Geo-Economics Reality & Science-Babic, Blagoze S

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    Vol. 6 (1) 2009: pp. 27-54

    Scientific review paper UDC 339.5/.9

    Received: November 12th, 2008 ID 158244108

    Professor Blagoje S. Babi, PhDFaculty of Geo-economics, Megatrend University, Belgrade

    GEO-ECONOMICS

    REALITY & SCIENCE*

    Abstract: The article analyzes theoretical and empirical aspects of geo-economics.

    Different theoretical attitudes toward mastering of world economic space are studied,starting from attitudes of American scientists who are known as founders of geo-econom-ics to the opinions of Italian, French, Russian, Ukrainian and Indian geo-economists.Empirical analysis aims to explain geo-economics as geo-economic policy of developedstates and large companies. Those geo-economic policy makers are put in the context ofcompetition and rivalry on the world market.

    Key words:geo-economics, world market, competition, rivalryJEL classification: F02, P16

    1. Working hypothesis

    G-cnmic i v-bd plitical cnmy1 bad n unai cm-ptitin.

    2. Founders of geo-economics

    American scientist George T. Renner used the term geo-economics for thefirst time in 1942.2 Another American scientist, Romanian by origin, Edward Lut-twak was the first one who tried to explain theoretically the term geo-economics inhis article: From geo-politics to geo-economics: the logic of conflict, grammar of com-merce, that was published in 1990.3 He is known as godfather of geo-economics as

    * Engli languag tanlatin: P Dagana Gnjatvi.1 T tm plitical cnmy a bn ud by g-cnmit t mak tat manag-

    mnt, wic man bt cnmic and dvlpmnt plicy.2

    Gg T. Rnn: Human Geography in the Air Age, Nw Yk, Macmillan, 19423 Edwad Luttwak: Fm g-plitic t g-cnmic: t lgic cnlict, gamma cmmc, The National Interest, umm, 1990, pp. 17-23

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    a separate scientific discipline.4 This term has been further elaborated in his book:Turbo capitalism: winners and loosers in the global economy, published in 1999.5

    The snowball that Luttwak has let grow aside did not turn into avalanche.Until today, relatively small number of works on geo-economics has been pub-

    lished. The first important one is Geoeconomics, Mastering of Economic Space,edited and co-authored by Paolo Savona and Carlo Jean, that was published in1994.6 Important credit for the development of geo-economics in Russia goes toErnest Georgievitc Kocetov. His major work is Geoeconomics, Mastering of WorldEconomic Space, published in 1999 and 2006.7 In France, the most important workis Introduction to Geo-economics, edited and co-authored by Pascal Lorot, pub-lished in 1999.8 French journal Revue franaise de goconomie that was started in1997 with the purpose of studying international economic strategies and powerhas given large contribution to dissemination of the term geo-economics in sci-

    ence and public.9 Among well-known geo-economists are also two Indian writers:Jagdish Shet and Rajendra Sisodia, co-authors of a book: Techtonic Shift the Geo-Economic Realignment ofGlobalizing Markets, published in 2006.10

    3. The Meaning of geo-economics

    3.1. Understanding of Edward Luttwak

    3.1.1 Entering the time of geo-economics

    Nlgim g-cnmic mak t amalgamatin t lgic cn-lict by mtd tad, a Kal Clauwitz aid: t lgic wa in t gam-ma tad.11 Duing t Cld Wa, tad cnlict btwn t USA, Eupand Japan ad bn aily vcm. It wa nt allwd t tad cnlict t4 That is how he was called by Aleksandar Neklessa: ,

    Intnt ttp://www.aciplag.u/gcnmic, 18 X 2007, p. 15 Edwad Luttwak, Turbo capitalism: winners and loosers in the global economy, Hap and

    Cllin Publi, Nw Yk, 19996 Pal Savna, Cal Jan, Geoeconomia. Dominio dello spazio economico, Edit Fanc

    Agnli, 2-a dizin, 19977 . . , : ,

    , , 20068 Pacal Lt, Intductin Puqui la gcnmi, in: Pacal Lt (Su la dic-

    tin d), Introduction la Goconomie, Ecnmica, Pai, 1999, p. 69 Ibid10 Jagdi N. St, Rajnda S. Sidia, Techtonic Shift the Geo-Economic Realignment

    of Globalizing Markets, Rpn Bk, A diviin Sag Publicatin, Nw Dli/Tuand Oak/Lndn, 200611 Luttwak, Fm Gplitic, p. cit., . 19

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    am plitical latin tat wuld jpadiz alli lidaity in nt tat-ning Svit Unin.12 Btwn t USA, Wtn Eup and Japan t waa bcm almt unimaginablmilitay pw and claic diplmacy adlt ti anct imptanc in ti mutual dd, taying in u nly againt

    t w pvk did n t pipy13In tun, t lidaity btwn alli cd by cmmn xtnal tat i

    diappaing. Ecnmic iu a cming t t dg. Ecnmic ivali atngtning. Numu cnlict a aiing cncning t ul intna-tinal tad and ladip in induti wit ig tcnlgy tat a cnid-d a tatgic n. Tading mtd a cing ut militay mtd.14W ntd t a g-cnmic.15

    In ant wd, g-cnmic i a gam btwn t tat tat a limi-natd t int-wa. On t main ild wld plitic w Amican, Eu-

    pan and Japan cpat and cmpt, ivaly attitud can b xpdnly wit lp cnmic man.16 At tim g-cnmic, bt anand man ivaly a cnmic n.17

    Tu, ivaly amng t tat a nt diappad wit t nd tat-gic ppitin uppw but it mv cntinuuly m militay-tatgict cnmic p. T iacy t tat and ti inlunc n intna-tinal cn i dtmind m and m by cnmic an. T ul t tat, king kp tngtn ti pitin, mak t t gaing-cnmic ubtitutin dclining g-plitical l.18 G-cnmic

    a bn cntinuuly taking plac m g-plitic.

    3.1.2. New means of warfare: geo-economics

    G-cnmic i a nw ditin ld ivaly btwn t tat. Witinuc ivaly, capital invting in induty pvidd dictd by t tat ian quivalnt t i wapn; pduct dvlpmnt upptd wit gvnmntubvntin i an quivalnt t wapn impvmnt; and makt pntatinwit t lp t tat tak plac m militay ba and amy n ign

    il a wll a diplmatic inlunc.19Evn i militay pw ad diappad ttally m intnatinal cn and

    nly cnmic buin unit wuld av maind n it, t lgic tad wuld12 Luttwak, Turbo-capitalism, p. cit., p. 13913 Ibid, pp. 127-814 Luttwak, Fm Gplic ..., p. cit., . 1715 Luttwak, Turbo-capitalism, p. 12716 Ibid. p. 12817

    Ibid. p. 14118 Luttwak, Fm Gplitic, p. cit., . 1919 Luttwak, Tub-capitalim, pp. 128-9

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    lad t ic cmptitin t t catin alignmnt. In bt ca, i.. inca cmptitin a wll a in ca alignmnt btwn cnmic buinunit actin n all id wuld tak plac gadl t tat bd.20

    T ality i nt tat impl, yt. T militay pw a nt diappad.

