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Geopolitics in the C-Suite

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Geopolitics in the C-Suite

More Than Ever, U.S. Foreign Policy Depends on Corporations—and Vice Versa

Foreign Affairs,

5 min read
3 take-aways
Audio & text

What's inside?

Big business plays a significant role in geopolitical statecraft.

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Editorial Rating

9

Qualities

  • Analytical
  • Eye Opening
  • Hot Topic

Recommendation

This thought-provoking essay from financial experts Jami Miscik, Peter Orszag, and Theodore Bunzel explains how economic considerations have become integral to national security. Public policy decisions can arise from companies’ actions, but firms’ and governments’ objectives are often at cross purposes, making governance and implementation difficult. The authors advise policymakers to grasp, through dialogue and collaboration, the nuances of companies and industries to ensure both national security and economic success.

Summary

Economic leverage to achieve geopolitical ends is a new component of US foreign policy.

In the past, policymakers’ tools of diplomatic statecraft did not include economic leverage. The Cold War saw minimal trade between the United States and the Soviet Union. After the fall of the latter, American foreign policy promoted globalization. And after the attacks of September 11, 2001, diplomacy continued to focus on national security and military readiness.

Since the 1980s, trade as a percentage of global GDP has nearly doubled, from 37% to 74%. This is largely due to heightened competition among the major nations in an interconnected global economy. Economics and technology play a central role in this rivalry, alongside military might.

Competition among great powers in an interlinked world has changed global diplomacy...

About the Authors

Jami Miscik is a senior adviser at Lazard Geopolitical Advisory, where Theodore Bunzel is the managing director. Peter Orszag is the chief executive officer 0f Lazard. 

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