bottom of the ladder lies the mig­ ratory group which represents the most depressed and underpri­ vileged. group in the country, v/hile at the top stands the group of the ov/ners of debt-free farms who are usually in a good fin!l/ These are joint owners. 124 rungs of the ladder may be further divided into subgroups. Under the first one, which represents the ov/ner, come the following subgroups: Owners of a whole debt-free farm. Owners of part of a debt-free farm. Owners of a whole mortgaged farm, (4*) Owners of part of a mortgaged farm. (5.) Ov/ners of a small debt-free farm who rent in some land at the same time. (6.) Ov/ners of small mortgaged farm v/ho rent in some land at the same time. (1 . (I: Under the tenant group comes the following subgroups: (1.) Cash renters. (2.) Cash and share renters,. (3.) Share renters v/ho pay to the owner a fixed amount of the product. (4.) Share renters who pay to the owner a percentage of the product. And under the hired laborers group come the following subgroup s: (1.) (2.) (3.) (4.) Tamallia Family laborers Hired laborers Migratory laborers Subject to the known limitations of the concept of the ladder, this classification of groups and subgroups implies the gradation of financial standings as well as independence of control. Thus at the very bottom of the ladder lies the mig­ ratory group which represents the most depressed and underpri­ vileged group in the country, while at the top stands the group of the owners of debt-free farms who are usually in a good fin- w These are joint owners’. 125 ancial position and v/ho are completely independent so far as control is concerned. Some of the characteristics of these groups and subgroups v/ill be discussed moiie in detail later. Data concerning the age distribution of Egyptian farmers on the various tenure rungs and their tenure experiences are not available so it is impossible to tackle the subject from these angles. -The subject can be approached, however, from another angle which concei^ns the acquisition of land. The concept of the agricultural ladder implies that the farmer in climbing the ladder from the lower rungs to the upper one spends some time on each rung to accumulate the funds needed to put him on a higher step. The length of the period spent on one rung differs from one country to another and depends on many factors. In the countries where there is a shortage of farm labor and little population pressure on land, wages are usually higher while land prices are lower than in the countries with a surplus of agricultural laborers and popula­ tion pressure. Climbing the ladder is not as difficult a task in the former countries as in the latter ones. Now, what is the situation in Egypt? In answering this question some facts have to be kept in mind. These are: (1.) Egypt is predominantly an agricultural country in which other economic activities, industrial and commercial, do not offer a good alternative source of employment. Seventy- five percent of the 20 million people living in the country rely 126 12/ on agriculture for their livelihood. (2.) Egypt has a high man-land ratio, about 3 persons per feddan and agriculture is overloaded. Many investigators believe that fifty percent of the agricultural Dabor force could be considered as surplus labor. (3.) The supply of land in Egypt is highly inelastic while the population continues to increase rapidly. (4.) There is a maldistribution of land in Egypt to the extent that 94 percent of the land owners hold only 34 percent of the land while 0.25 percent of the ov/ners hold 28 percent of the land. Y/ith these facts in mind, it is easy to see why agri­ cultural wages in Egypt are very low, rents per acre are very high and land prices also are very high. This situation makes it very difficult for a laborer to climb not only to the top of the ladder but to any. higher rung. The time that an Egyptian agricultural laborer has to wait until he accumulates the funds needed to buy even one feddan is almost infinite. Perhaps a comparison between the prices of the agricultural land and the wages of the agricultural laborers in Egypt and in the United States will show the wide difference between the two countries in the opportunities of the agricultural laborers to become land owners. In 1945 the average per acre value of farm land in the w See chapter 2 of this work. 127 United States was i?40.63, while the average farm wage per 14/ day without board in April 1, 1945 was ,;ii.12. This means that in 1945 it took the farm laborer in the United States the wage of less than 10 days to buy one acre. Owing to wide geographic variations, farm wages and agricultural 3and values varied from state to state. The situation was as follows: State Iowa Montana Mississippi Washington Average value per acre (1945) dollars £104.81 8.81 33.01 53.84 Wage per day without board in dollars (April 1, 1945) ^5.75 6.50 2 .65 7.70 Thus in Iowa,_the state with the highest share of the first grade land in the United States, it took the agricultur­ al laborer the wage of about 18 days to buy one acre of land, in Montana it took him the wage of less than two days, in Mississippi it took him the wage of about 15 days, and in Washington it took him the wage of seven days. al Egypt the picture is far different. According to the investigation of the Fellah Department the average wage of agricultural laborers in 1945 was 9 piastres while the average value of one feddan was 300 Egyptian pounds. This means that it took the agricultural laborer in that year the wage of W See United States Department of Commerce, Statistical Abstract of the United States 1948 p.597. 14/ See Bureau of Agriculture Economics of United States Depart­ ment of Agriculture. Farm Labor. April 1945. 4 3333.3 days, or about ten years, to buy one feddan. Knowing that the days of employment available for the agricultural laborer in Egypt is only 180 days per year, it could be seen that it would take 20 year's for him to buy one feddan even if he could save his entire wages for this purpose, which, of course, is an impossible assumption. year, the situation was worse. In 1939 which is a normal The average wage was only three piastres while the average price of land was 150 Egyptian pounds per feddan. This means that on the same assumptions the agri­ cultural laborer would have to v/ait about 27 years before he could buy one feddan. The tenant's opportunity to climb the agricultural ladder1 to ov/ner ship is hardly any brighter than the laborer’s. As mentioned earlier, rents in Egypt are very high. According to the investigations of the Fellah Department, the average rent per acre was as follows: 1938-39 1942-43 1943-44 1944-45 1945-47 1947-48 L.E. 7.10 15.00 18.00 19.00 22.00 24.00 Available data concerning the per acre gross income, the cost of production, and the net income are crude and unreliable since no records are kept by small farmers. Addressing the third Agricultural Conference held in Cairo March 29, 1949, H.E. Dr. Ahmed, Hussien Bey, Under Secretary of State to the Ministry of Social Affairs and the former director of the 129 t Fellah Department, stated that the investigations of that department revealed that after deducting the tenant's wages, the wages of his family and the other production costs from his gross output, he is left with a net output which is less than the rent he has to pay. Dr. Hussien stated also that studies of the big estates where records are kept and some of the land is owner operated while lands are rented show that the rents charged are higher than the net output obtained from the land operated by the owner. This is the reason why some of the capable landowners, v/ho reside in villages, some­ times prefer to rent their land to small farmers instead of operating them. This shows that the tenants in ligypt are having no better luck thato the agricultural laborers. Instead of making someiiing out of the land they rent which might help them in climbing the agricultural ladder to the rung of ownership, they squeeze themselves and live miserable lives while paying high rents to the landowners. As far as the movement of prices of agricultural land, rents and wages of the agricultural laborers is concerned, it is well known to all who studied t.ae subject that the price trend since the beginning of this century has been and still is on the upward side. This is a natural thing which happens in all the predominantly agricultural countries with an inelas­ tic supply of land and a rapidly growing population. However, i 130 accurate and reliable figures which could be used in this analy­ sis are not available. As to rents the situation is little better since some figures are available. A cadastral survey of the country was made in three different periods during this century. The first one was condiicted for the period 1892-1907 and gave a total rental value of the agricultural land of the country at that time of 16,356,000 Egyptian pounds or 5.595 Egyptian 15/ pounds pei’ feadan. The second was that conducted for the period 1935-58 which gave a total rental value of 34,420,000 Egyptian pounds. Although the total rental value for the agri­ cultural land of the country was more than doubled, the per feddan rental value was increased only from 3.595 Egyptian pounds in the first period to 6,457 Egyptian pounds in the second one, because the area under cultivation was larger in the second period than in the first one. The third survey was for the period 1946-48 and gave a total rental value for the 5,963,000 feddans under cultivation, at the time, of 109,954,273 Egyptian pounds or 18.430 Egyptian pounds per feddan. Aside 'from these cadastral estimates of the rental values the investigations of the Fellah Department show that vA the movement of the actual average,. - The harm Tenancy Iroblem in Bgypt Owing to the close relation that exists between the well being of farm people and the conditions under which they hold their land, farm tenancy is among the most discussed topics of the day in nearly all the countries of the world. Tenancy is usually condemned by those who believe that the best and most profitable and stable type of land tenure is the owner— operator type, and considered by them to be one of the factors responsible for the existence of a group of underprivileged farm people in any country. But there are those who believe that many of the ills ordinarily attributed to tenancy are in reality the result of concentration of land ownership and not the mode of leasing 52/ lands.— They further believe that tenancy of the right type • 52/ Se'e~ Imith, T.L. The Sociology of Aural Life. I-iarper Brothers, Hew Xork^ 1940. p. 290. is a useful and important institution in frj^ny ways; but, like many other institutions, it has bad features as well as good, 33/ depending u-on the conditions surrounding it. It is not an objective of this work, though, to criticize or defend the thesis of either of these two schools of thought. But the tenancy problem as it exists in Egypt, its implications and its results will be discussed in this section of Chapter 5, while remedies to the tenancy problems, as well as to the other problems of land tenure in Egypt will be discussed in Chapter 4. 