    T intnatinal cn a bn takn pimaily by t tat and t tat ali-gnmnt. A titial unit, t tat a dtmind by pac at tan byunctin. Tu ty cannt llw cnmic lgic tat wuld nglct ti wnbd. T qutin i aid: Wat lgic ty llw?21

    All tat av ti cnmic gal. Eac tm k t gattpibl bnit. Eac tm gulat it cnmy, k t ac cnmicptimum in it wn tat bd, and ncuag tcnlgical innvatin ind t maximiz t bnit witin it wn bd. In all t mntindca, t tat act gadl t cnqunc t tat. S, in all t

    ca t lgic cnlict appa.Tu, t ality i uc tat world politics i till nt ady t giv it plac t

    world economy, i.. t tad tat i gvnd nly by it nn-titial lgic.22 G-cnmic gal i nt t acqui t igt pibl living tandad butat t cnqu kp did l in t wld cnmy.23 Altug twa btwn t USA, Eup and Japan i xcludd, yt, ac t tata t tat tuctu till ganizd a wa ivaly and ty a all tmptdt llw wa gal wit g-cnmic man.24

    In g-cnmic ivaly, t law c a in wa divid t l. T

    winn tak igly pitabl and lading l tmlv wil l ndup wit t pcing lin i ti intnal makt i wid nug.25

    3.1.3. Credits and limits

    Edwad Luttwak gt t putatin t und g-cnmic a pa-at diciplin. Hi mit a numu. Fit, by paating g-cnmic mg-plitic tund t attntin t gwing imptanc cnmic mattin intnatinal latin, and nt nly cmmcial an. Scnd, tid

    t pv tat g-cnmic a it wn ubjct and mtd and t paat it intat way m g-plitic.26 Tid, mad t t kp g-cnmic am mcantilim and cnmic wa at t am tim.20 Luttwak, Fm Gplitic, p. cit., . 17-1821 Ibid.22 Ibid., . 1823 Luttwak, Turbo-capitalism, p. 13324 Ibid., p. 12925

    Ibid., p. 13326 Rudl Kjlln ud t tm g-plitic t it tim at t bginning t 20tcntuy. Gman cintit Kal Hau ad undd t junal calld Zeitschrift fr

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    T tcming Luttwak cnidatin a t llwing. Fit, tya nt mtdlgically cla nug. Luttwak did nt agu n t ubjct mtd g-cnmic a a banc cinc. Scnd, ba i undtan-ding g-cnmic n cnmic and tatgic ality t nd t 20t

    cntuy.27 Tu, i appac i nt baically analytical but nmativ n: wt vcm cnmic cnlict btwn t alli w a lt witut cmmnxtnal nmy.

    3.2. The perceptions of Italian geo-economists

    Italian geo-economists Savona and Jean take a stand that geo-economics hasemerged from geo-politics. This new discipline intends to put economic choices ofa state in the framework of the strategy aimed for enlarging its capabilities in word

    competition. Geo-economics is a discipline that studies politics and strategiesused for enlarging the competitiveness abilities of the states, which remain keyelements of international system in new conditions. Military power has lost itstraditional role that determined the hierarchy of the states and was a major instru-ment of geo-politics. After disappearance of two-poles world it plays its remainingrole while geo-economics becomes basic parameter of international order.28

    T pup g-cnmic i nt t dtmin t mau uppindividual ntpnuip wit lp tatgic cm dignd by t tatn it i a ynnym mcantilim ptctinim cnmic wa. T

    pup g-cnmic i t cntibut t t catin nlaging ivalycapabiliti natinal cnmi in nw intnatinal cnmic cmptitin.Ecnmic ivaly a bn ncd wit t nd t cld wa and diviinand plitical-tatgic ivaly tat wa limiting it. In ant wd, g-cn-mic val itl in an ndav aping cnmic ngining tat upladintitutinal ngining.29 Ti impli tat t tak g-cnmic i buil-ding a tatgy t tat actin twad pviding maximum cmptitivadvantag t dmtic ntpi and cnmy a a wl in cmpain witign ntpi and cnmi.30

    Geopilitik in 1923, wic bcam a tl ppaganda Natzi Gmany, t tm g-plitic gt bad cnntatin. Tat wa pbably t an wy Luttwak catd tm g-cnmic. M n Kjlln attitud in: Stpi, M., Skvi: Stanvnitv i dava- aktulnt uwa Rudla Kjlna, Glasnik,vl. LXXXVII, n. 2, Sbian GgapicScity, Blgad, pp. 79-92.

    27 Pacal Lt, La nuvll gammai d ivalit intnatinal, in: Pacal Lt (Sula dictin d), Introduction la Goconomie, p. cit., p. 15

    28 , , : ,Intnt, ttp://www.aciplag.u/gknmika, 17 X 2007, p. 4

    29

    Ibid.30 , ,Intnt, ttp://www.aciplag.u/gknmika, 18 X 2007

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    3.3. The perceptions of French geo-economists

    Lt, llwing Luttwak, bgin wit t bli tat at t nd cldwa militay pw dvlpd natin i n m t lading uc ti

    tngt n intnatinal cn. Tim militay cnlict btwn tm agn. In act, cnmic alt a tat i t tandad mauing it pw.Ecnmic intt t tat a taking a lad v plitical intt. Tu anw a mg, an a g-cnmic.31 In ant wd, Lt i llwingLuttwak ypti tat latin btwn dvlpd tat a makd witcnmic ivaly intad militay cnlict.

    Accding t Lt, g-cnmic analy cnmic tatgi - p-cially tad tatgy - tat a adptd by t tat in ctain plitical cnditin t ptctin ti cnmi ti xactly dtmind gmnt, a

    t lp ti ntpi t acqui tcnlgi pntat ctain gmnt wld makt ctain pductin cmmcializatin m pduct.Hlding cntlling uc gmnt t wld makt pvid ctain unit -ntpi tat - wit an lmnt pw and intnatinal inlunc and itlp nlaging it cnmic and cial pw.32

    G-cnmic d nt man t nd plitic pw. It man nlynw timatin lativ imptanc dint lmnt tat it i mad m.It i caactizd wit diminiing imptanc militay-tatgic act andgwing imptanc cnmic n, a wll a king cnmic pw a ky

    tatgic gal Wtn and dvlpd tat. Ecnmic gain ctain pimacyin intnatinal amwk.

    G-cnmic appa al a a mtd analyi intnatinal actin ky pw, pimaily Wtn n. In t wld in wic t pw aking nw ild manuv, g-cnmic appac i ncay va-luatin intnatinal latin.33

    G-cnmic dal wit t latin btwn pw and pac, wbd cang all t tim, w t pac a ictitiu maning, bing wit-ut titial ad pyical cntaint tat a innt t g-plitic. Cmpat-

    ibl wit ti dinitin i t natu man ud by g-cnmic. T at man n dipal t t tat, wic culd b ud t acivmnt t abv-mntind gal.

    With respect to spatial limitations of the implementation of geo-economics,French geo-economists differ somewhat from Luttwak. According to them, geo-economics is a planetary phenomenon today. It represents new field of competitionbetween developed market economies, not only Western ones. They take a standtoo that geo-economic strategies are most frequently the characteristic of develo-

    31

    Lt, La nuvll gammai..., p. cit., pp. 11-1232 Ibid.33 Ibid.

