The year 2009 was marked by unprecedented economic turbulence. While the worst of the recession seems behind us now, 2010 brings with it fresh challenges for the world economy. In a recent report, research and consulting firm Eurasia Group has identified key geopolitical risks for global investors, business leaders and market participants.
CLIMATE CHANGE: Failure to establish clear goals at Copenhagen complicates investment decisionmaking — from renewable energy to commodity price forecasting.
US FINANCIAL REGULATION: Financial regulatory reform would be the litmus test for US President Barack Obama.
JAPAN: Political instability in Japan will make it that much tougher to combat a grave economic situation — particularly given Japan's extraordinary fiscal constraints.
EUROPEAN FISCAL DIVERGENCE: Policymakers are struggling to adapt domestic politics to the more pressing public financing challenges.
BRAZIL: Brazil's challenges loom greatest in the oil sector in 2010. The government does not want the global community to profit from the country's vast new oil frontier.
INDIA-PAKISTAN: India-Pakistan relations have deteriorated which will concern potential investors in the subcontintent.
EASTERN EUROPE: High levels of unemployment are worrying. Governments could also come into conflict with monetary authorities and lenders.
TURKEY: Turkey's international orientation is moving away from Europe and closer to Iran and Syria. It will worry the US and its allies.
US-CHINA RELATIONS: There could be a stand-off between US and China over reform of regulatory framework for international trade.
IRAN: It faces a considerably tougher sanctions regime over its nuclear programme which is clearly a significant long-term negative for global stability.