Global risks heightened with strikes, riots, conflicts: Marsh
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The threat of strikes, riots and civil commotion rose in the Americas, Asia Pacific and European regions as the threat of war and civil war increased in sub-Saharan Africa, Europe and most acutely in Eastern Europe and central Asia, according to a report Tuesday from Marsh LLC.
The broker also identified access to water resources, critical minerals and space exploration as potential sources of conflict as competition in these areas increases.
Australia, Brazil and the Russian Federation saw the greatest increases in the threat of strikes, riots and civil commotion. The risk of expropriation rose most in Chile, followed by the Russian Federation, data from the report showed.
“The conflict between Russia and Ukraine is a stark reminder of how quickly geopolitical risks can escalate and have a terrible local humanitarian impact as well as affect businesses and investors around the world,” Nick Robson, head of credit specialties for Marsh Specialty, said in a statement issued with the report.
The globe’s oceans could be one front for conflict, as about 44% of the world’s population lives within 150 kilometers (about 93 miles) of a coastline, and 43% depend on seafood as their main protein source, the Marsh report said.
Political risk and potential friction could also come from increasing demand and competition for strategic minerals such as cobalt, copper, lithium, manganese, thorium, titanium, uranium and vanadium. “Several countries are already pursuing aggressive procurement strategies that could raise the prospect of geopolitical conflict,” the report said.
Similar tensions could stem from the growth of utilization and exploration of space, which “… has witnessed recent economic acceleration and exploration as the quest for new horizons continues,” the report said, noting that more than 1,500 satellites were launched in 2021.