1. Conditions Contributing to 1'enancy and the Tenancy Trend in Egypt The existence of tenancy as a form of land tenure in Egypt is a ttributed to many factors, the important of which are the following: (A.) Concentration and paceilation of land holdings One of the most important factors, if not the most impor tant, contributing; to the existence and the spread of tenancy in Egypt is the concentration of the major land holdings in few hands while the majority of the farm people are either landless or owners of pieces of land too small to provide adequately for their subsistence. As has been pointed out 66 percent of the agricultural 3a na Is held by 6 percent of the owners. This concentration has its origin in the inequality of opportunity • for getting land that prevailed during the Turkish rule and 55/ See, Renne, R.K. Land Economics, op.cit. p. 455. which has continued to prevail with some modifications during more recent times. Many of the large land holders are either absentee land owners, who prefer to live in modernised cities, or owners of big estates who live on their farms but lease all or part of their ..estates to small farmers or to intermediaries. Parcellation of land holdings which is common in Egypt contri­ butes also to the spread of tenancy. (B.) Average size of Land holdings and Average Size of Farm Families in Egypt In 1945 the average size of land holdings in Egypt was 2.3 feddans, besides the fact that 94 percent of the land hold­ ings were of less than five feddans with 71 percent of the total being lets than one feddan. On the other hand, th e ■average size of farm families was six persons. This average size of holding is too small to provide either for the subsistence of the family, or enough work to employ the families1 labor force. As a result some of the families try to increase the size of their operating unit by renting some lend while others work as hired hands on larger farms. (G .) hack of any Restriction on Land Ownership By the close of the nineteenth century all the restri­ ctions on land ownership were completely removed, and a keen race toward ownership took 'place. The government made no attempt to regulate land ownership or to limit the acreage that could be owned by one person. This situation helped the big land owners to obtain more land while the rest of the farmers were either unable to buy land or had to be content with the ownership 154 of tlie small holdings. (D .) High Land Values As has been pointed out, there is a tremendous demand for agricultural land in Egypt and land prices are very high. High agricultural product prices after World War I brought an inflation in land values. The high values have been supported also by noneconomic factors associated with the culture of the people. Land ownership was and- still is over-valued in the minds of the people to the extent tnat land values are forced out of line with land -productivity. This has limited the ac­ quisition of large units to those few individuals who can pay the high prices. This has added to the concentration of land holdings in few hands and is the main cause of tenancy. (S.) Lack of Efficient harm Credit System Farm credit of the right type could help tenants as well as farm laborers climb the agricultural ladder to the rung of ownership. There are many who could succeed as good farm owners if given the opportunity but remain as tenants or farm laborers because they are unable to obtain adequate credit from any source. Farm credit in Sgypt was and still is inad­ equate to meet the needs of the landless farmers who would become owners. This inadequacy has helped to make land owner­ ship inaccessible to the large number of the Egyptian farm people. Thus it has helped to increase the number of tenants and the number of farm laborers. The provision of adequate 155 farm real estate credit by some governmental agency will b e dismissed more in detail In the chapter on remedies. (F.) The Wakf System The YJakf system which was briefly referred to earlier in this- chapter is one of the factors that has added to the growth of tenancy in Sgypt. In 1945 about 665,905 feddans more than 10 percent of the area under cultivation in that year, were owned by Wakf s. Almost all these lands, whether entailed for charity, philanthropic, or Individual families, are usually operated by tenants. Some of the lands entailed for the bene­ fit of individual families were operated by the beneficiaries. But with the passing of time, the number of beneficiaries increase and it becomes practically impossible for all of them to operate the land. Thus the normal procedure is to rent the land to some other people and divide the rent between the beneficiaries. At the present time almost all of the Wakf lands are operated by tenants. (Or.) Lack of Industrialization Finally, one of the factors that contributed to the growth of tenancy, as well as to the growth of the number of farm lab­ orers in Egypt, is the lack of industrialization* and commercial activities do labor* force of the country. Industrial not absorb much of the increasing As a result those who can not find a job elsewhere resort to farming. laborers or some times as tenants. They enter, farming as farm This continuous increase in the number of the labor force not only contributes to the growth i 56 of tenancy but also inflates rents and depresses the wages of the farm laborers. The result is a lower standard of living for the majority of the people of the country. According to the Annuaire dtatistique de Poche 1945, the number of tenants in Egypt was 238,356 in to 210,385 in 1937. 1927 and decreased Figures concerning the area operated by tenants, in both of the two mentioned census years, are not known. However, the agricultural census of 1959, gave the following figures concerning the area operated by tenants: Kind of Kent 1. 2. 5. 4. Gash rent Share rent Other pents Governmental lands rented Total Area Operated (in feddans) 635,233 50,907 281,202 190,907 percentage 66.00 5.00 29.00 100.00 1,158,249 f •» According to the unpublished figures available in the Bureau of Agricultural Economics of the Egyptian Ministry of Agriculture, the area of the lands rented in recent years was as follows: 1946-47 Area under cultivation 5,714,365 Fed.. Area operated by owners 2,329,381 " Area operated by tenants 3,384,984 " If these 1947-48 5,942,978 Fed. 2,422,595 " 3,500,383 !I figures are considered reliable, they show a marked increase in the area operate.-, by tenants in recent years. The area reported rented in 1946-47 is almost three times that reported for 1939. Also, the figures for 1947-48 were higher than those of th.. year before. This indicates that tenancy in Egypt is becoming more extensive. ^ • Some Economic Implications of Tenancy in Egypt (A.) Tenancy and Efficiency of Production Tenure cnarac^eristics affect the efficiency of farm production in two principle ways: (1.) The optimum intensity of production organization for the farm varies according to the conditions under which people hold their lands. Efficiency of production depends on the organ- . iz&tion of durable and non-durable imputs, differs according to the tenure system. the control of which The owner-operator who has full equity in the land, complete managerial control over it, and is the sole recipient of the profit, is usually in the best situation 'to proportion the different imputs in a way that max­ imizes his output. On the other hand, the tenant of a certain farm usually has control over the variable imputs only, while that over the durables rests in the hands of the land owner. This separation of control, over the two classes of imputs usually results in a tendenc;^ toward less or more than optimum intensity and less than (2.) The maximum efficiency on a farm. second point is that of certainty of occupancy. The owner-operator is secure and anticipates staying on the farm for many years. His economic purpose in farming is to maximize his income over a life time, while that the period of of the tenant is limited to the lease and in somecases he has no assurance that he can remain on the land for the full period of the lease. This certainty of occupancy affects proportionality and tends to result 158 34/ in less than maximum efficiency. Empirical work in measuring the effect of tenancy on production efficiency, as well as on other subjects such as soil conservation and so forth, has not been done in Egypt. In fact very little con­ clusive research regarding land tenure problems has been reported. Accordingly, it is necessary to rely on a theoretical approach to the problem and general observations. As to the security of occupancy, the anything but secure. Egyptian tenant is The land owner can kick him out at any time he chooses; even before the termination of the contract signed between the two parties. This strange situation results from the fact that there Is usually only one copy of the contract and that is kept by the land owner. This, besides the shortness of the period leases, usually between one to three years, and the lack of any provision for the compensation for the unexhausted improvements, prevents the tenant from using the practices that lead to maximum efficiency of production. Another point tnat has a nearing on the subject of effciiency of production concerns the land rented by tenants on an other than cash basis. In 1939 about 66 percent of the area operated by tenants was rented on a cash basis while 34 percent of the area was rented on other terms. In comparison with cash rent conditions, it is clear that the degree of intensity of farming operations and hence the efficiency of the farm enterprise as a whole, tends 54/ For further information about the subject see Schickele, Eu "Effect of Tenure Systems on Agricultural Efficiencies," Journal of Farm Economics, February 1941, vol. ‘ 23. pp 185-198. to be materially lower under crop share tenancy. Although the extent of share rent in Egypt is not high, its existence involves some inefficiency of production. Another matter bearing on the subject is the not uncommon practice of the land owners in raising rents whenever they find that the tenant is getting a higher profit as a result of better farming practices. It will be shown later in the section on Landowner-Tenant Relations that there is nothing to prevent the landowner from raising the rent so long as he can find others willing to rent the land. This fear of higher rents prevents tenants from improving the productivity of the land they rent and thus contributes to inefficiency in production. Despite all that has been stated, research on the subject is needed to give a clear and definite idea about the effect of tenancy on efficiency of production. (B.) Tenancy and Soil Conservation The state underw hich people mold the land they operate has an important bearing on soil conservation. The owner-oper­ ator who lias complete control over nis land, and whose occupancy is secure is the one who can balance nis present and future profit and utilise his land in a way that conserves it and maximuzes his profits over his life time. Tenancy is usually associated with three main factors that work against soil conservation. These are (1.) The occupancy of the tenant is not secure and is limited Of. Schickele, R. loc.cit. p. 194. to what is usually a short period of time. (2.) The tenant usually lacks much, control over the durable imputs needed for soil conservation. (5.) Tenancy is always associated with cash crops tn.at dimin­ ishes the fertility of the soil. In Egypt, owning to the snortness of the periods of leases and the tenants uncertain!ty of occupancy, they usually exploit the land to the extent they can. It is a common thing that tenants neglect the cleaning of ditches and drains, especially in the last year of their lease when they know that they are going to leave the land, a practice that affects the fertility of the soil. They also use as much chemical fertilisers as possible without using manure, a practice that exhausts the soil. These are the practices that make most of the Wakf lands, usually operated by tenants of short occupancy, less fertile and less productive. Actual observations in Egypt highly support the Idea that tenancy is a system which, usually works against soil conservation, however, the matter depends to a l^rge extent upon the kind of existing between land owners and tenants. relations (G .) Tenancy and Optimum Size of Unit The effect of important matter. tenancy on the size of units Is Land holdings another in Egypt are distributed in-a way that results in a great number of very small holdings that can­ not provide enough employment for the owners* family or provide a minimum subsistence, a small number of medium size holdings big enough to keep the family labor busy and enable the family to live a decent life, and still smaller number of large holdings which 161 are too large to be worked by the femHy labor and can provide a decent life for more than one famHy. Were it not for tenancy this situation would have resulted in much waste. Waste of human energy of the families owning very small land holdings and waste of land owned by owners of large holdings whose operation is be­ yond the abilities of the owners. Tenancy is the way by which owners of small holdings are able to increase the size of their operating units and one of the ways in which the ownei’s of large holdings are able to make productive use of the portion of their holdings that is in excess of the area they can cultivate with family labor. Looking to the average size of land holdings, it was found to be about 2.5 feddans in 1945, while the average size of farm in the same year was six feddans. inci’ease in the size of the operated unit? What brought this The answer is, no doubt, tenancy. (D.) Tenancy and Optimum Use of Labor Resources One peculiarity about labor resources is that they can be transported, but not stoi’ed. forever. Human labor if not employed is lost There are many families in S3gyp t who are striving to get a living from farms that are incapable of providing a zjeasonable level of living because of their size limitations. This pro­ blem is intensified by the lack of industrial rc-tivities tnat can attract the surplus labor not needed on the farm. This situation results in waste of man power and less than optimum use of labor resources. In the