Geopolitics (from Ancient Greek γῆ ( gê ) 'earth, land' and πολιτική ( politikḗ ) 'politics') is the study of the effects of Earth 's geography on politics and international relations . Geopolitics usually refers to countries and relations between them, it may also focus on two other kinds of states : de facto independent states with limited international recognition and relations between sub-national geopolitical entities , such as the federated states that make up a federation , confederation , or a quasi-federal system.
200-711: The Cold War was a period of global geopolitical tension and struggle for ideological and economic influence between the United States and the Soviet Union (USSR) and their respective allies, the Western Bloc and the Eastern Bloc , that started in 1947, two years after the end of World War II , and lasted until the fall of the Soviet Union in 1991. The term cold war is used because there
400-489: A financial infrastructure of money and investment that makes possible credit and debt , entrepreneurship , commodification , voluntary exchange , wage labor , production of commodities and services , and a strong emphasis on innovation and economic growth . In a market economy , decision-making and investments are determined by owners of wealth, property, or ability to maneuver capital or production ability in capital and financial markets —whereas prices and
600-740: A German rebuilding effort set forth by western European countries in 1948, the US, Britain and France spearheaded the establishment of the Federal Republic of Germany from the three Western zones of occupation in April 1949. The Soviet Union proclaimed its zone of occupation in Germany the German Democratic Republic that October. Media in the Eastern Bloc was an organ of the state , completely reliant on and subservient to
800-542: A basis of Colombian era empire (roughly from 1492 to the 19th century), and predicted the 20th century to be domain of land power. The Heartland theory hypothesized a huge empire being brought into existence in the Heartland—which would not need to use coastal or transoceanic transport to remain coherent. The basic notions of Mackinder's doctrine involve considering the geography of the Earth as being divided into two sections:
1000-477: A broader and expanding money-based economy. The system put pressure on both landlords and tenants to increase the productivity of agriculture to make profit; the weakened coercive power of the aristocracy to extract peasant surpluses encouraged them to try better methods, and the tenants also had incentive to improve their methods in order to flourish in a competitive labor market . Terms of rent for land were becoming subject to economic market forces rather than to
1200-476: A fixed geography. French geography is focused on the evolution of polymorphic territories being the result of mankind's actions. It also relies on the consideration of long time periods through a refusal to take specific events into account. This method has been theorized by Professor Lacoste according to three principles: Representation ; Diachronie; and Diatopie. In The Spirit of the Laws , Montesquieu outlined
1400-623: A fleet, were conducive to control over the sea. He proposed six conditions required for a nation to have sea power : Mahan distinguished a key region of the world in the Eurasian context, namely, the Central Zone of Asia lying between 30° and 40° north and stretching from Asia Minor to Japan. In this zone independent countries still survived – Turkey, Persia, Afghanistan, China, and Japan. Mahan regarded those countries, located between Britain and Russia, as if between "Scylla and Charybdis". Of
1600-572: A foreign policy vision for Britain with his Eurocentric analysis of historical geography. His formulation of the Heartland Theory was set out in his article entitled " The Geographical Pivot of History ", published in England in 1904. Mackinder's doctrine of geopolitics involved concepts diametrically opposed to the notion of Alfred Thayer Mahan about the significance of navies (he coined the term sea power ) in world conflict. He saw navy as
1800-585: A formal property system where ownership and transactions are clearly recorded. According to de Soto, this is the process by which physical assets are transformed into capital, which in turn may be used in many more ways and much more efficiently in the market economy. A number of Marxian economists have argued that the inclosure acts in England and similar legislation elsewhere were an integral part of capitalist primitive accumulation and that specific legal frameworks of private land ownership have been integral to
2000-617: A foundation for the German variant of geopolitics, geopolitik . Influenced by the American geostrategist Alfred Thayer Mahan, Ratzel wrote of aspirations for German naval reach, agreeing that sea power was self-sustaining, as the profit from trade would pay for the merchant marine, unlike land power. The geopolitical theory of Ratzel has been criticized as being too sweeping, and his interpretation of human history and geography being too simple and mechanistic. Critically, he also underestimated
2200-646: A general term, in his essay "You and the Atomic Bomb", published 19 October 1945 in the British newspaper Tribune . Contemplating a world living in the shadow of the threat of nuclear warfare , Orwell looked at James Burnham 's predictions of a polarized world, writing: Looking at the world as a whole, the drift for many decades has been not towards anarchy but towards the reimposition of slavery... James Burnham's theory has been much discussed, but few people have yet considered its ideological implications—that is,
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#17327768878422400-463: A global vision. However, in complete opposition to Ratzel's vision, Reclus considers geography not to be unchanging; it is supposed to evolve commensurately to the development of human society. His marginal political views resulted in his rejection by academia. French geographer and geopolitician Jacques Ancel (1879–1936) is considered to be the first theoretician of geopolitics in France, and gave
2600-410: A grouping would have the capacity to outstrip America economically and, in the end, militarily. That danger would have to be resisted even if the dominant power was apparently benevolent, for if its intentions ever changed, America would find itself with a grossly diminished capacity for effective resistance and a growing inability to shape events." The main interest of the American leaders is maintaining
