Showing posts with label Revolution. Show all posts
Showing posts with label Revolution. Show all posts
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I have already posted about oil and the Arab uprising in several earlier posts (see them all here). However, I have come across this very well made video that sums up the current status of oil prices and its relation to the turmoil in the Middle East. Be aware and check it out! (Source: The Economist)  The price of oil for the past month has been experiencing an upward trend reaching its highest price of $106/barrel since the 2008 financial crisis where it had then dropped to almost $52/barrel. However, this rise in the price of oil has been preceded by a constant increase over the past two years which is duly attributed to the come back of the world economy from its severest recession in history and therefore revamping the demand for oil; an important input to production. Emerging countries such as China and India were the main drivers behind this healing growth as both of their economies are developing at incredible rates and thus increasing demand for primary and intermediate goods of which oil is part of the former and the latter.  Apparently, right now on the interwebs, there is an ongoing joke about the man that was standing behind VP Omar Suleiman during his speech to declare the resignation of the ex-president of Egypt Hosni Mubarak. It seems that throughout the short 30 second speech, this man succeeded in maintaining what looks like a constipated misdemeanor. What was he angry about?  Unlike its Tunisian counterpart, Egypt's revolution is looking less like a benign flower and more like a thorny branch that has pricked the fingers of its holders, and yet, they refuse to let go. I can understand why: this chance comes only once in a lifetime. Nonetheless, as benevolent is the cause that these "rebels" may have, one cannot ignore the consequences that this uprising would entail. Consequences of which I would like to explore from an economic perspective in the aim to see if the costs outweigh the benefits.  Ever since the Jasmine revolution, the Arabic scene has been in turmoil. Like dominos, governments are being toppled one after the other, and the infectious itch for rights and freedom is spreading like wildfire. Rulers of the Arab world are now looking over their shoulders and sleeping with one eye open with all of their attention resting on Egypt, the cornerstone of the region. An important ally to the United States and a major player in the Middle-East, Egypt's ongoing revolution, if successful, can have serious repercussions on the region and consequently the world.
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