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Global Peace Index reveals highest number of countries engaged in conflict since Second World War

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LONDON, June 11, 2024 /PRNewswire/ — Today marks the launch of the 18th edition of the Global Peace Index (GPI) from international think-tank, the Institute for Economics & Peace (IEP), revealing that the world is at a crossroads. Without concerted effort, there is a risk of a surge in major conflicts.

Key results

  • 97 countries deteriorated in peacefulness, more than any year since the inception of the Global Peace Index in 2008.
  • Conflicts in Gaza and Ukraine were the primary drivers of the global fall in peacefulness, as battle deaths reached 162,000 in 2023.
  • 92 countries are currently involved in conflicts beyond their borders, more than at any time since the inception of the GPI.
  • First of its kind military scoring system suggests that US military capabilities are up to three times higher than China.
  • The global economic impact of violence increased to $19.1 trillion in 2023, representing 13.5% of global GDP. Exposure to conflict poses a significant supply chain risk for governments and businesses.
  • Militarisation recorded its largest yearly deterioration since the inception of the GPI, with 108 countries becoming more militarised.
  • 110 million people are either refugees or internally displaced due to violent conflict, with 16 countries now hosting more than half a million refugees.
  • North America saw the largest regional deterioration, driven by increases in violent crime and fear of violence.

There are currently 56 conflicts, the most since World War II. They have become more international with 92 countries involved in conflicts outside their borders, the most since the GPI’s inception. The rising number of minor conflicts increases the likelihood of more major conflicts in the future. For example, in 2019, Ethiopia, Ukraine, and Gaza were all identified as minor conflicts. 

Last year recorded 162,000 conflict related deaths. This was the second highest toll in the past 30 years, with the conflicts in Ukraine and Gaza accounting for nearly three-quarters of deaths. Ukraine represented more than half, recording 83,000 conflict deaths, with estimates of at least 33,000 for Palestine up to April 2024. In the first four months of 2024, conflict related deaths globally amounted to 47,000. If the same rate continues for the rest of this year, it would be the highest number of conflict deaths since the Rwandan genocide in 1994.

The global economic impact of violence in 2023 was $19.1 trillion or $2,380 per person. This is an increase of $158 billion, driven largely by a 20% increase in GDP losses from conflict. Expenditure on peacebuilding and peacekeeping totalled $49.6 billion, representing less than 0.6% of total military spending.

Iceland remains the most peaceful country, a position it has held since 2008, followed by Ireland, Austria, New Zealand, and Singapore – a new entrant in the top five. Yemen has replaced Afghanistan as the least peaceful country in the world. It is followed by Sudan, South Sudan, Afghanistan, and Ukraine.

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The Middle East and North Africa (MENA) remains the least peaceful region. It is home to four of the ten least peaceful countries in the world and the two least peaceful, Sudan and Yemen. Despite this, the UAE recorded the largest improvement in peacefulness in the region – rising 31 places to 53rd in 2024.

Although most indicators of peacefulness deteriorated over the past 18 years, there was an improvement in the homicide rate which fell in 112 countries, while perceptions of criminality improved in 96 countries.

Steve Killelea, Founder & Executive Chairman of IEP, said: Over the past decade, peacefulness has declined in nine out of the ten years. We are witnessing a record number of conflicts, a rise in militarisation, and heightened international strategic competition. Conflict negatively affects the global economy, and business risk from conflict has never been higher, compounding the current global economic vulnerabilities.

“It is imperative for governments and businesses worldwide to intensify their efforts to resolve the many minor conflicts before they escalate into larger crises. It’s been 80 years since the end of WWII, and the current crises underscore the urgency for world leaders to commit to investing in resolving these conflicts.”  

Changing nature of conflicts

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As conflicts become more widespread and more internationalised, increasing complexity reduces the likelihood of achieving lasting solutions. Ukraine and Gaza are examples of ongoing historical grievances or ‘forever wars’ without clear resolutions. The number of conflicts resulting in a decisive victory for either side has fallen from 49% in the 1970s, to less than 9% in the 2010s. Over the same period, the number of conflicts that ended through peace agreements fell from 23% to just over 4%.