absence of any industrial or agricultural employ men that can take care of the surplus labor, the only other factor 162 which effects an optimum use of labor resources is tenancy, a. large family owning a small size farm can make efficient use of their labor force by renting additional land and thus increasing the size of their unit. On the other hand, families owning large farms that are beyond their managerial abilities, usually adjust the size of their operated unit in a way that results in optimum efficiency of labor resources by renting out some part of their large farm. Thus, regarding the efficient use of labor resources, tenancy is an important factor that works toward the optimum use of labor resources. o . Landlord-Tenant delations in Egypt The economic and social status of farm tenants are highly affected by the kind of relations existing between landlord and the tenant, as well as by the kind of agreement between them regarding the rights and duties of each. In Egypt the owners and tenants have been guided chiefly by custom the share of the income to be in determining received by each of the parties as well as rights of and duties expected from each party. This would have been all right, were the bargaining power of the two parties somewhat balanced. But with the owners having all the power and the tenants having none, the situation calls for some kind of gov­ ernmental organization. following are the most important points The as far as those relations are concerned: (A.) Form of Rent Payment In Egypt rent payments differ widely from one area to another according to the customs, the fertility of the soil, and 163 the kind of crops raised. In some cases rents are usually paid in cash, while in others share rent is the common form of rent payment. kind. In still other cases rents are paid in both cash and The following are the most common ways of rent payment in the country: (1.) Cash rents This is the most widely used rental arrangement found in hgypt. 1939 about 66 percent of the total area rented was paid for in cash. It is the rental method usually used by the Bureau of Public Domain, the Ministry of Wakfs, the Royal Wakfs, and on large estates owned by individuals. 'Under this method some land owners require the tenant to pay a certain amount of money as a deposit before letting them the land. This deposit varies accord­ ing to the amount of the annual rent which should be paid In full by the end of the year. As to the time of payment and the percen­ tage of the rent paid at the different Intervals three ways are followed. These are: (a.) payment of the whole amount of rent once a year. Under this type of agreement the whole amount must usually be paid In October or early' Hovember in the areas producing cotton and rice as cash crops. In the areas producing sugar cane as the cash crop, the time of payment is usually in January or February, the time of giving the crop to trie sugar factories. (b.) Payment of the amount of rent In two installments. The first payment, which is one-third of the entire amount has to be paid from the winter crops such as wheat, barley’’, beans and 164 others, while the remaining two-thirds of the rent is paid from summer crops such as cotton and rice. The tenant usually has to pay the amount due before he harvests the crop, except in those cases in which he pays a deposit. This provision enables the owner to take any legal action against the tenant who does not pay in time, while the crop is still in the field. (c.) payment of the rent in three installments. under this method rents are’paid in three ways: ) One-sixth of the rent is paid from Bar seam (the Egyptian clover), one-sixth from wheat, barley and beans and the remaining two-thirds from cotton. (y.) One-third of the rent to be paid from Barseam, one-third from wheat and beans, and one-third from c otton and corn. This method is used in the province of Giza which produces much Barseam because of its nearness to Cairo, and in which' some dairy farms are to be found. (z.) One-fourth of the rent is to be paid from wheat and winter crops, one-half from cotton and summer crops, and one-fourth from corn and other Nily crops. This is the method followed between owners and tenants of small holdings. (2.) Share rents Share renting is not as common in Egypt as cash renting. In 1939 only five percent of the total area operated by tenants 56/ Nily crop is any cx^'op 'sowed any time after June and usually harvested before December of the same year. 165 on share basis, however, 29 percent of the area was reported to be under other forms of rent payment. Share renting which means that the crop is distributed between the land owner and tenant, usually occurs on small tracts of land and in the cases where the period of lease is limited to one crop only. The proportioning of the crop between owner and tenant differs according to popul­ ation pressure in the different areas and the production costs paid by the two parties. The different arrangements followed can be summarized as follows: (a.) where the owner pays for the seed, fertilizer, the working animals and half the cost of cotton picking and the tenant provides all the Isbor and pays half the cost of cotton picking, the owner gets five-sixths of the crop and the tenant gets onesixth. (b.) Where the owner pays for seed and fertilizer and the tenant provides the labor and the cost of cotton picking, the owner gets four-fifths of the crop and the tenant gets one-fifth. In this case, as well as the previous one, the owner is the one who pays the land tax. (c.) Where the owner pays nothing except the land tax and the tenant pays all the other costs, the owner gets threefourths of the crop and the tenant gets one-fourth. (d.) Where the owner pays only two-thirds of the land tax while the tenant pays the costs plus one-third of the tax, the owner gets two-thirds of the crop ana the tenant gets one-third. (e.) Where the owner does not pay anything and the tenant 166 pays the cost and the entire amount of the tax, the owner gets one-half of the crop and the tenant gets the other half. These are the common arrangements followed in share Tenting in Egypt. However, one might find other arrangements followed in some areas and based mostly on local custom and the bargaining power of the parties. The profitability of each type of these arrangements, whether to the land owner or to the tenant, depends on factors such as trie fertility of the soil, the prices of the different products and so forth, (5.) Rent in kind Payment of rent in kind instead of cash is not uncommon in Egypt. The two common types of rent in kind are: (a.) Instead of paying the rent in cash, the land owner and the tenant agree that the tenant will pay the owner an amount of cotton, wheat or whatever they agree upon, the value of which is equivalent to the rent. In computing the value the local market price is used. (b.) The tenant pays a certain amount of each crop to the owner and takes whatever is left for himself. This method is used when the land is rented for a period of one crop only, and in estimating the amount to be paid by the tenant, the fertility of the soil an:., the demand for land in the area are usually con­ sidered. It Is common in honofiah province, in which the owner received from two to tiiree kantars of cotton, for each feddan producing cotton and from five to six ardab of corn for each feddan producing corn. under such arrangements the tenant has to 167 pay the amount agreed, upon even If it is all that he is able to get from the land. (4.) Gash and kind rent This method is a combination of the first and the third methods. under it the two parties agree that the tenant has to pay a certain amount of cash and a certain anount of the crop. This method usually enables the land owner to put his hand on the entire crop, sell all or part of it by himself and get his share and then give the tenant what remains. These are the most common forms of rent payment In hgypt. Gash rent, which is most used, is simple and encourages efficiency of production. bnder_ It the tenant reaps all the fruits of his work but he also bears the risk of crop failure and that of price fluctuation. 'Under share rent, the owner and the tenant both carry the risk of crop failure and of price fluctuation, but the tenant lacks incentive to intensify production to the most efficient point, since he does not reap t ;e whole fruits. With rent in kind, the farmer reaps all the fruits of his work and bears the risk of crop failure, while the land owner shares with the tenant the risk of price fluctuation. The cash and kind method, as mentioned before, is a combination of the first and the third. The. fairness of any method, howevaj depends on the amount of rent charged per feddan, whether in cash or In kind, in relation to the fertilit;/ of soil, and the adaptability of land for the production of different crops. For instance, it will be more profitable to a tenant to pap three kantars of cotton as rent for 168 one feddan that produces six kantars than to pay one kantar of cotton as l’ent for one feddan that produces three kantars, since he will be left with three kantars in the first case and only two in the second while the production costs, (other than rent) nearly equal. (B.) Length of Leases The length of lease periods varies widely in Egypt. Many leases are only for one ci-op, that is five to six months in the case of corn, six months in the case of wheat or Barseam, and ten to twelve months in the c .se of cotton, others are for periods of three years or even longer. most common one in Egypt. But the year to year lease is the These kinds of leases do not give the tenant any security of tenure and make it impossible for him to plan his farming operations over a period of years. On the other hand, long leases are opposed by land owners since they involve bearing the risk of price changes. The use of provisions in leases that either party must give the other notice a specified •period in advance of the date of termination, if he plans to ter­ minate the contract, is confined to the contracts between land owners only, and the tenants of large areas who are actually intermediaries and not real operating tenants. Thus small tenants do not profit by such provision. (G .) Kinds of Leases and How They Are Negotiated Most farm leases in Egypt are merely verbal agreements or understandings between landlord and tenant. These oral agree­ 169 ments give rise to many misunderstandings that would be less likely to occur with a written contract, and cause difficulties or failure to renew leases at the end of the year. In some in­ stances, written contracts are used with small tenants, out they are made usually in one copy only and this is kept by the land owner. In some of the densely populated areas, small tenants sign the contracts before tne terms are filled in and it Is usually kept by the land owner who can add whatever terms he wishes and even can raise the rent if the prices of agricultural products go up. Written contracts made In duplicate, with a copy kept by each party, are usually made only In the case of tenants who rent vast areas and who are actually intermediaries and not real oper­ ating tenants. 'In this respect, the Fellah Department suggested that lease contracts should be made in three copies, one to be kept by each party and the third to be kept in a governmental agency. The usual -practice with regard to small leases is for the tenant and landlord to deal directly with each other. However, in some cases, leases are concluded by way of auction, especially If the land is held by an official agency. Auctioneering is more prevalent in large transactions, and it often happens that crowding at the auction, coupled with ignorance and obstinacy on the part of tenants, results in increasing the rents to exorbitant values. (D.) Int ermedlarie s A function, similar to that of the middleman in the process of marketing farm -products, is performed by the intermediaries in the matter of renting. In other words, intermediaries in Egypt 170 appear on the stage between the land owner and the real operator. They are usually wealthy people who can rent vast areas and pay deposits reaching sometimes to the entire amount of the annual rent of the area. After concluding the lease and- signing the contract, which is usually for three years in such cases, the intermediary sub-leases the land to many small tenants at much higher rates. The existence of such persons constitutes one of Qhf& the import* factors that inflate rents in Egypt. Ox course uhey carry some risk but in return they charge the small tenants higher rents, sometimes double the rent they pay to the land ovrner. The elimination of those intermediaries could bring reductions in the rents paid by the small tenant without reducing the amount which reaches the pockets of the land owners. (E. ) Securtiy of Occupation, Compensation fox'* Improvements and Penalties fox* Deterioration Most small tenants do not have any securtiy of occupancy. Without such security tenants are not likely to use farm practices that look farther ahead than the present year. Plans to effect such security involves an over all ovoxdiauling of the landlordtenant relations, especially regarding the perios of leases and the registration of contracts. Another important point, that has much bearing on the sxibject, is that of compensations and penalties. In order to maintain the productivity of the land, tenants have to make impi’overaents. Insecurity of occupancy and the lack of any provisions for the compensation of the tenant for the unexhausted improvements, discourages him from making needed improvements. 