2800-736: A large influence within the Russian military, police, and foreign policy elites and it has been used as a textbook in the Academy of the General Staff of the Russian military. Its publication in 1997 was well received in Russia and powerful Russian political figures subsequently took an interest in Dugin. According to Li Lingqun, a major feature of the People's Republic of China 's geopolitics
3000-423: A large middle class were good for democracy. He also argued that a market economy provided a substitute for government control of the economy, which reduces the risks of tyranny and authoritarianism. In his book The Road to Serfdom (1944), Friedrich Hayek (1899–1992) asserted that the free-market understanding of economic freedom as present in capitalism is a requisite of political freedom . He argued that
3200-505: A large number of sellers nor to a market in final equilibrium . Competition is widespread throughout the market process . It is a condition where "buyers tend to compete with other buyers, and sellers tend to compete with other sellers". In offering goods for exchange, buyers competitively bid to purchase specific quantities of specific goods which are available, or might be available if sellers were to choose to offer such goods. Similarly, sellers bid against other sellers in offering goods on
3400-631: A less protectionist policy, with the 1846 repeal of the Corn Laws and the 1849 repeal of the Navigation Acts . Britain reduced tariffs and quotas , in line with David Ricardo's advocacy of free trade . Broader processes of globalization carried capitalism across the world. By the beginning of the nineteenth century, a series of loosely connected market systems had come together as a relatively integrated global system, in turn intensifying processes of economic and other globalization. Late in
3600-520: A major propaganda effort began in 1949 was Radio Free Europe/Radio Liberty , dedicated to bringing about the peaceful demise of the communist system in the Eastern Bloc. Radio Free Europe attempted to achieve these goals by serving as a surrogate home radio station, an alternative to the controlled and party-dominated domestic press in the Soviet Bloc. Radio Free Europe was a product of some of
3800-639: A neutral Germany to prevent West Germany's incorporation into NATO, but his attempts were cut short after he was executed several months later during a Soviet power struggle. The events led to the establishment of the Bundeswehr , the West German military, in 1955. In 1949, CCP Chairman Mao Zedong 's People's Liberation Army defeated Chiang Kai-shek 's United States-backed Kuomintang (KMT) Nationalist Government in China. The KMT-controlled territory
4000-619: A new war". On 6 September 1946, James F. Byrnes delivered a speech in Germany repudiating the Morgenthau Plan (a proposal to partition and de-industrialize post-war Germany) and warning the Soviets that the US intended to maintain a military presence in Europe indefinitely. As Byrnes stated a month later, "The nub of our program was to win the German people ... it was a battle between us and Russia over minds ..." In December,
4200-610: A notable series of lectures at the European Center of the Carnegie Endowment for International Peace in Paris and published Géopolitique in 1936. Like Reclus, Ancel rejects German determinist views on geopolitics (including Haushofer's doctrines). Braudel 's broad view used insights from other social sciences, employed the concept of the longue durée , and downplayed the importance of specific events. This method
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#17327768878424400-767: A perspective grounded in three assumptions: Connected with this stream, and former member of Hérodote editorial board, the French geographer Michel Foucher developed a long term analysis of international borders. He coined various neologism among them: Horogenesis : Neologism that describes the concept of studying the birth of borders , Dyade : border shared by two neighbouring states (for instance US territory has two terrestrial dyades : one with Canada and one with Mexico). The main book of this searcher "Fronts et frontières" (Fronts and borders) first published in 1991, without equivalent remains untranslated in English. Michel Foucher
4600-647: A plan envisioning an economically self-sufficient Germany, including a detailed accounting of the industrial plants, goods and infrastructure already taken by the Soviets. In June 1947, in accordance with the Truman Doctrine , the United States enacted the Marshall Plan , a pledge of economic assistance for all European countries willing to participate, including the Soviet Union. Under the plan, which President Harry S. Truman signed on 3 April 1948,
4800-474: A result of the Industrial Revolution. The accumulation of capital is the primary mechanism through which capitalist economies promote economic growth . However, it is a characteristic of such economies that they experience a business cycle of economic growth followed by recessions. The term "capitalist", meaning an owner of capital , appears earlier than the term "capitalism" and dates to
5000-576: A safe environment for investment and capitalism. Similarly, Suharto 's authoritarian reign and extirpation of the Communist Party of Indonesia allowed for the expansion of capitalism in Indonesia . The term "capitalism" in its modern sense is often attributed to Karl Marx . In his Das Kapital , Marx analyzed the " capitalist mode of production " using a method of understanding today known as Marxism . However, Marx himself rarely used
5200-627: A secret 1950 document, the National Security Council proposed reinforcing pro-Western alliance systems and quadrupling spending on defense. Truman, under the influence of advisor Paul Nitze , saw containment as implying complete rollback of Soviet influence in all its forms. United States officials moved to expand this version of containment into Asia , Africa , and Latin America , in order to counter revolutionary nationalist movements, often led by communist parties financed by
5400-686: A small scale for centuries in the form of merchant, renting and lending activities and occasionally as small-scale industry with some wage labor. Simple commodity exchange and consequently simple commodity production, which is the initial basis for the growth of capital from trade, have a very long history. During the Islamic Golden Age , Arabs promulgated capitalist economic policies such as free trade and banking. Their use of Indo-Arabic numerals facilitated bookkeeping . These innovations migrated to Europe through trade partners in cities such as Venice and Pisa. Italian mathematicians traveled
