Thursday, August 1, 2013

Egypt

It would be too much to hope for a Lee Kuan Yew of Singapore or an Ataturk of Turkey to come forward as the father of a post modern Egypt, but one is required.  Egypt needs to remove state subsidies for food and energy.  This requires the generals in charge to be authoritarian and just do it. Much like the authoritarian Pinochet  of Chile they should call in the Chicago Boys to develop a free market economy. The generals will have to have courage and allow the economy to de-centralise in a cronyism free manner. A five year gestation is required for Egypt to adapt to a subsidy free economy so that results will give strength to freely elected politicians to stay the course and never fall back on poisonous subsidies, a tool of dictators to placate the masses.

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