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Rising geopolitical and geo-economic tensions are the most urgent risk in 2019

MD Staff

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The world’s ability to foster collective action in the face of urgent major crises has reached crisis levels, with worsening international relations hindering action across a growing array of serious challenges. Meanwhile, a darkening economic outlook, in part caused by geopolitical tensions, looks set to further reduce the potential for international cooperation in 2019. These are the findings of the World Economic Forum’s Global Risks Report 2019, which is published today.

The Global Risks Report, which incorporates the results of the annual Global Risks Perception Survey of approximately 1,000 experts and decision-makers, points to a deterioration in economic and geopolitical conditions. Trade disputes worsened rapidly in 2018 and the report warns that growth in 2019 will be held back by continuing geo-economic tensions, with 88% of respondents expecting further erosion of multilateral trading rules and agreements.

If economic headwinds pose a threat to international cooperation, efforts will be further disrupted in 2019 by rising geopolitical tensions among major powers, according to the report. Eighty-five percent of respondents to this year’s survey said they expect 2019 to involve increased risks of “political confrontations between major powers”. The report discusses the risks associated with what we describe as a “multiconceptual” world order – one in which geopolitical instabilities reflect not only changing power balances but also the increasing salience of differences on fundamental values.

“With global trade and economic growth at risk in 2019, there is a more urgent need than ever to renew the architecture of international cooperation. We simply do not have the gunpowder to deal with the kind of slowdown that current dynamics might lead us towards. What we need now is coordinated, concerted action to sustain growth and to tackle the grave threats facing our world today,” said Børge Brende, President of the World Economic Forum.

In the survey’s 10-year outlook, cyber risks sustained the jump in prominence they registered in 2018, but environmental risks continue to dominate respondents’ concerns beyond the short term. All five of the environmental risks the report tracks are again in the high-impact, high-likelihood category: biodiversity loss; extreme weather events; failure of climate-change mitigation and adaptation; man-made disasters; and natural disasters.

Alison Martin, Group Chief Risk Officer, Zurich Insurance Group, said: “2018 was sadly a year of historic wildfires, continued heavy flooding and increasing greenhouse gas emissions. It is no surprise that in 2019, environmental risks once again dominate the list of major concerns. So, too, does the growing likelihood of environmental policy failure or a lack of timely policy implementation. To effectively respond to climate change requires a significant increase in infrastructure to adapt to this new environment and transition to a low-carbon economy. By 2040, the investment gap in global infrastructure is forecast to reach $18 trillion against a projected requirement of $97 trillion. Against this backdrop, we strongly recommend that businesses develop a climate resilience adaptation strategy and act on it now.”

Environmental risks also pose problems for urban infrastructure and its development. With sea levels rising, many cities face hugely expensive solutions to problems that range from clean groundwater extraction to superstorm barriers. Shortfalls of investment in critical infrastructure such as transport can lead to system-wide breakdowns as well as exacerbate associated social, environmental and health-related risks.

John Drzik, President of Global Risk and Digital, Marsh, said: “Persistent underfunding of critical infrastructure worldwide is hampering economic progress, leaving businesses and communities more vulnerable both to cyberattacks and natural catastrophes, and failing to make the most of technological innovation. Allocating resources to infrastructure investment, in part through new incentives for public-private partnerships, is vital for building and strengthening the physical foundations and digital networks that will enable societies to grow and thrive.”

At an individual level, declining psychological and emotional well-being is both a cause and consequence within the wider global risks landscape, impacting, for example, social cohesion and political cooperation. The Global Risks Report 2019 focuses explicitly on this human side of global risks, looking in particular at the role played by complex global transformations that are under way: societal, technological and work-related. A common theme is that psychological stress relates to a feeling of lack of control in the face of uncertainty.

This year’s report revives the Future Shocks series, which recognizes that the growing complexity and interconnectedness of global systems can lead to feedback loops, threshold effects and cascading disruptions. These “what if” scenarios are food for thought as world leaders assess potential shocks that might rapidly and radically disrupt the world. This year’s sudden and dramatic breakdowns include vignettes on the use of weather manipulation to stoke geopolitical tensions, quantum and affective computing, and space debris.

The Global Risks Report 2019 has been developed with the invaluable support throughout the past year of the World Economic Forum’s Global Risks Advisory Board. It also benefits from ongoing collaboration with its Strategic Partners Marsh & McLennan Companies and Zurich Insurance Group, and its academic advisers at the Oxford Martin School (University of Oxford), the National University of Singapore and the Wharton Risk Management and Decision Processes Center (University of Pennsylvania).

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Defense

Beating The Drums Of War Against Iran And Pakistan

Dr. Arshad M. Khan

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As countries continue their squabbles, their home the earth is going to hell in a handbasket.  A new review paper in Biological Conservation reports 40 percent of insect species are threatened with extinction.  Guess who pollinates our plants where we get our food?

All of which is of little concern to President Trump, who disdains science and experts of any kind.  His vice president has been at the Munich Security Conference where an awkward silence prevailed as he conveyed greetings from Trump and waited for the customary applause.  His speech, focused on hounding Iran, met with polite, muted applause.