5600-528: A social system cannot be said to have existed before that date". England began a large-scale and integrative approach to mercantilism during the Elizabethan Era (1558–1603). A systematic and coherent explanation of balance of trade was made public through Thomas Mun 's argument England's Treasure by Forraign Trade, or the Balance of our Forraign Trade is The Rule of Our Treasure. It was written in
5800-461: A threat from German (Teuton), Russian (Slav), and Japanese expansionism: The "fatal" relationship of Russia, Japan, and Germany "has now assumed through the urgency of natural forces a coalition directed against the survival of Saxon supremacy." It is "a dreadful Dreibund". Lea believed that while Japan moved against Far East and Russia against India, the Germans would strike at England, the center of
6000-555: A time. In 1979, the toppling of pro-US governments in Iran and Nicaragua and a Soviet invasion of Afghanistan again raised fears of war. In the 1980s, the US provided support for anti-communist forces in Africa, Asia, and Latin America, and the leadership of the USSR changed with the rise of Mikhail Gorbachev , who expanded political freedoms in his country and the Eastern Bloc. This led to
6200-541: A unified and neutral Germany was undesirable, with Walter Bedell Smith telling General Eisenhower "in spite of our announced position, we really do not want nor intend to accept German unification on any terms that the Russians might agree to, even though they seem to meet most of our requirements." Shortly thereafter, Stalin instituted the Berlin Blockade (June 1948 – May 1949), one of the first major crises of
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6400-416: Is a fundamental threat to repressive political leaders and greatly diminishes their power to coerce. Some of Friedman's views were shared by John Maynard Keynes , who believed that capitalism was vital for freedom to survive and thrive. Freedom House , an American think-tank that conducts international research on, and advocates for, democracy, political freedom and human rights , has argued that "there
6600-649: Is a high and statistically significant correlation between the level of political freedom as measured by Freedom House and economic freedom as measured by the Wall Street Journal/Heritage Foundation survey ". In Capital in the Twenty-First Century (2013), Thomas Piketty of the Paris School of Economics asserted that inequality is the inevitable consequence of economic growth in a capitalist economy and
6800-534: Is addressed by Bert Chapman in Geopolitics: A Guide To the Issues , in which Chapman makes note that academic and professional International Relations journals are more amenable to the study and analysis of Geopolitics, and in particular Classical geopolitics, than contemporary academic journals in the field of political geography. In disciplines outside geography, geopolitics is not negatively viewed (as it often
7000-409: Is among academic geographers such as Carolyn Gallaher or Klaus Dodds ) as a tool of imperialism or associated with Nazism, but rather viewed as a valid and consistent manner of assessing major international geopolitical circumstances and events, not necessarily related to armed conflict or military operations. French geopolitical doctrines broadly opposed to German Geopolitik and reject the idea of
7200-542: Is an expert of the African Union for borders affairs. More or less connected with this school, Stéphane Rosière can be quoted as the editor in Chief of the online journal L'Espace politique , this journal created in 2007 became the most prominent French journal of political geography and Geopolitics with Hérodote. French philosopher Michel Foucault's dispositif introduced for the purpose of biopolitical research
7400-718: Is attempting to change the laws of the sea to advance claims in the South China Sea . Another geopolitical issue is PRC's claims over the territories of Taiwan against the government of the Republic of China . Various analysts state that China created the Belt and Road Initiative as a geostrategic effort to take a larger role in global affairs, and undermine what the Communist Party perceives as American hegemony . It has also been argued that China co-founded
7600-525: Is based on loose justifications. This has been observed in particular by critics of contemporary academic geography, and proponents of a "neo"-classical geopolitics in particular. These include Haverluk et al., who argue that the stigmatization of geopolitics in academia is unhelpful as geopolitics as a field of positivist inquiry maintains potential in researching and resolving topical, often politicized issues such as conflict resolution and prevention, and mitigating climate change . Negative associations with
7800-501: Is considered to be the first having coined the term in English as early as 1902 and later published in England in 1904 in his book Foundations of Modern Europe . Sir Halford Mackinder 's Heartland Theory initially received little attention outside the world of geography, but some thinkers have claimed that it subsequently influenced the foreign policies of world powers. Those scholars who look to MacKinder through critical lenses accept him as an organic strategist who tried to build
8000-588: Is governed by stable economic laws of its own. In the English language , the term "capitalism" first appears, according to the Oxford English Dictionary (OED), in 1854, in the novel The Newcomes by novelist William Makepeace Thackeray , where the word meant "having ownership of capital". Also according to the OED, Carl Adolph Douai , a German American socialist and abolitionist , used
8200-637: Is more like Britain's than Russia's in the New Great Game, where Russia plays the role that the Russian Empire originally did. Chen stated, "Regardless of the prospect, China through the BRI is deep in playing a 'New Great Game' in Central Asia that differs considerably from its historical precedent about 150 years ago when Britain and Russia jostled with each other on the Eurasian steppes." In
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8400-477: Is no competition. A monopoly occurs when a firm has exclusivity over a market. Hence, the firm can engage in rent seeking behaviors such as limiting output and raising prices because it has no fear of competition. Governments have implemented legislation for the purpose of preventing the creation of monopolies and cartels. In 1890, the Sherman Antitrust Act became the first legislation passed by