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    ped states, but they say that in the case of need industrialized countries that are notmembers of Western club in classical sense could also initiate those strategies.34

    3.4. The perceptions of Russian geo-economists

    Sinc cntly, many wit av bn inttd g-cnmic in Ru-ia. Tat i undtandabl taking int accunt cucial cang in g-pliticaland g-cnmic uunding Ruia and it pitin in intnatinal la-tin at dimantling t USSR. In Ruian g-cnmic, tw ditinctivappac culd b tacd:

    G-cnmic a plicy and tatgy nlaging cmptitiv tngt a)a tat in nw intnatinal nvinmnt. Ti pattn a bn unddby Kctv, t und Ruian cl g-cnmic.35

    G-cnmic a xagnal cm wld g-cnmic pac. Al-b)kanda Ivanvi Nkla a undd ti pattn.

    3.4.1. Neo-economic pattern

    T pcptin g-cnmic Kctv i undamntally dint mLuttwak . It culd b vn aid tat t tw pcptin g-cnmic ain cntadictin.

    Accding t Lutwak, g-cnmic dal wit t ivaly cn-a)

    mic intt Wtn tat at t nd cld wa and t way vcming t cnlict wit lp pacul actin and man incamng t tat t implmntatin pw i nt pibl. On tcntay, Kctv d nt cnnct t mgnc g-cnmic witt nd t cld wa. H cnid it a an utcm glbalizatin.G-cnmic i n cintiic ild tat mak glbalitic cincn gnal law n glbal tanitin.36

    Luttwak limit g-cnmic t t Wt. Accding t Kctv, g-b)cnmic i a nw pa in wld dvlpmnt. At t bginning 21t

    cntuy g-cnmic mgd a a nw ild cintiic knwldgtat tudi wld cnmic pac a uniqu ynti vy imp-tant ild uman actin in t cnditin glbal tanitin.37 Tmtt i maj bk: Geo-economics - mastering the world economicspace, pak itl abut tat: T wld t 21t cntuy i g-cnmic wld: tat i li, luiing, ucc!38

    34 Ibid.35 . , , in: , ka ..., p. cit., p. XI36

    . . , : , , , , 2002.37 , ..., p. cit., . 638 Ibid, p. XIII

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    In t Intductin t t mntind bk Kctv, acadmician Vic-lav Kuzncv ay: Ral and atinal actin mn - g-cnmic i t nc glbalizatin and it dtmin vall itical tp t uman kind in nw a, mt tunv m t 20t cntuy

    homo economicus t t 21t cntuyhomo geo-economicus.39Luttwak undtand g-cnmic a applid diciplin - t mtdc) pvailing cnmic cnlict btwn t tat t Wt. Kctvundtand g-cnmic a bt ttical and applid cinc.

    Fm gnal pint viw, at t bginning t 21t cntuy g-c-nmic a cm t t uac, taking plac m g-plitic and buildingg-tatgic (militay-tatgic) attibut in g-cnmic ytm.40 T mainaning bind g-cnmic i acing t pattn g-cnmic

    ytm t wld undd n t balanc tatgic intt and ally m-ging zn g-cnmic inlunc, dvtin t t ac t pattn civilizd gwt tat wuld nabl aviding vy dangu cla tcng-nu pattn wit t civilizatin paadigm dvlpmnt.41

    Fm pactical pint viw, g-cnmic migt b undtd a atudy n t tcniqu natinal actin in g-cnmic pac aiming mdn dcmpitin pw acquiing t mt avabl cnditin ducatin and ditibutin wld incm.42

    T pitin natinal cnmy in mdn cnmic wld i dtmind

    by intactin t tatgic cmpnnt: cnditin in intnatinal p;cnditin in natinal intt and piiti; cnditin in natinal cnmy.43

    Suc undtanding g-cnmic cm m t cicumtanc inwic Ruia und itl at dimantling t USSR. Kctv ay tat Ru-ia i gadually gtting ut m plitical and cnmic igiditi, twing awayld tuctu and tatgic attitud. In t cu vnt, Ruia u acdwit t ncity t undtak undamntal cnmic and plitical cntuc-tin in t cunty and t build nw tatgy t latin wit t wld.44

    3.4.2. Hexagonal scheme

    Nkla ba i pattn g-cnmic n t uin plitic andcnmic in t mdn wld. In ti pct, Nkla pattn di mKctv pcptin bcau tipulat tat dciiv act in t wld39 Ibid, p. XI40 Ibid, p. 241 According to: , Internet, http://www.archipelag.ru/geoeconomics, 18 X 200742

    , ..., p. cit., . 643 Ibid, p. 344 Ibid., p. 3

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    i nt t iacy tat but t iacy g-cnmic ntiti, i..induti, inancial and lgal tuctu, ig tcnlgi, aw matial p-ductin tc tat a linkd t m gup cunti t m ggapicalaa. In lin wit ti appac, llwing matix a bn apd in t wld

    cnmic d:Fu ggapically dind aa:a)Nt-Atlantic Wt, wit t pductin gd and vic a bndvlpd n ig tcnlgi;Indutializd Nw Eat witin Lag Paciic Ocan Ring;Raw matial Sut tat i mtly ituatd in t aa Indian OcanAc:G-cnmically t lat dtmind aa land can (-) Nt Eu-Aia.

    Tw ggapical aa tat a nt claly dind:b)Tannatinal Quai-Nt tat div m Nt Atlantic aa binglinkd wit lgal and inancial managmnt t wld cnmy;T aciplag Dp Sut wld undgund, dtuctiv cn-my bad n gaping xplitatin natual uc.

    Dciiv pitin in g-cnmic wld nwaday a adquat cn-my Nw Nt, bad n tatgic cmplianc Nt Atlantic and tan-natinal blck gading way and mtd ditibutin wld incm

    and cllctin quai-nt.G-cnmic tl acing t gal a wld inancial and lgal

    tcnlgi uc a wld v cuncy, intnatinal dbt, pgam tuctual adjutmnt and inancial tabilizatin, Waingtn cnnu,ytm managing natinal and ginal ik and in t utu - wld iu-tax ytm.45

    3.5. The perceptions of Ukrainian geo-economists

    Ukainian cintit g-cnmic a mdn g-plitic tat i pu-ud by nw man apd und t ct t lmnt glbalizatin andginalizatin. On t lading cintit in ti ild in Ukain i VladimiAlkandvic Dgcv. In i bkGeo-economics dtmin ti banc cinc a nw ganizatinal ytm t wld cnmy, mcanimand tatgy winning t wld cnmic pac and at t am tim acinc n tat dvlpmnt tatgy, aciving ginal wld pw pi-maily wit lp cnmic man.46

    45

    , Intnt, ttp://www.aciplag.u/gcnmic, 18. X 200746 . . , , 2000.Intnt: ttp://www.aciplag.u/gcnmic, 18. X 2007

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    3.6. The perceptions of Indian economists

    3.6.1. Triple structure of the world economy

    Indian wit St and Sidia a btd wit t dtiny l dvl-pd cunti in g-cnmic tuctuing t wld. Accding t tm,dvlpd and unddvlpd cunti dpnd n ac t. Dvlpd tatav lw at cnmic gwt and ig wll bing. A lng a ty tadamng tmlv ty will nt av canc i at cnmic gwt. Tippulatin i aging quickly ti wll bing i invitably ging t dca.L dvlpd cunti nd invtmnt and tcnlgy t ac t wllbing wit ti yung ppulatin.