Another key factor reshaping conflict is the impact of asymmetric warfare technology, making it much easier for non-state groups, as well as smaller or less powerful states, to compete in conflicts with larger states or governments. The number of states using drones rose from 16 to 40, a 150% increase between 2018 and 2023. Over the same period, the number of non-state groups which committed at least one drone attack rose from 6 to 91, an increase of over 1,400%.

Middle East tensions

Due to the Gaza war, Israel’s ranking fell to an all-time low of 155th, the largest deterioration in peacefulness in the 2024 GPI. However, over the past decade Palestine has witnessed the largest deterioration, slipping to 145th. Highlighting the growing tensions, Israeli media stories with a negative sentiment towards Palestinians increased from just over 30% in 1999 to 92% in early 2023, while stories with negative sentiment by Palestinian media towards Israelis increased from just under 30% in 1999 to 85% in early 2023.

The conflict has also thrown the entire Middle East region into crisis, involving Syria, Iran, Lebanon and Yemen, with the economic consequences mounting and a high risk of open warfare. A further broadening of the conflict would severely impact the global economy, potentially triggering a worldwide recession. Highlighting the point, Syria’s economy shrunk by more than 85% after the start of the civil war in 2011, and the Ukrainian economy shrunk by 29% in the year after the onset of the conflict in 2022. 

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Global military capability

Since the start of the Ukraine war, militarisation has increased in 91 countries, reversing the trend of the prior 15 years. Given the forward commitments of many countries to military spending, it is unlikely to improve in the coming years.

Changes in the dynamics of warfare have seen troop numbers decrease while technological sophistication has increased. Over the last decade, 100 countries reduced their armed forces personnel, while global military capability increased by over 10%.

First of its kind research by IEP calculates the military capability of countries by combining military sophistication, technology, and combat readiness. It reveals that the US has substantially higher military capability than China, which is closely followed by Russia.  Traditional approaches to measuring military capability generally count the number of military assets only.

Regional highlights

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  • Europe remains the most peaceful region, however, it recorded its largest year on year increase in military expenditure since the GPI’s inception.
  • North America recorded the largest regional deterioration in peacefulness with a drop of just under 5%. Both the US and Canada saw significant falls, primarily driven by increases in violent crime and fear of violence.
  • Sub-Saharan Africa is now the second least peaceful region behind MENA as it faces several security crises – most notably increasing political unrest and terrorism in the Central Sahel.
  • Asia-Pacific remains the second most peaceful region with a slight decline in peacefulness. Papua New Guinea recorded the worst deterioration in the region, caused by intensified tribal violence from disputes over territory and land ownership.
  • Central America and the Caribbean experienced a minor decline in peacefulness, as countries like Haiti battled high levels of organised crime and civil unrest. Despite this, El Salvador recorded the world’s most significant peace improvement.
  • South America experienced the second largest fall in peacefulness with a deterioration of 3.6%. The largest changes occurred for the Homicide Rate, Political Terror Scale, and Intensity of Internal Conflict indicators.

NOTES TO EDITORS

For more information and to download the Global Peace Index 2024, visit visionofhumanity.org and economicsandpeace.org. The full GPI report, articles and interactive maps are available at: visionofhumanity.org  

X: @globpeaceindex

Facebook: facebook.com/globalpeaceindex

Instagram: instagram.com/globalpeaceindex

About the Global Peace Index (GPI)

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Produced by the international think-tank the Institute for Economics & Peace (IEP), the GPI report presents the most comprehensive data-driven analysis to date on peace, its economic value, trends, and how to develop peaceful societies. The report covers 99.7% of the world’s population and uses 23 qualitative and quantitative indicators from highly respected sources to compile the Index. These indicators are grouped into three key domains: Ongoing Conflict, Safety and Security, and Militarisation.

About the Institute for Economics & Peace (IEP)

IEP is an international and independent think tank dedicated to shifting the world’s focus to peace as a positive, achievable and tangible measure of human well-being and progress. It has offices in Sydney, Brussels, New York, The Hague, Mexico City and Nairobi.