8600-422: Is no profit in making an article, it is a sign that the labor and capital devoted to its production are misdirected: the value of the resources that must be used up in making the article is greater than the value of the article itself". Socialist theorists note that, unlike mercantilists, capitalists accumulate their profits while expecting their profit rates to remain the same. This causes problems as earnings in
8800-588: Is to say the appropriation of capital by some to the exclusion of others") and Pierre-Joseph Proudhon in 1861 ("Economic and social regime in which capital, the source of income, does not generally belong to those who make it work through their labor"). Karl Marx frequently referred to the " capital " and to the "capitalist mode of production" in Das Kapital (1867). Marx did not use the form capitalism but instead used capital , capitalist and capitalist mode of production , which appear frequently. Due to
9000-539: Is war) in 1976. This book symbolizes the birth of this new school of geopolitics (if not so far the first French school of geopolitics as Ancel was very isolated in the 1930s–40s). Initially linked with communist party evolved to a less liberal approach. At the end of the 1980s he founded the Institut Français de Géopolitique (French Institute for Geopolitics) that publishes the Hérodote revue. While rejecting
9200-729: The Asian Infrastructure Investment Bank and New Development Bank to compete with the World Bank and the International Monetary Fund in development finance . According to Bobo Lo , the Shanghai Cooperation Organization has been advertised as a "political organization of a new type" claimed to transcend geopolitics. Political scientist Pak Nung Wong says that a major form of geopolitics between
9400-511: The Baltic to Trieste in the Adriatic ". A week later, on 13 March, Stalin responded vigorously to the speech, saying Churchill could be compared to Adolf Hitler insofar as he advocated the racial superiority of English-speaking nations so that they could satisfy their hunger for world domination, and that such a declaration was "a call for war on the USSR." The Soviet leader also dismissed
9600-858: The Berlin Wall to prevent the citizens of East Berlin from fleeing to West Berlin , at the time part of United States-allied West Germany . Major crises of this phase included the Berlin Blockade of 1948–1949, the Chinese Communist Revolution of 1945–1949, the Korean War of 1950–1953, the Hungarian Revolution of 1956 and the Suez Crisis of that same year, the Berlin Crisis of 1961 ,
9800-656: The Carnegie Endowment , Paul Stronski and Nicole Ng wrote in 2018 that China has not fundamentally challenged any Russian interests in Central Asia. Capitalism This is an accepted version of this page Capitalism is an economic system based on the private ownership of the means of production and their operation for profit . The defining characteristics of capitalism include private property, capital accumulation , competitive markets , price systems , recognition of property rights , self-interest , economic freedom , meritocracy , work ethic , consumer sovereignty , economic efficiency , profit motive ,
10000-758: The Cuban Missile Crisis began after deployments of U.S. missiles in Europe and Soviet missiles in Cuba; it is widely considered the closest the Cold War came to escalating into full-scale nuclear war . Another major proxy conflict was the Vietnam War of 1955 to 1975; the Soviets solidified their domination of Eastern Europe with operations such as the Warsaw Pact invasion of Czechoslovakia in 1968. Both powers used economic aid in an attempt to win
10200-410: The Cuban Missile Crisis of 1962, and the Vietnam War of 1964–1975. Both superpowers competed for influence in Latin America and the Middle East , and the decolonising states of Africa , Asia , and Oceania . Following the Cuban Missile Crisis, this phase of the Cold War saw the Sino-Soviet split . Between China and the Soviet Union's complicated relations within the Communist sphere, leading to
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#173277688784210400-682: The Eastern Bloc . Cominform faced an embarrassing setback the following June, when the Tito–Stalin split obliged its members to expel Yugoslavia, which remained communist but adopted a non-aligned position and began accepting financial aid from the US. Besides Berlin, the status of the city of Trieste was at issue. Until the break between Tito and Stalin, the Western powers and the Eastern bloc faced each other uncompromisingly. In addition to capitalism and communism, Italians and Slovenes, monarchists and republicans as well as war winners and losers often faced each other irreconcilably. The neutral buffer state Free Territory of Trieste , founded in 1947 with
10600-406: The KGB and involved in its intelligence operations, adhered to Moscow's line, although dissent began to appear after 1956. Other critiques of the consensus policy came from anti-Vietnam War activists , the Campaign for Nuclear Disarmament , and the anti-nuclear movement . In early 1947, France, Britain and the United States unsuccessfully attempted to reach an agreement with the Soviet Union for
10800-450: The Kingdom of Greece in its civil war against Communist-led insurgents. In the same month, Stalin conducted the rigged 1947 Polish legislative election which constituted an open breach of the Yalta Agreement . The US government responded to this announcement by adopting a policy of containment , with the goal of stopping the spread of communism . Truman delivered a speech calling for the allocation of $ 400 million to intervene in
11000-512: The Moynihan Commission in 1995. Despite this, the decryption project had already been betrayed and dispatched to the USSR by Kim Philby and Bill Weisband in 1946, as was discovered by the US by 1950. Nonetheless, the Soviets had to keep their discovery of the program secret, too, and continued leaking their own information, some of which was still useful to the American program. According to Moynihan, even President Truman may not have been fully informed of Venona, which may have left him unaware of
11200-456: The Russian Academy of Sciences , Vadim Tsymbursky (1957–2009), coined the term "island-Russia" and developed the "Great Limitrophe " concept. Colonel-General Leonid Ivashov (retired), a Russian geopolitics specialist of the early 21st century, headed the Academy of Geopolitical Problems ( Russian : Академия геополитических проблем ), which analyzes the international and domestic situations and develops geopolitical doctrine. Earlier, he headed