171 Compensation provisions, however, Imply that the tenant keeps a complete cost record so that the amount of nis compensation at the termination of the lease can be equitably determined. ihis is not the case in Egypt where practically no small tenants or small land owners keep records of any kind. Although practically no lease contracts in Egypt contain provisions concerning the compensation for improvements, most of them specify that the tenant must treat the land in a good and proper manner, host of the contracts, also, specify that in case of negligence and wasteful practices on the part of the tenant, the land owner can terminate the contract at once. khus the land owner’s rights are very well taken care of, in the contracts while the tenant’s rights are completely ignored. If the evils of farm tenancy in Egypt'are to be removed, lease contracts should be written in at least two copies, one tr be kept by each party, and they must contain provisions for compensation for improvements, as well as provisions for penalties for deterioration. 172 CHAPTER 17 Measures for Improving the land Tenure System in Egypt A - Introduction The land tenure system in Egypt, discussed in the previous chapter, apparently is not consistent with the welfare of the majority of the Egyptian people. It not only hinders technological progress in the field of agriculture, but also blocks the way to industrialization. As a result, most of the farm people are left with very low annual incomes which limit their capacity as consumers of industrial goods. This is one of the important points which have to be overcome if industry is to assume a more important role in Egypt's economy. not confined to its effect on farm incomes. The evils of the system are Besides keeping farm incomes too low to permit acceptable levels of living, the tenure system denies farm people the degree of security in the occupation of their land they need to be effective members of their communities and denies them many of the opportunities they need if they are to develop their best personal talents and enjoy adequate social, and cultural facilities. Surprisingly enough, the evils of the land tenure system have not attracted much government attention. Throughout the past half century the government1s policy on tenure has been characterized by a lack of regulations. ation. .The only field that encountered some action is that of tax­ Taxes on agricultural land have been changed twice since its first standardization in the beginning of this century. Unfortunately, the change has neither discouraged the development of large estates and their maintenance generation after generation, nor encouraged the attain­ ment of desired conditions of tenure. Rather it added to the economic 173 power of landowners without affecting the position of the agricultural laborers or tenants. In the absence of a balance between the bargaining powers of the landowners on one side and agricultural laborers and tenants on the other, such policy is injurious to the country's economy and in­ consistent with the national welfare. It widens rather than reduces in­ equalities in wealth and income, which is dangerous and pernicious in any , society. The prevailing land tenure system in Egypt does not provide for the best and most efficient land utilization, does not permit the maximization of the country's agricultural output, and is one of the outstanding factors among those responsible for the low standard of living that prevails in the country. Improving the system is not an easy matter. Two main reasons can be cited: (1) Although there is no doubt that the present system needs reforming, yet there is no use of substituting one system for another unless there is some assurance that the new system will be advantageous to the national welfare. This assurance can come only through more intensive studies. While under­ taking this study the author found that adequate data about the subject are missing and that the reliability of the available data can be questioned. To solve this situation, the whole procedure of collecting data must be changed. (2) Legislation regulating land ownership as well as landlord-tenant relations is needed if the system is to be improved. The political power of the landowners in the country is such that the enactment of any law designed to weaken their economic power seems almost impossible. Assuming that these two difficulties could be solved, other measures for 171; improving the land tenure system are of two categories: (a) - Measures of primary effect on the relation of man to land. These could be called direct measures. (b) - Measures of secondary effect on the relation of man to land, which could be called indirect measures. 3 - Direct measures These include the following: (1) Increasing the area under cultivation. The first step toward improving the land tenure system in Egypt is to increase the area under cultivation. This could be done by converting the area under basin irrigation in Upper Egypt to perennial irrigation and by land reclamation. The total cultivable area of Egypt is 7.1 million feddans of which about 5.8 feddans were under cultivation in 19l+7> so that in addition to the present cultivable area there are another feddans which could be brought into cultivation. 1.3 million According to Doreen Warrineri/ it would be possible through present and future irrigation and drainage pro­ jects to increase the present cultivated area of Egypt to a 17 percent increase. 6.8 million feddans, The increase in the crop area though will be more than that because of the conversion of the basin irrigated land to perennial irrigation. Increasing the area, however, will not help if not supplemented by other measures, such as birth control and arrangements to prevent the new land from passing into the hands of the big landowners. (2) More equitable distribution of land holdings. Land holdings in Egypt are distributed in an inequitable way. about 28 percent 1/ darriner, D. of the cultivated area was owned by only op. cit. p. IjS- In 191+5 0.25 percent of the 175 landowners while 34 percent of the area was owned by 9b percent of the landowners The effects of this concentration of landholdings in very few hands are discussed in Chapter III. They could be summed in the followings (a) Coupled with the almost fixed supply of agricultural land this con­ centration inflates the prices of agricultural land and distorts the working of the agricultural ladder. (b) In the absence of any considerable industrial activities, this con­ dition results in a great number of agricultural laborers and tenants and keeps the wages of the agricultural laborers low while it inflates rents. This lowers the standard of living and hinders technological progress both in agriculture and industry. (c) The agricultural land is not utilized efficiently. A large part is used for the production of farm-consumed pi'oducts. (d) The national agricultural output is not maximized. Costs of pro­ duction are higher, and net returns are lower on the very large, as well as the very small farms, than they are on the medium sized farms which constitute only 10 percent of the total number of farms. (e) many crops which could be produced advantageously are not grown be­ cause they do not suit tenancy which is brought about by the concentration of land holdings in few hands. How might a more equitable distribution of land holdings be effected? The following proposals are recommended: First - all the reclaimed land which belongs to the government should be divided into medium sized farms.of not less than five, and not more than fifteen, feddans and sold on a long term payment basis to farm families who do not now own land. Financing this project and selection of families is an important matter, but is outside the scope of this work. The main thing to be emphasized is that the method of selling governmental land to big land owners should be stopped. Second - All the cultivated governmental land now operated by the Bureau of Public Domain, the Ministry of Agriculture, and other governmental agencies, except that needed for experimental work, should be sold in this same way to the farm families. The Bureau of public Domain should confine its work to reclamation only and not to operation of land. Reclamation may be undertaken by private corporations under the supervision of the government. Third - All wakfs should be dissolved and sold to small farmers on the same basis. Fourth - No governmental land should be sola to anyone "who does not intend to operate the land himself. This prevents speculation which inflates the prices of agricultural land. If these four points could be put into action, the additional land that could be brought under cultivation by irrigation and drainage projects 'would not pass directly into the hands of the big landowners or of the speculators who raise land prices to figures beyond the purchase ability of the small farm people. But what about the already existing state of concentration which would not be affected by these measures? This problem should be dealt with separately and the solution is to be found in the adoption of a new taxation system. The development of large estates could be discouraged by graduating taxes on the basis of holdings as has been done in some other countries such as New Zealand. The maintenance of large estates generation after generation may be discouraged by gift and inheritance taxes, as Great Britain has done since world War I. Or inflation of land prices may be reduced by taxes on capital gains, as has been suggested several times in recent years in the United States2/ 2/ Marshall Harris and Joseph Ackerman. Family Farm Policy p. 11. University of Chicago Press. Chicago, 19 h 7 The Rich people in Egypt like to invest their money in agricultural land rather than in industrial activities lor two reasons: First - The Egyptian culture over-estimates the varies of landownership. Changing people's ideas and values can take place through education but this is a long and slow process. Second - The profit motive guides people to invest in agricultural land which is non-exhaustable and which promises lucrative returns. Besides the risk involved is less than that which accompanies investment in any other economic goods. If investment in agricultural land could be made less profitable by the imposition of of taxes which could not be shifted, then many people would prefer to invest in industry. The industrial potentialities of Egypt will be briefly discussed later in this chapter. Thus to cure the existing state of concentration of land holdings in few hands and to effect more equitable distribution of land holdings in Egypt, there is need for a new taxation system. Farm credit of the right kind is another way by which more equitable distribution of landholdings could be attained. As was indicated earlier, the prevailing credit system in Egypt does help neither the farm laborer nor the tenant to climb the agricultural ladder. There is an urgent need for a new credit agency patterned after the Farmers Home Administration of the United States Department of Agriculture. Only such an agency can help the agricultural laborers and tenants to become landowners. It would be more beneficial to the country's economy for the government to create and support such an agency than to continue the time and money wasting practice of per­ suading the different banks not to foreclose on the vast mortgaged areas owned by big landowners who, expecting governmental interference, defer as long as possible the repayment of loans. Most of those who benefited from such agreements are large absentee» landowners who borrow money for the pur­ pose of living luxuriously rather than for the improvement of the productivity of their lands. Instead of continuing its support of a practice that fosters the development of large estates generation after generation, the government should let the banks foreclose, but compel them to promptly sell the land in small amounts to eligible farm laborers and tenants on long term credit basis. k/ (3) More efficient size of operated unit As indicated in Chapter III, in 19U7 more than 80 percent of the Egyptian farms were less than five feddans in size, about and fifty feddans and about 1.5 percent 18 percent were between five were larger than fifty feddans. However, the group of small farms occupied only about 18 percent of the total cultivated area, while the group of medium size farms occupied about of the total area, and the group of large farms occupied about the total area. bB 36 percent percent of It was found too that the medium sized group is the most productive of all, while the large and the small farms were less productive. This means that about 82 percent of the farms which occupied about twothirds of the total cultivated area were either smaller or larger than the most efficient size of farms in Egypt. Besides the inefficient size of farm, parcellation of the holding is common in Egypt. Thus if the productivity of the Egyptian farms is to be raised and the country*s agricultural output is to be increased, the number of the more efficient medium sized farms should be increased and the problem of parcellation should be remedied. As to increasing the number of medium sized farms, it could be done by the following methods: 3/Issawi. Ch. on. cit. o. 129 ^/Similar measures were taken in many other countries such as the Netherlands and Czechoslovakia. 