'Weakening of Western influence on global agendas' was ranked the top geopolitical concern in 2024, according to respondents of the UK risk management association Airmic's recent Political Risk in the Year of Elections report. That concern might seem abstract, but as the research in the latest edition of our Political Risk Index shows, it is a trend with concrete impacts for globalized businesses.
Our research indicates that the weakening of Western influence is one of the factors contributing to declines in global average levels of economic freedom, protection of investor rights, protection of intellectual property rights, and even democracy.
In this report, in addition to covering the risks of political violence, expropriation and inconvertibility – which have risen sharply in recent years – the Oxford Analytica experts who produce the country profiles look at each country’s relationship with the so-called ‘global rules-based order’ or ‘liberal international order.’
As this [rules-based] order declines, globalized companies will face many challenges.
While – even at its peak – the rules-based order had many flaws, it also underpinned economic globalization that transformed the lives of hundreds of millions for the better. As this order declines, globalized companies will face many challenges. With this research, we hope to illuminate some of these challenges as businesses attempt to navigate a more volatile geopolitical future.
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Political Risk Index: H1 2024
Read the full index here
