Reading 16: Introduction to Geopolitics

Book 1: Economics

Geopolitics

interactions among nations, state actors, and nonstate actors

State actors

national governments

Nonstate actors

corporations, NGOs, individuals

Geophysical Resource Endowment

the resources that a nation sits upon

Soft Power

ability to influence other countries without using or threatening force

Archetypes of Globalization

Hegemony

Autarky

Bilateralism

Multilateralism

Hegemony

High globalization, low cooperation

Autarky

Low globalization, low cooperation

Bilateralism

Low globalization, high cooperation

Multilateralism

High globalization, high cooperation

Regionalism

a form of multilateralism where a country portrays these behaviors with a few countries but not the rest of the world

What does the international monetary fund do?

Promotes international monetary expansion; expand international trade; establish a multilateral system of payments; make resources available to members with balance of payments issue

World Bank

assists developing countries struggling financially

What are the two organization the World Bank is comprised of?

The International Bank for Reconstruction and Development (IBRD)

The International Development Association (IBA)

Is the World Bank a bank?

no

International Bank for Reconstruction and Development

reduce poverty in creditworthy poorer countries

Inernational Development Association

Focuses on the world’s poorest countries

Geopolitical Risk

the possibility of events that interrupt peaceful international relations

What are the three risks of geopolitical risk?

Event Risk – events you know the timing of but not the outcome; elections

Exogenous Risk – unanticipated events; war

Thematic Risk – known factors that have effects over long periods of time; human migration, cyber risks

Velocity of geopolitical risk

how quickly the geopolitical risk will present itself

risks that happen in the short term are considered high velocity

Tools of Geopolitics

National Security Tools

Economic Tools

Financing Tools

Signposts

data that can signal the likelihood of an event is increasing or decreasing

volatility increasing in the markets can signal geopolitical risk may be on the horizon