11400-447: The Sino-Soviet border conflict , while France, a Western Bloc state, began to demand greater autonomy of action. The Warsaw Pact invasion of Czechoslovakia occurred to suppress the Prague Spring of 1968, while the United States experienced internal turmoil from the civil rights movement and opposition to United States involvement in the Vietnam War . In the 1960s–1970s, an international peace movement took root among citizens around
11600-490: The Soviet boycott of the Allied Control Council and its incapacitation, an event marking the beginning of the full-blown Cold War and the end of its prelude, as well as ending any hopes at the time for a single German government and leading to formation in 1949 of the Federal Republic of Germany and German Democratic Republic . The twin policies of the Truman Doctrine and the Marshall Plan led to billions in economic and military aid for Western Europe, Greece, and Turkey. With
11800-445: The Space Race . The US and USSR were both part of the Allies of World War II , the military coalition which had defeated Nazi Germany and Imperial Japan in 1945. After the war, the USSR installed satellite governments in the territories of Eastern and Central Europe it had occupied, and promoted the spread of communism to North Korea in 1948 and created an alliance with the People's Republic of China in 1949. The US declared
12000-443: The Truman Doctrine of " containment " in 1947, launched the Marshall Plan in 1948 to assist Western Europe's economic recovery, and founded the NATO military alliance in 1949 (which was matched by the Soviet-led Warsaw Pact in 1955). Germany's split occupation zones solidified into East and West Germany in 1949. The first major proxy war of the period was the Korean War from 1950 to 1953, which ended in stalemate. In 1962,
12200-436: The Turkish Straits crisis and Black Sea border disputes were also a major factor in increasing tensions. In September, the Soviet side produced the Novikov telegram, sent by the Soviet ambassador to the US but commissioned and "co-authored" by Vyacheslav Molotov ; it portrayed the US as being in the grip of monopoly capitalists who were building up military capability "to prepare the conditions for winning world supremacy in
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#173277688784212400-413: The United Nations Security Council Resolution 82 and 83 backed the defense of South Korea, although the Soviets were then boycotting meetings in protest of the fact that Taiwan (Republic of China), not the People's Republic of China , held a permanent seat on the council. A UN force of sixteen countries faced North Korea, although 40 percent of troops were South Korean, and about 50 percent were from
12600-530: The World Bank and the IMF ), large institutional investors and a well-funded banking system . A significant managerial class has emerged and decides on a significant proportion of investments and other decisions. A different future than that envisioned by Marx has started to emerge—explored and described by Anthony Crosland in the United Kingdom in his 1956 book The Future of Socialism and by John Kenneth Galbraith in North America in his 1958 book The Affluent Society , 90 years after Marx's research on
12800-442: The World Island or Core, comprising Eurasia and Africa ; and the Peripheral "islands", including the Americas , Australia , Japan , the British Isles , and Oceania . Not only was the Periphery noticeably smaller than the World Island, it necessarily required much sea transport to function at the technological level of the World Island—which contained sufficient natural resources for a developed economy. Mackinder posited that
13000-410: The neoliberal global economy would have been impossible without the fall of communism . Harvard Kennedy School economist Dani Rodrik distinguishes between three historical variants of capitalism: The relationship between democracy and capitalism is a contentious area in theory and in popular political movements. The extension of adult-male suffrage in 19th-century Britain occurred along with
13200-424: The propaganda of Nazi Germany . The key concepts of Haushofer's Geopolitik were Lebensraum, autarky , pan-regions , and organic borders. States have, Haushofer argued, an undeniable right to seek natural borders which would guarantee autarky . Haushofer's influence within the Nazi Party has been challenged, given that Haushofer failed to incorporate the Nazis' racial ideology into his work. Popular views of
13400-416: The transatlantic cable , the radiotelephone , the steamship and railways allowed goods and information to move around the world to an unprecedented degree. In the United States, the term "capitalist" primarily referred to powerful businessmen until the 1920s due to widespread societal skepticism and criticism of capitalism and its most ardent supporters. Contemporary capitalist societies developed in
13600-422: The 1620s and published in 1664. European merchants , backed by state controls, subsidies and monopolies , made most of their profits by buying and selling goods. In the words of Francis Bacon , the purpose of mercantilism was "the opening and well-balancing of trade; the cherishing of manufacturers; the banishing of idleness; the repressing of waste and excess by sumptuary laws; the improvement and husbanding of
13800-408: The 16th and 18th centuries. The Industrial Revolution of the 18th century established capitalism as a dominant mode of production , characterized by factory work and a complex division of labor . Through the process of globalization , capitalism spread across the world in the 19th and 20th centuries, especially before World War I and after the end of the Cold War. During the 19th century, capitalism
14000-482: The 18th-century decisively shaped globalization. After the First and Second Opium Wars (1839–60) and the completion of the British conquest of India by 1858, vast populations of Asia became consumers of European exports. Europeans colonized areas of sub-Saharan Africa and the Pacific islands. Colonisation by Europeans, notably of sub-Saharan Africa, yielded valuable natural resources such as rubber , diamonds and coal and helped fuel trade and investment between
14200-402: The 20th century, capitalism overcame a challenge by centrally-planned economies and is now the encompassing system worldwide, with the mixed economy as its dominant form in the industrialized Western world. Industrialization allowed cheap production of household items using economies of scale , while rapid population growth created sustained demand for commodities. The imperialism of
