Economic Nationalization
In June 1960, Nasser tried to establish economic reforms that would bring the Syrian economy more in line with the exceedingly strong Egyptian public sector. Unfortunately, these changes did little to help either economy. Rather than shift growth toward the private sector, Nasser embarked on an unprecedented wave of nationalizations in both Syria and Egypt. These began in July 1961, without consulting top Syrian economic officials. The entire cotton trade was taken over by the government, as well as all import-export firms. On July 23, 1961, Nasser announced the nationalization of banks, insurance companies, and all heavy industry. Nasser also extended his social justice principles. The land limit was reduced from 200 to 100 feddans. Interest rates for farmers were dramatically reduced to the point of elimination in some cases. A ninety percent tax was instituted on all income above £10,000. Workers and employees were allowed representatives on management boards. They were also given the right to a twenty-five percent share in the profit of their firm. The average workday was also cut from eight hours to seven without a reduction in pay.
Read more about this topic: United Arab Republic
Famous quotes containing the word economic:
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