Risky rides in 2016
Four powerful and troublesome heads of state to have
‘major international implications’:
by Jess Staufenberg
The biggest crises of the last 12 months are only going to get worse.
That’s according to a forecast by the globe’s leading political risk
researchers.
Following a year which saw two sets of attacks on Paris, the Nepal
earthquake, the biggest refugee crisis for almost 70 years and
escalating conflict between Russia and Ukraine – to mention but a few –
the political landscape of 2016 will be characterized by yet more
instability amid a lack of global strategy.
Political risk researcher Ian Bremmer and his team at Eurasia Group
have singled out a power vacuum, in the form of the increasingly
“hollow” transatlantic partnership between Europe and the US, as the top
risk to political stability for 2016.
Some hope comes in the form of “red herrings,” which state Donald
Trump will not win the US presidency, while strong leaders in Asia make
the risk of conflict in the region fairly low.
Here are the top 10 political risks of 2016 and reasons why,
according to the group:
10. Turkey
President Erdogan is pushing for a system run mainly by him, rather
than parliament - an aggressive tactic which will harm business
investment in the country.
US pressure on the country to deal with ISIS will actually make
Turkey more vulnerable to attack from the terrorist group, while their
own offensive against it will produce “only modest results.”
9. Not enough elections
Slow growth and lower living standards are going to make people
discontented, but there are fewer elections this year for them to vent
their feelings at government.
Usually, this makes for a quieter year – but Bremmer warns that “this
time will be different.” A lack of elections could see complaints boil
over onto the streets.
8. Brazil
The South American powerhouse looks set to become quagmired in
political stalemate and a failure to address its growing fiscal deficit.
Whether President Dilma Rousseff manages to keep her job or is ousted
and replaced by her Vice President Michel Temer, neither look able to
address the country’s growing problems.
7. Unpredictable leaders
International politics will be even more volatile this year because
of an “unusually wide constellation of leaders known for their erratic
behaviour.
Leading the pack are Vladimir Putin and Recep Tayyip Erdogan (already
at loggerheads), along with Mohammed bin Salman, Saudi Arabia’s Deputy
Crown Prince and Petro Poroshenko, Ukraine’s President.
Just last week, Barack Obama agreed in an interview that many world
leaders are “completely out of their minds.”
The report, meanwhile, warns of “major international implications”
because of these four powerful and troublesome Heads of State.
6. The rise of technologists
Coming in sixth in the top ten political risks is the influence of
non-state actors – from Silicon Valley corporations to hacker groups –
upon the political realm.
Bremmer predicts a “pushback” against such powerful agents from
governments and volatile market and policy consequences.
5. Saudi Arabia
As the kingdom becomes more isolated and royal members fight among
themselves, it is likely to become more aggressive in the region,
predicts the consultancy group.
With King Salman’s recent arrival on the throne and ever greater
anxiety over regional rival Iran, “a scenario of open conflict has now
become entirely realistic.”
4. ISIS and ‘friends’
The response to the most powerful terrorist organization in history
has been misdirected and often from opponents who are at cross-purposes
with one another.
“For 2016, this problem will prove unfixable,” says the Eurasia Group
team. Highest on ISIS’ hit list will be France, Russia, Turkey, Saudi
Arabia and the United States, while nations with high numbers of
unintegrated Sunni Muslims in both the Middle East and Europe can expect
to feel their displeasure.
3. The Chinese footprint
Apparently “the only country of scale today with a global economic
strategy,” China stands out as the most important, but uncertain, driver
of many global outcomes.
However, says Bremmer, most international players are not ready for
this or do not agree with Chinese priorities.
2. A closed Europe
Those who want an “open” or a “closed” Europe will divide it. Bremmer
predicts that although Europe’s economics will pull through, pressures
on principles such as its open borders will mean “its broader meaning
and social fabric will not.”
He warns that a UK exit from the EU is more likely than most people
realize.
1. The hollow alliance
Once the world’s most important alliance, the transatlantic
partnership is “now weaker, and less relevant, than at any point in
decades.”
With the US no longer intervening on Europe’s behalf, and Syria
likely to further show their differences, neither will continue to take
responsibility to put out the fires of the world. The “international
fireman” will be more or less gone.
- The Independent
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