Islamic political activism has a lengthy history in Egypt. Several Islamic political groups started soon after World War I ended. The most well-known Islamic political organization is the Muslim Brotherhood (Al Ikhwan al Muslimun, also known as the Brotherhood), founded in 1928 by Hassan al Banna. After World War II, the Muslim Brotherhood acquired a reputation as a radical group prepared to use violence to achieve its religious goals. The group was implicated in several assassinations, including the murder of one prime minister. The Brotherhood had contacts with the Free Officers before the 1952 Revolution and supported most of their initial policies. The Brotherhood, however, soon came into conflict with Gamal Abdel Nasser. The government accused the Brotherhood of complicity in an alleged 1954 plot to assassinate the president and imprisoned many of the group's leaders. In the 1970s, Anwar Sadat amnestied the leaders and permitted them to resume some of their activities. But by that time, the Brotherhood was divided into at least three factions. The more militant faction was committed to a policy of political opposition to the government. A second faction advocated peaceful withdrawal from society and the creation, to the extent possible, of a separate, parallel society based upon Islamic values and law. The dominant moderate group advocated cooperation with the regime.
The government has struggled to ready the economy for the new millennium through economic reform and massive investment in communications and physical infrastructure, much financed from U.S. aid. Egypt is the second largest recipient of such funds from the United States after Israel. Economic conditions are starting to improve considerably after a period of stagnation due to the adoption of more liberal economic policies by the government, as well as increased revenues from tourism and a booming stock market.
In addition to the agricultural capacity of the Nile Valley and Delta, Egypt's natural resources include petroleum, natural gas, phosphates, and iron ore. Crude oil is found primarily in the Gulf of Suez and in the Western Desert. Natural gas is found mainly in the Nile Delta, off the Mediterranean sea shore, and in the Western Desert. Oil and gas accounted for approximately 7% of GDP of fiscal year 2000-01.
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.
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.
The Nile valley forms a natural geographic and economic unit, being bounded to the east and west by deserts, to the north by the sea and to the south by the Cataracts of the Nile. The need to have a single authority to manage the waters of the Nile led to the creation of the world's first state in Egypt in about 3000 BC.
Coptic Christianity became popular in the Roman and Byzantine periods, and Egypt was indeed one of the strongest early Christian communities. Today, Christians constitute about 10% of the population.
The social origins of Islamists changed after the 1952 Revolution. In the 1940s and early 1950s, the Muslim Brotherhood had appealed primarily to urban civil servants and white and blue-collar workers. After the early 1970s, the Islamic revival attracted followers from a broad spectrum of social classes. Most activists were university students or recent graduates; they included rural-urban migrants and urban middle-class youth whose fathers were middle-level government employees or professionals. Their fields of study--medicine, engineering, military science, and pharmacy--were among the most highly competitive and prestigious disciplines in the university system. The rank-and- file members of Islamist groups have come from the middle class, the lower-middle class, and the urban working class.
The Egyptian system for presidential election is regarded by many as not being fully democratic due to the fact that it is the People’s Assembly and not the populace itself, who retains the upper-hand in choosing the Chief of State. In addition, it allows for whatever party or coalition controlling the People’s Assembly to put forward their candidate as the presidential candidate. This greatly explains how in most of the 1980s and 1990s the National Democratic Party has managed to maintain the office of President and a parliamentary majority.
The history of Egypt is the longest continuous history, as a unified state, of any country in the world.
Disruptive social changes and Sadat's relative tolerance toward political parties contributed to the rapid growth of Islamic groups in the 1970s. On university campuses, for example, Sadat initially viewed the rise of Islamic associations (Gama'at Islamiya) as a counterbalance to leftist influence among students. The Gama'at Islamiya spread quite rapidly on campuses and won up to one-third of all student union elections. These victories provided a platform from which the associations campaigned for Islamic dress, the veiling of women, and the segregation of classes by gender. Secular university administrators opposed these goals. In 1979 Sadat sought to diminish the influence of the associations through a law that transferred most of the authority of the student unions to professors and administrators. During the 1980s, however, Islamists gradually penetrated college faculties. At Asyut University, which was the scene of some of the most intense clashes between Islamists and their opponents (including security forces, secularists, and Copts), the president and other top administrators--who were Islamists--supported Gama'at Islamiya demands to end mixed-sex classes and to reduce total female enrollment.
Egypt has been a republic since 18 June 1953. President Mohamed Hosni Mubarak has been the President of the Republic since October 14, 1981, following the assassination of former President Anwar Sadat. President Mubarak is currently serving his fourth term in office. He is the leader of the ruling National Democratic Party. Prime Minister Ahmed Nazif was sworn in as Prime Minister on 9 July 2004, following the resignation of Dr. Atef Obied from his office.
Following the completion of the Suez Canal in 1869, Egypt became an important world transportation hub; however, also fell heavily into debt. Ostensibly to protect its investments, Britain seized control of Egypt's government in 1882, but nominal allegiance to the Ottoman Empire continued until 1914.
Egypt is famous for its ancient civilisation and some of the world's most stunning ancient monuments, including the Giza Pyramids, the Karnak Temple and the Valley of the Kings. The southern city of Luxor contains what accounts to two-thirds of the ancient artifacts present in the entire world. Today, Egypt is widely regarded as the main political and cultural centre of the Arab and Middle Eastern regions.