Compass Point: Navigating Megatrends FII7

The current geopolitical landscape is characterized by challenges to the balance of power in strategic theaters such as the Euro-Atlantic, Indo-Pacific, and Greater Middle East. There is a rise in strategic self-determination, with more powers asserting their national interests in collaboration or competition with others. Mini-lateral security arrangements are emerging, where small groups of countries cooperate for specific purposes. Technological competition is a core element of international power politics, with economic statecraft and regulatory standards being used to achieve competitive advantage. The future is about tying hard power, smart power, and soft power to fast power, emphasizing the importance of speed in today's world. Policy advice includes avoiding a new ideological battle between democracies and autocracies, promoting good governance, and moving from non-alignment to multi-alignment in the Global South. Companies are advised to have their own foreign policy and geopolitical due diligence to navigate geopolitical risks effectively.