In this paper, we are aiming at constructing a theoretical framework appropriate for an analysis of the economic history of the 19th century Egypt. The subject has been that of much controversy, for it has been argued, sometimes in the context of social and economic change and sometimes in the context of international relations and internal development, without making clear distinction among those factors.
Dr. E. R. J. Owen's work (Cotton and the Egyptian Economy, 1820-1914, Oxford University Press, 1969) will be fairly appreciated among the recent publications concerning this subject, for his saying that Egypt's export-oriented economy was not created as “a foreign-dominated enclave isolated culturally, and often geographically, from the rest of the economy”, but as a result of “Egypt's rapid incorporation within the European economy”, although he remains still implicit in his idea of the incorporated economy and its relation to the rise and decline of the Pax Britanica.
Taking into consideration Dr. Anouar Abdel-Malek's concept of the retarded type of capitalism in Egypt oriented by the overwelming interest of zawât and village shaykh, an appropriate framework would be composed of the following four facets. First, changes in the village and urban communities; second, the social framework of economic development; third, the pattern of industrial structure standing on the retarded social relations; changes of the international economy and its influence over the local Egyptian economy.