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Extra info for Authoritarian States: IB History Course Book: Oxford IB Diploma Program
The three existing holding companies were replaced by 39 state organizations grouping 4 3 8 companies . In O ctober that year Nasser's policies became more vindictive . The state dispossessed and withdrew the political rights of a large number of "reactionary capitalists " . A number were even arrested. The country's wealth was being concentrated into the hands of the public sector and private entrepreneurs were being discarded. Nasser explained that these socialist decrees had become necessary because "an exploitative private sector seemed bent on milking the public sector and that if allowed it would be the major beneficiary of the Five Year Plan and not the masses " .
In the light of these principles, we can have a better grasp of why some of the policies were introduced . The table on the next page is a summary of the principles and policies . - Principles Policies 1 Political democracy cannot be separated from social democracy; in order to be 'Jree to vote", a citizen needs to be free from exploitation, enjoy a fair share of the nation's wealth and be free from anxiety. This wou l d explain policies of sequestration and nationalization; through public owne rship, citizens would share the nation's wealth and be free from exploitation and a nxiety.
The land re clamation proj ect i n Tahrir Province is a good illustration of this. The proj e ct aimed to increase the land available for agriculture - hence the expression "horizontal expansion" - in order to increase the country's revenu e . The idea was a perfectly viable one and its aims were totally rational: E gypt used only 4 per cent of its total surface area productively. In the pursuit of its obj e ctives, however, its promoters became a little unrealistic. A new model of society was to b e introduced, with large, mechanized state - owned farm s .