    Cmmunity Nt and Sut will b acivd wit lp ti intga-

    tin by man tad blck. Until 2025, almt all cunti will b intgatdin n t t llwing blck: Nt Amican, Eu-Aican Aian.Eupan Unin will b intgatd wit Eat Eup and Ruia. Tn, Eupwill lan n Aica and Middl Eat and incpat tm. T F Tad Aa t Amica (FTAA) i ging t b cntitutd Nt, Cntal and SutAmica. India will n ti t t USA and bcm n ky mmb FTAA.47 T tid pilla mging tiad i Cina, Japan, Sut Ka and tnASEAN tat.48

    Hw i intgatin btwn Nt and Sut dvlping? T tat wit

    matu cnmi a linking t t tat wit mging cnmi.- Gmanyt Ruia, t USA t India, Japan t Cina. Sinc t mmb pwul ti-plt ac ncay patn n t Sut, in t lng un ti tiplt willbcm a act vall cnmic tability.49

    3.6.2. Factors of geo-economic restructuring

    All three blocks are going to be marked with the integration of North andSouth. Many factors are indicating to such direction: common geography, com-

    mon heritage, and compatibility of their economies and rivalry of other blocks. 50Emgnc tiad i nt ging t b caud nly by makt c. T

    tat mut ad t tatgic planning ti viin culd cm tu. Tutm tat-cpatin will mg t bi mbdid in t tiu blck.

    In n-pla wld - a it i tday - apiatin n-idd actin catitanc, induc bllin and tim. In bipla wld, wit tw matcingival t i a tat dvatating cmptitin - bt cnmic and militay.47 Stt, Sidia, p. cit., p. 12848

    Ibid., p. cit., p. 16949 Ibid., p. 5350 Ibid., p. 87

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    T-pla wld ig lvl tability. Stability and quilibium ainnt t tiangl.51 I n blck wuld bcm agant, t t tw wuldmak an alignmnt againt im t cntl im. S t pll wuld pvntcnmic advntuim.52

    Tu, wld tuctuing t t almt qually pwul blck intad Owll wa t wld will lad t t catin n wld pac andwll bing.

    3.6.3. A look ahead

    Indian wit, diti lng lating civilizatin a nt lt in dbatn wat gnd a angl. Ty d nt invlv in dbat i g-cnmic icinc. Ty a inttd in t pw tat ap t wld cnmy. Intad

    g-cnmic cld wa tat i alady taking plac in Nt ty aviin g-cnmic wld pac. Tipl g-cnmic intgatin uldlad t m qual wld dvlpmnt.53

    T pcptin g-cnmic Indian wit i an inncnt vin t ynti Ricadian bli in tad and Gandian bli in t pw nnvilnc.

    4. Geo-economic makers

    On ky qutin g-cnmic a a cinc i: w a g-cnmicdciin mak?

    4.1. The state

    Majity wit tink tat t tat i ky g-cnmic dciinmak.

    Luttwak t tat t tat a built a patial unit tat dtmin ja-

    luly ti tity in d t xcut t pw. T tat a bn dti-nd t igt xcluiv pw v vnt n it tity a wll a lativadvantag v maining imila unit n intnatinal cn, vn wit lp nnmilitay man nly.54

    Italian wit t tat tday intnatinal cmptitin and iacydpnd m and m n cnmic. Wil Eupan cunti intndd tinca in all pibl way ti militay pw in t 16t and 17t cntui,51 Ibid., p. 5452

    Ibid., p. 3353 Ibid., p. 31854 Luttwak, Fm Gplitic, p. cit., p. 19

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    in u tm t tat ty t impv t lvl ti cmptnci in intna-tinal cnmic cmptitin.55 Tat i natual bcau g-cnmic wa di-vd m g-plitic. Plitic and cnmic a alway clly linkd. Pliticalway tk cnmic int accunt. At t am tim, cnmic ad alway

    pvidd inancial, tcnlgical and indutial uc t plitic. Bid,plitic ud cnmic a a wapn cnmic blckad and mbag.56

    Tu, accding t Italian wit, gadl all cang in t wld, ttat nt nly i nt cndmnd t diappa but n t cntay it i tngt-ning. At nding cnlict btwn dint idlgi, t tat mut cn-m t t nw aliti. Ty main maj ubjct intnatinal latin,act tability btwn individual dm and cial lidaity, and t cn-t w plitical intt and gal culd b mt.57

    In ant wd, g-cnmic i g-plitic tattk pimaily plac

    m militay g-plitic m t pat. S it tudying gain it claimptanc t m mdn tat. Tat i nt imply cnmic cincbut diciplin w pat i ci-lgal ngining. Bing , it mak dpin lunc n plitical cinc.58

    Tw t Italian wit a paticulaly undlind.G-cnmic iu dv t igt pibl attntin gvn-a)mnt. Witut taking int accunt g-cnmic act in it intnaland ign plicy cnmically wk cunty cannt tand n it wn

    t.In pnt cnditin t ptctin m ign cmptitin cndmnb)dmtic cnmy t dat. In d t kp natinal cnmy in vintnatinal ivaly, it i ncay tat it i nt nly ptctd but alady t paticipat t battl. T win, t i n nd unwi ila-tin but clv pnn, nt t ptctin wak pduc but up-pt pwul and ppctiv n.59 F tat pup, anabllng-tm vall g-cnmic tatgy and capabl tat appaatu timplmnt uc tatgy a ndd.60

    Italian wit a t pinin tat paliamntay public i l avabl g-cnmic ivaly tan pidntial n. F uccul implmntatin

    55 , P , ,Internet, http://www.archipelag.ru , 18. XI 2007, . 1

    56 Ibid.57 Ibid.58

    Ibid., . 259 Accding t: , ibid.60 Ibid., . 3

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    5. World economic rivalry

    In ti pct t iu a paticula imptanc: glbalizatin t wld cnmy; pculiaiti cnnctd t t pitin cnmic pll;

    ginalizatin and diintgatin.

    5.1. Globalization of the world economy

    At t diappaanc diviin t wld n tw cnlicting pll tcmptitin btwn t tat ad mvd m militay-tatgic t cnmicgund. Wit tcnlgical and cintiic dvlpmnt, pcially inmaticin cmmunicatin and tanptatin, mutual intdpndnc t tati gwing in vall wld. But t tam glbalizatin d nt lad t t

    catin McLuan wld villag67 t Fukuyama nd ity68 tatmgd m t victy dmcacy and makt.69

    According to Jean and Savona, globalization reveals itself in diminution ofeconomic importance of territorial boundaries of the states thanks to deterrito-rialization and dematerialization of wealth. At the same time, liberalization of theworld trade, alleviating trade barriers and easing capital movements had taken ashare of power from national-territorial states to control economy that is a shareof sovereignty in economic field.70 Now, companies can transfer their businessesmore easily to the areas where business conditions are most favorable for them.

