Geoeconomics

The concept of geoeconomics has gained significant traction in the post-Cold War era, as global leaders increasingly recognise the limitations and catastrophic consequences of traditional military conflicts, particularly nuclear war. It is widely understood among political leaders worldwide that no party can emerge victorious in a nuclear conflict, leading to a growing reliance on trade and economic measures as instruments of power and influence. This research project explores the rising use of geoeconomic strategies—where economic tools are deployed to achieve geopolitical objectives—and their implications for national security and foreign policy.

The study begins by examining the historical context that facilitated the shift from military force to economic leverage as a means of statecraft. With the end of the Cold War, the ideological and strategic divisions of the global order gave way to new forms of competition. Rather than engaging in direct military confrontations, states increasingly turned to economic policies to pursue national interests. Trade, investment, and financial instruments emerged as potent alternatives to traditional military tools, capable of exerting significant pressure on adversaries while avoiding the devastation of armed conflict.

The project explores how economic strategies have become intertwined with issues of national security. For instance, trade sanctions, export controls, and investment restrictions are frequently used to target nations deemed to threaten the global order or regional stability. These measures are often justified on the grounds of safeguarding security, curbing the proliferation of dangerous technologies, or responding to human rights violations. At the same time, economic tools are employed to strengthen alliances, reward compliance, or secure access to critical resources, further underscoring their dual role as punitive and incentivising mechanisms.

Additionally, the research delves into the role of geoeconomics in foreign policy. States are increasingly using economic interdependence as a source of influence, leveraging their control over global supply chains, strategic commodities, and market access to shape the behaviour of other nations. For example, initiatives such as China’s Belt and Road Initiative highlight the strategic deployment of economic investments to expand geopolitical influence, while the United States’ use of trade sanctions demonstrates the enduring relevance of economic measures in addressing global security concerns.

The study also addresses the ethical and practical challenges associated with the weaponisation of trade. While economic tools may appear less destructive than military interventions, their impacts can be severe, particularly for vulnerable populations in targeted countries. The research investigates the unintended consequences of geoeconomic strategies, such as economic destabilisation, retaliatory measures, and the erosion of multilateral cooperation. Furthermore, it considers the potential risks posed by overreliance on geoeconomic measures, including the escalation of tensions and the fragmentation of the global economic system.

Through a combination of case studies, policy analysis, and theoretical exploration, this research project aims to provide a comprehensive understanding of geoeconomics as a defining feature of contemporary international relations. By analysing the evolving role of economic power in global governance, the project seeks to inform future debates on how to balance economic tools with ethical considerations and ensure that geoeconomic strategies contribute to a more stable and equitable international order.

Research Team

Prof. Dr. Pedro Infante Mota

Prof. Dr. Miguel Moura e Silva

Prof. Dr. Rute Saraiva

Prof. Dr. Paulo Alves Pardal

Patricia Bastos

Salvador Laurino

Prof. Dr. Filipe Vasconcelos Fernandes

Márcio Bobik

Duration: 2026-2029

Forthcoming