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20 March 2024 comment on post below: We are now only one step from NATO formally declaring war against Russia. That step would be a military action by Russia against a NATO member. But how likely is this?
Our world is facing the greatest geopolitical risks we have seen for over 40 years, with an ongoing war in Eastern Europe, conflict in the Middle East and major tensions over the future of Taiwan.
The Second World War showed us how a war in one region can make other conflicts more likely, because different nations start seeing opportunities of their own in the midst of regional and global chaos.
History shows that the ability of dictators to start new wars is directly related to the political power they have. And President Putin's power base in Russia is now stronger than before the invasion of Ukraine, while his ambition continues to grow to expand the territory that Russia controls.
The more powerful a dictator becomes, by definition, the quieter the voices of dissent around them, the more feeble the challenges to any unrealistic ambitions. Powerful dictators risk loosing their grip on practical realities (eg actual military strength) because those around them are often too afraid to tell them the truth. P
Europe / NATO is therefore at great risk of a further miscalculation / gamble by President Putin, emboldened by a distorted view of the wider world, by lack of internal threats to his power, by mobilisation of his nation to a wartime economy, and by what he believes is fading support for Ukraine in the US.
Set against this is the fact that Russian military strength has been weakened in the last two years.
In comparison, NATO / Western Europe can hardly find enough ammunition to supply half of Ukraine's front-line needs, has been very slow to ramp up defence spending, has a poorly defined nuclear weapons strategy, and is in no fit state to go to war against Russia.
A single new military action by President Putin could be enough to trigger war with NATO, with potential for vast destruction across Western, Eastern and Central Europe - even assuming that no nuclear weapons are fired.
The most effective way to reduce this risk is for Europe / NATO to rapidly mobilise for outright war, as a preventative measure, but this is currently happening at a very slow pace.
Manufacturing of new weaponry is painfully slow, and EU nations have hardly woken up to the wartime realities which will mean diverting major spending from other important areas such as health care, and increasing government debt.
Expect EU / NATO to accelerate military spending, with many nations budgeting 2% of GDP, some like Poland far more, by 2027, partly because of pressures from the US to honour NATO-related pledges.
Expect many corporations to continue to shorten supply chains to minimise risk, sourcing within regions rather than across the world.
11 July 2022 note on post below: History shows that small conflicts often trigger wider ones which is what is happening. Hundreds of companies cancelled Russian business contracts or exited operations altogether from Russia within days and weeks of the invasion of Ukraine in February 2022, but wider factors remain far more important from the global point of view.
On the one hand, the Russian economy was in any case smaller than Spain before the invasion, and will continue to shrink rapidly during the rest of 2022 and into 2023. Yet on the other hand, it has a huge old-fashioned military able to create First World War type regional destruction on a massive scale - without using nuclear devices. Sadly it can cost a mere $100,000 to blow up a 1000 year old building, but $500m to rebuild and restore (and nothing can replace the original history).
So Russia is not an economic superpower able to sustain a massive war for a long period without financial catastrophe. Nor does Russia have the economic, military or organisational power to subdue and control 40 million angry and bitter Ukrainians....
Read more: Risk of Russia war with NATO. Russia's past is key to it's military future. War and Russian economy, Russian foreign policy and political aspirations, future relationship between Russia, China, EU, NATO and America - geopolitical risks keynote speaker