WASHINGTON ( CNN ) -- A government report released Thursday paints an alarming picture of an unstable future for international relations defined by waning American influence , a fragmentation of political power and intensifying struggles for increasingly scarce natural resources . The report aims to better inform policymakers , starting with the administration of President-elect Barack Obama . The report , `` Global Trends 2025 : A Transformed World , '' was drafted by the National Intelligence Council to better inform U.S. policymakers -- starting with the incoming administration of President-elect Barack Obama -- about the factors most likely to shape major international trends and conflicts through the year 2025 . `` Although the United States is likely to remain the single most powerful actor , the United States ' relative strength -- even in the military realm -- will decline and U.S. leverage will become more constrained , '' says the report , which is the fourth in a series from the Intelligence Council . The report argues that the `` international system -- as constructed following the second World War -- will be almost unrecognizable by 2025 owing to the rise of emerging powers , a globalizing economy , an historic transfer of relative wealth and economic power from West to East , and the growing influence of nonstate actors . '' It argues that the world is in the midst of an unprecedented `` transfer of global wealth and power '' -- from West to East -- that is being fueled by long-term `` increases in oil and commodity prices '' along with a gradual shift of manufacturing and certain service industries to Asia . And yet , while American power and influence are projected to decline , America 's burdens are not . `` Despite the recent rise in anti-Americanism , the U.S. probably will continue to be seen as a much-needed regional balancer in the Middle East and Asia , '' the report notes . The American military will continue to be expected to play a leading role in the war against global terrorism , though the United States as a whole will be less able to `` call the shots without the support of strong partnerships . '' America 's biggest rival by 2025 , the reports says , will be China . `` China is poised to have more impact on the world over the next 20 years than any other country , '' it notes . The report projects that China will have the world 's second largest economy by 2025 and will be a leading military power . Equally problematic for U.S. policymakers is the fact that China is expected to become the world 's biggest polluter and largest importer of natural resources . China will not be alone , however , in terms of its desire to provide a consumption-oriented American lifestyle to a rapidly growing population . Countries such as India and , to a lesser extent , Indonesia , Iran and Turkey , will also likely see their power -- and desire for natural resources -- increase . The report predicts that , the recent economic downturn aside , `` unprecedented global economic growth '' will mean that the demand for basic resources such as food , water and oil `` will outstrip easily available supplies '' over the next decade . As an estimated 1.2 billion people are added to the world population over the next 20 years , the demand for food will rise by 50 percent , the report projects . The lack of access to stable water supplies will also worsen due to rapid global urbanization , it says . Further complicating matters is the fact that while demand for energy is projected to rise , oil and gas production will continue to be `` concentrated in unstable areas , '' it says . The world in 2025 is therefore likely to find itself in the midst of a `` fundamental energy transition away from oil toward natural gas , coal and other alternatives . '' Such a transformation , however , may not stave off armed conflict driven largely by the struggle for scarce resources , the report says . While conflicts are still most likely to `` revolve around trade , investments , and technological innovation and acquisition , '' the report states that `` we can not rule out a 19th century-like scenario of arms races , territorial expansion , and military rivalries . '' Terrorism is also expected to remain a major issue through 2025 , though its appeal could be significantly reduced if economic and political liberalization accelerates in the Middle East . `` In the absence of employment opportunities and legal means for political expression , conditions will be ripe for disaffection , growing radicalism and possible recruitment of youths into terrorist groups , '' the report argues . Adding to complications in the always-volatile Middle East will be Iran 's possible acquisition of nuclear weapons , which could trigger a regional nuclear arms race , the report says . Continuing tensions between India and Pakistan also add to concerns regarding nuclear proliferation , it says . The report highlights the need for new technological innovation to provide `` viable alternatives to fossil fuels '' and overcome future food and water constraints . At the moment , `` all current technologies are inadequate for replacing '' traditional energy sources `` on the scale needed , '' it says . The bottom line , the report says , is that `` the next 20 years of transition to a new system are fraught with risks . '' `` This is a story , '' it says , `` with no clear outcome . ''
He says China will have growing impact , second largest economy by GDP . There will be an unprecedented global transfer of power because of oil , report says . Indonesia , Iran , Pakistan , India likely see power , desire for natural resources increase . ` ` Unprecedented '' ' means demand for basic resources will outweigh supply .