INSIGHTS Leadership Changes 2017 Leadership Changes Threaten Political and Economic POLITICAL RISK Stability in 2017 MAP 2017
With possible leadership changes in more than 20 countries EVENTUAL RUSSIAN this year, the stability of many regions is in question. SUCCESSION WILL DETERMINE Potential leadership changes pose SAUDI ARABIA significant threats to political EURASIA’S FATE and economic stability. In many AND IRAN LEAD countries, there is great uncertainty SUCCESSION RISKS Events in Crimea during March about who will succeed ageing 2014 have raised fears of Russian rulers who have held power for IN THE MIDDLE EAST President Vladimir Putin’s decades and where there is no clear authoritarian ambitions for the framework to transfer the reins of Geopolitically, Saudi Arabia region. The eventual succession government. When power has been and Iran are the most assertive of Putin, 64, is likely to be one concentrated in a few hands for a countries in their region, driving of the most important in the long period of time, there can be a polarisation between Sunni and region, but is also likely to be high risk of instability following a Shi’a Muslims. The next generation much farther off than many of leader’s replacement. The incoming of Saudi and Iranian leaders will the succession risks detailed in head of state may lack the authority, determine whether their countries this report. Putin has been in experience, and political support continue down current paths, with power since 1999 and remains that are critical to a smooth Saudi Arabia’s policies shaped by a popular throughout the country, transition. Wahhabi version of Islam, and Iran despite economic challenges from following a radical version of an Western sanctions and low oil In several regions, succession Shi’a Islamic republic. Oman is also prices. risks pose significant concerns, important to this regional dynamic, particularly when combined with having traditionally acted as an Meanwhile, leaders in both the major elections slated for 2017, interlocutor between the two rival Kazakhstan and Uzbekistan populism and nationalism gaining countries and helping to maintain have thus far resisted naming traction on a global scale, and a balance of power. successors, which could create protectionist measures impacting a power vacuum in the future. trade and economic growth. Over the coming decade, investors will be watching closely for signs of unstable transitions in these countries, which not only have vast hydrocarbon resources, but also face the threat of Islamist militancy from Afghanistan, while in the midst of a wider geopolitical struggle between Russia, China, and the West.
1 INSIGHTS Leadership Changes 2017
FIGURE 1 GLOBAL SUCCESSION RISKS