Angela Merkel in contrast defended the Iran agreement (which the US has unilaterally abrogated) and talked of maintaining lines of communication without giving up gains already achieved.  Her ambit included Russia and Mr. Putin, and her critique of Trump and his policies received thunderous applause in what was seen as a striking rebuke to ‘America First’.  Some said it was one of her best and thoughtful speeches.

In India, it’s Kashmir again.  Poor Kashmiris.  They tried trusting Nehru and waited … and waited for the promised vote for self-determination; of course Pakistan’s headstrong responses did not help.  They tried peaceful demonstrations and received blinding and sometimes fatal shotgun pellets — not for them just tear gas or the famed Israeli rubber bullets.  What’s left but militancy for which Mr. Modi blames Pakistan his convenient scapegoat.  All too convenient with elections round the corner, he has the country awash in jingoism.  Communal assault often follows in this his tried-and-true election tactic.

Rahul Gandhi the jejune opposition leader is out of his depth as usual.  His only hope is for Mr. Modi to overplay his hand.  All of this despite a general dissatisfaction because the promised economic benefits for the majority have not materialized, and as cell phones multiply, people can actually see the extravagances of the rich.

Mr. Modi threatens to isolate Pakistan and Muhammad bin Salman signs projects and loans worth $20 billion — at the beginning of his visit to Pakistan, the figure touted was $10 billion.  As Theodore Roosevelt used to say, ‘Speak softly and carry a big stick’ not the reverse.

A rational answer to the Indian subcontinent is a loose confederation of independent states in a cooperative scenario, accruing the benefits of free trade and the particular resources of individual members — not the copycat US ‘most favored nation status’ to be yanked like a toy from a recalcitrant child.  All this when Pakistan has just introduced the very short range Nasr low-yield nuclear-tipped missile designed to decimate a cold start attack.

Instead of the frenetic jumping up and down and undiplomatic meaningless threats, how about a calm and rational peace?

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A lie about an allegation of the IRGC’s support for terrorism

Sajad Abedi

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Recent attacks on the Revolutionary Guards can be viewed from two perspectives. The first perspective is historically and the second, in terms of the behavioral model of regional and sub-regional actors in the current pattern of Western-Asian regional order.

It seems that recent pressures on the Revolutionary Guards as a revolutionary entity are rooted in the fears of Washington and its allies from a revolutionary force. A force whose members go beyond the military equations or even beyond the logic of power in the region to survive the ideals of the revolution and defend oppressed nations.

History has clearly shown that Washington is afraid of IRGC. The force that presents figures such as the martyr Hojaji and a picture of him, while willingly and resolutely prepared for martyrdom, affects the world.

In the past three decades since the Revolutionary Guards have lived, the West has always been afraid of a force that has been inspired by soft power along with its hard power. It is the same force that can bring nations and quickly become a native force in different countries.

The White House knows well that if Hezbollah-Lebanon, Ansarullah-Yemen and many other popular forces were formed on the regional level, they all had the power to influence the pattern of the Revolutionary Guards. The dependence of the classical armies in different countries on the national government does not allow them to operate with flexibility at all times and places, and even if these operations are carried out people in other countries do not welcome the presence of an army that is alien to it.

Territorial frontiers, in terms of modern Islamic civilization, defend the borders of the Islamic Revolution, which are Islamic ideals. It is inevitable that, in the soft power, the IRGC has the power to help not only the oppressed people in Iraq and Syria, but also to meet the people in these countries.

Accordingly, over the past years, Washington has repeatedly tried to use various methods to weaken the popular position of the Revolutionary Guards and to prevent its increasing popularity in the region and beyond.

Soft power strategists in the United States who are well aware that the concept of power in the new age is not only the result of hard power and the soft power of the countries, have so far been attempting to deal with psychological or media methods To disrupt the Revolutionary Guards and scare the peoples of the region from the influence of the Revolutionary Guards. The propaganda included a Shia-based pseudo-propaganda, a lie about the IRGC’s anti-Semitic tendencies, an allegation of the IRGC’s support for terrorism, an illusion about the role of the IRGC in the development of the Persian Empire, and sometimes with numerous contradictory propositions. For example, while the Revolutionary Guards are falsely accused of stirring up ethnic or religious disputes and are being reduced to an ideological force, this rumor is spreading that the Iranian people’s budget is spending on the other people! At the same time, that is an allegation the IRGC want to expand and increase its dominance over Western Asia.

These media never tell their audience that the IRGC is finally the source of Iran’s resources to other countries, or vice versa, seeking to use other countries for the benefit of the Iranian people. In fact, they are not obliged to explain to themselves the obvious fact that unless a powerful force such as the Revolutionary Guards is acting simultaneously in the language of its nation, it is also considering developing the power of this nation.

But along with the historical roots of the Revolutionary Guard, regional realities must also be taken into account. Today, under the circumstances, the Revolutionary Guards are accused of developing ballistic missiles and supporting terrorism, in which Western-backed terrorists have been in the weakest position in the last decade. Unlike a decade ago, the United States is now forced to withdraw its troops from the region. London’s policies have failed to fill the United States in the region due to domestic problems, including the clashes with the European Union, and the Arab-American allies-Saudi Arabia and Qatar.

