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International Conflict Tops List of Global Risks in 2015

MD Staff

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The biggest threat to the stability of the world in the next 10 years comes from the risk of international conflict, according to the 10th edition of the Global Risks report, which is published today.

The report, which every year features an assessment by experts on the top global risks in terms of likelihood and potential impact over the coming 10 years, finds interstate conflict with regional consequences as the number one global risk in terms of likelihood, and the fourth most serious risk in terms of impact. In terms of likelihood, as a risk it exceeds extreme weather events (2), failure of national governance systems (3), state collapse or crisis (4) and high structural unemployment or underemployment (5).

 

Top 5 Global Risks in Terms of Likelihood
1 Interstate conflict with regional consequences (geopolitical risk)
2 Extreme weather events (environmental risk)
3 Failure of national governance (geopolitical risk)
4 State collapse or crisis (geopolitical risk)
5 High structural unemployment or underemployment (economic risk)

 

Top 5 Global Risks in Terms of Impact

1 Water crises (societal risk)
2 Rapid and massive spread of infectious diseases (societal risk)
3 Weapons of mass destruction (geopolitical risk)
4 Interstate conflict with regional consequences (geopolitical risk)
5 Failure of climate-change adaptation (environmental risk)

In looking at global risks in terms of their potential impact, the nearly 900 experts that took part in the Global Risk Perception Survey rated water crises as the greatest risk facing the world. Other top risks alongside that and interstate conflict in terms of impact are: rapid and massive spread of infectious diseases (2), weapons of mass destruction (3) and failure of climate change adaptation (5).

With the 28 global risks that were assessed in 2015 grouped into five categories – economic, environmental, geopolitical, societal and technological – 2015 stands out as a year when geopolitical risks, having been largely absent from the landscape of leading risks for the past half-decade, returns to the fore. With geopolitics increasingly influencing the global economy, these risks account for three of the five most likely, and two of the most potentially impactful, risks in 2015. Also in this category, three risks stand out as having intensified the most since 2014 in terms of likelihood and impact. These are interstate conflict with regional consequences, weapons of mass destruction and terrorist attacks.

The risk landscape in 2015 also shows that there remains concern over the world’s ability to solve its most pressing societal issues, as societies are under threat from economic, environmental and geopolitical risks. Indeed, the societal risk accounts for the top two potentially impactful risks.

Also noteworthy is the presence of more environmental risks among the top risks than economic ones. This comes as a result of a marked increase in experts’ negative assessment of existing preparations to cope with challenges such as extreme weather and climate change, rather than owing to a diminution of fears over chronic economic risks such as unemployment and underemployment or fiscal crises, which have remained relatively stable from 2014.

“Twenty-five years after the fall of the Berlin Wall, the world again faces the risk of major conflict between states,” said Margareta Drzeniek-Hanouz, Lead Economist, World Economic Forum. “However, today the means to wage such conflict, whether through cyberattack, competition for resources or sanctions and other economic tools, is broader than ever. Addressing all these possible triggers and seeking to return the world to a path of partnership, rather than competition, should be a priority for leaders as we enter 2015.”
In addition to assessing the likelihood and potential impact of these 28 global risks, Global Risks 2015 examines the interconnections between risks, as well as how they interplay with trends shaping the short- to medium-term risk landscape. It also offers analysis of three specific cases which emerge from the interconnections maps: the interplay between geopolitics and economics, the risks related to rapid and unplanned urbanization in developing countries and one on emerging technologies.

On urbanization, the report considers how best to build sufficient resilience to mitigate the challenges associated with managing the world’s rapid and historical transition from predominantly rural to urban living.
“Without doubt, urbanization has increased social well-being. But when cities develop too rapidly, their vulnerability increases: pandemics; breakdowns of or attacks on power, water or transport systems; and the effects of climate change are all major threats,” said Axel P. Lehmann, Chief Risk Officer at Zurich Insurance Group.

The rapid pace of innovation in emerging technologies, from synthetic biology to artificial intelligence, also has far-reaching societal, economic and ethical implications. Developing regulatory environments that are adaptive enough to safeguard their rapid development and allow their benefits to be reaped, while preventing their misuse and any unforeseen negative consequences is a critical challenge for leaders.
John Drzik, President of Global Risk and Specialties at Marsh, said: “Innovation is critical to global prosperity, but also creates new risks. We must anticipate the issues that will arise from emerging technologies, and develop the safeguards and governance to prevent avoidable disasters.”
The report also provides analysis related to global risks for which respondents feel their own region is least prepared, as well as on the global risks on which they feel most progress has been made over the last 10 years. It also presents for the first time country-level data on how businesses perceive global risks in their countries. Moreover, the report features three examples of risk management and resilience practices related to extreme weather events.

