Taking cover behind flimsy or selfish reasons, powers could set in motion geoeconomics disruptions against single or group of countries that do not follow their playbook rules, most of these being one sided any way. Lofty ideals are often cited such as protecting “rules based international order” for imposing these disruptions. Not only weak nations but rising powers such as China are also taken to task.
In geoeconomics, there are two kind of disruptions: primary and third-party. In an earlier blog I have touched on primary disruptions. See Get ready to face geoeconomics disruptions. This blog broaches third party disruptions and how these are employed.
Ranked first amongst third party geoeconomics disruptions, is the arm twisting aggressive power does on allies or countries that are beholden to her on the basis of alliance such as NATO or Clubs such as G7. This can morphed into prevailing upon these countries to ban or banish a company or its product exported by victim nations. Secondly, forcing allies to impose restrictions on the licensing part of the concerned product. A glaring example was Huawei whose operations were disrupted in many countries across Europe and elsewhere. The common thread running there is the national security. Those oppose are given the short-end of the stick.
As an addendum, I must cite aggressive power forces its alliance partners to delay or withhold new investments in sectors that are sensitive to the aggressor and cause annulment of business relationship and collaborations that are already in existence or proposed to be initialled in the near future. Calibrated response by USA towards Germany over Nord Stream II pipeline perfectly fits this scheme of geoeconomics disruptions.
Next in line is the maskirovka type of restrictions enforced indirectly on the victim countries. This shadow boxing takes place when the victim is booted out from the Bretton Wood Twins of International Monetary Fund (IMF) & World Bank. If there are any financial facilities already in the pipeline in these two institutions, aggressive power uses its veto in forestalling all.
Denial of participation in international bodies dealing with economics, trade & investment such as World Trade Organization (WTO) and organizations ensuring global health such as World Health Organization (WHO) is also resorted to by aggressor power. Time barred or purpose barred this disruption would not cease unless the victim nations improve their behaviour to suit the whims and fancy of the aggressor.
Multi country targeting of the victim by way of blocking it from using SWIFT financial communication and fund transfers along with placing the victim on grey area under The Financial Action Task Force (FATF) turns off the tap for their geoeconomics survival. Incidentally both are independent institutions SWIFT is privately managed and FATF is an inter-governmental body ensuring global financial safeguards. Travesty of justice has no bounds in the case of geoeconomics disruptions!
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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