2010 Top Risks
Expect 2010 to be much more turbulent year geopolitically speaking than last year, according to the latest report out by Eurasia Group.
In 2009, the world was focused on solving the global financial crisis but now issues surrounding geopolitics is back again. Bremmer said, "with the world now coming out of recession, the risks are starting to shift to the challenges created by the emergence of a new global order - developed vs. developing states, the old unipolar system vs. the emerging non-polar one, and the old dominant globalized system of regulated free market capitalism vs. the growing strength of state capitalism."
Ian Bremmer, President of Eurasia Group joined Closing Bell for a First on CNBC interview this afternoon.
On the top of the list: US-China relations. While US faces rising employment, China continues to grow. Bremmer said, "(this) exacerbate tensions in the world's most important bilateral relationship in 2010. For Beijing, economic partnership with the US looks a lot less attractive than it did just a couple of years ago." Bremmer also pointed out don't expect China to take a global leadership role on issues like climate change, nuclear non-proliferation, international trade, cyber-security and armed conflicts around the world.
Iran Domestic Pressures
Iran will also be a very important issue because the country is facing tremendous domestic pressures after the elections. Bremmer said, "Tehran has lost considerable influence regionally, and internationally, Iran faces a new round of UN sanctions. The Iranian regime looks increasingly like a cornered, wounded animal." Bottomline, you'll see uncertainty in that region.
Europe didn't escape the list of Top Risks. The report pointed out that there's a "blurring of distinction" between the "mature" and "emerging" markets in Europe. "Fiscal policy coordination has been eroding for some time, and member state political processes are highly uneven. Greece, Ireland, Spain, Portugal and Italy in particular face complex fiscal challenges and consequent policy changes will have far-reaching implications," Bremmer pointed out.
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