179 (a) feddans. Preventing the break down of holdings below a minimum area of five It is indicated earlier that holdings which were between five and ten feddans were the most productive units in the country. Besides, five feddans is the minimum siae of unit which permits a reasonable stand­ ard of living (allows reasonable food, clothing, shelter and educational and medical facilities) for an Egyptian family. Inheritance is the common way through which land holdings are usually broken down. Thus a law that prohibits the division of any estate between heirs, if this division will result in the creation of units smaller than five feddans, should be passed. This is no violation of the Islamic law of inheritance as some writers are inclined to think, since each of the heirs will receive the value of his share. The process would be like this - suppose the whole estate were twelve' feddans while the number of heirs was four. In such a case, the value of the property is to be estimated by a governme'ntal agency. The property is to be divided between two of the heirs with each one getting six feddans. Those who get the land would have to pay to the other two heirs the price of the shares to which they are entitled. This procedure could be made possible by the aid of governmental farm credit.as will be dis­ cussed later in this chapter. As to the priority in getting the land, it should be based on such things as personal interest in farming, amount of farming experience each of the heirs has and so forth. Should all the heirs be farmers, the additional heirs could be given governmental land in some other place and they could- be induced to go to the new locations by offers of special credit or transportation facilities or free land registration. Legislation to this effect would help prevent the uneconomic parcellation of farm holdings in the future. j (b) As to already existing small units, the solution is to be found in consolidation. Holders of small tracts of land should be asked to dispose of them, either to others who want to increase the size of their units to the minimum size permitted, or to the government. They should also be given priority in getting governmental land and receiving the facilities mentioned above. On the other hand, small pieces of land taken over by the government should be consolidated into economic units and. distributed to farmers accord­ ing to the procedure recommended above. This measure, coupled with legislation discouraging parcellation, should lead to the'eventual disappearance of the small uneconomical landholdings which are now abundant in Egypt. As to the parcellation problem, one remedy is re-allotment. measure which is tried by some countries and works successfully. It is a Under the act of 192a a simple majority of the landowners in the Netherlands can force a re-allotment scheme, provided these landowners also control more than half 5/ A scheme patterned after the of the acreage in the particular area.— "ruilverkaveling" of the Netherlands, with the supervision and aid of the government and the modification which suits the situation in Egypt can certainly solve the.parcellation problem and make an end to the troubles resulting from A io» -t (c) The number of the medium sized farmsalso could be increased if more large estates were broken down into medium sized ones. This could be done in two ways: First - By limiting the area of land which could be owned by a single owner. A law may be passed limiting the size ox landholdings and asking all those owning areas larger than the maximum limit tosell thedifference between the limit and what they actually own either to others willing to buy farms under the supervision of the government, or directly to the government. 3>/ Marshall, H. 1 Ackerman, J., op. cit. p. 211 In the second case the government can in turn divide the land into medium size units and sell it to farmers. Because of the concentration of political power in the hands of the landowners, this direct measure is unlikely to take place in Egypt at the present time. Any measure which challenges their power is usually bitterly opposed and defeated. Second- The power to tax is another effective weapon which could be used by governments to attain desirable land tenure situations. Land taxes on holdings larger than fifty feddans should be graduated on the basis of size. This would make landownership of large holdings less profitable and would encourage capitalists to invest in industry rather than in land. under the existing taxation system. 161| P.T. per acre. Landowners are favored They pay a flat rate which does not exceed In 19^5 the tax was supposed to be 16 percent of the annual rental value of feddan. The amount of taxes imposed in that year on the 5,7l5.>2U5 privately owned feddans was 5*U2l|.,752 Egyptian pounds. that the average tax was 0.95 Egyptian, pounds per feddan. the average rent was found to be 19 Egyptian pounds. was only five percent of the rental value. This means In the same year Thus the actual tax rate Another kind of tax which should be used in Egypt is the gift and inheritance tax. of large estates generation after generation. They discourage the maintenance A capital gain tax also could be used in Egypt to check inflation of land values. On the whole, improvement of the land tenure system calls for extensive reforms in the entire taxation system. (d) The farm credit system is another thing which needs reform if the land tenure system is to be improved. As was indicated earlier, farm credit facilitie in Egypt do not help tenants or agricultural laborers climb the agricultural ladder. But they can be used to increase the number of the more efficient medium size farms in the country. They can help in correcting the continuous break­ down of estates to very small uneconomical units tnrough inheritance by making 182 it possible for one of the heirs to buy out the shares that the other heirs would normally receive under the law of inheritance. Farm credit agencies also could help the owners of small parcels of land to buy the additional' tracts they need to bring their farm unit up to the more economical size. It should be emphasized here that only governmental farm credit agencies which are concerned with helping the people rather than exploiting them could per­ form such functions. (4) More equitable landowner-tenant relations The tenancy problem in Egypt is analyzed in Chapter III. Here it is indicated that the landowners have practically all the bargaining power while the tenants have practically none. Insecurity of the tenure tenant mobility and the shortness of the tenancy occupancy period have an adverse effect on the productivity of the leased land. If the tenancy situation is to be improved in Egypt, the government should step in and supervise and regulate the leasing process as it has in some other countries. An act should be passed that provides for the following points: (a) All leases should be registered and approved by a local leasing board which consists of a government official, a representative of landowners and a representative of tenants. by this board. All tenancy disputes should behandled Any disputes that can not be solved should be transferred to a tenancy court composed of the local judge and two agricultural experts as members. The decisions of this court should be final. (b) Leases should be written with three copies, one to be kept by each party and the third by the local board. should be considered invalid . Verbal contracts for renting land 183 (c) Leases should not be conducted through auction. (d) Intermediaries or middle men should be eliminated by law. Only those who intend to operate the land should lease it. (e) The minimum lease period should be made three years during which the landowner could not terminate the lease so long as the tenant is meeting all his obligations. (f) Leases should be terminable by either party, after the three years and after due notice given at least six months in advance. (g) All improvements made by the tenant and capable of removal should be removed by him at the termination of the lease. (h) The landowner should compensate the tenant for specified unexhausted improvements which he does not remove at the time ox quitting the holding, provided that for certain type of improvements the prior consent of the landowner be obtained. (i) The tenant should compensate the landowner for any deterioration or damage due to factors over which the tenant has control, and the landlord should be empowered to prevent continuance of serious'wastage. (j) Adequate records should be kept of outlays for which either party would claim compensation. (k) The lease should not automatically expire with the death of the lessor or leesee. Heirs of the tenant should have priority to continue until the expiration of the period. These provisions protect both the landowner and the tenant. They give the tenant the security, the protection and the time in which he can organize his enterprise over a longer period and be more efficient in his work. On the other hand, they protect the rights of the landowner and enable him to stop any wastage, claim compensations and terminate the lease at the end of the period, after due notice. 181+ C. Indirect Measures Measures which have a secondary effect on the land tenure system include the following: (l) Education Education is the name applied to the process whereby the socially approved part of the cultural heritage is transmitted from one generation to the next, and the process whereby newly acquired‘ knowledge is diffused among 6/ It ranks among the major tasks, educational progress the members of society.— among the chief hopes of society. In spite of the vast expansion which took place as far as education in Egypt is concerned, the majority of the people are still illiterate. Educational facilities especially in rural a re a s are short. Competent and well prepared teachers are lacking generally and completely missing in rural areas. A well planned program of general education for all children and youth, and also suitable preparation for particular vocations in accordance with the needs of children and youth in Egypt has not as yet been provided, v/orst of all is the fact that the educational system is a dual one: primary, secondary and higher schools for the minority well-to-do, and free elementary education only for the masses, especially in rural areas-. Elementary educa­ tion, which in most of the cases is all that is available for rural children is concerned with the three P.