Introduction to Geo-Economy

Topics: Economy, Economics, Energy crisis Pages: 32 (9726 words) Published: February 26, 2013
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 reserves of different geo-economic space; ❖ systemic analysis of geo-economic space – based on processing statistics by applying different calculation methods; ❖ historical research method – re-establishing of economic, geo-economic, demographic, historic and political phenomena and comparison with current situation; ❖ balance – the analysis of rates between production of goods and services, existence of energy resources and its consumption (energy balance), economic and demographic leaders, among different countries, regions and big geo-economic spaces; ❖ Mathematical statistics analyzing economic, social and environmental phenomena. 1. Geo-economic notions.

Geo-economy – science which studies the state’s strategies and international production rates that assure its economic development; Geo-economic strategy – the art of achievement of economic goals in world’s market, preventing potential conflicts by implementing geo-economic technologies; Geo-economic technologies – a system of methods and techniques which create geo-economic situations in order to achieve strategic objectives; Geo-economic border – conventional border that delimit spheres of influence of international economic organizations. Geo-economic boundaries may be different as political ones. Closed economy – an economic space that avoids the entrance of foreign capital, goods and services; Open economy – economic space aim of which is economic integration with large aspects of foreign capital, goods and services entrance; Economy’s liberalization – transition from closed economy to the open one; Transition economy – economy of post-socialist states where occurs the transition of production means from public to private property; Free economic zone – an area with a favorable economic and geographic position, aim of which is to attract foreign capital, technologies and efficient utilization of human resources. Its main function is productive one; Technopolis – free zone near big cities with a favorable economic...
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