The past two years were the years of the global pandemic. So far, 2022 is looking like a year of global pandemonium. It began with Russia鈥檚 invasion of Ukraine and has gone on to feature rising tensions between the US and China, the collapse of the Iran nuclear deal, and a budding economic crisis that has set off inflationary spirals, financial panics and even political upheaval around the world.
Trapped between rising geopolitical tensions and deteriorating economic outlooks, none of the world鈥檚 major powers are in a good place today. China, where aggressive zero-Covid policies continue to exact massive social and economic costs, faces its gravest financial crisis yet as it struggles to manage the biggest real-estate bubble in world history. Japan鈥檚 foreign minister told Washington think-tankers last week that the 鈥渓ogic of brute force鈥� was replacing the rule of law in Japan鈥檚 part of the world even as slow growth, demographic decline and a weak currency raise doubts about Japan鈥檚 long-term prospects.
Rising food and fuel costs pose major problems for India鈥檚 economy. With Pakistan and Sri Lanka embroiled in political and economic crises, China pressing on the border, Afghanistan on the boil, and Myanmar鈥檚 civil conflict growing bloodier and more bitter, India鈥檚 home region is less stable than at any time since Bangladesh鈥檚 war of independence in 1971.