The Global Risks 2015 report has been developed with the support of Strategic Partners Marsh & McLennan Companies and Zurich Insurance Group. The report also benefited from the collaboration of its academic advisers: the Oxford Martin School (University of Oxford), the National University of Singapore, the Wharton Risk Management and Decision Processes Center (University of Pennsylvania), and the Advisory Board of the Global Risks 2015 report.

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COVID-19 and Challenges to the Indian Defence Establishment

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The COVID-19 pandemic has created an uncertain situation all over the world. It is defined as the greatest challenge faced by the world since World War II. At a certain point, the pandemic had forced world governments to announce lockdowns in their respective countries that led to more than half of the human population being home quarantined. Since then, social distancing, travel bans, and cancellation of international summits have become a routine exercise. Most sectors such as agriculture, health, education, economy, manufacturing have been severely hit across the globe. One such sector which is vital to national security that has been impacted due to the pandemic is defence.

The effect of influenza and pneumonia during WWI on the US military was huge. The necessity to mobilise troops across the Atlantic made it even ideal for the diseases to spread rapidly among the defence personnel and civilians. Between mid-1917 and 1919, the fatalities were more so due to the disease than getting killed in action. Due to COVID-19, there have been many implications within the defence sector. Amid the ongoing transgressions in Ladakh, it becomes imperative to analyse the preparedness of the Indian defence establishment to tackle the challenges at hand.

Disrupting the Status Quo

Many personnel in the Indian armed forces have been tested positive for COVID-19. This puts the operational capabilities at risk. In one isolated incident, 26 personnel of the Navy had been placed in quarantine after being tested positive for COVID-19. The French and the Americans had a great challenge ahead of them as hundreds of soldiers were getting infected onboard their Naval vessels. Furthermore, the Army saw some cases being tested positive as well. In one such incident, the headquarters of the Indian Army had to be temporarily shut down because of a soldier contracting the virus. These uncalled disruptions are very dangerous for our armed forces. These disruptions challenge the recruitment process and training exercises.

Since the Indian Army has been involved in quarantining tasks, this exposes the personnel to the virus. As a result of this, the first soldier was tested positive on March 20 in Leh. Among them, those who work as medical personnel are even more exposed to the virus. In order to enforce damage control to the operational capabilities, the Army made sure that the non-essential training, travel, and attending conferences remained cancelled. They called off any foreign assignments and postings for the time being. The Army also made it a point to extend leaves for that personnel who were already on absence. This was a major preventive measure adopted to prevent further infection.

As a result of the lockdown that had been imposed nationwide, the defence services were forced to temporarily stall all the activities that relate to soldiering during peacetime. These activities include training, pursuing professional qualification, fitness tests and regimes, equipment maintenance such as unit assets and stores, up-gradation of the cadres among others. Since the Indian Army boasts of a force that has signed up voluntarily to guard the borders, most of the troops are away from their families, which makes it even more difficult during the times of crises. The mega biennial naval exercises scheduled to be held in Vizag were cancelled due to COVID-19. A total of 41 navies were planned to be a part of the joint exercises called MILAN. The Service Selection Board (SSB) training and the recruitment process have been put to a halt as well. This will severely impact the intake process for this year.

Handling Biohazards

The Army’s capable of operating in a Chemical, Biological, Radiological and Nuclear (CBRN) environment and has sufficient equipment like infantry vehicles, helicopters and tanks which can operate without any hassles. Since instances of chemical warfare have been witnessed in West Asia and other regions in the last two decades, the focus of the Army has been on that and not on biological warfare. Most Armies believe that bio-weaponry is still fictional and won’t come into play any time soon. Naturally, due to this mindset, most Armies are not capable of handling biohazards. This is a major setback in the time of COVID-19 and has to be addressed.