    Ptctinim and autcacy a ling n. Fdm mvmnt gd and capital dpiv ty pduct li cycl m any n. Dv-lpd cunti, tank t t dm mvmnt gd and capital dnt av, a b, mnply pitin in t igt pductin tcnlgi.It i nt ndd any m nw tcnlgi t aciv mal bltn tb tand t l dvlpd cunti. Inmatin vlutin a nabld t gd min quality t b pducd in l dvlpd cunti t,and ty a capabl tday t cmpt wit dvlpd n. Mv, nwlyindutializd cunti, tank t lw pic lab c, lw ct nvi-

    nmnt ptctin and cuity at wking plac a undmining t pitin dvlpd cunti n t wld makt, a wll a t lvl wll bing ti citizn.71

    67 Hbt Maall McLuan, The Gutenberg Galaxy: Their Making of Typographic Man,Tnt Univity P, 1962

    68 Fanci Fukuyama, The End of History and the Last Man, F P, 199269 a , , : ,

    ttp://www.aciplag.u/gcnmic, 17. X 2007, p. 170 , , ..., op. cit., . 171 Ibid., . 1.

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    In any ca, nw diviin lab i mging. T pc i dvlping tquickly it d nt giv m puuing adquat tuctual m. Inti pc t cunti tat a nt capabl building ctiv tatgia ut.72 Imptant nvlty i tat buin cycl l dvlpd cunti

    dpnd l and l n buin cycl dvlpd tat. Tu l dvlpdcunti bcm v m dangu cmptit t dvlpd tat, p-cially in attacting ign capital.73

    5.2. Economic polls

    T tam glbalizatin d nt lw aily. Main btacl a:Catin ginal blck tat ncmpa alady lag ptin ta)wld;

    Diintgatin many tat, wic i till n t agnda tday. Tib)pnmnn xit bt in t tat n t Eat Eup tat a t-nically and ligiuly dint, and in t cunti Wtn Euptat a tnically and ligiuly imila. In Wt Eupan cuntit i bllin ic t wic t tat d nt pp a ty din t ca t bllin p.

    Jan and Savna av an intting xplanatin . In t cuntidiappaing bad-lin ptctinit btacl, cut in tat acquiitin,

    glbalizatin t makt and t pnc natinal and upa natinalpw waknd t pitin t tat in pct t ic aa. At t amtim, p aa and cial gup ncuag t tat in d t pvid ciallidaity tug t tat tat can initiat t ditibutin incm. Tginal pll pp t lag blck. Ty tan lab-intniv induti tl dvlpd aa wit cp lab c. In uc way ty nlag ti wncmptitiv tngt and widn ti wn makt.

    Cmptitin gwt n t wld makt c t tat t nlag tiwn cmptitiv tngt witin ginal pll blck in wic ty a pi-

    tind. Tat i t cnqunc dying ptctinim and cang in patialand tim caactitic t cnmy.

    Nw diciplin - g-cnmic a xactly mgd m t nd t anwt tmptatin tat divd m uc dvlpmnt vnt and c t ta-t t build cpnding tcniqu, tatgy and plicy. T ntin g-cnmic pint t t mau tat a undtakn by t tat in d tnlag cmptitiv tngt dmtic cnmy n t wld makt.74

    72

    Ibid.73 Ibid., . 274 Ibid., . 3

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    5.3. Disintegration

    In lin wit glbalizatin and ginal intgatin t pc diint-gatin i dvlping tat tatn t uvival natinal tat du t gwt

    lcalim and bllin ic aa againt t p n. Yt, natinal ta-t till xit a maj tak mting natinal intt and plici and at tam tim pving t quilibium btwn dm and lidaity. Ecn-mic dvlpmnt dpnd n dm; cial cin dpnd n lidaity.75

    T tat a pad tug igniicant cang b playing ti l.During the 19th and at the beginning of the 20th centuries the state has pro-

    vided the industry with the ultimate space for doing business, public order, tariffprotection at the state borders, immediate assistance and state supplies. In return,a share of wealth that was produced by industry had been spilled over to the bene-

    fit of the poorest parts of the country and to the poorest segments of population.At t Wld Wa II, t tat tat inclind t mcantilim and auta-

    cy, mad gat t t pvnt militay cnlict. F tat an ty tundt t wla tat. In tat cu actin, t wa al a nd t pvnt tainiti twad cialim amng ppulatin.

    T intntin cad t xit at t nd cld wa. At t am timintnatinal cnmic ivaly tatd.76 T cnqunc diappaanc tw pll in t wld wa lning intnal unity t tat. Uually uclning i xplaind by tnical cla. Hwv, nw cnmic tuctu

    actd it al.Jan and Savna, taking int cnidatin intntin uc a paatin

    ic Nt Italy m t Sut, tun u attntin t an inclinatin twadt paatin ic pat t tat in paat cnt pw, i.. tmgnc city-tat and aa-tat intad natin-tat, tat am tpnt an aciplag ic in t can i nt miy tn in t latintanc t nglignc cmpad t t cnt immdiat dciin making.

    In nc tat i a cnai cnmic balkanizatin tat aumplitical-cnmic tuctu t middl ag typ, w paalll t wlly

    Rman mpi (GATT typ) wic pvid gnal cdinatin in d tcap ttal anacy t ytm, t xit al lcal cnt pw tatmak indpndnt dciin. In tat way t incntiv aping tuctu nt pincipl cnt pipy mg.77

    T tat und itl in nt a diicult qutin: w t maintain txpanin walt in d t pvid lgitimacy in nt ict gin andcial gmnt and t jutiy t aciic ty mak in t nam natinallidaity.75

    Ibid.,. 376 Ibid., . 477 Ibid., . 4

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    T cncluin Jan and Savna i tat cniding t l t tati a pquiit aviding dilutin and balkanizatin t wld ytm.Exactly tat tak a bn givn t g-cnmic.78

    6. Geo-economics as geo-economic policy

    Fm t pint viw g-cnmic, t tat i a cunty-ytm tatcmpt wit t cunty-ytm. Suc cmptitin ccu t wldlvl accding t dtmind ul. T ul a bjctiv, mging mcnmic law, but al ubjctiv, divd m tad intnatinal ag-mnt. T ul culd nt b dibyd witut anctin bcau twitng actin wuld llw m t tat in t ytm.79

    6.1. Methods of geo-economics

    G-cnmic d nt tick t taditinal mtd plitical cnmy- mntay and ical plicy, incm plicy and lab makt - but it al ut mtd tat Jan and Savna put in tw gup.

    6.1.1. Methods of Colbertism80 of high technologies

    Accding t Italian g-cnmit, t mtd ncmpa t ma-u aimd at nlaging cmptitiv abiliti natinal cnmy wit lp bt tuctual mau ( g-cnmic cmptitin t a intitutinalmcanim and intllignc wk; attacting ign invtmnt wit lp tax liv t a vic, inatuctu, cintiic ac) and invt-mnt in uman act i adaptatin t nw makt cnditin, in d tpvid mplymnt t lcal ppulatin wit igt valu addd and iglvl wag. Tat i a ncay pcnditin pviding wll bing tatculd nt b pvidd wit ptctinit mau n t tat bd.

