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Subtitle: Geoeconomics and Statecraft - Belknap Press, Harvard Univ.
Cambridge, 2016, 366 pgs, index, 90 pgs. of notes
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Reviewer's comment:
This is a very important and useful study of many types of conflict other than
war (armed military conflict) But it includes such types as 'cyberwar',
'financial or currency' war, 'trade war'. and diplomatic measures.
The topics include theory of geopolitics and specific examples of its
application by China (chapters 4 and 5) and the United States (chapters 6 -
10).
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Introduction:
The authors begin by noting that in recent decades the United States government
apparently has forgotten the historical use by the U.S. of economic tools to
accomplish its geopolitical objectives in favor of simple reliance on its
overwhelming military power. They define geoeconomics as this application of
non-military tools and then in separate chapters discuss several of these. They
claim that. "This large-scale failure of collective strategic memory
denies Washington potent tools to accomplish its foreign policy
objectives". They continue by noting that while the U.S. has failed to
employ these historic tools much of the remaining countries have increased
their application of these.
In particular, they state that. "Russia, China, and others now routinely
look to geoeconomic means, often as a first resort, and often to undermine
American power and influence". The American failure to recognize this
growing application of geoeconomic methods in the contemporary world, not only
in its own failure to employ them but also in failure to recognize that these
are central methods being used by adversaries has weakened American
effectiveness, caused its allies great concern and emboldened its adversaries
to expanded power objectives through their use. They provide several specific
examples. These include both failures of the U.S. to employ such methods now
although they were well understood and employed by the U. S. in the 19th
century and even during the Eisenhower era and examples of their use by others.
Specifically, they date the decline of U.S. application of geoenonomic tools to
the Johnson and Nixon years. Conversely they cite examples of such applications
to China, India, Arab states, Russia and others.
They comment, "The decline of geoeconomics in American foreign policy
making in recent decades proves to be a complicated story, with lots of
variables, subplots, and nuances".
And, "Thus embraced by neither most economists nor most foreign policy
strategists, the use of economic and financial instruments as tools of
statecraft has become an orphaned subject".
They believe (or hope) that the situation is changing for the better.
"This book aims to advance an understanding of how states are currently
applying economic instruments to advance geopolitical ends - that is,
geoeconomics - and what today's geoeconomic practices imply for how America in
particular should think about and conduct its foreign affairs".
In this introduction, then , the authors explain what they will discuss in each
chapter and why.
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Chapter 1 - What is Geoeconomics?
In this chapter the authors define the terms and the issues. They decline to
enter the usual academic discussion over the definition. Rather they define
their subject in terms of a set of specific activities that are commonly used.
"Thus, we define the phenomenon as follows: the use of economic
instruments to promote and defend national interests and to produce beneficial
geopolitical results; and the effects of other nations' economic actions on a
country's geopolitical goals... "We explore the relationship between
geoeconomics, so defined, and geopolitics".
Further, they consider; "Finally, we explain the relationship between
geoeconomics and the concepts of mercantilism, economic liberalism, and
international economic policy".
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Chapter 2 - Geonomics and the International System
In this chapter they ask and answer the question - why geoeconomics appears to
have an expanding role in the foreign policies of many other nations. They cite
exact examples from Russia, China and the Arab-oil states And these states are
using geoeconomic tools integrated with over military tools. They want to
discuss how this phenomena is affecting foreign polity generally.
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Chapter 3 - Today's Leading Geoeconomic Instruments
In this chapter they focus on seven important geoeconomic tools used today:
specifically, "trade policy, investment policy, economic sanctions, the
cyber sphere, aid, monetary policy, and energy and commodity policies"
-focusing on their geoeconomic aspects rather than only on economic aspects.
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Chapter 4 - Geonomics and Chinese Foreign Policy
In this chapter the authors focus on China. "Beijing is often correctly
described as the world's leading practitioner of geoeconomics, but it has also
been perhaps the major factor in returning regional or global power projection
back to an importantly economic (as opposed to political-military)
exercise."
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Chapter 5 - Geoeconomic Strength in Beijing and Beyond
In this chapter the authors pose and discuss two major issues - 'how can we
recognize geoeconomic pressure at work when we see it?' And, ""Does
it work?" To which they reply, "Yes".
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Chapter 6 - U. S. Foreign Policy and Geonomics in Historical Context
The authors present a summary history of the use of geoeconomics by the
American government. They consider it interesting that they find effective and
fairly extensive American use of geoeonomics in which the active policy makers
were forthright in their approval of their actions. But that later the
purveyors of American history published a different appraisal. They consider
the major change to have taken place during the Vietnam War and in a part about
the Cold War. They consider the separation of what might be termed 'pure
economics' from the integration of economic with political considerations in
establishing foreign policy a potential weakness if the U.S. does not recognize
that this integration is what foreign nations are doing.
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Chapter 7 - America's Geoeconomic Potential
In this chapter the authors consider and evaluate the current use of
geoeconomics by the American government. They believe the U.S. possesses much
greater geoeconomic power than it is employing. But there is a reluctance to do
so.
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Chapter 8 - "The Geonomics of North America's Energy Revolution
Here the authors point out that the 'revolution' in oil-NG production in the
U.S. provided not only a powerful economic benefit but also significant
geoeconomic world power, should the U.S. choose to use it.
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Chapter 9 - American Foreign Policy in an Age of Economic Power
In this chapter the authors outline their recommendations about how the U.S.
might use its economic power in a geoeconomic role.
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Chapter 10 - Geonomics, U. S. Grand Strategy, and American National
Interests
The authors write that they conclude, "on precisely this question of where
geoeconomics fits within the broader context of U. S. Grand strategy and
American national interests.
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