The Geopolitical situation
As of January 2025, the global geopolitical landscape is marked by significant tensions and strategic realignments, with notable developments in various regions:
Eurasian Dynamics
The concept of Eurasia as a central arena for global power struggles has gained renewed attention. Historical geopolitical theories, such as those by Halford Mackinder and Nicholas Spykman, emphasize the strategic importance of this region. Contemporary conflicts, including the ongoing war in Ukraine and China's territorial ambitions, reflect these theories. An emerging alliance among China, Russia, North Korea, and Iran, sometimes referred to as the "Axis of Upheaval," seeks to challenge U.S. hegemony. In response, the United States is reinforcing its alliances in Europe and East Asia. This escalating tension risks dividing the world into hostile blocs, potentially undermining global prosperity and complicating international cooperation on critical issues like climate change.
Reuters
Arctic Competition
The Arctic region has become a focal point of great-power rivalry, driven by climate change and geopolitical interests. The retreating sea ice is opening new shipping routes and access to vast fossil fuel reserves, intensifying economic and strategic competition. Russia's strategic plans heavily involve the Arctic, and its collaboration with China is deepening, with China investing in Arctic infrastructure and engaging in military cooperation. This growing presence raises concerns for the U.S. and its allies, prompting a reassessment of strategies to bolster domain awareness, military capabilities, and regional cooperation to effectively mitigate potential conflicts.
Time
Nepal's Geopolitical Balancing Act
Nepal's geopolitical significance is increasing as it navigates the competing interests of neighboring giants India and China, along with the United States. This strategic location offers opportunities for economic development and international cooperation but also presents challenges in maintaining sovereignty and balancing external influences. Experts advocate for a pragmatic, transactional approach to diplomacy, emphasizing sovereignty, independence, and non-alignment. By fostering diversified global partnerships and engaging in economic diplomacy, Nepal aims to safeguard its territorial integrity and advance national interests amid an increasingly competitive global landscape.
Kathmandu Post
Global Business Environment
Businesses worldwide are bracing for another year of geopolitical tumult, with significant concerns regarding foreign policy shifts and global instability. Key issues include the reordering of U.S.-China relations, deglobalization, and the rise of "friend-shoring." Executives highlight geopolitical instability and changes in trade policy as major risks to global growth. The evolving U.S.-China relationship, marked by increased trade restrictions and countermeasures, presents significant compliance challenges for companies. In response, many businesses are bolstering their geopolitical risk functions and conducting scenario analyses to navigate the interconnected global environment.
The Wall Street Journal
In summary, the current geopolitical environment is characterized by complex rivalries, strategic realignments, and regional tensions. Nations and businesses alike are adapting to these dynamics, seeking to balance opportunities with the challenges posed by an increasingly multipolar world.