Introduction to Geo-Economy

Geo-economy – object, essence, goals/ objectives and methods. Geo-economy studies the state’s strategies and international production rates that assure its economic development. Geo-economy appeared in the late 20th century as a result of world’s political changes. Geo-economy appeared due to the following factors: • Globalization and regionalization; • Economic integration; • Labour division; • Scientific revolution; • Collapse of Soviet union.
Geo-economy answers 2 questions: - What is the economic power ? (-> is about natural and human resources) - Where is concentrated this economic power ? (-> for each country the appreciation is different)
Object: worldwide economic changes – as a result of the increase of the economic dependence among countries, products internationalization and integration of financial markets. Basically, geo-economy is based on political economy and political geography. Political economy studies production as a whole and Political geography – space role in economic development.
Objectives:
- Each state’s aim is to control the most important natural resources, maritime transportation and the main political and geographic positions, both water and land; - To elaborate strategies for national economic development; - To create a competition among countries, referring to transportation corridors, commodity market and the main water and land positions; - To apply specific economic strategies which will maintain economic security in case of competitions; - To combat economic crimes, such as: money laundering, non-payment of state’s taxes and other negative actions which diminish national security and state’s authority among international organizations; - To manage correctly the crises and geo-economic conflicts.
Methods:
❖ geo-statistical – the analysis of national and international statistics referring to worldwide economic development, natural and human resources