Geoeconomics

The first attempts to connect various economic processes and phenomena with spatial factors can be observed in the works of various scientists, starting from the XVIII century. For the first time, the foundations of a geo-economic concept can be found in Fritz Roerig, a German historian who suggested that economic factors are central to the geopolitical alignment of states. He claims that the dominance is won precisely by those countries in which the largest number of productive resources and information are concentrated. The Italian scientists Jean Carlo and Paolo Savona believed that economics and politics were always closely interconnected. The state, pursuing a certain policy, inevitably took into account economic opportunities and interests, moreover, without economic resources it could not carry out either foreign or domestic policy in general.

Also, the foundations of geo-economic theory can be found in the "National System of Political Economy" by Friedrich Liszt , written at the beginning of the XIX century. This book contains statements that the economic well-being of the state, its influence directly depend on geographical factors, and at the first stages of development it is these factors that determine the degree of its demand in the world trade space, since it is from agriculture and agriculture that the production path of any state. ^[3]

However, almost until the end of the last century there was neither a separate scientific discipline, nor the term "geoeconomics" itself. This concept was introduced in the late 80s of the XX century by Edward Luttwack , political scientist, consultant to the National Security Council of the US Department of State . ^[4] Scientists attribute such a late appearance of geoeconomics as a separate science to various factors. It was at the end of the 20th century that the process of globalization began, which led to the strengthening of the dependence of states on each other. In addition, the geographical borders between the states were overcome due to the virtualization of information, and subsequently capital, which led to the need to create, in fact, a new geography based on the location of the centers of accumulation of information and capital. ^[four]

E. G. Kochetov, a Russian scientist, identified four main reasons for the emergence of geoeconomics as an independent display. This is the blurring of borders between states, as a result of which domestic and foreign policies are becoming more and more closely connected; the growing influence of the economy on the political process both within the state and in its external activities; the emergence of universal economic rules to maintain the global economic balance; the priority of economic development over the political, ideological, and other strategic goals of state policy. ^[four]

The interconnection of geopolitics with the world economy is also justified in the world-system theory of Immanuel Wallerstein , in which the fall and rise of world geopolitical hegemony is related to the restructuring of the world economy described in the economic cycles of the great conjuncture of N. D. Kondratiev .

The geoeconomic approach was first developed in the United States after the end of World War II and was reflected in the "doctrine of containment of the USSR." New geopolitics played an important role in the Cold War .

Geoeconomics is a policy of redistributing resources and world income ^[5] . The main excess profits (rent of boundary energy) are received by the most economically developed countries.

Geoeconomics can be considered a kind of mondialist geopolitics. However, she considers only the economic level of development of the state, for her the very concepts of statehood, nationality, territorial features depart to a secondary level.

Geo-economic policy is aimed at gaining power by increasing the country's economic power, all of which should be aimed at extracting economic benefits from relations with other countries. In addition, within the framework of this policy, it is characteristic to establish the dependence of more economically weak states on stronger ones in order to ensure the strengthening of the position of the latter. ^[6]

This type of policy is inextricably linked with such a concept as geo-economic rivalry, which consists of two components. The so-called applied geopolitics involves a combination of two types of protectionism - “defensive” and “offensive”. In the first case, the state suppresses the competition of manufacturers in its domestic market and promotes the most rapid development of various industries. After such preparation, it proceeds to “offensive” rivalry, during which, on the contrary, it increases competition and at the same time selectively supports individual manufacturers. The second type of protectionism is also called "effective" and, among other things, such a policy is to ensure that the state develops its national industries.

The state development strategies proposed by geoeconomics are by no means always safe for him. Such a policy may run counter to the national and other interests of the country. ^[7]

Luttwak himself argues that at this stage of world development, geo-economic policy differs from geopolitics in the first place in that if states used to create some national territories within the framework of geopolitics, now they are forced to operate in a "neutral" economic space.