14400-611: The British Empire. He thought the Anglo-Saxons faced certain disaster from their militant opponents. Two national security advisors from the Cold War period, Henry Kissinger and Zbigniew Brzezinski , argued to continue the United States' geopolitical focus on Eurasia and, particularly Russia, despite the dissolution of the Soviet Union and the end of the Cold War . Both continued their influence on geopolitics after
14600-460: The Cold War was in its essence a war of ideas. The United States, acting through the CIA, funded a long list of projects to counter the communist appeal among intellectuals in Europe and the developing world. The CIA also covertly sponsored a domestic propaganda campaign called Crusade for Freedom . The rearmament of West Germany was achieved in the early 1950s. Its main promoter was Konrad Adenauer ,
14800-517: The Cold War, Kissinger argues, both sides of the Atlantic recognized that, "unless America is organically involved in Europe, it would later be obliged to involve itself under circumstances which would be far less favorable to both sides of the Atlantic. That is even more true today. Germany has become so strong that existing European institutions cannot strike a balance between Germany and its European partners all by themselves. Nor can Europe, even with
15000-463: The Cold War, preventing Western food, materials and supplies from arriving in the West Germany's exclave of West Berlin . The United States (primarily), Britain, France, Canada, Australia, New Zealand, and several other countries began the massive "Berlin airlift", supplying West Berlin with food and other provisions despite Soviet threats. The Soviets mounted a public relations campaign against
15200-834: The Communist governments militarily. The fall of the Iron Curtain after the Pan-European Picnic and the Revolutions of 1989 , which represented a peaceful revolutionary wave with the exception of the Romanian revolution and the Afghan Civil War (1989–1992) , overthrew almost all of the Marxist–Leninist regimes of the Eastern Bloc. The Communist Party of the Soviet Union itself lost control in
15400-527: The European imperial powers, their colonies and the United States: The inhabitant of London could order by telephone, sipping his morning tea, the various products of the whole earth, and reasonably expect their early delivery upon his doorstep. Militarism and imperialism of racial and cultural rivalries were little more than the amusements of his daily newspaper. What an extraordinary episode in
15600-624: The KGB used "provocations", or fake defections, as a trick to embarrass Western intelligence and establish Soviet double agents. As a result, from 1959 to 1973, the CIA required that East Bloc defectors went through a counterintelligence investigation before being recruited as a source of intelligence. During the late 1970s and 1980s, the KGB perfected its use of espionage to sway and distort diplomacy. Active measures were "clandestine operations designed to further Soviet foreign policy goals," consisting of disinformation, forgeries, leaks to foreign media, and
15800-752: The Main Directorate for International Military Cooperation of the Ministry of Defence of the Russian Federation . Vladimir Karyakin, leading researcher at the Russian Institute for Strategic Studies , has proposed the term "geopolitics of the third wave". Aleksandr Dugin , a Russian political analyst who has developed a close relationship with Russia's Academy of the General Staff wrote " The Foundations of Geopolitics: The Geopolitical Future of Russia " in 1997, which has had
16000-491: The Marshall Plan, seeing it as an effort by the US to impose its influence on Europe. In response, the Soviet Union established Comecon (Council for Mutual Economic Assistance) to foster economic cooperation among communist states. The United States and its Western European allies sought to strengthen their bonds and used the policy of containment against Soviet influence; they accomplished this most notably through
16200-522: The Mediterranean talking to Arab traders and returned to popularize the use of Indo-Arabic numerals in Europe. The economic foundations of the feudal agricultural system began to shift substantially in 16th-century England as the manorial system had broken down and land began to become concentrated in the hands of fewer landlords with increasingly large estates. Instead of a serf -based system of labor, workers were increasingly employed as part of
16400-573: The Rimland must be prevented. Spykman modified Mackinder's formula on the relationship between the Heartland and the Rimland (or the inner crescent), claiming that "Who controls the rimland rules Eurasia. Who rules Eurasia controls the destinies of the world." This theory can be traced in the origins of containment , a U.S. policy on preventing the spread of Soviet influence after World War II (see also Truman Doctrine ). Another follower of Mackinder
16600-514: The Russian Civil War further complicated relations, and although the Soviet Union later allied with Western powers to defeat Nazi Germany , this cooperation was strained by mutual suspicions. In the immediate aftermath of World War II, disagreements about the future of Europe, particularly Eastern Europe , became central. The Soviet Union's establishment of communist regimes in the countries it had liberated from Nazi control—enforced by
16800-481: The Soviet Union and its communist party , which had an influence across the Second World and was also tied to a network of authoritarian states. The Soviet Union had a command economy and installed similarly communist regimes its in satellites. United States involvement in regime change during the Cold War included support for anti-communist and right-wing dictatorships , governments, and uprisings across
17000-463: The Soviet Union was used to monitor dissent from official Soviet politics and morals. Although to an extent disinformation had always existed, the term itself was invented, and the strategy formalized by a black propaganda department of the Soviet KGB. Based on the amount of top-secret Cold War archival information that has been released, historian Raymond L. Garthoff concludes there probably
17200-572: The Soviet Union, which at the time was undergoing the Era of Stagnation . This phase saw the new Soviet leader Mikhail Gorbachev introducing the liberalizing reforms of glasnost ("openness") and perestroika ("reorganization") and ending Soviet involvement in Afghanistan in 1989. Pressures for national sovereignty grew stronger in Eastern Europe, and Gorbachev refused to further support