    6.1.2. Methods of economic war

    Italian geo-economists consider the methods of economic war in narrowsense. Those are methods that use the niche of economic freedom inherent in thesystem of rules of the world market, and those rules are broken de facto, althoughnot formally, for example, by non-tariff barriers; by formally legal but in fact ille-

    78 Ibid.,. 479

    Ibid.,. 580 Accding t Fnc inanc minit Jan-Baptit Clbt w i cnidd a tund induty in Fanc.

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    gal support of own exports; by technology controls; by official development sub-sidies but in fact for expansion and protection of own economy by use of interna-tional strategic embargoes, in order to provide benefits for own companies.

    Geo-economic is not a new form of protectionism or mercantilism because it

    differs fundamentally from them. Those two last mentioned forms of protectionismuse the measures of protectionism at the state borders. In new conditions of porousstate borders defense strategy is not applicable especially statistical protectionismis not possible. The time of performance has come. Modern world economic com-petition is coupled with the cult of performance similar to those that determinedEuropean military-strategic conceptions in the eve of the World War I.81

    Pmanc and dn culd nt xit paatly. Ty a invitabl g-mnt any g-cnmic tatgy. Spciic id tat tatgy i ptctinm nmy uupatin tat culd tun mutual dpndnc in dpndnc;

    ptctin indutial ct wn tcnlgical ba m indutial pi-nag and nmy uupatin.

    Hwv, in pincipl, tatgic intatin i pmanc bcau an alt-nativ wuld b budnd wit t pil cin. It tun ut tat t ma-ning cnmic wa a cangd 180 dg.82

    In t pat, at tim mcantilim in mdn a cnmic wap-n w ud againt Svit blck a ubidiay intumnt accmpliingtatgic and plitical gal. In pnt tim, at tim cmptitin btwnindutializ cunti plitical man a ud aciving g-cnmic

    gal. F tat pup cucial cang ccu in intnatinal law. Tat i abutt appaanc igt-bligatin inting in nt n wn buin umanitaian pup, tat wakn mal vignty t tat pcibdby t UN Cat. Intnatinal ytm aimd t ptctin pac andcuity, adapt m and m t t nd g-cnmic.

    6.2. Logics, strategy and methods of geo-economics

    T lgic intnatinal g-cnmic cmptitin aum t xitnc

    wld ligply nuclu. Lag cmpani and bank av it cla imp-tanc lng-tm tatgy. At tim, makt pntatin wa maj cmpanygal wil tday it i managing wit cuiti.

    Chronologically speaking, the first reason for the existence of states is pro-tection from external enemies. Well known phenomenon is present: to instru-ment the states by economic interest groups that intend to misuse the state forthe achievement of their goals, frequently asking that the state should take hostileattitude toward other states. Not one field of state performance is exempted fromsuch misuses: fiscal policy could be implemented in a manner that imports would

    81 , , ..., ibid.,. 582 Ibid.,. 6

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    not pay off; laws, subsidies, services and infrastructure could be adjusted to favordomestic interests; and, what is understandable, providing state funds for dome-stic technological development by its nature is directed against foreign competi-tors which do not get government subsidies. It is important that the states intend

    to act geo-economically simply because they are what they are: spatially determi-ned units constituted as to push back one another on the world arena. 83

    7. The limits of geo-economics

    7.1. Geo-economics and geo-politics

    Dynamic latinip xit btwn g-cnmic and g-plitic. Tat

    latinip i nt givn nc v. It cang wit t cang intna-tinal cicumtanc.

    G-cnmic i a pup and man g-plitic a pactic at tam tim. Plitical pw a bn v ud t acivmnt cnmicgal. Bt wld wa av bn cnductd t ditibutin cnmicpw. Evn tday t wa a cnductd t am an. At t amtim, cnmic man a ud t acivmnt g-cnmic gal:mbag, blckad, limitatin t acc makt wit lp tai and nn-tai bai, ubidi dmtic cmpani ppndanc n t wld

    makt tc.Cmmn dnminat g-cnmic and g-plitic i t act tat

    ty bt tm a mtd analyi and intptatin pw latinn t intnatinal lvl.

    Wat di g-cnmic m g-plitic?Gal. G-plitic i cintiic diciplin tat tudi ivaly binda)wic i a di t mat plitical pac, i.. titi and ppulatintat liv n t titi. G-cnmic tudi ivaly bind

    wic i a di t mat cnmic pac. T gal g-cnmic int t gt pw v ctain tity but t mak tad and tcnlgi-cal dminanc.Mtd. G-plitic lan n t u c including militay n.b)G-cnmic lan n cnmic man. It xclud vilnc bt mili-tay and cnmic uc a blckad and mbag.Outcm. - T utcm plitical cnlict i z um n. Tadc)cnlict a nt ncay uc utcm. Tat culd b dincbtwn g-plitic and g-cnmic.

    83 Luttwak, Fm Gcnmic , ibid., p. 19

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    Mak. - G - cnmic mak a t tat and lag cmpani tatd)ad t wld tatgi. Tat i nt t ca wit g-plitic. H, tmak culd b nt nly tat and lag cmpani but al gup ppl gatd plitically nt. Laning n itical data, ty tak

    pat in tatgi mating titi.Spac. - Luttwak a pimaily tatd m t ti tat g-cn-)mic i a mtd vcming cnmic cnlict amng Wtncunti w t u wapn i untinkabl. Accding t Lt,Tday, ntin g-cnmic i a lt m cmpniv tan tund ti nlgim ad in mind; it ncmpa ally plantaydimnin tat cannt b ducd nly t Wtn cunti.84 Ruiang-cnmit a t am pinin.Rac. - Luttwak undlin tat t l g-cnmic in t dv-)

    lpmnt wld cnmy i mall tan t l g-plitic in v-all wld plitic. T tat a l u t act g-cnmically tant act g-plitically.85 Lt al tink tat g-cnmic d ntman t nd cnlict and titial ptnin. G-plitic ln imptanc in Wtn cunti nly bcau cnlict cnidingtiti a v btwn tm. Tu g-cnmic i vwlmingamng Wtn cunti.86 Kctv tink tat t wl wld i a ild bt g-plitic and g-cnmic. Ti amalgamatin i wat call g-cnmic wa.87

    7.2. Geo-economics and mercantilism

    T qutin i: d g-cnmic man ging back t mcantilim?I t ntin g-cnmic tu blt? Luttwak tink tat it i nt. mak cla ditinctin btwn mcantilim and g-cnmic.

    T pup mcantilim wa nlaging t uppli gld. T pu-p g-cnmic i t pvid t bt pibl ccupatin t maj-ity ppulatin. In t pat t tad cnlict ad aily tund t plitical

    n, ty ld aily t militay cnlict and t t wa. Mcantilim waubdinatd mdality latin maning tat t i alway pibility al in intnatinal tad t tat cu t t gamma wa.

