Roubini Topic Archive: Emerging Markets
The resignation of Egyptian President Hosni Mubarak will resonate across the Middle East but also in the capital of his most stalwart ally, the U.S., where policy makers are reassessing the “certainty” that Egypt will continue to act as a “moderating force” in the region. Having left the Soviet Union’s orbit in 1977 and signed a peace treaty with Israel in 1979, Egypt came to form the foundation of U.S. diplomacy in the region—a role that seemed so secure that its significance was widely overlooked.
If anyone needed reminding that the American Century is over, Turkey and Brazil provided it by giving notice that they won’t stand aside as another nuclear nonproliferation crisis slides toward armed conflict. The standoff between the U.S. and its allies in Israel and Western Europe on one side, and Iran and its sympathizers around the world on the other, may or may not end in violence. But the surprise Turkish – Brazilian diplomatic coup this week makes it clear that nations once relegated to the second-tier of influence in the world refuse to watch from the sidelines in deference to American power this time around.