20 National Security Strategy and Strategic Defence and Security Review 3.31 Innovative and competitive UK defence and security industries play a major part in addressing the threats we face. Innovation in the products and services that they provide helps to maintain our advantage over adversaries. Ensuring that they are globally competitive helps to sustain the skills and capabilities that we need. The rules-based international order 3.32 The rules-based international order is founded on relationships between states and through international institutions, with shared rules and agreements on behaviour. It has enabled economic integration and security cooperation to expand, to the benefit of people around the world. It has done much to encourage predictable behaviour by states and the non-violent management of disputes, and has led states to develop political and economic arrangements at home which favour open markets, the rule of law, participation and accountability. The UK has consistently championed this framework. 3.33 The context is changing, driven by developments such as the growing role of non-state actors, the impact of technology and longer-term shifts of economic wealth to the south and east of the world. The Chinese economy is expected to become larger than that of the US in the 2020s, while other emerging markets, in particular India and Brazil, have the potential to grow markedly in power and influence. While the US, Japan and Europe will remain global economic powers, they face a growing imperative to improve their economic dynamism and competitiveness if they are to stay at the cutting edge of the global economy – which our reform efforts with the EU are intended to help address. 3.34 Such changes create new challenges and opportunities. The rules-based international order has always relied for its effectiveness and legitimacy on the active participation and contribution of all states, in particular major states, and on the ability of institutions and relationships to adapt to reflect new opportunities and challenges. It will therefore be important to reflect the contribution of growing powers. We will continue to work with partners to adapt the rules-based international order to meet new challenges. 3.35 The rules-based international order also relies on enforcement of standards and laws covering a wide range of activities and behaviours, from the Geneva Conventions to the UN Convention on the Law of the Sea. There have been successes, in particular the work by the E3+3 (the UK, France, Germany, the US, China and Russia) and the EU to conclude the Joint Comprehensive Plan of Action with Iran so that it meets its obligations to ensure its nuclear programme is exclusively peaceful. Some powerful states and non-state actors, however, are increasingly ignoring international norms that they believe run contrary to their interests, or favour the West. Russia’s illegal annexation of Crimea, Assad’s use of chemical weapons, and the challenges around non-state actors’ compliance with international humanitarian law are examples of this. Continuing risks 3.36 There are a number of other risks which remain important and need to be addressed. Civil emergencies 3.37 Severe flooding during 2013/14 affected more than 13,000 properties in the UK. The last five years have also seen outbreaks of public disorder (in 2011), and the threat of

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