Klaus Solberg Søilen’s work on geoeconomics is an important contribution to understanding the intersection of geopolitics and economics.It shows how states and private entities increasingly rely on economic tools—such as trade, sanctions, and technology—to pursue global objectives.
The book explores the strategic importance of these measures in shaping international relations, offering a thorough analysis of how economic and financial strategies influence global power structures.
What stands out is its exploration of various disciplines, including international trade, competition for resources, and the use of financial tools in political disputes. Søilen emphasises the strategic role of intelligence in both the political and economic realms, underscoring its influence on high-level decisions.
This book is highly relevant to those working in international security, political economy, geopolitics, and intelligence. It reveals how economic policy can shift the global balance of power, offering valuable tools for understanding and navigating international relations.
Defining Key Concepts: Geoeconomics, Geopolitics, and Intelligence
In this work, Søilen outlines three related terms: geoeconomics, geopolitics, and intelligence, each essential for understanding global power shifts.
- Geoeconomics refers to the use of economic measures by state and non-state actors to achieve geopolitical goals. Søilen illustrates how state and non-state actors utilise economic instruments, such as trade, sanctions, and resource control, to exert influence and project power. In today’s global environment, states and non-state actors increasingly use economic tools instead of military force to gain leverage and manipulate rival states.
- Geopolitics deals with how geography, resources, and populations impact power dynamics among nations. It involves understanding how territorial control and resource access influence international conflict and cooperation. The importance of strategic locations, such as trade routes or resource-rich areas, remains central to this analysis.
- Intelligence is collecting and analysing information critical to national security, foreign policy, and economic interests. In the economic realm, intelligence helps states and corporations assess market movements, trade patterns, and vulnerabilities, enabling them to craft more effective strategies.
Key Connections
- Geoeconomics is a modern extension of geopolitics, where states replace or complement traditional military strategies with economic measures.
- Intelligence, especially in the economic sphere, is crucial in helping states predict changes, vulnerabilities, and opportunities in the global order.
Practical Applications for Intelligence Analysts
Søilen’s analysis of economic warfare provides critical insights into how economic measures—such as sanctions, tariffs, and trade restrictions—are now used as primary tools in international power struggles.
For intelligence analysts, understanding these tools is essential when evaluating how economic policies could destabilise a region, cripple an adversary’s economy, or influence a state’s long-term strategic direction.
In regions under heavy sanctions regimes, such as Iran, Venezuela, or Russia, these measures function as primary methods of external pressure, often achieving significant outcomes with no military intervention. Analysts tasked with assessing the effectiveness of such policies need to track not only the immediate economic damage but also the long-term shifts in political alliances, market behaviour, and domestic stability within the targeted nations.
The competition for critical resources—such as oil, natural gas, rare earth metals, and even food supplies—is another major theme explored in Søilen’s work. For financial intelligence professionals, understanding the geopolitical implications of access to these resources is increasingly important, especially in energy security and the vulnerabilities within global supply chains.
Resource control plays a key role in shaping investment strategies, particularly in sectors directly linked to national security. Analysts must assess how the race for these vital resources affects global markets and how disruptions in their supply might trigger broader economic or geopolitical crises. Countries heavily reliant on imports of key resources—such as China’s dependence on energy imports or Europe’s challenges with rare earth materials—are vulnerable to shifts in global resource competition, and recognising these vulnerabilities can help to forecast potential geopolitical flashpoints.
Søilen also highlights the growing role of economic intelligence in statecraft. The collection, analysis, and interpretation of economic data—such as trade patterns, currency movements, and financial market indicators—can reveal much about a state’s geopolitical posture, vulnerabilities, and strengths.
Economic intelligence allows states and corporations to better expect market shifts, track rival strategies, and identify emerging risks. For intelligence analysts, monitoring these economic trends becomes vital in assessing the overall health of a state’s economy and understanding how these shifts may impact its global influence.
By integrating financial and economic data into broader geopolitical assessments, analysts can provide a more complete picture of where a state’s strengths or weaknesses lie. In some cases, such intelligence can uncover key vulnerabilities in rival states or regions, offering valuable foresight into potential market collapses or geopolitical upheavals.
Besides state actors, Søilen indicates multinational corporations are increasingly taking on roles traditionally played by states, particularly in sectors like technology, finance, and infrastructure.
These corporations influence international relations through their investment choices, supply chain decisions, and lobbying efforts, and they can shift the balance of power in ways that directly affect geopolitical outcomes. Analysts must now consider how corporate behaviour influences state decisions and, conversely, how governments may leverage private companies to achieve their geopolitical goals.
The behaviour of major technology companies, for example, can significantly affect diplomatic relations between countries, especially in fields like 5G networks, AI, and cybersecurity. Understanding how these corporations act as geopolitical players is key to anticipating shifts in international power structures.
Finally, technological innovation is another key area that Søilen explores, particularly its role in enhancing national economic power. Countries positioned as leaders in fields such as artificial intelligence, cybersecurity, and renewable energy can exert considerable influence on the global stage.
For analysts, tracking technological advancements can help in forecasting future shifts in global power, particularly in the competition’s context between major powers like the United States and China. The competition to lead in advanced technologies like quantum computing, biotechnology, and green energy has important consequences for economic and military strength. Understanding these technological trends is not just about monitoring innovation but also involves analysing the geopolitical ramifications of technological leadership, such as how these advances might reshape global supply chains, alter trade relationships, or even create alternative forms of economic and cyber warfare.
Conclusion
In applying Søilen’s ideas, intelligence analysts can enhance their ability to predict global power shifts and anticipate risks or opportunities within the economic and geopolitical landscape.
By closely monitoring economic policies, resource competition, and technological developments, analysts can provide more accurate risk assessments, inform policy decisions, and offer strategic advice that accounts for the growing importance of economic tools in global power dynamics.
The focus on economic intelligence and its integration into broader security frameworks ensures analysts can remain ahead of potential disruptions or crises, enabling more informed and proactive responses.
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