Economic statecraft or geo-economics refers to the process by which nations carry out business and use it as an instrument to reinforce their sovereignty. In other words, geo-economics defines states’ use of trade, investments, and infrastructural developments to influence strategic partnerships and gain advantage. The geopolitical competition will define the future of global politics because it minimizes losses and ensures the benefits of all parties involved.
Military confrontation results in massive loss of life and destruction of property. In addition, it obligates countries to halt their development initiatives and focus on funding wars. Thus, many leaders have realized that it is better to engage in peace talks than wage war because both sides always lose (Sharp, 2018). World War I and II recorded an abnormal loss of life and the use of countries’ resources to fight the war. Hence, powerful nations always hesitate when faced with issues that might cause war.
Geo-economics allows nations to benefit from each other’s resources and capitalize on their strengths. For example, establishing trade blocks in Europe, the Americas, and other continents facilitates sustainability (Adriaensen & Postnikov, 2022). Individuals doing business or residing in these areas can easily access goods and services. Hence, geo-economics allows nations to use their resources appropriately and exchange with others to obtain supplies.
Geo-political competition is more advantageous than cross-border conflicts as it minimizes negative outcomes and facilitates advancements. Therefore, most nations’ foreign policy leans toward competing rather than raising arms because the latter always results in death and destruction.
References
Adriaensen, J., & Postnikov, E. (2022). Geo-economic Motives and the Negotiation of Free Trade Agreements: Introduction. In A Geo-Economic Turn in Trade Policy? (pp. 3-26). Palgrave Macmillan, Cham.
Sharp, A. (2018). The Versailles settlement: Peacemaking after the first world war, 1919-1923. Bloomsbury Publishing.