How does resource scarcity fuel conflicts around the world?

Resource scarcity has increasingly become a catalyst for conflict as nations and groups vie for limited resources essential to their economies and survival. Whether it's water, minerals, or energy sources, the scarcity of these resources can lead to geopolitical tensions, internal strife, and even war. As you navigate the complex world of business strategy, understanding the intersection of resource scarcity and conflict is essential. It's not just about the immediate impact on commodity prices or supply chains; it's about foreseeing long-term risks and opportunities that arise from these global challenges.

1 Global Tensions

The competition for resources can escalate into international disputes, with countries asserting territorial claims or engaging in trade wars to secure their interests. These tensions can disrupt global markets and create volatility, posing a significant challenge for businesses that rely on stable international relations. As a strategist, you must anticipate how resource scarcity might reshape alliances and trade agreements, potentially requiring a pivot in your business's international engagement strategies.

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SURINDER Kalra

Envoirnment Social & Governance (ESG) Reporting Assurance Arbitration & Mediation , Human Rights, Climate Finance, Carbon Credits and Tax
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Size of the Army-Boots: The military is not required to disclose the size of it’s boots , but yet it is responsible for up to 5.5% of the world’s total carbon emissions. If the world’s militaries were a country, they would rank as the fourth-largest global emitter. Its total emissions are greater than those of entire countries such as Sweden, Denmark, or Portugal. When 2023 turns out to be hottest year and in an era marked by the pressing challenges of climate change and increasing competition over energy resources, every sector has to bear the responsibility for curbing emissions and reducing dependence on fossil fuels.

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2 Economic Impact

Resource scarcity can trigger economic instability by driving up costs and limiting access to essential materials. This impacts not only the cost of goods but also the viability of industries dependent on these resources. Your role in strategic planning involves identifying alternative resources or supply chain adjustments to mitigate these economic shocks. It's crucial to develop a resilient business model that can withstand resource-induced market fluctuations.

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3 Social Unrest

The scarcity of vital resources like water and arable land can lead to social unrest and displacement of populations. This has implications for businesses operating in affected regions, as it can lead to workforce instability and potential security risks. As a business strategist, it's important to consider how your operations might contribute to or alleviate local resource pressures, and how to maintain business continuity amid social upheaval.

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4 Innovation Drive

One positive outcome of resource scarcity is the drive for innovation. Businesses are compelled to find new technologies or methods to overcome limitations, leading to breakthroughs in efficiency and sustainability. Your strategic planning should include investments in research and development to stay ahead in this race, ensuring your business remains competitive as resources become more precious.

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5 Environmental Factors

Environmental degradation exacerbates resource scarcity and can be both a cause and effect of conflict. Your business strategy must account for environmental sustainability to avoid contributing to resource depletion. By adopting eco-friendly practices and supporting environmental initiatives, your business can play a role in reducing the potential for conflict while also securing its reputation as a responsible entity.

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SURINDER Kalra

Envoirnment Social & Governance (ESG) Reporting Assurance Arbitration & Mediation , Human Rights, Climate Finance, Carbon Credits and Tax
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The U.S. Congress have directed more than $75 billion in assistance to Ukraine. Dozens of other countries, including most members of the NATO and the European Union (EU), are also providing large aid packages to Ukraine.This marks the first time that a European country has held the top spot since the Harry S. Truman administration directed vast sums into rebuilding the continent through the Marshall Plan after World War II. 8. Loss and Damage commitments at COP 28 : $792 million France, Italy, Germany, and the UAE were the largest contributors, each pledging at least $100 million, according to the National Resources Defense Council, while the US chipped in USD 17.50 Million

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6 Strategic Alliances

Forming strategic alliances can be a powerful way to address resource scarcity. By collaborating with other entities, whether businesses or governments, you can secure access to resources, share risks, and develop joint solutions to resource-related challenges. These partnerships can be crucial for long-term sustainability and can provide a competitive edge in an environment where resources are increasingly scarce.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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SURINDER Kalra

Envoirnment Social & Governance (ESG) Reporting Assurance Arbitration & Mediation , Human Rights, Climate Finance, Carbon Credits and Tax
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Under the Paris Agreement, rules for reporting of military and conflict-related emissions need to be developed. Military emissions should play a relevant role in the IPCC ARs and Global Stocktake. New Delhi Deceleration of G-20 : In line with the UN Charter, all states must refrain from the threat or use of force to seek territorial acquisition against the territorial integrity and sovereignty or political independence of any state. The use or threat of use of nuclear weapons is inadmissible. The peaceful resolution of conflicts, and efforts to address crises as well as diplomacy and dialogue are critical. We will unite in our endeavour to address the adverse impact of the war on the global economy

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How does resource scarcity fuel conflicts around the world?

1

2

3

4

5

6

7

1 Global Tensions

2 Economic Impact

3 Social Unrest

4 Innovation Drive

5 Environmental Factors

6 Strategic Alliances

7 Here’s what else to consider

Business Strategy

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How does resource scarcity fuel conflicts around the world?

1

2

3

4

5

6

7

1 Global Tensions

2 Economic Impact

3 Social Unrest

4 Innovation Drive

5 Environmental Factors

6 Strategic Alliances

7 Here’s what else to consider

Business Strategy

Rate this article

Thanks for your feedback

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