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Saturday, February 12, 2011

Mubarak Resignation Leaves Responsibility with Egyptian Military

Mubarak's resignation leaves responsibility with Egyptian military
Egypt Quake

Wall Street Greek Global Affairs Columnist and Middle East expert Daniel Padovano lays out the most likely next step for Egypt after its President and Dictator Hosni Mubarak's resignation. A void has been left behind, that Egypt's military is more than willing and capable of filling, based on the nation's history.


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Mubarak's Resignation Leaves Responsibility with Egyptian Military



Middle East AnalystThe news from Egypt that President Hosni Mubarak had resigned from the presidency shook the world. Mubarak's Vice President, left in command, formally announced his resignation to the people and a transfer of power to what is called "The Egyptian Higher Council of the Armed Forces". If true, this marks a departure from Egypt's current constitutional practice where the Speaker of the Parliament would succeed the President. This military council would be analogous to our own Joint Chiefs of Staff.

Assuming this is the coming course of events, The Council will be in power outside of the existing constitution. As such, the Council will need to define its existence and governmental responsibilities during its tenure. Among the issues to be considered would be: 1) length of term and existence, 2) securing national strategic assets, 3) securing public order, 4) who in the civilian (and religious community) will be asked / appointed to administer the transition to civilian administration and 5) constitutional reform.

Economic issues will need to be addressed as well, but after nearly sixty years of state centered fiscal and economic policies as well as nearly thirty years of little "non-governmental" management, this will be the most difficult issue facing the new government.

According to several reports, American and Western pressure for more speedy change and acquiescence to the protester's demands pushed the military to act. Little recognition was given to either the Committee on Constitutional Reform or several pledges already in place. That may be so, but little credibility existed or was evident over the last few days.

As this transition moves forward, it must be kept in mind that the Egyptian military has been the guardian of the Egyptian state and nation since the Free Officer's Revolution of 1952. It is still regarded as such and may very well be the most resilient and trustworthy part of the Egyptian state.

In 1952, the military leadership took six months before dissolving the monarchy and establishing a Republic. In this aspect, Egypt's military followed the example of Turkey where the military also served as guardian of the nation between 1922 and 2006.

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This article should interest investors in: Market Vectors Egypt Index ETF (NYSE: EGPT), Egyptian Mobile (OTC: EGYMF.PK), Telecom Egypt (OTC: TEGPY.PK), T. Rowe Price Africa & Middle East (Nasdaq: TRAMX), T. Rowe Price Institutional Africa & Middle East (Nasdaq: TRIAX), Cellcom Israel (NYSE: CEL), Aberdeen Israel Fund (AMEX: ISL), Northrop Grumman (NYSE: NOC), Raytheon (NYSE: RTN), Alliant Techsystems (NYSE: ATK), Lockheed Martin (NYSE: LMT), Boeing (NYSE: BA), NYSE: IWM, NYSE: TWM, NYSE: IWD, Honeywell (NYSE: HON), General Dynamics (NYSE: GD), Rockwell Collins (NYSE: COL), Goodrich (NYSE: GR), L-3 Communications (NYSE: LLL), SAIC (NYSE: SAI), FLIR Systems (Nasdaq: FLIR), EMBRAER (NYSE: ERJ), Spirit Aerosystems (NYSE: SPR), BE Aerospace (Nasdaq: BEAV), TransDigm Group (NYSE: TDG), CAE (NYSE: CAE), Hexcel (NYSE: HXL), Esterline Technologies (NYSE: ESL), Teledyne Technologies (NYSE: TDY), Curtiss-Wright (NYSE: CW), HEICO (NYSE: HEI), Triumph Group (NYSE: TGI), Orbital Sciences (NYSE: ORB), AAR Corp. (NYSE: AIR), Kaman Corp. (Nasdaq: KAMN), AeroVironment (Nasdaq: AVAV), Smith & Wesson (Nasdaq: SWHC), DigitalGlobe (NYSE: DGI), GenCorp (NYSE: GY), Hawk (AMEX: HWK), LMI Aerospace (Nasdaq: LMIA), Exxon Mobil (NYSE: XOM), Halliburton (NYSE: HAL), Schlumberger (NYSE: SLB), ConocoPhillips (NYSE: COP), Chevron (NYSE: CVX), Noble Energy (NYSE: NBL), Baker Hughes (NYSE: BHI).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

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