Economic Geography
Q1.
The concept of Laisses-faire economic development failed due to the failures of economic theory. Robert (2013) asserts that the theory of economy was developed in 18th century by Adam Smith. In 19th and 20th century, Alfred Marshall, John Keynes and Milton Friedman introduced free trade, price formation and stability and employment. In 20th century, macroeconomics caused employment and inflation. During this century, there was a great depression in Western industrialized world due to insufficient fund in employment. The economic doctrines affected the natural capital and allocation of resources. There was a political and economic downfall after the Soviet Union collapsed and after the development of high speed Internet (Roberts, 2013). Labor forces were underutilized by Indian socialist and Chinese communist and they started off shoring goods and services. As a result of off shoring, Americans employed cheaper foreign labor and stopped manufacturing goods. There was decline in professional occupations and technology as corporations employed foreign labor at lower remuneration. Europe also followed the same steps as America and started off shoring productions. The process of off shoring resulted to lack of growth in consumer incomes and the Federal Reserve provided credit for expanding consumer income (Roberts, 2013). This resulted to financial deregulation and financial crisis and Americans were unable to main consumption. The important thing to note is that economists made a mistake by referring free trade as off shoring. There is a big difference between the two and in this case, off shoring led to many adverse effects such as unemployment and cause the Laisses-faire failure (Roberts, 2013).
Q2
Geopolitics in modern global politics plays a significant role in visualizing the world and implementing policies and interventions. Agnew (2004) asserts that since the September attack in 2001, there attention on reorganization the world politics has increased and the U.S government has emphasized the need for military intervention. Geopolitics play role in creating theories and practices which are implemented in global context for the purpose of gaining control and power outside the boundaries. It originated in Europe and integrated the religious-based universal order. In modern global politics, geopolitics focus on ideological and normative power leadership uses normative resources to create national identity (Agnew, 2004). Political organizations form powerful allies in making international decisions. Geopolitics has a strategic nature which is understood by focusing on soft geopolitics and hard geopolitics. The latter use militarism and war to gain control promote national security and access strategic natural resources. The soft geopolitics use coercive interactions and political-economic tactics for individual economic gain. The strategies help the political elites to focus on ‘ideological space’ and provide the best practices and enforce inter-state relations. The great powers are responsible in creating the hegemony to implement balance of power. Geopolitical also play a significant role in setting vision based on political sociological, free trade and markets control (Agnew, 2004). Geopolitics in modern politics emphasize on strategic interest in order to achieve a strategic partnership. For example, relationship between U.S and Egypt is based on creating broader peace, political realities and human rights. To strengthen the relationship, U.S has assisted Egypt in having a military power which has brought economic benefit. Both countries enjoy peace and stability, and their military contact has sustained the bilateral relationship (Agnew, 2004).
Reference
Roberts, P. C. (2013). The failure of laissez faire capitalism and economic dissolution of the West.
Agnew John (2004). Geopolitics: Re-Visioning World Politics. Routledge
