Geoeconomics

Edward Luttwak was among the first post-Cold War contributors to the idea that the future of geopolitical competition would extend into the economic sphere.

Geoeconomics (sometimes geo-economics) is the study of the spatial, temporal, and political aspects of economies and resources. Although there is no widely accepted singular definition,[1] the distinction of geoeconomics separately from geopolitics is often attributed to Edward Luttwak, an American strategist and military consultant, and Pascal Lorot, a French economist and political scientist.[2][3]

The Singapore Economic Forum has emphasized the increasingly dynamic, complex aspects of leaders' decisions in the “Age of Geoeconomics”. Policy makers and CEOs alike have to "assess constantly techno-economic returns and legal-political risks on a combined geoeconomic plane."[4] Azerbaijani economist Vusal Gasimli defines geo-economics as the study of the interrelations of economics, geography and politics in the "infinite cone" rising from the center of the earth to outer space (including the economic analysis of planetary resources).[5]

In geopolitics, a common approach involves three levels of analysis. Geoeconomics can employ this three layers approach as well.[6] There is a policy layer, as in international political economy; an integration layer, as in economic geography and industrial organization; and a transaction layer, as in the transactions exemplified in financial economics.

  1. ^ Petsinger, Marianne (July 23, 2020). "What is Geoeconomics?" (PDF). Chatham House. Archived from the original on July 23, 2020. Retrieved July 23, 2020.
  2. ^ Cite error: The named reference :0 was invoked but never defined (see the help page).
  3. ^ Lorot, Pascal (1999). Introduction à la Géoéconomie. Paris : Institut européen de géoéconomie : Economica. p. 219. ISBN 2-7178-3962-3.
  4. ^ David Weeks & Nicolas Firzli (20 February 2021). "Asset Allocation & Risk Management in a Fractured World". singaporeforum.org. Institutional Investment Research (IIR). SSRN 3793199. Retrieved 25 February 2021.
  5. ^ Gasimli, Vusal (2015). Geo-economics. Baku: Center for Strategic Studies. p. 11. ISBN 9789952274103.
  6. ^ Singer, J. David (October 1961). "The Level-of-Analysis Problem in International Relations". World Politics. 14 (1). Cambridge University Press: 77–92. doi:10.2307/2009557. JSTOR 2009557. S2CID 12404896.