Geo-economics

The report argues that geopolitical competition is replacing traditional globalization, shifting the battlefield from military force to economic levers. It identifies seven challenges: the rise of economic warfare, the geopoliticization of trade talks, the emergence of 'State Capitalism 2.0', a shift in competition from natural resources to gated markets, the 'hollowing out' of peripheral states by regional hegemons, China's use of infrastructure-driven alliances, and the impact of volatile oil prices. The authors conclude that in a multipolar world, states and businesses must adapt to a landscape where the pursuit of power is as critical as the pursuit of profit.

• Geo-economics is characterized by a shift where economic tools are used to achieve geopolitical goals, effectively employing the "grammar of commerce but the logic of war". This includes the use of sanctions, currency wars, and the manipulation of resource prices as substitutes for conventional military strikes.
• Economic warfare, particularly through sanctions, is becoming a primary tool for projecting power. While the US and EU use sanctions to influence foreign policy, emerging powers like Russia and China use them to prevent political drift or address maritime disputes. These measures can lead to "de-globalization" as companies avoid markets tied to geopolitical rivals.
• Trade negotiations are becoming geopoliticized, with regional blocs emerging as tools for power projection rather than just economic growth. Examples include China's push for the Regional Comprehensive Economic Partnership against the US-led Trans-Pacific Partnership, and Russia's creation of the Eurasian Economic Union (EEU) to counter EU/NATO influence.
• A new era of 'State Capitalism 2.0' is emerging, where governments use politicized central banks and the promotion of 'national champions' to advance strategic interests. This involves using regulatory and standard-setting tools in sectors like finance, energy, and technology to strengthen state-owned enterprises (SOEs).
• Strategic competition is shifting from the control of natural resources to the quest for access to large, growing markets with burgeoning middle classes. This shift is driven by technological advancements in shale oil and gas, which have reduced dependence on traditional suppliers.
• The breakdown of global leadership is creating asymmetric 'core-periphery' relationships where regional hegemons empower themselves by 'hollowing out' their neighbors. This reduces the ability of smaller 'pivot states' to hedge between major powers.
• China is utilizing infrastructure finance as a foreign policy tool, creating 'infrastructure alliances' to secure raw materials and export efficiency. This is executed through the BRICS Bank, the Asian Infrastructure Investment Bank, and the Silk Road Economic Belt.
• Oil price volatility is the dominant trend, with the traditional stabilizing role of Saudi Arabia diminished. While lower prices benefit major importers like China and Europe, they pressure resource-dependent economies like Russia and Iran, potentially increasing their incentive to ease geopolitical conflicts.

APA

World Economic Forum (2015). Geo-economics. http://www3.weforum.org/docs/WEF_Geo-economics_7_Challenges_Globalization_2015_report.pdf

Chicago

World Economic Forum. Geo-economics. 2015. http://www3.weforum.org/docs/WEF_Geo-economics_7_Challenges_Globalization_2015_report.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Geo-economics |date=January 2015 |url=http://www3.weforum.org/docs/WEF_Geo-economics_7_Challenges_Globalization_2015_report.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2015geoeconomics, author = {{World Economic Forum}}, title = {{Geo-economics}}, institution = {World Economic Forum}, year = {2015}, month = jan, url = {http://www3.weforum.org/docs/WEF_Geo-economics_7_Challenges_Globalization_2015_report.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }