Now See The 11 Countries At Risk Of Becoming The Next Egypt

Gregory White | Feb. 11, 2011, 11:43 AM

APEgypt's President Hosni Mubarak just resigned after weeks of dramatic protests in Cairo and across Egypt.

As the biggest country in the Arab world, Egypt is seen as a trend leader for the broader Middle East.

So the question on everyone's mind is: who's next?

The Egyptian revolution is a challenge to state led authoritarian capitalism, but it is also a response to rising food costs and soaring unemployment. There is also the social media factor, which has allowed protesters to circumvent traditional state run media sources and organize more efficiently.

What countries offer a similar mixture to that found in Egypt? And what investments are at stake?

Morocco: Reforms already lined up

Investments to watch: SPDR S&P Emerging Middle East & Africa ETF (GAF)
Style of government: Constitutional Monarchy

Inflation: 2.6% year-over-year in December

Unemployment: Among graduates, 25%, Total rate at 9.1%

Social media: Very much a serious part of youth culture

Conclusion: Morocco's government has already undergone democratic reforms, so any political pressure would likely be responded to in a similar manner, with more reforms. Those very reforms have been suggested by a government commission, so Morocco seems pretty safe at the moment, prepared to adjust if things get out of hand.

 

Jordan: King Abdullah tries to get ahead of the crisis

Investments to watch: SPDR S&P Emerging Middle East & Africa ETF (GAF)

Style of government: Constitutional monarchy, incorporating limited democracy

Inflation: Jordanian inflation up 6.1% year-over-year in December, 1.2% month-over-month

Unemployment: Around 14%

Social media: 38-39% of Jordanians have internet access

Conclusion: Jordan is already experiencing protests related to these factors. The government is responding by providing food and fuel subsidies. King Abdullah has sacked his government and appointed a new one with reforms priority number one. Whether the government moves fast enough to implement these reforms will be the deciding factor in the future size of protests and threat to the regime.

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