Logo – https://mma.prnewswire.com/media/792052/4102581/IEP_Logo.jpg

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Hong Kong Boosts Fintech Scene with Focus on DeFi and Metaverse

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The Hong Kong government is now concentrating on decentralized finance (DeFi) and metaverse technologies to bolster its global fintech reputation.

Recent insights from the Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm of the Hong Kong Academy of Finance (AoF), back this strategic shift.

According to the HKIMR report, the DeFi sector has seen remarkable growth, with its market capitalization surging from $6 billion in 2021 to over $80 billion in 2023. Despite this rapid expansion, DeFi still accounts for only 4% of the overall crypto-asset market. The report indicates that over 70% of crypto businesses have yet to fully explore DeFi’s potential.

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The report also highlights the challenges DeFi faces, such as governance, compliance, and security issues. However, it remains hopeful about DeFi’s ability to offer innovative financial services. These services can increase automation and financial inclusion, making them a significant component of future financial systems.

Metaverse Engagement Among Financial Institutions

Another report from HKIMR delves into the metaverse, showing a moderate level of engagement from Hong Kong’s financial institutions. Despite the interest, more than half of the respondents (51%) expressed doubts about the metaverse’s future potential. Nonetheless, certain segments of Hong Kong’s fintech sector are actively exploring metaverse-related developments, signaling a growing recognition of its potential.

Enoch Fung, CEO of the AoF and executive director of the HKIMR, commented on the integration of emerging technologies with financial services.

“The emerging technologies of DeFi and the metaverse, which are closely connected to the broader virtual asset and Web3 developments, will likely present various opportunities for the financial services industry in Hong Kong.”

Promoting Hong Kong in the International Tech Scene

Hong Kong officials are actively promoting the city as a premier destination for fintech and Web3 startups. They participated in the Collision 2024 tech conference in Toronto, highlighting Hong Kong’s readiness to serve as an offshore technology hub for Canadian crypto and Web3 businesses. This event was co-hosted by the Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK), and StartmeupHK (SMUHK).

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Despite its efforts to position itself as a crypto-friendly hub, Hong Kong has seen a series of crypto exchange closures. In March 2024, HKVAEX, allegedly linked to Binance, withdrew its license application. This was followed by the exits of IBTCEX, QuanXLab, Huobi HK, Gate.HK, OKX HK, and Bybit (Spark Fintech Limited) in May. As a result, 17 virtual asset trading platforms remain on the application list, with 11 companies withdrawing or returning their license applications.

The withdrawal of license applications has sparked concerns about Hong Kong’s cryptocurrency licensing system. Hong Kong Legislative Council member Wu Shuo has publicly criticized the system, claiming it undermines market confidence. These recent closures and withdrawals underscore the challenges crypto businesses face in navigating Hong Kong’s regulatory environment.

Source: coinfomania.com

The post Hong Kong Boosts Fintech Scene with Focus on DeFi and Metaverse appeared first on HIPTHER Alerts.

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Auto industry product liability and recall

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India’s automobile sector has recently seen a surge of incentives aimed at attracting investment, increasing capital expenditure, and boosting domestic value addition in auto manufacturing. These policies, which include tariff reductions, duty waivers and concessions, production-linked incentives, and consumer subsidies, also bring statutory liabilities, increased regulation, and heightened oversight.

This comes amidst rising reports of manufacturing defects. Between 2012 and 2023, India documented over 5 million “moderate to serious” incidents, primarily involving fossil fuel-dependent vehicles. More recently, incidents involving electric vehicle (EV) motors catching fire have raised concerns about the safety, suitability, and adequacy of stress testing new technologies for India’s climatic and driving conditions.

Regulatory Interventions and Their Impact

Key regulatory measures include a new product liability regime with significant implications for original equipment manufacturers (OEMs) and other stakeholders in the value chain, such as component suppliers, dealers, distributors, and service providers. Significant developments include updated technical standards in manufacturing, enhanced safety norms for vehicles, and the empowerment of governmental authorities to initiate investigations, impose penalties, and order product recalls.