The result of Iran’s resilience to its positions in the region, which is nothing but serious support for the oppressed nations, has caused Iranian regional rivals like Riyadh to seek to modify their behavior towards our country and to improve the areas for improving relations to provide with Iran. Under such circumstances, the Donald Trump administration has concluded that it has lost all its winning leaves to pressure the Revolutionary Guard, and now it cannot impose its power on the Revolutionary Guards even in the Persian-Gulf tensions.

Therefore, the government of Trump tries to launch a wave of economic pressure against this revolutionary institution along with negative propaganda against the IRGC and use this method to weaken the IRGC. However, the principle of the self-sufficiency of the Revolutionary Guards and the lack of dependence of this force on global capitalism has made any sanctions on the Revolutionary Guards ineffective and a scenario for compelling the IRGC to negotiate and retreat has failed.

In such a situation, it seems that maintaining internal cohesion in support of the Revolutionary Guard is the only hope for the people of the region to be able to overcome the domination of foreigners with the help of the soft and hard power of Iran, and to make deep changes in the region.

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Nasr Missile and Deterrence Stability of South Asia

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Pakistan has conducted successful test of short range surface to surface ballistic missile ‘Nasr’ on January 24th, 28th and 31st respectively, as part of the Army Strategic Forces Command training exercise, which included quad salvo on 24 January and single shots on 28 & 31 January, 2019. Quad salvo means that the four missiles were fired together from AR1A/A100-E Multiple Launch Rocket System (MLRS) to enhance the operational efficiency of Army Strategic force Command. While single shots means one missile was fired from the vehicle. The aimed of letter tests were for testing in flight maneuverability, including the end flight maneuverability. Nasr has shoot and scoot attributes which mean that the system has a capability of firing and moving away quickly to avoid counter targeting which would be contributing to the weapon’s survivability.The speed and low apogee of the Hatf-IX missile would make it difficult to intercept by all the Indian existing Ballistic Missile Defence system and could defeat S-400 air defence system which is in process.

As South Asia region is consider unstable because of ongoing hostility between India and Pakistan. Though hostility between both states is unending but nuclear weapons have brought stability to a great extent. As India decided to take the nuclear weapons route, Pakistan followed because through nuclear weapons Pakistan successfully neutralized Indian conventional superiority.

In South Asia, security competition between India and Pakistan has been characterised by an action-reaction spiral. Pakistan took the path of nuclear weapons development in order to create balance against militarily superior India. In 2004, India adopted aggressive military doctrine, Pakistan rationally responded by developing Short Range Ballistic Missile Nasr which further strengthen the existing deterrence equation of the region. As Pakistan is not able economically to compete India conventionally, so it always took necessitating reactionary steps to maintain deterrence stability of South Asia.

The purpose of the development of Nasr is defensive because Pakistan would use it to secure its border from Indian conventional aggression. Pakistan Short Range Ballistic Missile Nasr has been criticized by international community that it would increase arms race in South Asia.  But Pakistan developed Nasr to overcome the growing threats from the Indian offensive military doctrine. Cold Start Doctrine forces Pakistan to increase its dependence on nuclear arsenals. General Bipin acknowledged CSD in 2017, was followed by Pakistan’s Nasr test by improving its range from 60 to 70 km which puts cold water on Cold Start. Before official acknowledgement of CSD, Pakistan did not conduct any training tests of Nasr. Pakistan inducted the Nasr missile in its strategic arsenal in 2017and its first training launch was held in July 2017 after the official acknowledgment of CSD from Indian side,  shows that Pakistan developed Nasr only to deter India from initiating a conventional assault against Pakistan. Pakistan does not want to indulge in an arms race rather react to those Indian developments which are threatening its sovereignty. This weapon system has augmented Full Spectrum Deterrence in line with Credible Minimum Deterrence, which means that Pakistan would deter conventional forces (India) by employing nuclear deterrence. Pakistan adopted assertive command and control system on Nasr which means it is centrally controlled which minimize the chances of accidental or unauthorized use.

The latest series of Nasr training tests were response to General Bipin10th January 2019, statement, that the military is launching war games next month to test ‘structures geared towards sudden and swift offensives into enemy territory by Integrated Battle Groups (IBGs). These new structures will be “validated” in military exercises on the ground in May, 2019. As IBGs are the center of Indian offensive military doctrine, which involves initiating rapid military offence from multiple fronts by exploiting the element of surprise and leaving Pakistan with neither the time to respond nor the defensive resources to stop those multiple attacks. Nasr tests are in response to this Indian military announcement as Pakistan solely developed Short Range Ballistic Missile Nasr to deter India from initiating conventional conflict. The recent Nasr tests have frightened Indian commanders because of its capability to defeat all Indian existing Ballistic Missile Defence systems and S-400 air defence system. Hence, deterrence is often in the minds of adversary. As long as Indian leaders continue to be deterred by Nasr, it will continue to be effective.

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