UPDATE 2-US clout down, risks up by 2025 -intel outlook

Thu Nov 20, 2008 6:17pm EST
 
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Global wealth was seen shifting from the developed West to the energy-rich Gulf States and Russia, and to Asia, the rising center of manufacturing and some service industries.

Global rich-poor disparities would grow, leaving Africa vulnerable to increased instability.

A reordering of the world financial system was happening faster than the report's authors envisioned, Fingar said. Last weekend's Group of 20 summit of advanced and major developing countries in Washington showed work had begun, he said.

A shift away from an oil-based energy system will be underway or complete by 2025. Better renewable technologies such as solar and wind power offer the best opportunity for a quick and low-cost transition, the report said.

There was a greater, but still small, risk of nuclear attack, based on spreading technologies and the weakening of international nonproliferation systems.

If Iran were to acquire nuclear weapons, Fingar said, that could set off an arms race in the Middle East, which is considered in the report as an "arc of instability."

The risk that militant groups would use biological weapons was greater than the risk of nuclear terrorism, the report said.

The appeal of terrorism could decline over the next two decades, particularly if Middle Eastern countries provide productive education and opportunities for their young people, the report said. But with a growing population, the pool of potential terrorism recruits is likely to be larger, and access to dangerous weapons will rise. (Editing by Vicki Allen)