    G-cnmic, n t cntay, mg in a wld w t a nupi mdaliti latin. T act tat vilnc in tad a lt t l it

    84 Lt, La nuvll gammai , ibid., p. 1585

    Luttwak, Fm Gplitik..., lc. cit.86 Lt, La nuvll gammai , p. cit., p. 1887 , , p. cit., . 312-318

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    playd at tim mcantilim, a appvd auxiliay man cnmic cm-ptitin i vidnt nug.88

    T mtd mcantilim w alway dtmind by t mtd wa, and in nw g-cnmic a nt nly cau but al man cnlict

    mut b cnmic n.89 T man tat placd wapn a: m ldiguid tictin n xpt, m l diguid xpt ubidi, inan-cing cmptitiv tcnlgical pjct, uppt cn typ ducatin,pviin cmptitiv inatuctu tc.90

    7.3. Geo-economics and economic war

    Wat i t latin btwn g-cnmic and cnmic wa? I g-c-nmic a impl placmnt, m mdn tm cnmic wa?

    Rivaly btwn patn wit pct t pntatin makt a tacquiing tcnlgy i cmmn t g-cnmic and cnmic wa. Hwv,tat i a pt w t mblanc btwn t tw ntin nd. Maj di-nc xit btwn tm:

    Paticipant. - Cmpani nn-gvnmntal intt gup (ga-a)nizatin cnum, clgical ganizatin, dint lbbi tc)culd puu ti wn cnmic wa, n t lvl dmtic makt n t wld lvl. On t cntay, g-cnmic pactic culd bpmd nly by t tat. T initiativ culd cm m t ad

    t tat in cnnctin wit t cmpani tat a cnidd atatgic n.91

    Man. - G-cnmic i m any wa way tinking Clau-b)witz typ including cnmic wa. T tut i, g-cnmic culdu ctain tll cnmic wa uc a: claical pactic cmptitinpvntin, diciminaty u pyical cntingnt, tai nn-tai bai, vatin public wk t dmtic im and mactiviti wit t mnpli tat a claical xampl indutialpinag. Yt, g-cnmic d nt lan n mt aggiv wapn

    uc a intducing n-idd mbag ganizd byctt.92Hig intt. - A t tat a dpivd m a a ti vi-c)gnty bcau glbalizatin, buaucacy lan n g-cnmic pviding it wn inlunc.93

    88 Luttwak, Fm Gcnmic , p. cit., p. 2189 Ibid.90 Ibid.91

    Lt, La nuvll gammai, p. cit., p. 1692 Ibid., p. 1693 Ibid., p. 17

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    tngtning ivaly pitin n t wld makt a d nly t dmticbuin unit.

    In t, m t pint viw cnmic cinc, g-cnmic i v-bd plitical cnmy bad n unai cmptitin.

    8. Dispute

    A n a it land t walk, a Ukv ay, g-cnmic bcam aniu vivid diput. T diput i n tw iu:

    I t g-cnmic a a paat ild tudy at all?a)I it jutiiabl t cnid g-cnmic a cinc?b)

    8.1. Is there geo-economics as a separate field of study at all?

    T plac and l g-cnmic ivaly in vall intnatinal cmpti-tin i t nc ti diput. In tat pct, tw attitud a apd:

    In mdn wld g-cnmic ivaly i a ky lmnt t battla)btwn natinal cnmi n t wld makt. Ectiv u g-cnmic man i an imptant cnditin t ucc in tat battl.Nwly catd cinc, g-cnmic, xaggat t imptanc b)g-cnmic id t ivaly btwn t tat. Accding t Ukv,

    it play vy mdt l.

    T qutin i wat i bind ti diput?

    By all man, bind ti diput a t dinc in valuating cmpti-tiv abiliti t cnmi n t wld makt.

    Oppnnt g-cnmic cnid, a a ul, i natinal cnmytng nug t dp wit intnatinal cmptitin, witut ading t ma-iv tat uppt. T ppnnt g-cnmic, n t cntay, dubt

    cmptitiv abiliti ti natinal cnmi and cnid tat it cannt uc-cully cmpt wit t cnmi witut ytmatic aitanc it wntat.

    In ant wd, a anyw, t pwul a inclind t paclibalim, and t wak t call gvnmnt aitanc.96

    96 , p. cit.

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    8.2. Is it justifiable to consider geo-economics as science?

    Kctv cnid g-cnmic a nw banc cinc tat a it wnubjct and mtd. G-cnmic i a ild cinc tat incpat nw

    pciic p cnmic knwldg.97According to Kocetov, the subject of geo-economics is a) economic dimension

    of global world, key promoter of world development; b) synthesis of different fieldsof mans activities (economic, political, social, ecological, military) and his spiritualand moral condition (cultural, ethno-national, ethical, moral) in unified model ofrational behavior and living. In that sense geo-economics appears to be new para-digm (system of understanding) of the world development in the 21st century.98

    T mtd i al xplaind in lin wit t way t ubjct a bn dt-mind. T ky iu i t way undtanding g-cnmic pac.

    At t bginning t 21t cntuy it a takn pvailing l n iacicalcal tatgic actin in t wld ytm. G-cnmic pac nt in cm-plx mutual latin and actin wit t pac, b all wit g-pliticaland militay-tatgic n.99 F t an, g-cnmic i multi-idd,upa diciplinay nw cintiic diciplin.100

    T tubl wit Kctv undtanding t ubjct and mtd g-cnmic i in t act tat d nt daw a lin btwn g-cnmic acintiic diciplin and g-cnmic a it applicatin. Tat i cla m iundtanding t cau g-cnmic. Accding t im, g-cn-

    mic i a pat cintiic dvlpmnt tatgy. It giv tatgic landmak t dvlpmnt natinal cnmi, dtmin t caact and cntnt natinal dctin and cncpt mutual actin wit ut wld.101

    8.2.2. Geo-economics emerging science

    Baumad and Lt tink, G-cnmic i nt till a cinc but m-ging cintiic diciplin (discipline naissante).102 Ty d nt giv al cladtminant t ubjct and mtd g-cnmic.

    It i nt qutinabl tat g-cnmic tudi paticula ild int-natinal latin. It dcib and pcib t latin pw and pacwitut bd, cntay t g-plitic, wic dal wit t latin pwand pac dividd in t tat. G-cnmic nglct tat bd. In ant97 , p. cit., . 2 and 798 Ibid., . XIII99 Ibid., . XIV100 Ibid., . 7101

    Ibid.,. 7102 Pilipp Baumad, Pacal Lt, L camp gcnmiqu: un appc pitmlgi-qu, in: Lt, Introduction la Goconomie, p. cit., p. 214

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    wd, a majity wit w tudy tu ild, Fnc wit und g-c-nmic aum bt cinc and it applicatin. Tu, g-cnmic i tdayttcd btwn dcibing and making, btwn xplaining and acting.103Mainly, m t wk Fnc wit it div tat ubjct and mtd

    g-cnmic a mad m lan m t cinc cnmic, gga-py, ity, and g-plitic.

    In t, ubjct and mtd g-cnmic a nt till claly dindn t xit paat g-cnmic ty. Tu g-cnmic a cinc iyt t b md.

    8.2.3. Geo-economics science or ideology

    Nit g-cnmic n g-plitic a claly dind. T qutin

    i i t a tw paat cinc tw id t am idlgy. By bk,cinc i a cllctin t tat culd b ttd and idlgy i a cllctin nmativ judgmnt. In t ca g-cnmic and g-plitic it amt i an amalgamatin cinc and idlgy.

