Challenges to Economic Cooperation
Chapter 7: Economic Regionalization and Geo-economics
Page 77 7 Economic Regionalization and Geoeconomics GEOECONOMICS—A CHALLENGING CONCEPT Geoeconomics, we argue, is the core concept that provides the foundation of an economic regionalization model in the postCold War era. Let us recall that geo politics was at the core of the Cold War regime of strategic regionalization. Indeed, it was so, even for the imperial model of economic regionalization. Geopolitics anchored itself to a superpower hegemony which assumed the responsibility of providing free ‘‘international public goods”, a defense and security umbrella as well as monetary and fiscal stability. The nationstatebased economies of the world, excepting only a few in the Nonaligned Bloc, elected to join one or another of the two superpower regimes and drew upon their supplies of “international public goods”. The cost of providing the twofold public goods—political and economic services—eventually proved to be too real. The end result was the liquidiation of the geopoliticsbased Cold War regimes. It can be argued that in the preWorld War II imperial economic regionalization models, the superpower hegemony worked, very much with its authoritarian imperial enforcement. The monetaryfiscal stability in the respective regimes, anchored to related imperial currencies—the French franc, the British pound sterling, the Dutch guilder, the Japanese yen or the U.S. dollar— was enforced and secured by the political might of the ruling powers in historical circumstances. Geoeconomics must be appreciated as the postCold War revolutionary concept. It...
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