The global order is unraveling and 2018 could produce the “geopolitical equivalent of the 2008 financial meltdown,” Eurasia Group warns.
The presidency of Donald Trump has left the world without clear leadership, raising geopolitical uncertainty, the risk consultancy says.
Some of the Eurasia Group’s top risks include China filling the vacuum left by the United States and the rise of a technology cold war.
The world is moving toward crisis and a state of “geopolitical depression” as the presidency of Donald Trump accelerates divisions among citizens and the unraveling of the global order, risk consultancy Eurasia Group warns.
Liberal democracies are suffering from a deficit of legitimacy not seen since World War II, and today’s leaders have largely abandoned civil society and common values, Eurasia Group says in its annual assessment of top geopolitical risks. The breakdown in norms opens the door to a major event that could rock the global economy and markets.
“In the 20 years since we started Eurasia Group, the global environment has had its ups and downs. But if we had to pick one year for a big unexpected crisis — the geopolitical equivalent of the 2008 financial meltdown — it feels like 2018,” said Eurasia Group President Ian Bremmer and Chairman Cliff Kupchan.
U.S. global power is “sputtering to a stall” as the Trump philosophy of retrenchment and unilateralism sows confusion among both allies and rivals, Eurasia Group says. The world now lacks leadership to steer it through the impending crisis.