Late-2000s recession: Political instability related to the economic crisis

Some localized social unrests and government premature changes attributed to the economic crisis have been noted. Also some medias and agencies have expressed fears that it would lead to general social and political instability.

Forbes expressed concern saying "The recent wave of popular unrest was not confined to Eastern Europe. Ireland, Iceland, France, the U.K. and Greece also experienced street protests, but many Eastern European governments seem more vulnerable as they have limited policy options to address the crisis and little or no room for fiscal stimulus due to budgetary or financing constrains. Deeply unpopular austerity measures, including slashed public wages, tax hikes and curbs on social spending will keep fanning public discontent in the Baltic states, Hungary and Romania. Dissatisfaction linked to the economic woes will be amplified in the countries where governments have been weakened by high-profile corruption and fraud scandals (Latvia, Lithuania, Hungary, Romania and Bulgaria)."

In December 2008, Greece experienced extensive civil unrest that continued into January and some violence continues as of 21 March 2009. In January 2009 the government leaders of Iceland were forced to call elections two years early after the people of Iceland staged mass protests and clashed with the police due to the government's handling of the economy.[87] Hundreds of thousands protested in France against President Sarkozy's economic policies.[88] Prompted by the financial crisis in Latvia, the opposition and trade unions there organized a rally against the cabinet of premier Ivars Godmanis. The rally gathered some 10-20 thousand people. In the evening the rally turned into a Riot. The crowd moved to the building of the parliament and attempted to force their way into it, but were repelled by the state's police. In late February many Greeks took part in a massive general strike because of the economic situation and they shut down schools, airports, and many other services in Greece.[89] Police and protesters clashed in Lithuania where people protesting the economic conditions were shot by rubber bullets.[90] In addition to various levels of unrest in Europe, Asian countries have also seen various degrees of protest.[91] Communists and others rallied in Moscow to protest the Russian government's economic plans.[92] Protests have also occurred in China as demands from the west for exports have been dramatically reduced and unemployment has increased.

In January 2009 the government leaders of Iceland were forced to call elections two years early after the people of Iceland staged mass protests and clashed with the police due to the government's handling of the economy.[94] Hundreds of thousands protested in France against President Sarkozy's economic policies. Prompted by the financial crisis in Latvia, the opposition and trade unions there organized a rally against the cabinet of premier Ivars Godmanis. The rally gathered some 10-20 thousand people. In the evening the rally turned into a Riot. The crowd moved to the building of the parliament and attempted to force their way into it, but were repelled by the state's police. In late February many Greeks took part in a massive general strike because of the economic situation and they shut down schools, airports, and many other services in Greece. Police and protesters also clashed in Lithuania. In addition to various levels of unrest in Europe, Asian countries have also seen various degrees of protest. Communists and others rallied in Moscow to protest the Russian government's economic plans. Protests have also occurred in China as demands from the west for exports have been dramatically reduced and unemployment has increased.

Beginning February 26, 2009 an Economic Intelligence Briefing was added to the daily intelligence briefings prepared for the President of the United States. This addition reflects the assessment of United States intelligence agencies that the global financial crisis presents a serious threat to international stability.

The plunge in remittances could tip some developing countries into financial collapse. Up to half of the 13 million guest workers in the Gulf states may be sacked in the coming months.

In March 2009, British thinktank Economist Intelligence Unit published special report titled 'Manning the barricades' in which it estimates "who's at risk as deepening economic distress foments social unrest". Report envisions the next two years filled with great social upheavals, disrupted economies and toppled governments around the globe.

Business Week in March 2009 stated that global political instability is rising fast due to the global financial crisis and is creating new challenges that need managing.[98] The Associated Press reported in March 2009 that: United States "Director of National Intelligence Dennis Blair has said the economic weakness could lead to political instability in many developing nations."[99] Even some developed countries are seeing political instability.[94] NPR reports that David Gordon, a former intelligence officer who now leads research at the Eurasia Group, said: "Many, if not most, of the big countries out there have room to accommodate economic downturns without having large-scale political instability if we're in a recession of normal length. If you're in a much longer-run downturn, then all bets are off."

In late March 2009, the first attack on prominent banker occurred, as the home of former executive of Royal Bank of Scotland was vandalised. The group which claimed responsibility for attack sent a note to media stating, "This is a crime. Bank bosses should be jailed. This is just the beginning." The incident was preceded by death threats to recipients of the bonuses who work at US insurance company American International Group.