Only after considering the social background of the countries involved is it possible to determine whether we are indeed talking about a ‘port of trade’. For this reason, we first examine Egyptian society at the time of the Saites, and thereafter focus attention on its Greek counterpart. It is only when this change of perspective has been undertaken that we can cease to regard Naukratis unthinkingly as a Greek colony, and can grasp fully the phenomenon that it represents. It is primarily from Herodotus’ Second Book, supplemented by Egyptian and oriental sources, that we learn about the Egyptian Late Period, of which the Saite dynasty is a part. Egyptologists regard this period as somewhat peripheral, especially with respect to our particular interest, the economy; for this reason, it will occasionally be necessary to construct analogies, drawing on examples from the Middle and New Kingdoms. It can be assumed that the picture will have appeared somewhat different in the so-called Intermediate Periods, which are thus rendered invalid for purposes of comparison, the lack of strong central administration leading to a loss of influence on the part of the centres of redistribution. According to Polanyi, the dominant pattern of integration is determined by the manner in which land and work are allocated. The prevalent social and economic system in Egypt is characterized principally by redistribution, although a closer examination results in a more differentiated view. Agriculture, the basis of every pre-industrial economy, functions in Egypt according to a system of instructions and quota calculations. Taxes and dues are used to support the court and the bureaucracy, but are also redistributed to the producers, who thereby participate in Egypt’s ‘surplus society’. The bureaucracy is maintained by the producers, but simultaneously ensures that the system continues to function, thereby setting itself up as the ruling class. The desire for social prestige is typical of this elite, and finds expression in titles, dress, and the cult of the dead. In principle, all land in ancient Egypt belonged to the Pharaoh; however, it is possible to distinguish two forms of land ownership.