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The Suez Company's Concession in Egypt, 1854–1956: Modern Infrastructure and Local Economic Development

Published online by Cambridge University Press:  18 February 2015

Caroline Piquet
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Abstract

For over a century in Egypt, the Suez Canal Company reflected the role of the concession in European economic expansion overseas. Concession was a European business practice widespread in Egypt; it was an institution inherited from a system of privileges for Europeans since the Middle Ages. It promised a way for Egypt to adopt modern infrastructures and receive needed European help for digging the canal. The results of the Suez Company are indisputable: the desert of the Suez Isthmus became a lively economic region with active ports, growing cities, and an expanding labor force. And the region was linked to the rest of the country by a new road network. At the same time, however, the concession system denied Egypt full benefit of this infrastructure. The canal served the financial and strategic interests of the company, not the interests of the local economy. This outcome embodied all the contradictions of the concession system: on the one hand, concessions were a necessity for modern infrastructure development in Egypt; on the other, they were a hindrance to further national economic development.

Type
Articles
Information
Enterprise & Society , Volume 5 , Issue 1 , March 2004 , pp. 107 - 127
Copyright
Copyright © The Author(s) 2004. Published by Cambridge University Press on behalf of the Business History Conference. All rights reserved.

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