A plethora of tools, instruments and techniques are available to be used as measures of applying coercion upon the so called “bad actors” by the powers that may be. Here are few popular ones for your reading pleasure:
As a preface, may I be permitted to add a caution: all these instruments of geoeconomics pressurizing have two common features! One neither imposer nor target can easily surmise the expected success or failure of the tools used. Secondly whether the target is affected as intended by the imposer or the whole thing gets boomeranged on the imposer is hard to tell. With that caveat let me list the tools without much ado:
1. Sanctions against a country, entity, group or individual. Most of these sanctions have long shelf life until countermanded by the imposer at any time during their pendency
2.Trade agreement entered into with a third party country stipulating that the latter must restrict trade relationship with or totally refrain from having trade relationship with the target country named in the agreement. This is geoeconomics double whammy. North Korea, Syria and Iran are in this league of bad guys
3. Imposing unbearable tariff upon an exporting company or country such that their products become too expensive in the imposing nation. Huawei is a prime example amongst the sufferers
4. Export/import control requiring licensing, permits etc., imposed on the targets by the originator over critical components, raw materials, technology transfer, patent use etc., so that either exporting or importing nation gets bogged down with unsaleable items. US ban on technology exports to China and the latter’s ban on rare earth to USA as a counter measure, is an apt example of geoeconomics rivalry
5. Withdrawing freight and travel facilitation upon the target and its citizens so that flow of goods and travel of individuals are affected to the point of utter frustration for the victim
6. Disconnect banking and financial facilities and communications. Russia was banned from western banking system as a whole and was shut out from SWIFT
7. Asset freeze in the deposited country over financial and other valuables imposed by the central bank or other regulators against a particular country. Russia got her assets in the form of reserves and bank balance frozen in the Global North along with frequently published threats of expropriation of these. This, of course, is the ultimate but sublime instrument of geoeconomics torture
8. Restrict investment flow into a country that is in the crosshairs of the imposer who mandates that no state or other entities are allowed to undertake investments into the target country. Syria is a notable country where practically no investment flow has taken place for the entirety of the last decade.
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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