One of the components of the geoeconomic strategy is also the preservation and development of the national state , with its features in production and economic activity, since they are mainly due to its initial geographical location. Since national characteristics in the production sphere and in the specialization of the state are determined by natural, natural factors, it is in his interests to give priority to the development of precisely those areas of economic activity (for example, agriculture with favorable soil) that are natural to him due to national and natural features, because it will use its resources more efficiently, increase production and, accordingly, strengthen its position in the economic space.

The German economist and political scientist F. Liszt argued that one of the strategies for achieving world domination is the rapid development of one country in all spheres of production (agriculture, manufactories ) and its retention of such comprehensive development in other states that will contribute to the formation of the economic dependence of these states on of this world power. ^[3]

In modern realities, one of the goals of geoeconomics as a policy is to take possession of the territories where information and financial flows are concentrated, so-called "financial nodes" are formed. Gaining control over precisely such territories allows the state to really increase its geo-economic competitiveness. The management of such economic flows contributes to the formation of economic clusters or networks of various entities that are competitive in their entirety and at the same time competing with each other.

Another group of effective ways of conducting geoeconomic policies are geoeconomic wars. They, in essence, are a merger of such concepts as trade and cold war . In this situation, there is no open military conflict, pressure on a competitor is carried out exclusively by economic means, and such actions are carried out within the framework of a definite and full-fledged strategic plan. Popular methods of such a war are the destruction of trade communications of the enemy country with the outside world, drawing it into debt, withdrawing capital from it. ^[eight]

In addition to disguised interference in the economies of competitors, one of the methods of geo-economic warfare is to strengthen the state’s own competitiveness. Moreover, it consists not only in building up its economic power, but also in establishing special rules in the common economic space that its closest competitors will be forced to obey. The danger of such a strategy lies in the possibility of destroying the entire international economic system, therefore, along with direct methods of competition, hidden, indirect ones are also used.

In the aggregate of many methods and methods of conducting a geo-economic war, the following can be distinguished. This is the increase in the share of the state’s national capital in investments in other countries, the share of imports of its national product in competing countries; pulling developing countries and peripheral countries into debt pits, building up their external debt; establishing the dependence of the currency of competitors on the currency of the state waging a geo-economic war. ^[four]

Science subject

The subject of studying geoeconomics includes the development processes of not only state and regional entities, but also real international structures - economic, financial and integration associations, transnational corporations, Euroregions, free economic zones, as well as geopolitical entities (or blocs).

Geoeconomics studies the development of states in various aspects - cultural, historical, territorial. The purpose of this study is to identify the reasons for the formation of a particular economic system in a country, as well as to build a further strategy for the economic development of the state using information about its geopolitical, geographical and other features. ^[one]

The basis of the study of the state for geoeconomics is the territorial position of the state and the influence of the environment in this territory on its economic activity, the characteristic features of various economic aspects, such as the nature of the redistribution of resources, the type of division of labor, the tradition of production of certain goods.

Geoeconomics also studies the political actions of the state in the geopolitical arena, aimed primarily at increasing its competitiveness in the face of constant rivalry between countries.

Issues

One of the main problems in geoeconomics as a science is the role of space in the welfare of the state. The space occupied by one or another country directly affects its economic well-being. If on its territory fertile soil prevails, plains, temperate climate, then this territory contributes to the economic development of this state. If the country is not large enough or does not have the necessary natural benefits, then in order to achieve economic prosperity it must either resort to conquest or enter into an economic union with a number of other countries.

One of the founders of geo-economic ideas, Friedrich Liszt , wrote about the development of national characteristics of the state. Thus, the strengthening of the national state, the study of the impact of such a strategy on the country's position in the world, is also a component of the range of problems of geoeconomics.

The geoeconomics issue also includes aspects of the development of colonial and neocolonial systems controlled by the metropolitan states (metropolitan economy), as well as the formations and development of large urban formations - agglomerations , conurbations , megacities (megapolitical economies).