    There is no doubt that there is reality that requires scientific analysis. There isalso no doubt that behind geo-economics and geo-politics there are normative judg-ments, i.e. conditioned mind, i.e. mind determined by the interests of the states.

    Wat i bind g-cnmic? In nc, bind it t i a iddn p-tulat: g-cnmic i applid amng Wtn cunti bcau t i n

    m g-plitic btwn tm. Wy? G-plitic i applid wit vilncand t i n m vilnc amng Wtn cunti. G-plitic i, tu,a cllctin man, mtd and actin mating plitical pac ut Wt. Tu, g-cnmic d nt apply t t pac ut Wt bcau int aa t u c a man mating titi and ppulatin iallwd. Tat i t an wy Luttwak appv t ac in amamnt.

    Luttwak aning t l g-cnmic i a cntinuatin tundtanding intnatinal law in Wtn Eup in t 19t cntuy. Acc-ding t tat undtanding, intnatinal law i lvant nly t pac cn-

    idd a Eup. In Eup, nly vign tat can xit but nt clni.Out tat pac intnatinal law d nt cunt bcau t aa a unting zn, it clnizing.104

    Fnc g-cnmit di m Luttwak in ti matt. T tut i,accding t tm, al, g-cnmic i applid amng t cunti tatxcludd t tat wa btwn tm. Yt, ty ak tmlv i it wa juti-

    103 Ibid., p. 228104 Tat i ant id diput n t iu i Balkan a in Eup. Balkan tat w

    pitantly tying t pv tat i ty w Eup, ty wuld nt b clniyd, butmtpli mad t t xclud Balkan m Eup in d t pv m unting zn tm. Dagljub ivjinvi: Evropa danas, Bgad, 1985

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    iabl t limit t applicatin g-cnmic nly t Wt. Many cunti Latin Amica and Aia av mgd n t wld makt wit g-cnmictatgi. Ty acivd tat by man ti wn cnmic and militaypw nlaging t applicatin g-cnmic in tat way.

    All tat tat a capabl uc actin, ty t dvlp t mt pwulwapn t cap m g-plitical unting zn and bcm act g-cnmic. Tat i n t paadx mdn wld: t m nuclatat t wid ild g-cnmic. F, t m dvatating i t pw wapn it i l uabl.

    8.2.4. Geo-economics and geo-economic policy

    Epitmlgical did lad t cnuin in undtanding t pnm-

    nn tat ally xit and in t way it xplanatin.T ntin g-cnmic i ambiguu. G-cnmit n t Wt

    and n t Eat u t am ntin (Geo-Economics, , Gc-nmi, Gcnmia) t dnt bt g-cnmic ty and it applicatin.Tu it i tn nt cla i t iu i g-cnmic a a cintiic diciplin v-bd cnmic plicy t tat. Tat i t an wy it i tn ntcla wat i t iu diput.

    T cnuin cm m mcanical paatin g-cnmic mg-plitic. Luttwak, w wa t it t ty it, did nt undtand g-c-

    nmic a paat cintiic diciplin, but a paat intnatinal pactic.T diput culd b vcm wit t analgy t cnmic cinc and

    it applicatin: cnmic a ty and cnmic plicy a it applicatin. Inlin wit tat mdl, n culd dintiat g-cnmic and g-cnmicplicy. In analgy wit cnmic plicy, g-cnmic plicy culd b dt-mind a a ild cinc tat tudi man, mtd and actin mat-ing cnmic pac.

    T paatin tw tm: g-cnmic and g-cnmic plicy wuldnt tminat t diput bcau it wuld b ncay t dtmin in advanc

    i t i g-cnmic ty and wat a it ubjct and mtd.

    8.2.5. Geo-economics: reality and understanding

    T cnid it a a cinc, g-cnmic mut av it wn ty it wnubjct and it wn mtd. I g-cnmic ulill t cnditin it i tilldiputabl.

    Hwv, it i ut qutin tat ality xit n wic t dtiny twld dpnd: cnlict cnmic intt plantay dimnin. In tat

    cnlict, dictly indictly, all tat in t wld a invlvd. All mtdand man, vilnt and nn-vilnt a ud in tat cnlict.

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    It i cla tat cmplx ality cannt b ncmpad by any paatdiciplin. Tat i t an wy g-cnmic i a ild ac wubjct and mtd a mad lan m vaiu cinc: cnmic, gga-py, dmgapy, plitical cinc and t.

    Tu, g-cnmic pactic xit invitably, but cnmic ty i yt tb dvlpd.

    In t, t diput n g-cnmic mind u n wll-knwn ca witgia: it i diicult t b dcibd but w v it, knw tat i .

    9. Conclusion

    G-cnmic i a cinc in dvlpmnt. Fm t pint viw 1)

    cnmic cinc, g-cnmic a applid cinc i v-bd plit-ical cnmy bad n unai cmptitin.It i qutinabl i g-cnmic a it wn ty, ubjct and mtd2)tat a ncay cnditin cgnizing it a a cinc. T man-ing nlgim g-cnmic i al qutinabl by itl. But t in qutin i t i ality tat cannt b xplaind by any cgnizdild cinc: cnlict cnmic intt plantay dimnin.Spaatin g-cnmic m g-plitic a bn mad id-3)lgical an wit a-acing gal. G-cnmic a bn und-

    td a mating cnmic pac witut t u vilnc and g-plitic a mating plitical pac wit t u vilnc includingmilitay and cnmic man - blckad and mbag.Tat kind undtanding g-cnmic i a bai dinc in4)pct t t ild it implmntatin.At it, n t Wt g-cnmic a bn undtd a a mtd5) vcming t cnlict cnmic intt nly amng Wtncunti bcau btwn t cunti t u wapn i nt p-ibl. T t t wld tayd in t ild g-plitic w t u

    wapn i pibl.G-cnmit ut t Wt t cnlict cnmic intt a6)plantay pnmnn accding t tm t wl wld i a ild g-cnmic. Sinc m and m cunti a includd in t battl vcming diviin n t Wt and t t t wld by man ti cnmic and militay pw, t ild t applicatin g-cnmic i widning pptinally. Manyg-cnmit n t Wt tak ti act int accunt tday.7)Stabl gwt pducing pw t wld n n and and xplita-8)

    tin ngy uc and minal aw matial n t t i a cn-

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    tadictin tat i in t nc t wld cii. T dang tuningcnmic wa int g-cnmic wa i gwing tadily.Eac tat, n matt it ggapical, dmgapic cnmic pp-9)tin, mut build t tatgy acing g-cnmic ality.

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    Pvulvi, V.: Ekonomska diplomatija, Mgatnd univzitt, Bgad,2006St, Jagdi N. Sidia, Rajnda S.: Techtonic Shift the Geo-EconomicRealignment of Globalizing Market, SAGE, Publicatin, 2006Stpi, M. Skvi, J.: Stanvnitv i dava aktulnt unjaRudla Kjlna, Glasnik, Svka LXXXVII, B. 2, Spk ggakdutv, Bgad, 2007, pp. 79-92.ivjinvi, D.: Evropa danas, Bgad, 1985, . .: : , ,

    , , 2002, . .: . -, , , 2006, .: ,Intnt ttp://www.aciplag.u/gcnmic, 18 X 2007