Egypt in the late 19th century found itself entangled in a web of financial and political control exerted by two European powers: France and Britain. The complexities of this relationship and its impact on Egypt’s internal affairs are significant events in the history of colonialism.
Onset of Dual Control
The foundation of dual control by France and Britain over Egypt was laid when the Pasha, Egypt’s ruler, relinquished his revenue sources to manage interest payments. This marked the beginning of indirect yet official European influence in Egyptian governance. The situation escalated in 1878 when the Pasha surrendered all administrative control, signaling an increase in foreign intervention.
Intervention in Administration
In a move to consolidate their power, the European controllers imposed a new system of rule upon the Pasha. He was instructed to govern through a cabinet which included a British Minister of Finance and a French Minister of Public Works. This marked a significant shift in power dynamics, with the Pasha’s role becoming more ceremonial and the real control resting in the hands of the European appointees.
Army Reduction and Public Discontent
A key decision made by the new cabinet was to drastically reduce military expenditure. This led to 2,000 officers being demoted to half pay, and their arrears of pay for the previous year went unsettled. This decision did not sit well with the affected parties and resulted in widespread indignation. In 1879, the army officers’ discontent culminated in a forced resignation of the government.
Suspicion and Replacement of the Pasha
The British and French controllers suspected that the unrest among the officers might have been incited by Ismail Pasha himself. In response to this suspicion, they replaced him with his son, Tawfiq Pasha, who was perceived to be more cooperative with European interests. This change in leadership was indicative of the level of control the European powers had over Egypt’s internal politics.
Egypt’s Financial Strain
An important aspect to consider is the state of Egypt’s finances at that time. In 1879, Egypt’s foreign debt had ballooned to an astronomical ₤500 million, while the country’s annual revenue was a meager ₤40 million. This disproportionate debt-revenue ratio placed Egypt in a precarious financial position, heavily dependent on European oversight and assistance.
Rule Under Tawfiq Pasha and British Occupation
Under the rule of Tawfiq Pasha from 1879 to 1892, there was an initial reinstatement of the Dual Control system. However, this arrangement did not last, as it was effectively abolished with the British occupation of Egypt in 1882. The British sought to maintain control over Egypt and its crucial Suez Canal, which was vital for maintaining their empire’s connectivity and trade routes.
Financial Policies and Creditor Protection
The financial policies implemented by the British and French were designed to protect the interests of the creditors. These policies were harsh and ensured that the burden of sacrifice fell squarely on the shoulders of the Egyptian debtors. There was little to no consideration given to the economic strain these policies would place on the local population.
Questions for UPSC
1. How did the financial policies of France and Britain towards Egypt reflect the broader patterns of European imperialism during the 19th century?
2. What were the consequences of the army reduction in Egypt, and how did it affect the stability of the Pasha’s government?
3. Considering the significant debt that Egypt was under in 1879, what were the long-term impacts of such financial strain on Egypt’s economy and sovereignty?