In Egypt, the percentage of the working population employed by the state is 35%. In Turkey, it’s 13%.
One is tempted to ask: What more do you need to know?
The economic literature is vast on the smothering effects of large, inefficient public sectors. If Egypt is now exhibit A for these studies in torpid economies, then exhibits B, C, D and E would be Jordan, Yemen, Tunisia and Algeria, the other nations that erupted the past several weeks. In Jordan nearly 50% of the employed population works for the state. This is an economy? – Daniel Henninger
Korea, Indonesia, India, Taiwan and China have fewer government jobs. The percentage of government employees in these countries is at 8%. In Singapore it is less than 3%.
That is all you need to know. Less government intrusion equates to a more healthy and thriving economy. The question is what does Egypt do now?