Monday, September 17, 2012

Western Economies: What New Great Risk?




Political upheaval and discontent will mark out 2012 as a year of great uncertainty, with one commentator telling CNBC that the changing world power structure means that the West’s traditional dominance in global economic and geo-political affairs is on the wane.

“What is different now is that political risk is now a factor in western countries and this risk is becoming more important than it has been before,” Saker Nusseibeh Chief Executive at Hermes Fund Managers told CNBC’s “Squawk Box Europe.”

Ideas and theories purporting a declining West and declining western influence on the world order have been around for many years but the strength of emerging economies in recent years coupled with social factors such as changing demographics across both the developed and developing world have brought to the fore the notion that the West is in decline. Nusseibeh suggests that dwindling natural and economic resources have made the “share of the pie smaller” which will inevitably lead to more tensions as a growing world population strives to stake its claim…..

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