Riding Down the Slope

Since the outbreak of COVID-19, the Indian economy has been nose-diving day by day. This is some bad news for the defence sector since the military spending will possibly be reduced as a result of the slowdown. According to the International Monetary Fund (IMF), India’s GDP will grow at 1.9 per cent. This is one of the lowest in the history of post-independent India. Allocations and spendings will naturally take a hit and will take a long time to revive again. Defence manufacturing will also face a setback and discourage indigenous players who are looking at getting involved in the manufacturing and innovation sector. MoD has already received the Ministry of Finance’s circular that called for the defence spending to be limited to 15-20 per cent of the total amount allocated. This will ensure that the defence budget is not the priority for the finance ministry. A gap of Rs. 1,03,000 crore has been highlighted between the requirement and the allocated money. More than 60 per cent of this allocated amount anyway goes towards paying salaries and pensions. This means that the modernisation efforts will face a major slowdown in the next two years. Defence procurement is already difficult due to the bureaucratic hurdles, now the monetary crunch only adds more woes.

Moreover, Defence Minister Rajnath Singh had announced earlier that more than 9,000 posts belonging to the Military Engineering Services (MES) will be abolished in the said industrial division. The reason cited was that this would bring about a balance to the expenditure. Due to the lockdown, the military development has taken a hit and has seen a decline in the production of freights. As of now, there is no manufacturing that is ongoing as far as fighter planes or aircraft, in general, is concerned. Some of the signed defence deals and contracts are said to be reviewed due to the financial crunch. India’s defence budget is expected to see some cuts due to the economy slowing down. The pandemic has worsened this even further. There is already an existing order to cap the spending for the first quarter of this fiscal year. Most of the payments that are being disbursed is largely that of paying for the existing contracts. This will diminish any scope for procurement of newer defence equipment that helps in modernising the armed forces in the long run. According to a report, it says that the Ministry of Defence is looking at a savings of anywhere between Rs. 400 and 800 billion in the 2020-21 financial year. To quote Yuval Noah Harari from his recent article in the Financial Times would seem relevant in this case, “Many short-term emergency measures will become a fixture of life. That is the nature of emergencies. They fast-forward historical processes. Decisions that in normal times could take years of deliberation are passed in a matter of hours.”  India has displayed the significant political will to make impactful decisions during the pandemic. The question is, how far and how soon can we push ourselves to be prepared on all fronts?

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Rafale deal: A change in aerial balance in South Asia?

Shaheer Ahmad

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The induction of the first consignment of five Rafale jets in the Indian Air Force inventory is considered to be a game-changer in the aerial balance of the South Asian region. A multi-billion-dollar package will be beneficial to increase the air prowess of Indian Airforce. While equipped with weapons of tangible accuracy including long-range SCALP and Meteor missiles, it will be able to hunt any target with accurate precision.  The arrival of French-made engines has concerned neighboring Pakistan and China due to its high accuracy of conducting sea and ground attacks.

The experience of operation ‘Swift Retort’ and Chinese intrusion in Ladakh, compelled New Delhi to introspect the efficiency of IAF in any major or minor engagement in the future. The deal to acquire Rafale fighting jets to plug the loopholes in the aerial power of IAF was inked in September 2016.  This induction is meant to enhance the Indian Air force’s operational capabilities and will also assist it to overcome the technological disparity with the US manufactured Pakistan’s F-16 and Chinese Chengdu JF-17 thunder. However, the task for PAF to restrict IAF moves in the future has become more challenging. Despite its competence and better training of its personals as compared to IAF the air superiority is still not guaranteed if the technological gap between IAF and PAF gets wider. Notably, it’s hard to assess the proficiencies of one jet over another because the ‘man behind the machine is more critical’. 

Rafale is a twin-engine Medium multi-role combat aircraft (MMRC) whose design instigate from Dassault Mirage with an up to date frame of the 1990s, already used by the French Navy and air force as well as by Egypt and Qatar. Furthermore, these jets were also engaged in combat missions in Afghanistan and Libya where they demonstrated a high proficiency. Whilst JF-17 thunder holds a conventional design originating from Mig 33 having an airframe of 1980s and it also demonstrated its capabilities in PAF’s Operation “Swift Retort”.

