Nationalization of the Suez Canal
An analysis through Prospect Theory
On 26th July, 1956 Gamal Abdel Nasser nationalized the Suez Canal and the reason that he gave for the nationalization was that he required funds for the building for the Aswan dam. Though in reality it was an act of revenge against the French, British and Americans because they had recently refused to fund the building of Aswan Dam and he wanted to establish Egypt as the leader of middle-east by embarking an end to the British and French dominance in Africa and Middle-east. In my research essay I analyze this issue which is known as the Suez Canal Crisis through prospect theory. According to this theory people or institutions make decisions on potential value of gains and …show more content…
Eisenhower was the President of The United States during the crisis and he followed a policy of appeasement. When Nasser first came up with the idea of Aswan Dam he requested funds from Britain, U.S.A. and the World Bank for the building of the Aswan Dam. Nasser sought to build this dam to provide electricity to millions of his countrymen while also to provide irrigation to more than million acres of farmland. Eden in conjunction with Secretary of State John Foster Dulles put together a deal whereby Britain would provide $80 million, the United States $130 million and the World Bank $200 million to finance the massive project.
Nasser, however, balked at the offer for the Americans stipulated that they must not accept funding from any Communist nation for the project (James, Robert Rhodes. Anthony Eden. New York: McGaw-Hill, 1986). The conditions that U.S.A. and the British put forward were:
1. One third of Egypt’s internal revenue was to be diverted to the dam projects for 10 years.
2. Economic measures were to be taken by the Egyptian government to curb the growth of inflation due to the influx of money into …show more content…
Within a week Eisenhower sent Dulles to London to convince Britain and France to agree to an international conference of twenty-two nations and resolve the crisis through peaceful means. Throughout the course of the crisis Dulles remained the representative and voice of U.S.A. and he was the only one who had any discretionary powers and could decide by himself what was best for the administration of the nation. Eisenhower’s decision about this had dire consequences
An analysis through Prospect Theory
On 26th July, 1956 Gamal Abdel Nasser nationalized the Suez Canal and the reason that he gave for the nationalization was that he required funds for the building for the Aswan dam. Though in reality it was an act of revenge against the French, British and Americans because they had recently refused to fund the building of Aswan Dam and he wanted to establish Egypt as the leader of middle-east by embarking an end to the British and French dominance in Africa and Middle-east. In my research essay I analyze this issue which is known as the Suez Canal Crisis through prospect theory. According to this theory people or institutions make decisions on potential value of gains and …show more content…
Eisenhower was the President of The United States during the crisis and he followed a policy of appeasement. When Nasser first came up with the idea of Aswan Dam he requested funds from Britain, U.S.A. and the World Bank for the building of the Aswan Dam. Nasser sought to build this dam to provide electricity to millions of his countrymen while also to provide irrigation to more than million acres of farmland. Eden in conjunction with Secretary of State John Foster Dulles put together a deal whereby Britain would provide $80 million, the United States $130 million and the World Bank $200 million to finance the massive project.
Nasser, however, balked at the offer for the Americans stipulated that they must not accept funding from any Communist nation for the project (James, Robert Rhodes. Anthony Eden. New York: McGaw-Hill, 1986). The conditions that U.S.A. and the British put forward were:
1. One third of Egypt’s internal revenue was to be diverted to the dam projects for 10 years.
2. Economic measures were to be taken by the Egyptian government to curb the growth of inflation due to the influx of money into …show more content…
Within a week Eisenhower sent Dulles to London to convince Britain and France to agree to an international conference of twenty-two nations and resolve the crisis through peaceful means. Throughout the course of the crisis Dulles remained the representative and voice of U.S.A. and he was the only one who had any discretionary powers and could decide by himself what was best for the administration of the nation. Eisenhower’s decision about this had dire consequences