17400-558: The Soviet Union. A number of self-proclaimed Marxist–Leninist governments were formed in the second half of the 1970s in developing countries , including Angola , Mozambique , Ethiopia , Cambodia , Afghanistan , and Nicaragua . Détente collapsed at the end of the decade with the beginning of the Soviet–Afghan War in 1979. Beginning in the 1980s, this phase was another period of elevated tension. The Reagan Doctrine led to increased diplomatic, military, and economic pressures on
17600-640: The Soviets accumulated after broken promises by Stalin and Molotov concerning Europe and Iran. Following the World War II Anglo-Soviet invasion of Iran , the country was occupied by the Red Army in the far north and the British in the south. Iran was used by the United States and British to supply the Soviet Union, and the Allies agreed to withdraw from Iran within six months after the cessation of hostilities. However, when this deadline came,
17800-534: The Soviets agreed to withdraw from Iran after persistent US pressure, an early success of containment policy. By 1947, US president Harry S. Truman was outraged by the perceived resistance of the Soviet Union to American demands in Iran, Turkey, and Greece, as well as Soviet rejection of the Baruch Plan on nuclear weapons. In February 1947, the British government announced that it could no longer afford to finance
18000-556: The Soviets had permitted to retain democratic structures. The public brutality of the coup shocked Western powers more than any event up to that point, set in motion a brief scare that war would occur, and swept away the last vestiges of opposition to the Marshall Plan in the United States Congress. In an immediate aftermath of the crisis, the London Six-Power Conference was held, resulting in
18200-543: The Soviets remained in Iran under the guise of the Azerbaijan People's Government and Kurdish Republic of Mahabad . Shortly thereafter, on 5 March, former British prime minister Winston Churchill delivered his famous " Iron Curtain " speech in Fulton, Missouri . The speech called for an Anglo-American alliance against the Soviets, whom he accused of establishing an "iron curtain" dividing Europe from " Stettin in
18400-489: The US and China includes cybersecurity competition, policy regulations regarding technology standards and social media platforms, and traditional and non-traditional forms of espionage. One view of the New Great Game is a shift to geoeconomic compared to geopolitical competition. The interest in oil and gas includes pipelines that transmit energy to China's east coast. Xiangming Chen believes that China's role
18600-564: The US assistance, the Greek military won its civil war . Under the leadership of Alcide De Gasperi the Italian Christian Democrats defeated the powerful Communist – Socialist alliance in the elections of 1948 . All major powers engaged in espionage, using a great variety of spies, double agents , moles , and new technologies such as the tapping of telephone cables. The Soviet KGB ("Committee for State Security"),
18800-580: The US government gave to Western European countries over $ 13 billion (equivalent to $ 189 billion in 2016) to rebuild the economy of Europe . Later, the program led to the creation of the OECD . The plan's aim was to rebuild the democratic and economic systems of Europe and to counter perceived threats to the European balance of power , such as communist parties seizing control through revolutions or elections. The plan also stated that European prosperity
19000-585: The US was trying to buy a pro-US re-alignment of Europe. Stalin therefore prevented Eastern Bloc nations from receiving Marshall Plan aid. The Soviet Union's alternative to the Marshall Plan, which was purported to involve Soviet subsidies and trade with central and eastern Europe, became known as the Molotov Plan (later institutionalized in January 1949 as the Council for Mutual Economic Assistance ). Stalin
19200-481: The USSR. In this way, this US would exercise " preponderant power ," oppose neutrality, and establish global hegemony . In the early 1950s (a period sometimes known as the " Pactomania "), the US formalized a series of alliances with Japan (a former WWII enemy), South Korea , Taiwan , Australia , New Zealand , Thailand and the Philippines (notably ANZUS in 1951 and SEATO in 1954), thereby guaranteeing
19400-479: The United Kingdom (1979–1990). Public and political interest began shifting away from the so-called collectivist concerns of Keynes's managed capitalism to a focus on individual choice , called "remarketized capitalism". The end of the Cold War and the dissolution of the Soviet Union allowed for capitalism to become a truly global system in a way not seen since before World War I . The development of
19600-524: The United Nations, was split up and dissolved in 1954 and 1975, also because of the détente between the West and Tito. The US and Britain merged their western German occupation zones into " Bizone " (1 January 1947, later "Trizone" with the addition of France's zone, April 1949). As part of the economic rebuilding of Germany, in early 1948, representatives of a number of Western European governments and
19800-428: The United States Congress to limit monopolies. Wage labor, usually referred to as paid work, paid employment, or paid labor, refers to the socioeconomic relationship between a worker and an employer in which the worker sells their labor power under a formal or informal employment contract . These transactions usually occur in a labor market where wages or salaries are market-determined . In exchange for
20000-512: The United States a number of long-term military bases. One of the more significant examples of the implementation of containment was the United Nations US-led intervention in the Korean War . In June 1950, after years of mutual hostilities, Kim Il Sung 's North Korean People's Army invaded South Korea at the 38th parallel . Stalin had been reluctant to support the invasion but ultimately sent advisers. To Stalin's surprise,
20200-399: The United States announced an agreement for a merger of western German areas into a federal governmental system. In addition, in accordance with the Marshall Plan , they began to re-industrialize and rebuild the West German economy, including the introduction of a new Deutsche Mark currency to replace the old Reichsmark currency that the Soviets had debased. The US had secretly decided that
