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North America
Canada
After a referendum in each province, Jamaica, the Bahamas and Belize all secede from Canada and form the Caribbean League (a polity less centralised than Canada).
United States
Jimmy Carter is inaugurated a second time. He promises to continue the infrastructure program in the former New England states (given that the War of the Seaboard is not that far in the past).
In March, an attempted assassination occurs against President Carter. Joseph Hinckley Jr. is caught soon afterwards.
Columbia is launched on it's first mission into space. A second mission, later in the year, temporarily re-activates the SpaceLab Space Station.
Central America
The Venetian Government sells it's 10% stake in the Panama Canal Authority. The Canal is now wholly owned by the Panamanian Government.
South America
The country of Magellania had been declining economically for some time. It's position on the far southern tip of South America didn't help matters. After much consideration a referendum is held. The result is a clear majority. By the end of the year, the nation had left the Commonwealth and joined Chile...
Europe
In the United Kingdom, the Council of the North, based in York, is abolished, with its powers being assumed by Westminster. The abolition of the 'Non Democratic' English institutions is declared complete (although many would consider the continued existence of the City of London Corporation to put the lie to that statement). However, the West Lothian Question remains, and more pertinent than ever...
But what is on everyone's mind at the time was the Troubles. The quagmire in Northern Ireland shows no end in sight. But at least order is restored in Londonderry/Derry. The IRA continues it's campaign of terrorist attacks in England. The Ash Wednesday Attack in Bristol claims 20 lives...
Bulgaria opportunistically declares war on the breakaway 'East Yugoslavia'. Given the outcry they claim that they're 'imposing order'. Conquest takes less than eight months. They also find that the Zuist Temple in Sofia had been destroyed by fire during the unrest.
In Switzerland, the democratic reforms that have been taking place in the Cantons reach the federal level, with the President and House of Representatives being replaced by a seven member Federal Council.
Africa
The Nigerien struggle for independence succeeds as France finally recognises that independence.
Asia
Middle East
More of Yemen is captured from the terrorist forces.
Japan
Nintendo breaks into the video gaming market with the Game n' Watch selling out within a month.
Oceania
Queensland joins Australia after some years of negotiations.
Palau gains independence from Japan.