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THE WEALTH OF NATIONS:

ADAM SMITH IN EGYPT

Michael Youssef Helmy, Fourth Level, Political Scie nce

At first, Adam Smith ’s book The Wealth of Nations might seem to
The reason for that is that even if we take Adam Sm ith at his own
be an argument about basic economic principles. How ever, later in words, leaving all the problems that he did not tac kle, free trade society
the book, it is found that these basic concepts are numerous would continuously cause the rise of this merchant ’s class who will
keep dominating the society. Therefore, Smiths ’ own solution against
observations on which he builds a controversial soc ial and political
theory. Adam Smith argues that the basis of the gro wth of the problem at stake is the critical factor that em erged the problem in
the first place. This argument has proved itself tr ue in our modern era
commercial society is the division of labor, which is driven by self-
with the rise of free trade capitalist market that Smith was pursuing.
interest not benevolence. He emphasizes that if eve ryone worked
Taking Adam Smith at his own words in which he has depicted the
only to satisfy his/her needs and interests then th at would benefit the
commercial market to be the best and most natural t ype of economies
society as a whole. This theory is consistent till the middle of the
as it started since the beginning of humanity.
text where it faces a critical problem.Smith argues that there is a

specific class in the society, namely the merchants , whose interests
Moreover, he explained that through individual sel f-interest, the whole
diverge from the interest of the whole society.
society could benefit. However, looking at the Midd le East to name an

example, particularly Egypt, we could find that the goal that Smith was
This poses a serious problem to his theory because now whenever
pursuing of a perfect free trade was the main reaso n of the rise of most
the merchants act according to their self-interest it actually harms
of the monopolies in Egypt nowadays. After the floa tation of the
the entire society as it opposes the collective int erests of the society.
Egyptian pound in 2016 and leaving the free market decide the prices
Therefore, it could argued that Smith is ultimately writing this book
in the market, Egypt has encountered the greatest c ontrol of the rich
to advise the landlords, who run the country at tha t time, against the
people on the economic, social and political issues since then. The free
merchants and their mercantile system, which is aga inst the interest
market has strengthened the merchants rather than d estroying them.
of the society and would lead to the disruption of the economic

growth of the society and its well-being in the lon g run. Smith
Therefore, the introduction of the free market in E gypt has developed
instead proposes that Mercantilism should be rooted out gradually to
allow for the division of labor to take over. He im agined a market
the state of the rich people and made the whole mar ket in the hands of
that if left to its own devices; society would auto matically align
the few whose interests, as Smith argues, is agains t the interest of the
itself through an “Invisible Hand ” to a mechanism where individual
whole society. Therefore, even if we blindly trust the Smithian
interests are adjusted to feed interests of society . Finally, it could be
argument, time has proved that his solution do not end the power of
concluded that Adam Smith solution against the merc hant is not
workable.
the merchants, it rather empowers them.

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