Recent years saw huge numbers of people around the world take to the streets to protest their governments and policies, from anti-austerity movements to middle-class revolts, in rich countries and in poor, and this will continue in 2014. The triggers so far are diverse—from revolts against dictatorship in the Middle East to the construction of a mall in Istanbul or bus fare increases in Rio—but the underlying causes are common, and run deep: wide income-inequality, government inefficiency, corruption, high taxes, and shoddy public services. There is the perception that the gap between people and institutions is widening, due to an erosion of trust in governments.
This is true in rich countries as well, where voter turnout has been falling slowing since the 1970s, from more than 80% to less than 70% today. This trend has led some to see democracy under threat. Globally, the Economist estimated for 2014 that 65 countries will be at a high or very high risk of social unrest. The high-risk category grew by 19 countries when compared with five years ago, and the Middle East and North Africa, southern Europe, the Balkans, and the former Soviet countries of East Europe and Central Asia are all well represented there.
5. Disputes in the East China Sea Continue to Raise Tensions
Tensions in the East China Sea have risen sharply in the last weeks of 2013 with the Chinese declaration of an Air Defense Identification Zone. The new year will likely see the continuation of China’s aggressive play in the area. And with a more economically confident Japan (The Economist forecasts a 2% growth), this can be a dangerous international tactic. Chinese and Japanese militaries operate in close proximity, and the bigger concern remains the possibility for an accidental escalation rather than a planned attack. China, however, will continue to press hard on its territorial claims, mainly for domestic reasons. As President Xi starts to implement difficult reforms, such as financial reform, anti-corruption, and more transparency in state-owned enterprises, he will need both the Communist Party and the Army on his side. Nationalist rhetoric will help building consensus both at the top and in the public.