Opinion

Ian Bremmer

2013′s top 10 political risks

Ian Bremmer
Jan 8, 2013 16:18 UTC

It was a close call at times, but we made it through 2012. Now we’re set to encounter a new set of risks ‑ but not in the world’s advanced industrialized democracies, which are much more resilient than feared. This year, with the global recession on the wane, attention shifts back to emerging markets, the economies that are usually the ones that pose the most political risk. You can read the whole report from my political risk firm, Eurasia Group, here, but an executive summary of this year’s top 10 risks, in video and text, is below:

10.) South Africa: Africa overall looks like it will continue its recent growth. But South Africa, one of the continent’s most complex and important economies, is floundering. Its dominant political party, the African National Congress, is resorting to populism to maintain its base among the urban and rural poor. That means more state intervention, more labor unrest and more assertive unions. We’re not predicting a fundamental political crisis, but the country is moving along a path that offers little reason for optimism.

9.) India: We’ve all read the predictions that India is poised to become the world’s next infinite-growth country. Not so fast. Despite initial optimism, the 2009 election hasn’t freed Prime Minister Manmohan Singh to reform the country as anticipated, with the tough choices continually being kicked to the next parliamentary session. (Americans should find this familiar.) Corruption continues to reign, and as we’ve seen in the rape protests of the past few weeks, there are fundamental cultural issues that India has yet to resolve. As general elections draw closer, the government’s ability to execute robust economic policies will decline even further.

8.) Iran: When is the United States or Israel going to bomb Iran? That’s the question that followed us through all of 2012. But a war-wary President Barack Obama and a more-diplomatic-than-you-think Prime Minister Benjamin Netanyahu mean that the risk of military strikes this year is less than most observers believe. Nevertheless, there is still a significant risk: We’re likely to see a sharp escalation in the shadow war between Iran and Israel and the United States, a cycle of mutual killings, cyber-attacks and proxy battles that has been ongoing for several years. As new sanctions are put in place against Iran, as we predict they will, efforts to sabotage the Iranian nuclear program will escalate. That’ll force Iran to escalate its side of the shadow war.

7.) East Asian geopolitics: For the past decade, the main risks in this region have been North Korea’s nuclear provocations and tensions around the status of Taiwan. Now new risks have taken their place. China has veered away from its “charm offensive” approach to Southeast Asia, and the United States is stepping into the void. Tensions between the two powers could put decades of economic growth at risk, as I’ve written about in past columns.

China is the elephant in the situation room

Ian Bremmer
Dec 24, 2012 17:21 UTC

Earlier this month the National Intelligence Council released its Global Trends 2030: Alternative Worlds report — a document that comes out once per presidential administration — mapping out likely geopolitical trends over the next two decades or so. As usual, it’s a must-read, offering comprehensive analysis of the disparate factors that will drive global politics through 2030.

Further, the NIC took bold steps to correct some previous weaknesses in past reports. In the past the report nailed the “what” more often than the “when.” That is particularly the case with its treatment of the United States, for which “past works assumed U.S. centrality.” This time around the NIC sets an increasingly “multi-polar world” — which I call the G-Zero — as the backdrop of its report, acknowledging that the lack of global leadership has accelerated in the wake of the global financial crisis of 2008-09. America’s status as a “hegemonic power” is eroding, and no country is likely to take its place.

This multipolar world is the foundation for the rest of the NIC’s predictions. The report is organized around subsections that range in probability: There are the megatrends that are sure to have an effect, the game-changers that could go a number of ways, and the four potential worlds of 2030.

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