Egypt is equivalent with Lehman Brothers collapse in terms of impact on international politics
The complete destabilisation of the Arab world by the imminent
fall of the Mubarak regime in Egypt will reset the strategies of
world leaders. We could witness policies of stockpiling and
rationing fuels and basic products, believes professor Daniel
Dăianu.
The imminent fall of the Mubarak regime under pressure from the
hundreds of thousands of people taking to the streets for the sixth
day in a row will change the balance of power in international
politics. Economically speaking, the prices of oil and food,
already under pressure, are the most affected by the Middle East
instability.
The political change in Egypt, which has now reached a population
of 80 million, is a "Lehman Brothers" of the Arab world, says
professor Daniel Dăianu.
"This is a very difficult situation, a Lehman Brothers of the Arab
world, it is a much too hot potato for everybody. It is an event
with a major political impact, the most important one since the
fall of the Berlin Wall, it could mark this decade," says economist
Daniel Dăianu. The collapse of American bank Lehman Brothers is the
biggest bankruptcy in the history of the United States and the
trigger of the international economic crisis.
Daniel Dăianu believes the political unrest in Northern Africa and
the Middle East comes at a time when all countries have had to make
spending cuts as a result of the world economic crisis, with the
very viability of the welfare state being questioned.