*s. Pupils who finish this course are seldom able to enter the secondary, technical or vocational schools. Elementary education provides only a means of stamping out illiteracy, and a nonefficient means at that it should be emphasized. The trouble with the Egyptian rural education is that the rural school is the only available 6 / 'Smith, T. L., op. cit. p. 385 135 institution which can be used. No other institutions share the task. Even the Egyptian rural family cannot be considered an important educational agency as is the case in more advanced countries. Criticizing the educational process in Egypt and designing a more efficient program is not within the scope of this work. It should be emphasized, however, that efficient education would help improve the land tenure system in the following ways: (a) There is an urgent need for more educated -workers, technicians, administrators and so forth to work in securing a better and more efficient utilization of the national resources. Without adequate educational pro­ grams, skill and intelligence will remain at the present low level. (b) Education is needed in Egypt to relieve agriculture of the surplus labor force which depresses the wages of the agricultural workers and in­ flates rents on one hand and decreases per capita agricultural output on the other hand. Through education more rural youth could be directed to leave agriculture and engage in industrial production. (c) Education provides one means through which the rapid increase in population might be checked. Without slowing down this increase, population pressure on land will continue and little can be done to improve the standard of living of the masses. As yet no studies have been made of the effect of education on the birth rate in Egypt. But several studies in theUnited States and Canada show a close relationship between educational and fertility attainments. In summarizing the results of various field studies of the hilbank Liemorial Fund conducted since 1930, Notestein found that there is a close and consistent inverse relationship between schooling and fertility,—^ 7/ Landis, P. H. Population Problems, p 116. American Book Comoany, New York, 19UJL i 135 institution which can be vised. Ko other institutions share the task. Even the Egyptian rural family cannot be considered an important educational agency as is the case in more advanced countries. Criticizing the educational process in Egypt and designing a more efficient program is not within the scope of this work. It should be emphasized, however, that efficient education would help improve the land tenure system in the following ways: (a) There is an urgent need for more educated workers, technicians, administrators and so forth to work in securing a better and more efficient utilization of the national resources. Without adequate educational pro­ grams, skill and intelligence will remain at the present low level. (b) Education is needed in Egypt to relieve agriculture of the surplus labor force which depresses the wages of the agricultural workers and in­ flates rents on one hand and decreases per capita agricultural output on the other hand. Through education more rural youth could be directed to leave agriculture and engage in. industrial production. (c) Education provides one means through which the rapid increase in population might be checked. Without slowing down this increase, population pressure on land will continue and little can be done to improve the standard of living of the masses. As yet no studies education on the birth rate in Egypt. have been made of the But several studies in the effectof United States and Canada show a close relationship between educational and fertility attainments. In summarizing the results of Milbank Memorial Fund conducted since 1930, various field studies of the hotestein found that there is a close and consistent inverse relationship between schooling and fertility.—^ 7/ Landis, P. H. Population Problems, p H6. American Book Company, New York, 1953 136 There is no reason why the relationship should be any different in Egypt. (2) Industrialization It is indicated in Chapter I that in spite of the industrial progress that has been taking place in Egypt since World War I, the role played by industry in the country's economy is still a minor one compared with that played by agriculture. If industrial developments could be accelerated, land tenure conditions would consequently be ameliorated. The greatest opportunity to help people whose labor is not needed in agriculture con­ sists in providing industrial employment for persons desiring to work. A report issued by the United States Department of Agriculture in 19b? Q / states,— "What peace can mean to American farmers depends more upon the level of business activity.and non-farm employment that can be maintained after the War than upon anything else, . . . " If the surplus farm labor % in Egypt could be transferred to industry, many of the evils of the land tenure system would disappear. The development of industries to support a large urban population is considered by most population scientists as one of the changes required if a nation is to have a rapid decline in fertility. In this connection F. W. Notestein—9 / states, "Such a development takes people out of their former context, breaks the cake of custom, and permits the growth of new individualistic aspirations. Moreover, it is essential to draw a surplus and ineffective agricultural population into effective production. The development of light industries, such as textiles, in which women can be employed away from the home, is especially important as a means of giving women new independence and a milieu for the dissemination of new ideas." 3/ U. S. Department of Agriculture, What Peace Can Mean to American Farmers. Misc. Pub. 570, Washington, D. C., 1 9 b 5 - P. 1 9 j Notestein, F. W. Demographic Studies of Selected Areas of Rapid Growth. Milbank Memorial Fund, New York 19UU- pp 153-15U. * Although industrialization is always mentioned whenever the advancement and progress of the economically backward countries are discussed, it is not as easy an objective to achieve as many writers are inclined to think. In order to succeed, industrialization must be based on a sound economic basis and many prerequisite conditions must be present. Many of the prerequisites of industrialization are present in Egypt. It enjoys a remarkable geographical location which gives it accessibility to most of the markets of Europe, Asia and Africa. It has quite a number of minerals, notably cement, manganese, phosphate and titanium ore. In 10/ 1938, Egypt was the seventh largest producer of phosphate in the world.— Large deposits of very high grade iron ore have been discovered near Aswan. Other minerals which are to be found in Egypt are mentioned in Chapter I. Besides the mineral resources, agricultural raw materials are abundant, such as cotton, leather, sugar cane, fruits and vegetables, etc. Cheap power can be obtained from electrifying the Nile dams, or from the oil wells which are continually expanding to the extent that they more than cover the present needs of the country. Labor is abundant and cheap, but lacks the skill and know-how which could be acquired through the extension of education and the aid of advanced foreign countries that are willing to offer aid to backward countries with­ out imperialistic motives. Capital is now available in reasonable amounts since profits were considerable during the War years. Those factors aided by some kind of tariff protection and agrarian reform are apt to accelerate the industrialization of the country. The following are some of the industries which may flourish in Egypt: (a) Industries that depend on drilling, mining and quarrying. Promising industries of this type are oil drilling and refining, 10/ Szekiel, M. Towards World Prosperity. Harper & Brothers, New York 188 phosphate extraction and manufacturing of superphosphates, production of salt, cement production, iron ore and steel manufacturing. (b) Industries that depend on the agricultural raw materials such as the following: textile industry, grinding and pressing, cottonseed oil industry, soap industry, sugar manufacturing and refining, dairying, pre­ served fruits and vegetables, tanning and leather work. (c) Other industries as construction, chemical industry, fertilizers, paper, furniture, cigarette, brewing, glass and transport industries. (3) Migration Migration is one of the factors that affect population density and manland ratios in any country. It adds to population pressure in the receiving country while it temporarily relieves the pressure in the sending country. In very recent times, Egypt was a receiver country and not a sender one. Many of the Mediterranean countries have been sending migrants to Egypt, either through the migration office or illegal border crossings. The majority of those migrants are unskilled laborers of Arab stock who come looking for work. This aggravates the population problem and calls for more restrictive regulations on immigration. Whether emigration can reduce population pressure in Egypt depends on the magnitude of the migration and the duration of the movement. lasting emigration to large regions would be of some help. Heavy and But where can the Egyptian people, who are by nature sedentary and loath to emigrate, go? The only places where the Egyptians can find conditions similar to those in Egypt, such as climate, soil, language, customs and religion are in the neighboring uncongested Arab countries such as Iraq and Syria. There is much doubt, however, that the governments of these countries would agree to take in large migrations. 189 The Sudan, with a land area equivalent to about one-fourth the area of Europe and its population of only six and one-half million people, might serve as an important outlet for the surplus Egyptian population. Un­ settled issues and differences of opinion between the Egyptians and the British concerning this area provide an obstacle to this solution. But even after the settling of the Sudan problem, not much emigration could be expected without the aid and the inducement of the government. Internal migration is another matter which can help in improving the tenure system in Egypt. As mentioned earlier population density varies widely in the different provinces of Egypt. are less populated. Thus the northern provinces This situation results in the existence of surplus agricultural workers in some provinces and lack of laborers in others. Wage differentials do not help correct the situation because of the ignorance and inertia of the laborers. Governmental programs to induce the people tp move from the congested areas to less congested ones, coupled with the extension of education would certainly help in correcting this situation. (U) Birth Control Birth control, if accepted by the people and practiced correctly, would provide a most effective means of checking population pressure. It is needed in Egypt as badly as it could be needed anywhere else, but un­ fortunately it is not practiced by those who need birth control. Although it has become quite respectable in many civilized countries, it is still looked upon in Egypt as something immoral. It is also bitterly opposed by some of the religious leaders although it was approved some years ago by the 11/ Grand Mufti of Egypt and the Rector of Al-Azhar,— and by some political leaders who tend to regard the quantity of the people, regardless of their ll/ Cl'eland/w.wV A Population Plan for Egypt. Demographic studies of selected studies of selected areas of rapid growth, Pillbank Memorial Fund, New York 1 9 h k . P- 135- 190 quality, as a prerequisite to the strength of any nation. hfith the spread • of education, the people of Egypt are becoming more and more conscious of the population problems and some of them are becoming birth control minded. The evidence of this is shovra by the organization of a social society called "The Happy Family", which has for its aim the opening of birth control clinics. Birth control in Egypt should be considered as a long term measure for the improvement of the population situation and the land tenure system, because it requires a long time to change the ideas of the masses about the subject and to get birth control methods diffused among them. One thing that needs to be emphasized before closing this chapter, is tliat all the measures mentioned, whether direct or indirect, are complementary. Each of them complements the other and cannot by itself solve the problem. is only through a well planned program of action composed of many approaches that the tenure system in Egypt can be improved. (12) Ibid. It 191 . CHAPTER 7 Summary and Conclusion Egypt is predominantly an agricultural country with 75 percent of its population depending for their livelihood on agriculture. Although the total area of Egypt is about 586,000 square miles or more than three times that of the British Isles, only about 15,500 square miles are cultivable. This prod­ uctive area involves around 8 million feddans of which only about 5*8 million feddans were under cultivation in the country exceeded 19 million 19i+7« In the same year the population of people and 99 percent of this population lived in the cultivable area of the Delta and the Ilile Valley which represents about 5 percent of the total area of the country. Egypt i's one of the most highly congested