Global War Zones: Three political hotspots causing significant global economic issues

Global War Zones: Three political hotspots causing significant global economic issues

  • MarketLine
  • December 2019
  • Industry Profile
  • 25 pages

Report Description

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Global War Zones: Three political hotspots causing significant global economic issues

Summary

Through international trade and globalization, there are certain regions that have become absolutely critical to functioning of the global economy. As goods, energy and services move around the world they often pass through certain choke points in which any political instability or fighting would block a huge portion of world trade. Often these areas are highly unstable due to the significance of the value that moves through them and countries jostle for control over the good that move through them. At present in 2019 three areas in particular are highly vulnerable due to worsening diplomatic relations in the immediate vicinity, the Strait of Hormuz, North Africa and the South China Sea.

Key Highlights

- The waters surrounding the Arabian Peninsula are among the most sensitive to the functioning of the world economy that exist. Exposed to numerous geopolitical threats, peace in the region is easily destabilized. For shipping, the global supply of oil, and economic performance of many countries around the world, the region is especially risky. Recent political turmoil has added to sensitivities. In the event of the Persian Gulf and the neighboring Strait of Hormuz being disrupted the extent of damage to industries and whole economies would be far reaching.
- Large areas of North Africa were subject to political, social and economic upheaval during the Arab Spring in 2011. Stemming from anti-government protests the collapse of governments in Egypt, Libya and beyond, depressed the economic fortunes of the region. Troublingly, many of the underlying causes of the uprisings and discontent elsewhere remain and in some instances have worsened. Libya is barely recognizable as a state and is subject to an attritional war between competing forces laying claim to the desert country. Poor living standards and tumbling personal wealth are causing strife in Egypt and Algeria. Meanwhile, Chad continues to be perilously close to further chaotic times. The region is beset by economic troubles that could easily worsen into open conflict.
- Vast quantities of trade flow through the South China Sea. Chinese assertiveness and increasingly militaristic actions have ramped up geopolitical tensions in the region, threatening security in what constitutes a major choke point in the global economy. Though disputes over borders and extent of national waters have rumbled on for decades, the entry of a much more politically and economically aggressive Beijing now poses a serious threat to several economies bordering the South China Sea. Militarization is chiefly to blame and now key shipping routes are subject to an intensifying geopolitical game that appears unlikely to yield a decisive winner for quite some time to come.

Scope

- See how major economic disruption has been caused through political instability
- Learn how situations might be remedied and how they came about
- Understand the fragile nature and high risk involved in investing in some geographical areas
- See which economic areas are most under threat globally

Reasons to buy

- Where are some of the most under threat regions in the world?
- What has caused the disagreements in those areas?
- Just what economic assets are under threat?
- Who are the main Protaganists?
- Could these situations be resolved, and if so how?

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Table of Contents
1. EXECUTIVE SUMMARY
1.1. Strait of Hormuz remains critical global economic choke point
1.2. North Africa region vulnerable to further economic turmoil stemming from social unrest
1.3. South China Sea has become big geopolitical threat to world economy

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