History of Egypt under Anwar Sadat successes restored Egyptian pride and led to peace talks with the Israelis that eventually led to Egypt regaining the entire Sinai peninsula in exchange for a peace agreement. Sadat used his immense popularity with the Egyptian people to try to push through vast economic reforms that ended the socialistic controls of Nasserism. Sadat introduced greater political freedom and a new economic policy, the most important aspect of which was the infitah or "openness". This relaxed government controls over the economy and encouraged private investment. While the reforms created a wealthy and successful upper class and a small middle class, these
Anwar Sadat be socially conservative he gave them "considerable cultural and ideological autonomy" in exchange for political support. In 1971, three years into the War of Attrition in the Suez Canal zone, Sadat endorsed in a letter the peace proposals of UN negotiator Gunnar Jarring, which seemed to lead to a full peace with Israel on the basis of Israel's withdrawal to its pre-war borders. This peace initiative failed as neither Israel nor the United States of America accepted the terms as discussed then. Shortly after taking office, Sadat shocked many Egyptians by dismissing and imprisoning two of the most powerful figures