Recent events force every business and every country to revisit land as factor of production when framing business strategy. The ongoing conflict in Ukraine accentuated this trend globally. Here are some snippets on this subject:
Resources are located in earth as well as in space. Right now the concentration is on earth consisting of land per se and the ocean bed. There are two types of countries and businesses. Resource rich and resource poor. America and India are indeed resource rich but when compared to Russia and Eurasian land -mass both are resource poor.
Russia which has the largest land area as well as Arctic Ocean bed, by far the most resource rich country in the world. Let us for the moment turn to Mackinder’s theory. Sir Halford John Mackinder British geographer is considered as the original thinker in both geopolitics and geostrategy whose concept of geography as a pivot land exemplified in his Heartland Theory where Eastern Europe was equated as the heartland and whoever control this heartland would control the world. This pivot land theory gives Russia immense power.
Further enunciation was provided by Nicholas Spykman, who improved upon Mackinder in his Rimland Theory where coastal regions of Eurasia are designated as Rimland due to land and sea interface that enables them to dominate the globe. He specifically pointed out that Eurasian Heartland fits this phenomenon. Interestingly, both Mackinder and Spykman had Russia in their mind after Russia won control in Crimea thence the Black Sea aftermath of Turkish-Russian wars.
The strategy underpinning both of their assertions is Russia remains the elephant in the room against whom a land power in the West or from across Atlantic could not wage war against Russia to any successful conclusion. Either the antagonists would be defeated in the battlefield or need to flee. A sea-power sails away and an air power flies away.
Now the question in geoeconomics is whether this pivot land or rimland as the case may be able to allow the use of land as the factor of production in order to improve upon the natural benefits bestowed upon Russia. Put it other way whether Russia can use her riches in effective and efficient manner to enhance manufacturing.
The short answer is yes, she can. Provided Russia sets in motion a conciliatory & complimentary approach to both America in the west and China in the East. Putin did that in his inimical manner. Here are pointers where he re-visited his business strategy navigating amid geoeconomics:
1. In association with China addressed both USA & EU calling for the implementation of open trade policy
2. Used discounted oil price to counter sanctions imposed against Russian oil export by the West
3. When Trump introduced third party sanctions mainly targeted against China & India, Putin indirectly persuaded India to split away from American orbit.
4. When Trump forced countries to choose between America and the Global South, Putin threw his support to the latter emphasizing BRICS as an alternate power centre.
5. Finally, Putin met with Trump in Alaska heralding new era of US-Russian co-operation ignoring the Atlanticists.
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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