In the early days of 2368, the GTVA found itself in an unenviable position. Eighteen months of civil war had been punctuated by a short, but extremely bloody and costly conflict with the Shivans. Moreover, the loss of the Capella system represented an economic and social blow that threatened to reverberate for years into the future. This problem was made manifest in the millions of refugees fleeing the Capellan system, all of who needed to be supported while they were being resettled. Initial suggestions that the Capellans be sent to a single system such as Luyten or Barnards Star were deemed inappropriate an unworkable, so the refugees were spread as eveny as possible across Terran space. Unfortunately for the Alliance, this influx of new people into underprepared systems resulted in a glut of workers, and significant unemployment. The economic crisis this brought about resulted in a significant and prolonged downturn in the Terran economy as a whole, resulting in a drawn out recession that has only recently begun to ease. To add to the Alliance' woes, the formerly untouchable Vasudan economy has also been affected, due in large part to the strong interconnectedness of the two species which did not exist in the aftermath of the previous Shivan conflict.

The Shivan Incursion had other, less overt effects on the GTVA as well. The exploration and mapping program, once a significant and growing part of the GTVA's duties, has been severely curtailed in the wake of renewed fears about our ability to defend ourselves against the Shivans, and the perceived risk of stumbling into their space in the manner of the now infamous NTC Trinity incident. However, despite these fears, military spending has been curtailed in face of the grim economic reality. While some innovation has occurred in the time since the last incursion, the GTVAs tactical readiness is at a low ebb. The modernization program which was underway prior to the Shivan conflict has stalled, with many Great-Wa era vessels entering their fifth and sixth decade of continuous service.

Social unrest and crime have also increased in the wake of the weak economy and high unemployment figures across the alliance. Violent crime on the ground has increased steadily over the past decade in many colonies and stations, especially in the outer systems, where GTVA presence is less prominent than it has ever been since the inauguration of the alliance. Crime in space, including piracy and smuggling, is also at record high levels, as increasingly desperate people have turned to these methods as one of the few remaining potential sources of income.