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
Daniel Henninger points out a facinating point. Egypt’s economy is struggling while Turkeys is flourishing. Why? The percentage of government employees is the answer. When the percentage rises in countries like Egypt, an arguably the United States, the opportunity to produce real jobs is diminished.
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?