Methodology and Research

Geoeconomics in its research methods is based on a number of principles. In the study of any state, it should consider it not in isolation, but as part of the whole, analyze it as a subject of geopolitical and geoeconomic activity, since only by assessing the position of countries in the general system of states, one can understand its real level of economic development. In addition, Geoeconomics must take into account the fact that the objects of its study and at the same time the subjects of economic activity are subject to constant changes, they are not static. Any state undergoes constant gradual changes, experiencing ups and crises as part of its historical development. Therefore, geoeconomics as a science in its tools must constantly adapt to the changing objects of its study. ^[four]

Geoeconomic studies are both positive , theoretical, and normative, pragmatic , which is expressed in the formulation of proposals for real measures aimed at adjusting foreign and domestic economic policies, a long-term strategy to improve the geoeconomic positioning of a particular state or supranational block, in particular, to increase their competitiveness.

In geoeconomic studies, other approaches are used to identify supranational (largely hypothetical) blocks. In particular, among the most traditional approaches, the division of the world into a rich North and a poor South stands out; Christian West and non-Christian East; American ( NAFTA and South America), European ( European Union ) and Pacific (China, Japan, South Korea, Taiwan) geo-economic spaces.

In addition to the above methods of segmenting the world, there are a number of geo-economic systems. In its theory, geoeconomics distinguishes certain supranational entities, based on the concentration in them that are limited in their rules, which have characteristic features of production and exchange relations, legal regulation of the economy, and the behavior of economic entities.

According to one of these classifications, geoeconomics distinguishes European and American economic centers and Asia-Pacific countries . In addition, there are more detailed classifications of the global economic space, for example, based on the territorial position or the nature of economic relations between entities. ^[7]

In the modern economic space, there are a number of trends in its development, which suggest the need for a fundamental restructuring of geo-economic strategies, production and exchange technologies of all states, including those that are centers of the world economy. Such trends include the virtualization of capital (the emergence of cryptocurrencies , evasion of cash payments, etc.), the changing role of the state as a subject of economic activity, the ever-increasing publicity of the political elite and its increasingly open interaction with the people. Under such conditions, developing countries should not only develop geo-economic strategies, but also, first of all, engage in the modernization of all areas of production, because without advanced technologies in modern realities it is impossible to achieve economic dominance. ^[7]

Geoeconomics uses a number of different methods in pursuing economic policy in order to increase the competitiveness of the state. Firstly, these are traditional methods, which include, for example, institutional methods - changing the tax system , introducing innovative technologies, developing infrastructure , social support for the population, increasing its well-being.

В круг мероприятий, рекомендуемых в рамках геоэкономики, входят как оборонительные (протекционистские, меркантилистские), так и наступательные действия, связанные, в частности, с экономическими (торговыми, технологическими, валютными войнами, экономической разведкой (в том числе промышленным шпионажем) и контрразведкой и т. п.).

От успешности выбранной государством геоэкономической политики в современных реалиях зависит его дальнейшее существование, поэтому геоэкономическая стратегия его развития должна быть подвержена постоянной корректировке в зависимости от мировой экономической ситуации.

• Dergachev V.A. Geoeconomics. - Kiev: VIRA-R, 2002. ISBN 966-7807-15-0 .
• Dergachev V.A. Geopolitics. - M.: UNITY-DANA, 2004. ISBN 5-238-00779-5 .
• Kochetov E.G. Geoeconomics (Mastering the world economic space). - M .: Publishing house BEK, 1999. - 480 p. ISBN 5-85639-268-X .
• Neklessa A. Article on geoeconomics .

• Geoeconomics / G. D. Gloveli // Big Russian Encyclopedia : [in 35 vols.] / Ch. ed. Yu.S. Osipov . - M .: Great Russian Encyclopedia, 2004—2017.
• The Academy of Sciences of Geoeconomics and Global Studies led by E. G. Kochetov
• Institute of Geopolitics of Professor Dergachev Section Geoeconomics
• Project "Geopolitics" Analysis of weekly news from the point of view of geopolitics, geoeconomics, geostrategy.
• "Geopolitics Geoeconomics Geophilosophy" Electronic Internet Journal
• Article on Geoeconomics