{"id":23056,"date":"2025-01-13T18:35:00","date_gmt":"2025-01-13T18:35:00","guid":{"rendered":"https:\/\/www.insurance-canada.ca\/?p=82337"},"modified":"2025-01-13T18:35:00","modified_gmt":"2025-01-13T18:35:00","slug":"the-top-risks-of-2025-and-their-implications-for-canada-eurasia-group","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2025\/01\/13\/the-top-risks-of-2025-and-their-implications-for-canada-eurasia-group\/","title":{"rendered":"The Top Risks of 2025 and Their Implications for Canada: Eurasia Group"},"content":{"rendered":"

New York, NY (Jan. 8, 2025) \u2013 Eurasia Group has released its annual Top Risks<\/em> report, forecasting the political risks most likely to play out in 2025. Country-specific addendums for Canada, Europe, Brazil, and Japan further illustrate how global risks play out in different parts of the world, with specific implications for governments and businesses.<\/p>\n

Top Global Risks 2025<\/h4>\n

We are heading back to the law of the jungle. A world where the strongest do what they can, while the weakest are condemned to suffer what they must. And the former \u2013 whether states, companies, or individuals \u2013 can\u2019t be trusted to act in the interest of those they have power over.<\/p>\n

It\u2019s not a sustainable trajectory, and it leads to a \u201cG-Zero world\u201d in which no one power or group of powers is both willing and able to drive a global agenda and maintain international order. That global leadership deficit is growing critically dangerous.<\/p>\n

In 2025, this is a recipe for endemic geopolitical instability that will weaken the world\u2019s security and economic architecture, create new and expanding power vacuums, embolden rogue actors, and increase the likelihood of accidents, miscalculation, and conflict. The risk of a generational world crisis, even a new global war, is higher than at any point in our lifetimes.<\/p>\n

The central problem facing the global order is that core international institutions \u2013 the United Nations Security Council, the International Monetary Fund, the World Bank, and so on \u2013 no longer reflect the underlying balance of global power. This is a geopolitical recession, a \u201cbust cycle\u201d in international relations that can be traced back to three causes.<\/p>\n

To read more, download the Top Risks<\/em> report<\/a> from Eurasia Group.<\/p>\n

Implications For Canada<\/h4>\n

Canada benefited for decades from an international order conducive to its interests and values. Under the protective umbrella of the United States, Canadians enjoyed freer trade with their neighbour to the south and influence in the multilateral institutions \u2013 the UN, the G7, and NATO, among others \u2013 that set the global agenda. Canadian officials moved confidently through a world where might did not make right, where democracy, human rights, and the rule of law steadily advanced, and in which they enjoyed privileged relations with the world\u2019s democratic superpower.<\/p>\n

In 2025 it will become clear that we are in a new era of global politics: a G-Zero world in which no one power or group of powers is willing and able to drive a global agenda and maintain international order. That global leadership deficit will be exacerbated by an ongoing geopolitical recession \u2013 a \u201cbust cycle\u201d in international relations in which core international institutions no longer reflect the underlying balance of global power.<\/p>\n

The G-Zero leadership deficit means the prospects for peaceful reform or renewal of the global order are slim. Combined with the mismatch between global power and institutions, it\u2019s a recipe for endemic geopolitical instability. That\u2019s why \u201cThe G-Zero wins\u201d is Eurasia Group\u2019s Top Risk #1 for 2025.<\/p>\n

A likely new Conservative government as well as Canadian businesses will need to navigate a much more dangerous global environment. For a country used to following rules and often taking its own security for granted, the stark realities of G-Zero will be a rude awakening. Ottawa has already had a taste of what to expect amid allegations of foreign interference by China and India and, more recently, new tariff threats from US President-elect Donald Trump.<\/p>\n

Here are some of the key takeaways from this year\u2019s top risks for Canada and Canadians:<\/p>\n