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Prior to Napoleon's invasion, almost all of Egypt's educational, legal, public health, and social welfare issues were in the hands of religious functionaries. Ottoman rule reinforced the public and political roles of the ulama (religious scholars) because Islam was the state religion and because political divisions in the country were based on religious divisions. During the nineteenth and twentieth centuries, successive governments made extensive efforts to limit the role of the ulama in public life and to bring religious institutions under closer state control. The secular transformation of public life in Egypt depended on the development of a civil bureaucracy that would absorb many of the ulama's responsibilities in the country. A series of International Monetary Fund arrangements, coupled with massive external debt relief resulting from Egypt's participation in the Gulf War coalition, helped Egypt improve its macroeconomic performance during the 1990s. Through sound fiscal and monetary policies, Cairo tamed inflation, slashed budget deficits, and built up foreign reserves. Although the pace of structural reforms, such as privatization and new business legislation, has been slower than the IMF envisioned, Egypt's steps toward a more market-oriented economy have prompted increased foreign investment. Lower combined hard currency inflows - from tourism, worker remittances, oil revenues, and Suez Canal tolls - in 1998 and the first half of 1999 resulted in pressure on the Egyptian pound and sporadic dollar shortages, but external payments were not in crisis. Despite ample reserves, the Central Bank did not provide sufficient hard currency to commercial banks and Cairo restricted imports for a short period; these developments confirmed to some investors and currency traders that government financial operations lack sufficient coordination and openness. Monetary pressures have since eased, however, with the continued oil price recovery starting in mid-1999 and a moderate rebound in tourism. Increased gas exports are a major plus factor in future growth. Orthodox ulama found themselves in a difficult position during the wave of Islamic activism that swept through Egypt in the 1970s and 1980s. Radical Islamists viewed the ulama as puppets of the status quo. To maintain their influence in the country, the ulama espoused more conservative stances. After 1974, for example, many Al Azhar ulama, who had acquiesced to family planning initiatives in the 1960s, openly criticized government efforts at population control. The ulama also supported moves to reform the country's legal code to conform to Islamic teaching. They remained, nonetheless, comparatively moderate; they were largely loyal to the government and condemned the violence of radical Islamist groups. In December 1999, in response to strong criticism of the Ottoman decree, President Mubarak issued a decree making the repair of all places of worship subject to a 1976 civil construction code. The decree is significant symbolically because it places churches and mosques on equal footing before the law. The practical impact of the decree has been to facilitate significantly church repairs; however, Christians report that local permits still are subject to security authorities' approval. The approval process for church construction continued to be time consuming and insufficiently responsive to the wishes of the Christian community. As a result of these restrictions, some communities use private buildings and apartments for religious services. After Mohamed Naguib resigned in 1954, Gamal Abdel Nasser, the real architect of the 1952 Revolution, assumed power as President and nationalized the Suez Canal leading to the 1956 Suez Crisis. Between 1958 and 1961 Egypt and Syria formed a union known as the United Arab Republic. As of 1990, Egyptian Islam was a complex and diverse religion. Although Muslims agreed on the faith's basic tenets, the country's various social groups and classes applied Islam differently in their daily lives. The literate theologians of Al-Azhar University generally rejected the version of Islam practiced by illiterate religious preachers and peasants in the countryside. Most upper- and middle-class Muslims believed either that religious expression was a private matter for each individual or that Islam should play a more dominant role in public life. Islamic religious revival movements, whose appeal cut across class lines, were present in most cities and in many villages.
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