In an overall assessment, JF17 is a lightweight, conventional, fuel-economical, and cost-effective jet aircraft. The most momentous factor in JF17 thunder is it’s beyond visual range capabilities and integration of AESA radar that will not only allow detecting the wide-ranged targets but also to detect and lock multiple targets instantaneously. Meanwhile, it is less disposed to jamming and leaves a low sign to radar that makes the detection of fighter difficult hence increasing its reliability. Moreover, a crop numerical advantage and training aptitude due to the use of a similar platform and its cost-effectiveness makes itself a suitable aircraft for the Pakistan air force. Similarly, the ability of any up-gradation domestically for JF-17 also increases the feasibility of this aircraft, while Rafale lacks this opportunity because Indians lack the platform that can guarantee any domestic up-gradation for Rafale. Generally, Dassault Rafale is advanced in airframe, delta wing Canard design, semi stealth specter to counter threats as well as MBDA meteor that makes it a very affluent fighter with a high operational cost.

Rafales are considered superior over existing fighter jets present in PAF inventory and with the advanced technology they will relish an edge over Pakistani jets. But in case of any aerial engagement on Pakistani soil, Experts orate that in such a scenario Pakistani fighters will enjoy an edge due to its enhanced Air defense ground environment (ADGE) and also a window will remain open for PAF that when and where to carry out a counter strike as it did during operation ‘Swift Retort’. In such case, Indian numerical advantage and war resilience will be of less significance because these factors are relished by the party having a counter-strike option and that party will decide that how much allocation of resources is needed to engage for a mission after having a careful assessment of adversary’s air defense capabilities.

It’s also important to know that PAF and IAF can carry out surprise air raids nearby to the international border in peacetime without the probability of interception by adversary radars. Neither sides have the strength and capabilities to maintain 24/7 air surveillance across a 3323-kilometer long international border. Hence it’s also necessary for Pakistan to counter or deter any kind of surgical or tactical strike in the future. But the concern is still there that after the Balakot experience will India be deterred for conducting similar strikes in the future?

While viewing this scenario and having an experience of Balakot episode, PAF efforts to enhance its capabilities of airborne intercept radar and BVR missiles in JF-17 thunder’s fleet are noteworthy.  However, PAF should pursue an up-gradation on its existing F16 squadron. The presence of Rafale and S-400 air defense system will be challenging for PAF to retaliate, but the Indian S-400 and Rafale jets can’t shield the whole international border so the PAF needs a careful assessment to choose the targets that are not under the umbrella of S-400 or the access of Rafales while keeping in mind not to carry out an action that can trigger the adversary towards any escalation.

In a nutshell, the arrival of French-made engines equipped with long-range SCALP and meteor missiles having high precision is not only beneficial for Indian air prowess but it has also concerned its neighbors notably Pakistan for countermeasures. The experience of Operation Swift Retort and the recent military standoff in Ladakh has compelled New Delhi to modernize its Soviet-era air force by the induction of Dassault Rafales that will provide IAF an edge over the existing fighter jets in PAF’s inventory. However, the crop numerical advantage and training aptitude due to the use of a similar platform increases the feasibility of JF-17 thunder in PAF’s inventory. Hence in case of any aerial engagement in future the numerical advantage will be of more concern as 100+ JF-17 thunders will relish an edge over 36 Rafales and PAF will have the option of counterstrike that when and where to carry out a retaliation after carefully assessing the adversary capabilities in light of S-400 air defense system and Dassault Rafales. Hence Rafale jets have air superiority over existing Pakistani fighter jets but it can’t alter the aerial balance in South Asian region unilaterally.

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Pakistan’s Nuclear Diplomacy: Commitment Towards Non-Proliferation

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Ever since Pakistan became a nuclear weapon state, Pakistan’s nuclear diplomacy has been in practice on the principles of restraint and responsibility. Pakistan was even reluctant to enter the club of nuclear weapon states but soon after India had conducted its first nuclear test in the year 1974, going nuclear became Pakistan’s strategic compulsion. India’s series of nuclear tests in 1998 had compelled Pakistan to demonstrate its nuclear weapon capability accordingly to restore the strategic balance in South Asia. The development of Pakistan’s nuclear weapon capability primarily serves the purpose of a credible and reliable defence against the existential threat from India and to maintain peace and stability in the region. After the inevitable nuclearization of South Asia, Pakistan has never been a part of any arms race in South Asia.  Pakistan can neither afford and nor have an intent to indulge in an arms race in the region This is evident from the very fact that Pakistan has always been open for dialogues and arms control initiatives at the regional and international levels. In this regard, Pakistan’s recent proposal at the Conference on Disarmament (CD) in Geneva is also part of its responsible nuclear diplomacy to urge the international community to take steps and develop consensus on arms control and disarmament. These factors show Pakistan’s commitment and adherence to achieve the goal of nuclear non-proliferation. 