population areas in the whole world. In 19U7 it had an average of 1,210 persons dependent upon agriculture for every square mile of agricultural land. Probably nowhere else in the world is there so large a population per square mile that is dependent solely upon agriculture and so free from the risk of drought as in Egypt. This last condition is made possible by the Nile, on whose regular supply of water the fertility and prosperity of the country are entirely dependent. Thanks to the perennial irrigation system 'which makes possible the prod­ uction of two or even three crops per year from the same piece of land, the crop area of the country far exceeds the cultivable area. In 19lf-S the crop area was about 9»1 million feddans while the cultivable area was only 5*8 million feddans. Many factors, such as rainfall, irrigation, drainage, tech­ nological achievements, urban land use and so forth make the economic supply of agricultural land almost fixed. The supply of land could be increased only 192 by huge irrigation and drainage projects but the increase would by no means be large. Although the death rate is very high in Egypt, especially among infants, it vrill certainly decline with the spread of the medical services to the rural areas that are only now securing the benefits of medical science. The birth rate, on the other hand, is also very high and for cultural reasons is not likely to drop as fast as the death rate. increase of the country's population. The result will be a rapid In the absence of rapid industrializ­ ation, this means more population pressure on land. The man-land ratio is high, reaching three persons per one feddan in some of the provinces of Egypt. Under the present tenure system this means a very low standard of living for the majority of the people. The present concept of private property rights was not developed in Egypt until' the second half of the nineteenth century. The inequality of opportunity for getting land, which prevailed under Turkish rule, and contin­ ued to prevail with some modifications during more recent history, is respon­ sible for the present concentration of land ownership in few hands. In 1890 the total number of holdings was 7^7.000. had increased to 2,606,000* By 191+5 this number This increase in the number of landed properties is accounted for by the increase in the number of very small holdings which are often too small to provide their operators with even a minimum subsistence level of living. in 1890 and Holdings -which are less than five feddans numbered 611,000 2,141+7.000 in 191+5» while the holdings of 5“1+9*5 feddans increased slightly from lLjl+,000 to ll).7»000 in 191+5• The number of holdings of fifty feddans and up was 12,000 in both I896 and 191+5* The average size of holdings in the country steadily decreased from feddans in I896 to 2.3 in 191+5* 6.5 In this year the average size of holdings 193 owned by Egyptian nationals was 1.9 feddans, that ovmed by wakfs v,ras feddans 3k and that owned by foreigners was 83 feddans. In 19U5 holdings of less than one feddan accounted for were 71 percent the total, those of 1-1.9 feddans for 13 percent percent of the total number of holdings. and those of of 10 2 -k » 9 This means that holdings of less than five feddans accounted for 9U percent of the total number of holdings. Holdings of 5-U9.9 feddans were 5*5 percent of the total and only 0.5 percent of the holdings were above 50 feddans in size. In terms of area the picture was different. than five feddans occupied 3k The group of holdings of less percent of the total area and averaged 0.8 feddans per holding, the group of 5“59»9 feddans occupied 29*9 percent of the total area and averaged 12 feddans per holding, and the group of holdings of more than 50 feddans in size. The top 0.25 percent of the landowners ovmed 28.2 percent ..of the land while the lower occupied 36.1 percent of the area and averaged 9k percent owned only 3k 179 feddans percent of the land. The average size of farm in Egypt in 19U7 was six feddans. ity of the farms were far smaller than the average. But the major­ Parras of less than one feddan represented 37 percent of the total, those of between 1-1.9 feddans 20 percent while those of less than five feddans represented more than 80 percent of the total number of farms. 18 percent and those of above Those of between 5“U9*9 feddans accounted for 50 feddans for about one percent of the farms. Besides the very small size of the Egyptian farms, most of them are made up of numerous tracts, sometimes of very impractical size and sometimes at great distance from each other and from the farmer’s house. involves considerable and much unnecessary waste. Egypt, the following figures give the answer This situation As to who owns the land in Land in private ownership Yfakfs Land owned "by the government total 63 percent 8 percent 29 percent of the total of the total of the total Too Inheritance is the principal way by which land is acquired. The available data on tenure groups in Egypt are probably not completely reliable but do indicate that landless agricultural laborers outnumber the owner operators and the renters combined. has increased rapidly (between The number of landless laborers 1927 and 1937 the increase was 121 percent). The three main tenure groups in Egypt, the owners, renters and labor­ ers namely, may be divided into subgroups as follows: A. Owners 1. Owners 2. Owners 3» Owners Owners 5. Owners 6. Owners of a whole debt free farm of part ofa debt free farm of a whole mortgaged farm of a partly mortgaged farm of a small debt free farm who rent some land of a smallmortgaged farm who rent some land B. Renters 1. Cash renters 2. Cash and share renters 3. Share renters whopay the owner a fixed amount of the product !(.. Share renters whopay the owner a percentage of the product C. Laborers 1. Tamallia 2. Family laborers 3. Hired laborers !(.. I.Iigratory laborers This classification of groups and subgroups implies both higher financial standings and greater independence of control for the first listed groups than the later listed ones. Data concerning the age distribution of the farmers in the various tenure groups and their tenure experiences are not available. Comparison of average wage rates and land values in Egypt and the United States for 19U5 shows that an average acre of farm land in the United States was worth the equivalent of less than wages. 10 days of the average farm worker’s In Egypt an equivalent farm land area claimed a price equal to about 195 20 years of the average Egyptian worker*s wages. 27 years. In 1939 this period was This shows the almost insurmountable difficulties associated with the climbing of the agricultural ladder in Egypt. The investigations of the Fellah Department of the Egyptian ministry of Social Affairs have revealed that on the big estates where records are kept and where some of the land is operated by the owner and sorae of it is rented out, the rents charged were in some cases higher than the net output obtained from the land operated by the owner. This shows that tenants in Egypt freq­ uently are little better off than the agricultural laborers. Actually, their rental payments in many cases absorb part of their income as laborers and operators as well as the full economic rent due to land. Farm credit facilities available in Egypt do not help either the agric­ ultural laborers or the tenants in climbing the agricultural ladder. As to costs, returns and efficiency on different sizes of farms, in I9 JL4.7 about 81 percent of the Egyptian farms were of small size with an aver­ age of 1.1|. feddans and average gross output of 55 feddan, of Egyptian pounds per 18 percent were of medium size (5 “ 5 0 feddans) with an average size 12.i|. feddans and an average gross output of 39*9 Egyptian pounds per feddan, and only one percent of the farms was of the large size (over feddans) with an average size of 173 of 36.9 Egyptian pounds per feddan. »b 5 0 feddans and an average gross output The medium sized group, farms in the 5 to 10 feddan size group had the highest average gross income - an average of Ul-U Egyptian pounds per feddan. According to a survey undertaken in 1938* the most productive and the most efficient size of farm unit -was found to be around 5 feddans. This means that the breakdown of the large estates into medium sized farms and the elimination of the very small farms could lead to an increase in total productivity and in the national agricultural output. The tenure system in Egypt affects land use in the following ways; (1) A Sizable area is devoted to the production of farm consumed products and in the growing of these products the farmer is not guided by economic factors. (2) It hinders the use of the intensive farming methods neoded to take care of the problem of the surplus agricultural laborers and also hinders the production of some crops that could be produced with advantage while the country’s need of these products is filled through importation. (3) It leads to the unsound economic practice of growing crops in the production of which the country has a comparative disadvantage while dis­ couraging the production of some other crops that could be produced with advantage. The land tenure system affects the national agricultural production in two ways: (1) The system favors production of particular crops which suit either the owners of small parcels of land or the absentee landowners. YJhile the value of the national agricultural output could be increased through a shift in crop production, the land tenure system does not permit such shifts. (2) The number of medium sized farms, the most efficient size in Egypt, is very small compared with that of the very small and the large farms. Reform of the tenure system insofar as it leads to move efficient production and farm sizes can lead to increases in total agricultural output. The land tenure system in Egypt results in the followings (l) The existence of a very large group of landless agricultural labor­ ers -who, because of limited industrial activities, are forced to rely 197 on agriculture for their livelihood. Because of their large number and the concentration of land in few hands, they are forced to accept very low wages which do not permit an acceptable standard of living. (2) The large tenant class and their weak bargaining position as comp­ ared with that of the landlords leads to rack renting. Instead of making something out of their work, most tenants live miserable lives and deprive themselves in order to be able to pay their high rents. (3) The standard of living for the majority of the farm people is very low; anything below is death. I.'ore than 8I4 .percent of all the landowners have an annual income that is less than the necessities of life. According to the figures available in the Bureau of Agricultural Economics of the Egyptian ministry of Agriculture, out of the 5*9 million feddans of total area 3 feddans million feddans were operated were operated by*owners. by tenantswhile only2 ,b r This indicatesthattenancy million is becoming more extensive in Egypt. Conditions contributing to tenancy in Egypt: 1. 2. 3. J4. 5* 6. 7. Concentration of land holdings and parcellation. Small average size of farm holdings and large farmfamilies. Lack of any restrictions 011 land ownership. Lack of industrialization. High land values. lack of efficient farm credit system. The Walcf system While the tenancy system may not foster high efficiency in production and soil conservation it helps to adjust the size of the operated unit and to provide optimum use of labor resources. Forms of rent payments in Egypt include the following: 1.2 3 I4. - Cash rent Share rent Rent in Rent in kind kind and cash at the sametime. Time of payment and the amount paid at different tines varies accord­ ing to custom and the kind of crops produced. The fairness of any method depends on the amount of rent charged per feddan whether in cash or in kind, in relation to the fertility of the soil and the adaptability of land for the production of different crops. Length of leases in Egypt varies from one crop only to three years or even more. But the year to year lease is the most common. This kind of lease does not give the tenant any security of tenure and makes it impossible for him to plan his operations over a period of years. Host of the leases are verbal agreements. Vfritten contracts are some­ times used but usually between landowners and the intermediaries who are not actually renters. In some cases written contracts are used with small tenants, but these usually consist of one copy only and that is kept by the landowners. In some areas, small tenants sign blank contracts. rates are sometimes established at public auctions. inflation of rents. Land rentals The common result is..an Intermediaries often appear on the stage between the landowners and tenants. They often collect more than double the rent from the tenant that they pay to the landlord. Renters have little security and they cannot claim compensation for unexhaustable improvements. But they usually are held responsible for any deterioration that affects the land. Thus the landowner’s rights and the tenant's responsibilities are very well taken care of in the usual contract while the tenant’s rights are generally disregarded. Besides the very low income -which the majority of the farm people get as a result of the system, they neither enjoy the degree of security in the occupation of their land which enables them to be effective members of their communities, nor have such opportunities as are necessary to enable them to 199 develop their best personal talents and enjoy adequate social and cultural facilities. Throughout the past half century the government has nade little or no attempt to regulate the tenure system. non-regulation. Its policy has been one of Two main factors hinder the improvement of the system. These are: 1. Lack of reliable data and information on the subject. Correcting this situation calls for a change in the entire procedure of collecting data in Egypt. 