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The Motor Vehicles (Amendment) Act, 2019 (MVA), authorizes a designated authority to recall vehicles when a defect affects the product safety of a specific number or percentage of annual sales. The MVA permits designated officers to inspect manufacturers’ premises and review records and procedures. Non-compliance with manufacturing specifications, technical standards, and safety norms can lead to vehicle recalls and penalties. The MVA holds directors and officers vicariously liable for the company’s actions, including non-executive directors who approve contravening acts through board decisions.

Enhancing Safety and Consumer Protection

While the MVA enhances manufacturing safety, the Consumer Protection Act, 2019 is consumer-focused legislation addressing product liability. It shifts the burden of proof from the consumer to the manufacturer and seller to disprove liability for specified defaults.

Implications for OEMs and Component Manufacturers

These regulatory changes require OEMs to certify that new vehicles meet improved technical standards and safety norms, involving additional testing, mandatory anti-hazard safeguards, smart management systems to prevent overcharging and short circuits, and comprehensive warranty support.

Japanese companies, among others, must note that OEMs and component manufacturers are subject to presumptive liability. The regulatory amendments necessitate OEMs to review and update product testing and commissioning processes, enhance compliance, conduct audits, and perform thorough vehicle risk assessments. Manufacturing processes must be thoroughly documented. OEMs must ensure adherence to safety norms, pre-certification, and warranty coverage, while drafting carefully worded liability management provisions in supply contracts to apportion statutory liability and costs to component manufacturers and other parties.

To mitigate product liability, OEMs should implement comprehensive and robust quality controls and testing measures throughout the manufacturing lifecycle. Third parties should conduct testing and validation, and OEMs must maintain detailed records to demonstrate due diligence and transparency. With statutory powers allowing for investigations, document reviews, and procedure recordings, OEMs must prepare for business disruption risks and potential breaches of confidentiality.

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Strategic Recommendations

OEMs should regularly audit suppliers and track parts to identify defective vehicles, facilitating the assignment of liability and costs. Board procedures must be rigorous, ensuring nominees fulfill their fiduciary duties. Insurance policies must cover product liability and recall.

OEMs should develop clear escalation procedures and crisis management plans, and establish robust contracts with suppliers and partners that include warranties, indemnities, and allocated responsibilities.

Cost Implications

In the near term, these measures may increase manufacturing costs in India. Given India’s highly competitive and price-sensitive market, OEMs might find it challenging to pass these costs onto consumers.

Source: law.asia

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Jumio Study: Deepfakes, Fraud Fears Drive Demand for Stronger Bank Security

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A recent study by Jumio, an AI-driven identity verification and compliance solutions provider, has revealed that 78% of consumers in Singapore are prepared to switch banks due to insufficient fraud protection.

The Jumio 2024 Online Identity Study highlights the increasing concern among consumers about their banks’ ability to protect them from fraud. The study found that 75% of consumers globally, and 78% in Singapore, would consider changing their banking provider if fraud protection was inadequate.

Surveying over 8,000 adults across the United Kingdom, United States, Singapore, and Mexico, the study reveals that 75% of consumers hold their banks ultimately responsible for safeguarding against cybercrime and fraud.

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The rising sophistication of fraud tactics, such as deepfakes and voice cloning, has intensified these concerns. Deepfake technology, in particular, is being used more frequently to deceive consumers into divulging sensitive information, significantly contributing to their anxiety.

In Singapore, 78% of respondents are especially concerned about their bank’s efforts to combat deepfake-powered fraud, compared to the global average of 67%. Additionally, 74% of Singaporeans call for stronger cybersecurity measures, surpassing the global average of 69%.

The expectation for financial institutions to provide robust fraud protection is increasing, with three-quarters of consumers expecting a full refund if they become victims of cybercrime.

Source: fintechnews.sg

The post Jumio Study: Deepfakes, Fraud Fears Drive Demand for Stronger Bank Security appeared first on HIPTHER Alerts.

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