As part of its non-proliferation efforts, in the past, Pakistan had also proposed various Confidence Building Measures (CBMs)at the regional level. For instance, in 1974 Pakistan had proposed to make South Asia a nuclear-weapon-free zone (NWFZ), in1978 proposal for the joint Indo-Pak declaration renouncing the manufacture and acquisition of nuclear weapons was presented. Similarly, in 1979 Pakistan had proposed the mutual inspection of each other’s nuclear facilities to build confidence and promote transparency. Moreover, being a responsible international player, in 1979 Pakistan had proposed to simultaneously sign the Non-Proliferation Treaty (NPT)along with India as non-nuclear-weapon states. In 1988 Pakistan had proposed a bilateral treaty to ban the nuclear tests to elude overt nuclearization and reduce the nuclear risk. With the high risk attached to the emerging technologies and delivery systems, in 1994 Pakistan had proposed the South Asia zero-missile zone. Hence over the period, Pakistan has continued its efforts towards nuclear CBMs by proposing various regional and bilateral non-proliferation initiatives. These were aimed at strengthening strategic stability and to reduce the risk of any nuclear conflict in the region. Unfortunately, India has always shown a negative attitude to all such proposals and disrupted various technical, political, and strategic level talks on nuclear CBMs. This historical evidence further validates Pakistan’s appropriate nuclear diplomacy and enhances its credibility as a responsible nuclear-weapon state.

In continuation of its responsible nuclear diplomacy, most recently at the plenary meeting of CD, being held in June 2020, Pakistan has put forth its concerns regarding the nuclear disarmament. While speaking at the conference, Pakistan’s permanent representative to CD Ambassador Khalil Hashmi deliberated upon that with the emerging global conflicts, the consensus on non-proliferation and disarmament has also abraded. The likelihood of a resumption of nuclear testing by countries like the USA, Russia, and India and increased prospects of nuclear use has made the global arms control regime dormant. The increasing trend of double standards and discrimination of the western countries was also highlighted. It was pointed out that the politics of granting waivers to certain states particularly India serves as one of the reasons that the confidence in the nuclear non-proliferation regime has eroded. India’s aspiration of regional hegemony and aggressive military posture against Pakistan are the main contributing factors towards instability and turbulence in South Asia. Moreover, India’s non- compliance with international law has emboldened it to intimidate its neighboring countries and to continue its brutalities in the Kashmir region. India’s irresponsible and incendiary rhetoric combined with its enhanced and aggressive nuclear capabilities is a huge threat to regional peace and security.

To address the above concerns, Pakistan has outlined eleven points roadmap to build the global consensus on non-proliferation. Some of the important steps include; the ‘right of equal security for all states’ in both conventional and non-conventional domains at the national and international levels. The SSOD-I (Special Session on disarmament) has unanimously agreed to this principle of equal security. This shows that Pakistan’s nuclear diplomacy and its non-proliferation efforts have been acknowledged at such an international forum. Another pragmatic step would be that through a non-discriminatory Fissile Material Treaty, all the states must eliminate the current fissile material stock and abandon future production. Likewise, all non-nuclear-weapon states must be provided with security assurances until nuclear disarmament is achieved. A non-discriminatory and universal agreement must be developed to address the concerns regarding the proliferation and development of ABM (Anti-Ballistic Missile) systems. Furthermore, there is a need to strengthen laws to prevent the militarization of outer space and development of LAWS (Lethal Autonomous Weapons System) to be brought under international regulation. Hence to deal with the existing and future challenges to nuclear non-proliferation, international efforts are needed to rethink and re-evaluate the foundations of the non-proliferation regime.

Hence, in this nuclear age, global strategic stability cannot be achieved through discriminatory non-proliferation measures. There is a need for an enabling environment at both the global and regional levels for successful nuclear non-proliferation engagements. In South Asia, India’s offensive doctrines of a limited war under a nuclear overhang, nuclear brinkmanship, and notions of a splendid first strike have posed a serious threat to regional security. In this regard, CBMs and crisis control along with nuclear risk reduction are direly needed to help reinstate a stable regional nuclear order. This would likely serve the key to enduring peace and stability. Despite India’s perilous and pessimist role in the non-proliferation realm, Pakistan should continue to act responsibly and maintain a constructive and responsible nuclear diplomacy.

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