2. The political power of the landowners in Egypt is such that it is difficult, if not impossible, to enact any legislation that has an adverse effect on their tradit- . ional rights. If these two obstacles could be overcome, other measures for improving the tenure system fall in two categories: A - Direct measures which include steps to secure: (1) Increases in the area under cultivation. (2) I,lore equitable distribution of holdings. (5) ilore efficient size of operated units. (1|.) liore equitable lanaovmer-tenant relations. B - Indirect measures -which include (1) (2) (5) (U) Education Industrialization migration Birth control All these measures are complementary and no one can solve the problem by itself. It is only through a well planned, carefully integrated program of action involving these proposed measures that the tenure system in Egypt can be improved. a p p e n d i x 200 Table 1 LAND ACREAGE, EGYPT 1929* Classification Feddans Percent of .. Total Egypt Total area of the Kingdom of Egypt (approx.) 252,000,000 100.00 Total area of uncultivable desert land 21+5,000,000 96.30 8,955,000 5.70 8,1+27,000 5.U0 525,827 0.30 Total area in farms 7,725,856 5.09 Area in farms not including land for public utilities temporarily/ leased 7,707,725 3.08 16,131 .01 703,ii55 .51 Total area covered by the Agricultural Census 1929 y ■ Total area of Nilotic Egypt Total agricultural land of Desertic Egypt Area reserved for public utilities but temporarily leased for cultivation Public utility land unculti­ vated l/ Includes the Valley and the Delta of the Nile. * Sources E L-Zalaky, H.M. An Analysis of the Organization of Egyptian Agriculture and Its Influence on National Economic and Social Institutions. Doctoral Dissertation, University of Cal­ ifornia, Berkley 19^1* 201 Table 2 liean Temperature in Egypt in Centigrades Uonth Region Hediterranean 'Middle of (Alexandria) Delta 19b5 Cairo Assyut Aswan January 13 .U 10.U 12.1* 11.7 16.0 February 13.1* 10.1* 1 2 .b 11.5 11*.8 March Hi..5 11.1 U*.o 13.8 18.6 April 17.3 16.1 19.0 20.1* 2 b *b Hay 22.1 . 21.9 25.9 27.6 31.0 June 23.5 2l*.2 26.1 2 7 .b 33*6 July 25.6 26.2 28.1* 29.2 33.8 August 27.U 26.9 29.2 30.0 3I4-.5 September 26.0 2l*.2 26.1 26.9 31.3 October 23.0 20.6 2 2 .b 23.0 27.6 November 19.9 17.7 18 .9 18.3 23.2 December l1*.6 12.0 13.2 1 2 .b 16.6 Average 20.1 18.6 20.7 25.3 250 Average 11aximum 21*.7 27*b 28.1 29.5 33.2 Average Minimum 17.3 11.7 15.1 il*.l* 18.1* *Source: Annuaire Statistique. Egyptian Government 19l|l*-l*5. 202 Table 3 Relative Humidity in Egypt 191+5♦ Month Region Mediterranean Middle of (Alexandria) Delta Cairo Assyut Aswan January 67 88 68 68 bh February 62 88 70 6b 36 March 60 86 6b 60 28 April 66 78 58 if-0 May lb 68 bQ 36 20 June 76 12 56 57 20 July 76 11 60 b2 22 August lb 80 59 U2. 23 September 68 81 65 b9 2U October 60 82 66 58 ' 31 November 68 86 70 62 36 December' 57 Qb 66 6U 1)2 Average 67 81 62 52 29 ♦Sources " Annuaire Statistique. Egyptian Government ' 20 l$>bb~b5 Table I). Millimetres of Rainfall in Egypt 19U-5* 28.1 8.0 February 5k*h March Aswan Drops Drops Drops 7.5 U-2 0.0 0.0 18.0 9.5 U.3 0.0 Drops April 0.6 Drops Drops 0.0 0.0 May 5*b 7.0 10.1 15.0 8J+ June 0 .0 0.0 0.0 0.0 0.0 July 0 .0 0.0 0 0 January Cairo Assyut . Mediterranean (Alexandria) Region Middle of Delta 0.0 0.0 August 8 .0 0.0 0.0 0.0 0.0 Drops 0.0 0.0 0.0 ■ 0.0 0.2 0.0 0.0 0.0 0.0 ITovember 6 5 .6 5<>o 1.8 0.0 0.0 December 25.7 2+.0 Drops 0.0 0.0 198.0 lilj.,0 20.9 15.0 8.U Month September October Total ♦Sourcej Annuaire Statistique. Egyptian Government 19bJ.\.-l\5 i Table 5 $ Mean Hours of Sunshine per Day in Egypt Region Month Mediterranean Coast Delta and Middle Egypt January 7.0 7.1 February 7.8 8.2 March 8.8 8.8 April 10.0 10.3 May 11.3 11.3 June 12.4 12.6 July 12.4 12.3 August 12.0 11.6 September 10.8 10.8 October 9.6 9.6 November 8.5 8.5 December 7.0 . 7.5 Average 9.8 9.9 Source: Atlas of Egypt. Egyptian Government 1921 * Table 6 Nile Discharges and Their Rain Equivalents Before Operation of Aswan Dam Month 1912 1899 Discharge Jan. Feb. Mar. Aor. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. After Operation of Dam it,260 2,710 2,H|0 1,325 1,176 1,555 5,892 21,165. 23,828 Rain Equiv. 7.10 inches it.16 3.36 2.00 1.80 2.1+0 « " " » " 2,990 2,990 2,6it0 l,8it0 2,130 2,650 it,590 16,900 20,300 lit,600 16,050 9,6it2 5,839 Discharge 10.20 » 7,260 3,950 Rain Equiv. it.Uit in. it.Ult " it.00 " 3.60 " it.08 » 5.io « 8.8I1 » 33.00 » 39.60 " 28.UO » lit.16 " 7.68 " ■KSource: Selim, Hussien K., Twenty Years of Agricultural Develop­ ment in Egypt - Egyptian Government press, Cairo, 19it0. 1 Table 7. Department of Mines and Quarries Revenue 1932- 191*6 Year 1932-33 1933-31* 193l*-35 1935-36 1936-37 1937-38 1938-39 1939-1)0 191*0-1*1 191*1-1*2 191*2-1*3 191*3-1*1* 19l*l*—1*5 191*5-1*6 Sources Mines and Petroleum -Quarries L.E. L.E. 1*3,291 1*1,080 1*8,581* 1*1*,171* 1*3,356 73,203 82, 750 11*7,389 116,986 337,033 381*, 863 327,727 l*3l*,6ol* 1*36,619 EL-Al£y, E.M., 20,1*32 33,01*3 22,112 26,916 27,803 26,61*8 25,279 36,71*0 2l*.003 28,636 31,772 39,750 1*5,928 60,185 Suez Refinery L.E. 75,51*7 80, 1*68 121*, 960 173,218 217,596 275,981 213,079 1*61,110 308,033 21*8,753 329,608 215,781 308,766 Aba Zoabal Basalt Quarries L.E. Sukari Gold Mines L.E. _ mm — — - — 850 1,661 9,216 36,503 1*2,121 28,283 23,617 31*, 853 73,613 76,767 85,730 Mineral Resources of Egypt, Cairo, Egypt, 19U7 — - 11,816 15,882 21*,382 22,21*8 18,617 27,356 7,380 6,131 51,392 Total L.E. 63,723 11*9,670 151,161* 196,900 21*6,038 338,1*79 1*36,395 1*63,711 652,600 715,936 727,597 778,088 779,211 91*2,692 Table 8. The Normal Monthly Mean Discharges of the Nile and its Principal Tributaries in Cubic Metres per Second 1912-37* Site Ian. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Mgjn Year Main Nile at Aswan D.S. Reservdr 1140 960 780 730 830 1080 1810 6470 8010 5470 2650 1450 2620 Main Nile at Wadi Haifa 1 0 30 750 590 560 73 0 I960 7300 8640 5720 2970 1880 2800 - - 640 2100 1400 290 70 River Atbra at Mouth Main Nile at Khartoum 1420 I - 1260 - - 40 20 380 610 690 1110 2710 6390 6850 4430 2390 1660 2480 150 100 170 490 2200 5880 5690 3020 1180 580 1680 1400 1200 1080 820 1 2 30 1110 880 760 770 630 430 910 700 220 ■ Blue Nile " 340 White Nile M 910 690 560 520 540 620 570 590 1140 White Nile at Malakal 810 640 570 530 590 750 910 1050 1160 3230 River Sobat at Hillet Doleib 310 170 110 90 160 340 490 610 Swamps 490 480 470 450 430 430 430 460 480 490 470 480 460 Bahr El Jebel at Mongalla 740 690 670 710 870 840 910 1030 1040 1010 930 820 860 *Source: Almanac 1939, Egyptian Government Press. 690 208 Table 9 Population d.5 43.5 43.3 41.6 40.8 38.2 39.6 41.0 43.9 212 Table 13. Death Date in Some Selected Countries 1935 - 1939-JS- Country Rate lie-Maurice Egypt Chili Mexico Non Federated Malay States Ceylan Palestine Moslens Rumania Puerto-Rico Costa-Rica Palestine England & Wales United States Union of South Africa Canada Netherlands Hawai 23.6 27.6 23.7 25.4 21. 6 / 21.6^/ 20.9 19.6 19.1 19.0 16.5 12.0 11.0 9.8 9.7 8.7 8;3 Source: League of Nations, Statistical Yearbook. Geneva, 1940-41. Table 6, p. 38. 1/ 1936-39. 213 Table 14. Death Rate In hgypt 1901 - 1941-::- Year Fopulation In 1000 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1957 1938 1939 1940 1941 10,334 10,492 10,652 10,814 10,979 11,147 11,312 11,453 11,596 11,740 11,887 12.035 12,186 12,338 12,492 12,648 12,795 12,936 13,078 13,222 13,363 13,515 15,663 13,813 13,965 14,119 14.276 14,438 14,602 14,767 14,935 15,104 15,275 15,449 j 15,624 15,801 15,968 16,253 16,515 16,773 17,030 K-Source: Deaths in 1000 Annuaire Statistique, 1945. 218 272 ■ 236 278 263 263 301 283 305 305 325 295 309 o3o 350 376 376 512 384 370 334339 552 344 369 377 359. 380 40o 367 398 431 421 430 412 456 434 434 429 444 441 r? ty ry Rate per 1000 21.1 26.0 22.1 25.7 24.0 23.6 26.6 24.7 26.3 25.9 27.3 24.5 25.3 27.0 28.0 29.7 29.4 39.5 29.3 27.9 25.0 25.1 25.8 24.8 26.4 26.7 25.2 26 .3 27.6 24.9 26 .6 28.5 27.5 27.8 26.4 28 .8 27.2 27.2 26.4 26 .5 25.9 Table 15 Infant Death Rates in Selected Countries * Country Year Rate Country Year Malta Burma Chile Cyprus Egypt .. India Costa Rica Colombia Ecuador Palestine (Moslems) Philippine Islands 19UZ 1939 1942 19U2 19h2 ±9k2 19k2 19k2 19h2 345 20k 195 185 168 163 157 15U 11a Finland Canada United Kingdom United States Netherlands Hawaii Australia Switzerland Norway 19U2 1942 19h2 19k2 19k2 19h2 19h2 ■ 19h2 1939 67 5U 8it itO itO 39 39 38 37 19h2 1 I4O 19h2 29 19h2 139 Sweden New Zealand (whites) 19l|2 29 ^Source: Smith, T. L. Op. cit. pp. 266-267 Rate Table 16. Expectation of Life in .Some Selected Countries* Age Country India Egypt Years Sex 1951 1917'-1927 Brazil Cities 1920 Costa Rica 1931 U.S. Negroes 1959-41 U.S. Vi/hites 1939-41 prance 1928-38 Germany 1932-34 Denmark 1936-40 Netherlands 1931-40 0 20 50 70 M P 26.9 26.6 29.6 27.1 14.3 14.7 6.4 6.7 M P M P M P ivl P M P M P M P M P M P 51.0 36.0 35. 6 39.7 46.7 40.7 52.3 55.6 62.8 67.3 54.3 59.0 59.9 62.8 S3. 5 65.8 65.7 67.2 32.9 35.8 34.1 39.2 37.9 57.9 39.5 42.0 47.8 51.4 43.3 47 .4 48.2 49.4 30 .3 51.1 51.0 51.5 18.1 19.4 16.4 20.9 17.5 17.5 19.1 21.0 22.0 24.7 20.3 23.4 22.5 23.9 23.7 24.5 24.1 24.7 9.6 10.3 7.6 9.2 7.0 7.0 10.1 11 •8 9.4 10. 5 8.3 9.6 9.1 9.6 9.6 10.0 9.8 10.2 * League of Na tions, Statistical Yearbook. Geneva, 1945. Table 15 • Table 17. Causes of Death m Cause of Death ng^p No. of Deaths Ratioi/ 1. Diarrhea and enteritis 55,000 1,060.5 2. Senility, old age 15,979 516.9 3. Congenital malformation and debility, premature births and deseases peculiar to the first year of life. 13,552 363.7 4. Bronchitis 12,272 239.1 5. Pneumonia .and bronchopneumonia 10,700 208.2 6. Nephritis 4,816 93.7 7. Avitaminosis and blood disease 4,465 86.9 8. Violent and accidental deaths 4,278 83.2 9. Diseases of the heart 4,011 78.0 .0. Intracranial lesions of vascular origin 2,919 56.8 * Source: U.S. Public Health Service, Summary of International Vital Statistics, 1937-1944. U.S. Government Printing Office, Washington, 1947. 1/Phe Ratio is the number of deaths per 100,000 population. Tr.kle 18. Kinds, Amount & Value of the Agricultural Products Imported By Egypt in 1937 and in 1947 1937 Kinds Amount in ton Vineat and its products Vegetables, Seeds... Fruits and its Products Sugar and its Products Coffee, Tea, Cocoa and Products Spices Oi^s and Waxes Livestock, Meats and Products Milk and its Products Fish Fertilizers Agr. Equipment s Total Source: 1947 Value in L.E. Amount in ton Value in L.E. 11,994 44,622 164,884 576,113 26,241 20,838 925,283 1,088,055 36,840 635,830 19,811 1,616,239 36,212 224,717 1,672 193,764 16, 068 1,423 27,123 1,210,992 45,207 708,312 24,427 1,680 7,640 5,697,500 237,573 523,401 26,683 655,006 13,968 953,129 4, 630 7,878 641,828 781 284,968 189,188 3,389,974 37,920 2,456 5,598 ' 459,409 733 475,789 574,537 5,749,791 98,890 856,082 8,123,111 534,473 18,113,951 Egyptian Ministry of Agricultural, Economic & Agricultural Statistics, Cairo, 1949. Table 19. The principal units of Egyptian measure L.E. = One Egyptian pound P.T. - One Egyptian Paistre L.E. - 100 P.T. = 1,000 Li H i ernes = ::;2.87 (1949) One feddan = 1.038 acres One Kantar = 100 rotls = 99.04 Lbs. (pounds) =■ 44. S3 kilograms One Kantar of unginned cotton =315 rotls One Kantar of ginned cotton = 100rotls One Ardab r 5.44 bushels One Ardab of wheat = 150 Kgs. One Ardab of iiaize = 140 Kgs. One Ardab of Earley = 120 Kgs. One Lietrie ten = 2204 Lbs. 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