You May Not Be Interested in Geopolitics, but Geopolitical Risk Will Impact You
Are Geopolitical Risks on Your “Risk Radar”?
“You may not be interested in geopolitics, but geopolitical risk will impact you.” This statement underscores the undeniable influence of global political and economic dynamics on Caribbean institutions and the daily lives of those living in the Caribbean. Even if you don’t actively follow international affairs, these forces still shape your world in profound ways. Let’s break down why this is so:
Interconnectivity of risk
The world today is more interconnected than ever before. Global events in distant regions can directly impact the Caribbean. For example, political instability or war in one part of the world can trigger supply chain disruptions, resulting in shortages of goods, rising prices, and delayed deliveries. The COVID-19 pandemic, the ongoing war in Ukraine, and even the recent droughts that affected the Panama Canal all highlighted how vulnerable global supply chains are to geopolitical risks. These disruptions don’t just affect the major powers—they trickle down to impact Caribbean markets, economies, and everyday life. And the fallout from events like the results of U.S. elections? They can reverberate far beyond American borders, influencing Caribbean economies, trade policies, and diplomatic relations.
Economic Impact
Geopolitical events have a direct impact on the global economy, influencing everything from stock prices to commodity costs (oil, gas, food) to currency exchange rates. For example, tensions between major powers like the U.S. and China often lead to increased prices for goods we rely on daily. Similarly, conflicts in oil-producing regions can cause energy prices to spike, directly affecting consumers’ pocketbooks and increasing transportation costs. And let’s not forget tourism—a key industry in the Caribbean—that can be disrupted by geopolitical risks such as instability in key source markets, travel restrictions, or changes in global demand due to economic or political shifts.
Security and Safety
Geopolitical risks are closely tied to issues of security. International conflicts, terrorism, and cyber warfare can have direct consequences on safety, not just in conflict zones but also for people and institutions in the Caribbean. The rise in global tensions can make Caribbean institutions more vulnerable to security threats—whether through cyberattacks targeting critical infrastructure and major businesses.
Global Health Risks
Geopolitical factors can also shape public health responses. How the world responds to pandemics, the distribution of vaccines, or international cooperation on health research is often influenced by political interests. During the COVID-19 pandemic, vaccine rollouts weren’t just a logistical issue—they were shaped by geopolitics, with some countries hoarding supplies or delaying shipments due to political considerations. In the Caribbean, this can mean delayed access to essential health resources or challenges in securing the best deals for critical supplies.
Even if you’re not actively engaged in tracking geopolitical events, the risks and consequences are woven into many aspects of life in the Caribbean. These risks don’t just affect governments and corporations—they touch individual lives in ways that are often subtle but deeply impactful, from the cost of living to your safety and security. In this increasingly complex world, it’s essential to stay proactive and anticipatory. Be resilient, stay informed, and be prepared—because geopolitical events are not just happening elsewhere; they’re happening to you.