Tunisia falls apart

LONDON - The British Foreign Office, in common with many other Western states, advises against all but essential travel to Tunisia. It says looting and violence has continued overnight (17-18 January) with clashes between the military and groups loyal to the deposed ex-president. Large-scale demonstrations, some violent, and further looting are still possible in multiple locations across the country.
The unpredictable situation is changing rapidly and embassies advise their nationals who do not have a pressing need to be in the country to leave Tunisia by commercial means immediately. Whilst still in the country they should take responsibility for their own security, stay away from demonstrations and large gatherings of people and public buildings. Tunisian airspace remains open. A nightly curfew has been imposed in the Greater Tunis area between the hours of 18:00 and 05:00 and roadblocks have been set up throughout the city.

COMMENT: At the root of the turmoil in Tunisia, which has led to the hasty flight of President Zine El Abidine Ben Ali to Saudi Arabia, are conditions common to many countries in the Middle East - rising food, fuel and housing prices, corruption, repressive politics and high unemployment affecting especially young populations.
Already, in the wake of the popular uprising in one of the most stable (if repressive) Arab states, investors have started examining political risk in the Middle East generally, and in North Africa in particular.
In Egypt, the Cairo stock market fell 2.4 per cent in just days, the most in seven months. Investors fear the uprising could embolden opposition forces in other countries, and the region is reported to be awash with gloomy and negative predictions.
Algeria, Jordan, Morocco, and Egypt are already seeing grim signs of popular unrest over unemployment, food prices and political repression. Bankers warn that the risk of Tunisian turmoil spreading to these and other Arab countries is not to be underestimated.
Even if power transfers quickly in Tunisia, the sudden explosion there has already increased worries of political risks and could lead to some investor rethinking in all countries where political stability is fragile.