#4 Maximilian Hess – Lessons from Ukraine: How to win an Economic War! - Part 1
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- Geo-economics is the study of how states use economic linkages, trade relationships, and development agendas to advance their interests and compete with one another.
- The economic war between Russia and the West is more significant than the trade war between the West and China, as it involves the fundamental rules of the international economic order.
- Sanctions can be effective in limiting a state's capacity to wage war or take certain actions, as seen in the case of Russia and the West.
- Central bank sanctions and swift measures targeting Russia's banks have been particularly effective in weakening Russia's state capacity.
- Russia has used its "inflation weapon" to cause pain points for the West, such as threatening global grain supply and manipulating gas markets.
- The West should consider using more "carrots" rather than "sticks" in its approach to countries like Turkey and Saudi Arabia, offering incentives for cooperation rather than relying solely on sanctions.
- China's relationship with Russia is more of an older sibling-younger sibling dynamic, with China being hesitant to fully support Russia in its conflict with the West.
- The West should focus on building alliances and offering incentives to China, rather than pushing it further towards Russia's camp.
- The concept of mutually assured economic destruction may prevent an all-out economic war between the West and China, but could lead to more intense competition on the periphery.
- Lessons from the economic war between Russia and the West can help inform decision-making for investors and corporations,
Maximilian Hess is a Central Asia Fellow in the Eurasia Program at the Foreign Policy Research Institute. Max is the former head of political risk at Hawthorn Advisors and former head of research and intelligence at AKE International. He is a graduate of Franklin & Marshall College and SOAS, University of London. His research focuses on the relationship between trade, debt, international relations and foreign policy, as well the overlap between political and economic networks.
EPISODE LINKS:
Maximilian's Linkedin - https://www.linkedin.com/in/maximilian-hess-8090882a/
Maximilian's Website - https://www.mfmhess.com/
Maximilian's Twitter - https://twitter.com/zakavkaza
Economic War: Ukraine and the Global Conflict between Russia and the West - https://www.amazon.co.uk/Economic-War-Ukraine-Conflict-Perspectives/dp/1787389561
The Sanctions Paradox - https://www.amazon.co.uk/Sanctions-Paradox-Statecraft-International-Relations/dp/0521644151/
Bucking the Trend - https://www.amazon.com/Bucking-Buck-Financial-Sanctions-International/dp/0197679870
The Neomercantilists: A Global Intellectual History - https://www.amazon.com/Neomercantilists-Global-Intellectual-History/dp/1501760122
The Cold War: A World HIstory - https://www.amazon.com/Cold-War-World-History/dp/154167409X
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