By Peter Apps, Political Risk Correspondent
LONDON | Thu Nov 10, 2011 9:54am EST
(Reuters) - Any euro zone failure would send shock waves around the globe, shifting the balance of geopolitical power and perhaps prompting a fundamental reassessment of what the world's future might look like.
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Suddenly, pundits, policymakers and other observers find themselves questioning one of their most fundamental assumptions -- that an increasingly united Europe would be a key player in a newly multipolar world.
"You already have one of the great pillars of globalization, the United States, entering a period of difficulty and looking inward," said Thomas Barnett, US-based chief strategist of political risk consultancy Wikistrat -- which is being asked by several private clients to urgently model scenarios. "Now one of the other pillars, Europe, looks about to implode."
That, he said, could leave the continent's powers -- who only a handful of years ago made up much of the G7 group of largest economies -- increasingly sidelined as China, India, Brazil and others rose.
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Wikistrat chief strategist Barnett says much depends on what emerges if the Euro falls. If, as many suspect, a rump euro zone around Germany remains whilst Mediterranean states go their own way, the whole geopolitical focus of the continent could shift.
The northern element, he suggests, could focus its attention more to the east, giving priority to what could either become a corporatist or confrontational relationship with Moscow. The southern states, in contrast, might integrate much more closely with North Africa and the rest of the Mediterranean -- a region perhaps dominated by a newly assertive Turkey.
The euro itself should still be salvageable, he says, but it may just be that the political will is simply not there.
"It's essentially a common-law marriage that never quite made it to the church and now seems to be moving toward a split," said Barnett. "It shouldn't be necessary, you would have hoped that it could be avoided, but we are living through an age of political immaturity."
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Monday, April 30, 2012 at 12:19PM Amid all our current fears regarding the global economy’s potential “double dip” back into deep recession, a longer-term question stands out: How can a supposedly declining America protect the golden goose that is globalization while managing the rise of twin economic superpowers in the East -- namely, China and India? History says that three is a crowd when it comes to system stability. Invariably, some conflict will arise to trigger a two-against-one dynamic that must yield to either the stable stand-off of bipolarity, as during the Cold War, or the emergence through decisive conflict of an acknowledged unipolar hegemon, as in the early post-Cold War period.
