Vice president and senior fellow Todd Moss was quoted in a Washington Post article on Egypt and the global economy.
From the Article:
There are other dangers to the world economy, as well. As energy prices have risen, the costs of wheat, rice and other agricultural commodities have spiked on the expectation of hoarding in case of further turmoil. High prices for food and fuel are a key driver of the protests in Egypt and Tunisia. The jump in prices on global markets could help spark protests and uprisings in other nations ruled by dictators.
In addition, the Suez Canal, which is a vital shipping route between Asia and Europe, moves 8 percent of global trade. Goods have continued to flow without interruption through the canal, and analysts are generally confident that the artery would remain open even if Mubarak is deposed. But any disruption could cause major delays as ships would need to curve around the southern tip of Africa to connect Europe with East Asia.
The Egyptian military "is aware of the importance of ensuring the smooth operation of the Suez Canal, which is not only a vital source of Egypt's foreign currency receipts, but also ensures the supply/movement of crude oil," said Ashraf Laidi, chief market strategist of CMC Markets in London, in a report.
More broadly, the crisis in Egypt has led global investors to question a basic premise - that there is little risk of political turmoil in even relatively poor nations. The lowering of perceived risk in emerging countries has been a key development in the world economy since the recent financial crisis. Investors have lowered borrowing costs for major economies such as China, as well as "frontier" markets, such as Ghana, said Todd Moss, a vice president at the Center for Global Development. "Now you have Tunisia, and Egypt, and everybody is going to be a bit jittery. People will think twice. Stability can be a real mirage, as we have seen," he said.
That sentiment has helped fuel a stunning run-up in stock prices and foreign investment during the past decade. .