Why geography matters in geoeconomics?

For the first time in history geography was considered as a pivot when Sir Helford Mackinder, a British Geographer presented his thoughts at a meeting of The Royal Society of Geography London in 1904.  Since then geography became one of the poles of strategy. Today it has even expanded into geoeconomics as well.

Location is the foremost area where geoeconomics is tied up with geography. Look at the power wielded by America mainly due to her location between Atlantic & Pacific Oceans that enables far flung reach to every nook and corner in east, west, north & south of the globe.

Terrain is the second most vital factor of geography that affects geoeconomics power projection. Russia has massive flat & fertile land conducive to food & agriculture. More than 545 million acres being under cultivation, she produces 91 million metric tons (MMT) of wheat alone out of which almost half of it exported. Together with corn, sunflower, beet, potatoes and cereals Russia is critical in the global food supply chain.

Transportation facilities within a geographical area is a key indicator of geoeconomics power spectrum. China tops the scale with more than 80,000 miles of highways and 98,000 miles of railway. High speed railway system connects 28 out of 34 regions. In the course of this decade the balance six regions would also be networked.

Top notch as trading nation is sine qua non for geoeconomics power play. China one again gets the coveted place. For her US$ 7.2 Trillion of export & import of goods & services is a remarkable feat. The number of trading partner countries China deals with amount to more than 120 and still growing,

Finally, foreign exchange reserves is the mark of a man in terms of geoeconomics. China once again usurps this position with US$ 3,480 Billion   as on June 2022. By now this amount must be much higher. Pointedly, these deposits are held in banks in several geographical locations. Large foreign exchange reserves enables a country to sail safe in any eventuality of crisis proportion. More than that, it gives a huge bargaining chip in international relations not to forget the geoeconomics muscle to sway the unwilling to her side.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist