Bank Miṣr and Foreign Capitalism

Abstract

In the early months of 1920 a group of leading Egyptians founded Bank Misr. Destined to be the major financial arm of an emerging Egyptian bourgeoisie and the hub of a far-flung industrial and commercial empire, Bank Misr was established amidst the revolutionary turmoil of Egypt in 1919 and 1920. It reflected the nationalist and antiforeign sentiments of these troubled years. Its architect, Tal'at Harb, epitomized many of these characteristics. An ardent Muslim and a defender of Arab-Islamic civilization against its Western and Eastern detractors, he was a dedicated nationalist and a critic of rapacious and exploitative European capitalism. Bank Misr was founded as a supremely Egyptian institution and an expression of nationalist aspirations. Its founders hoped that the Bank might facilitate the emergence of an independent Egyptian bourgeoisie. They also wanted to use its resources to establish new commercial, industrial, and financial companies separate from European capital and working exclusively for the economic well-being of Egypt. But many questions immediately emerged. Could an institution founded in the furor of the revolution and headed by an inexperienced staff even survive, let alone spearhead, far-reaching industrial and commercial changes in the Egyptian economy? What would be its relations with foreigners and especially foreign capital? What role would foreign experts play in the life of the Bank? The purpose of this essay is to investigate how the Bank dealt with these problems by looking at the evolving relationship of the Bank with foreign capital. Put simply it can be said that as the Bank evolved and matured, it began to modify many of its original nationalist, populist, and antiforeign sentiments. It was forced to form alliances with the same groups it had so vigorously denounced at its birt. A close observation of the relationship between Bank Misr and foreign capital should cast light on the effort to create an autonomous Egyptian bourgeoisie. It will show the problems inherent in this vision and the compromises that had to be made as difficulties arose. It will also demonstrate the power of European capitalism in Egypt and its capacity to come to terms with even the most vigorous nationalist organizations.