Navigating Conflicts in a Fragmented World
Nouzab Fareed is a consultant specialised in corporate restructuring, business strategy, and governance. He has a Masters of Arts in economics and an MBA. He is a past president of Fiji Institute of Chartered Accountants and past vice president of Fiji Chamber of Commerce. He is on X (@
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Most western countries supported one party during the current conflict in
Gaza.
The last 164 days have seen more than 35,000 deaths and another 50,000 injured.
The US gave billions of dollars in the form of weapons to one side and now started to air drop food and medicine to the other side. They even started making a pier to facilitate smooth air transfer. Unfortunately, the civilians from both side have suffered the most. The Ukraine war is ongoing for last 25 months with thousands of causalities.
USA, Europe and some other nations have provided weapons and other forms of aid the Ukraine while India and China have defied sanctions have bought Russian Oil. In other words, the only losers in this war is civilians in Ukraine and Russia.
Another conflicts in brewing in the South China Sea while the world is ignoring other conflicts in Syria, Sudan, Iraq and Afghanistan.
Why is the world so chaotic?
New conflicts are on the horizon? Sign of an anarchic world? Or it is because nations are sovereign in absolute terms, so that they can do what they like?
Sovereign country
A sovereign country is an independent territory with a clear definition of characteristics in to international law.
Namely a permanent population, defined territory, a government and has the capacity to enter in relations with other states
In other words, the state has a settled population living within its defined territory, with recognised borders that define its geographical extent.
The state has a government that can maintain order and administer the territory while it can establish diplomatic relations and make treaties with other sovereign countries.
Sovereignty is the concept that a state has supreme authority within its territory.
This means other countries cannot interfere in its internal affairs or dictate its laws or policies.
However, sovereignty also comes with responsibilities, such as respecting the sovereignty of other states and upholding international law.
Sovereignty is a core principle in international relations, but it’s not absolute.
States interact with each other, and international law and institutions play a role in shaping global affairs.
It is worthwhile noting that not all territories are sovereign states.
For example, colonies or dependencies might be controlled by another country.
There are also unrecognised states that meet most of the criteria for sovereignty, but haven’t been formally recognised by the international community. Kosovo is an example of an unrecognised state.
Anarchy
The anarchic nature of the world, in the context of international relations, refers to the absence of a central authority that governs all states.
There’s no single entity with the power to make and enforce laws for all countries.
Unlike domestic politics where a national government sets rules, the international system lacks such a supreme authority.
In this anarchic system, states rely on themselves for their security and well-being.
This can lead to competition for resources, arms races, and a focus on power to deter potential threats.
Individual states retain their sovereignty, meaning they have supreme authority within their own borders.
While this fosters self-determination, it can also hinder cooperation on global issues.
Anarchy can lead to a focus on power politics, where states compete for influence and advantage
The lack of a central authority can contribute to security dilemmas, where actions taken for security can unintentionally threaten others, leading to a cycle of mistrust whereas international law and institutions exist, but enforcement mechanisms are often weak compared to national legal systems.
Chaos
The chaotic nature of world politics stems from a complex interplay of factors, and sovereignty is one piece of the puzzle, but not the whole picture.
It starts from competing interest. States have different political systems, economic goals, and security concerns.
Negotiating and compromising amidst these competing interests can be challenging.
Actions taken for security of a given country, can unintentionally threaten others, leading to a vicious cycle of mistrust and arms races. This is called the Security Dilemma.
Terrorist groups, multinational corporations, and other non-state actors can destabilise regions and challenge the traditional power dynamics between states.
While long-standing historical conflicts, territorial disputes, and ethnic tensions can create lasting animosity and make cooperation difficult, competing ideologies, like democracy versus authoritarianism, can create friction and make finding common ground challenging.
We are living in an anarchic where there is an absence of a central authority to enforce international law or mediate disputes can lead to power struggles and unilateral actions by powerful states.
This is very much visible in the case of war in Gaza.
Sovereignty is a state’s supreme authority within its borders. This can be a double-edged sword.
Sovereignty allows states to determine their own political systems, economic models, and social values. It fosters self-determination and national identity.
It is interesting to note that an emphasis on absolute sovereignty can make cooperation on global issues difficult.
States might prioritise national interests over international collaboration or disregard international norms if they feel it undermines their sovereignty.
Sovereignty provides a framework for international relations, but it’s not the only factor contributing to chaos.
The world of politics is complex and often messy.
While sovereignty can be an obstacle to cooperation at times, it’s just one factor.
Understanding the broader dynamics and fostering a spirit of collaboration are crucial for navigating the complexities of international relations and creating a more stable and peaceful world order.
Solving global problems
The world faces a multitude of complex and longstanding issues. There are definitely alternatives to war in pursuing peaceful solutions.
Encouraging conflicting parties to engage in direct talks with the help of neutral mediators or international organizations like the United Nations can facilitate communication and compromise.
The success of the Colombian peace process in 2016 is an example. Whereas, finding common ground and areas of mutual benefit can create incentives for co-operation and de-escalation.
This could involve economic partnerships or addressing shared threats like climate change.
The United Nations can play a crucial role in peacekeeping missions, conflict resolution efforts, and promoting international law.
They can provide a platform for dialogue and hold violators accountable.
International law and treaties can establish frameworks for peaceful conflict resolution and provide norms for responsible state behaviour. The Law of the Sea, for instance, helps manage maritime disputes.
International business
The chaotic nature of a fragmented world can significantly impact Multinational Corporations (MNCs) in the long run, presenting both challenges and opportunities.
It could be Ukraine war, unrest in Haiti, change in governments from left to right and even unpredictable political leader.
It is possible that Unrest, conflicts, and unpredictable government policies can disrupt operations, damage infrastructure, and create security risks for MNCs operating in these regions.
Fragmented international relations can lead to trade wars, tariffs, and protectionist policies that hinder the free flow of goods and services, impacting MNCs’ profitability and global reach. We saw some of this during first term of Trump Administration as well as in Australia – China relationship.
Instability in the global financial system and volatile exchange rates can make it difficult for MNCs to manage costs and plan for the future,
Where as a lack of standardised regulations across different countries can create complexities for MNCs, requiring them to navigate diverse legal and compliance requirements.
It is not a secret that conflicts always give rise to opportunities for business.
Either during the conflict as in the case of Russian Oil for India and China or post-war opportunities as in the case of many planned infrastructure fund for rebuilding Ukraine.
As some regions become more isolated during or after conflicts, MNCs from other parts of the world might find opportunities to fill the gap and enter new markets.
The need to adapt to different environments can drive innovation and efficiency within MNCs, as they find ways to operate in challenging contexts.
Partnering with local businesses and communities can help MNCs navigate complexities, build trust, and gain cultural insights.
This happened in Post-war Sri Lanka as well as in East Timor.