20400-599: The United States. Geopolitics At the level of international relations, geopolitics is a method of studying foreign policy to understand, explain, and predict international political behavior through geographical variables. These include area studies , climate , topography , demography , natural resources , and applied science of the region being evaluated. Geopolitics focuses on political power linked to geographic space, in particular, territorial waters and land territory in correlation with diplomatic history . Topics of geopolitics include relations between
20600-509: The Warsaw Pact's primary function was to safeguard Soviet hegemony over its Eastern European satellites, with the pact's only direct military actions having been the invasions of its own member states to keep them from breaking away; in the 1960s, the pact evolved into a multilateral alliance, in which the non-Soviet Warsaw Pact members gained significant scope to pursue their own interests. In 1961, Soviet-allied East Germany constructed
20800-430: The West from 1950 to the present and this type of system continues throughout the world—relevant examples started in the United States after the 1950s , France after the 1960s , Spain after the 1970s , Poland after 2015 , and others. At this stage most capitalist markets are considered developed and characterized by developed private and public markets for equity and debt, a high standard of living (as characterized by
21000-460: The accusation that the USSR was exerting increasing control over the countries lying in its sphere. He argued that there was nothing surprising in "the fact that the Soviet Union, anxious for its future safety, [was] trying to see to it that governments loyal in their attitude to the Soviet Union should exist in these countries." Soviet territorial demands to Turkey regarding the Dardanelles in
21200-428: The assistance of Germany, manage […] Russia" all by itself. Thus Kissinger believed that no country's interests would ever be served if Germany and Russia were to ever form a partnership in which each country would consider itself the principal partner. They would raise fears of condominium. Without America, Britain and France cannot cope with Germany and Russia; and "without Europe, America could turn … into an island off
21400-548: The balance of power in Eurasia. Having converted from an ideologist into a geopolitician, Kissinger retrospectively interpreted the Cold War in geopolitical terms—an approach which was not characteristic of his works during the Cold War. Now, however, he focused on the beginning of the Cold War: "The objective of moral opposition to Communism had merged with the geopolitical task of containing Soviet expansion." Nixon, he added,
21600-481: The beginning of a US bipartisan defense and foreign policy consensus between Republicans and Democrats focused on containment and deterrence that weakened during and after the Vietnam War , but ultimately persisted thereafter. Moderate and conservative parties in Europe, as well as social democrats, gave virtually unconditional support to the Western alliance, while European and American Communists , financed by
21800-424: The bureau responsible for foreign espionage and internal surveillance, was famous for its effectiveness. The most famous Soviet operation involved its atomic spies that delivered crucial information from the United States' Manhattan Project , leading the USSR to detonate its first nuclear weapon in 1949, four years after the American detonation and much sooner than expected. A massive network of informants throughout
22000-529: The business of a third party by offering the most favourable terms". It was described by Adam Smith in The Wealth of Nations (1776) and later economists as allocating productive resources to their most highly valued uses and encouraging efficiency . Smith and other classical economists before Antoine Augustine Cournot were referring to price and non-price rivalry among producers to sell their goods on best terms by bidding of buyers, not necessarily to
22200-509: The centenary of The Geographical Pivot of History, Historian Paul Kennedy wrote: "Right now with hundreds of thousands of US troops in the Eurasian rimlands and with administration constantly explaining why it has to stay the course, it looks as if Washington is taking seriously Mackinder's injunction to ensure control of the geographical pivot of history." Friedrich Ratzel (1844–1904), influenced by thinkers such as Darwin and zoologist Ernst Heinrich Haeckel , contributed to 'Geopolitik' by
22400-716: The chancellor of West Germany, with France the main opponent. Washington had the decisive voice. It was strongly supported by the Pentagon (the US military leadership), and weakly opposed by President Truman; the State Department was ambivalent. The outbreak of the Korean War in June 1950 changed the calculations and Washington now gave full support. That also involved naming Dwight D. Eisenhower in charge of NATO forces and sending more American troops to West Germany. There
22600-589: The channeling of aid to militant groups. Retired KGB Major General Oleg Kalugin , former head of Foreign Counter Intelligence for the KGB (1973–1979), described active measures as "the heart and soul of Soviet intelligence ." During the Sino-Soviet split , "spy wars" also occurred between the USSR and PRC. In September 1947, the Soviets created Cominform to impose orthodoxy within the international communist movement and tighten political control over Soviet satellites through coordination of communist parties in
22800-513: The communist party. Radio and television organizations were state-owned, while print media was usually owned by political organizations, mostly by the local communist party. Soviet radio broadcasts used Marxist rhetoric to attack capitalism, emphasizing themes of labor exploitation, imperialism and war-mongering. Along with the broadcasts of the BBC and the Voice of America to Central and Eastern Europe,
23000-496: The country and was banned following the 1991 Soviet coup attempt that August. This in turn led to the formal dissolution of the Soviet Union in December 1991 and the collapse of Communist governments across much of Africa and Asia. The Russian Federation became the Soviet Union's successor state, while many of the other republics emerged from the Soviet Union's collapse as fully independent post-Soviet states . The United States
23200-578: The development of capitalism. Private property rights are not absolute, as in many countries the state has the power to seize private property, typically for public use, under the powers of eminent domain . In capitalist economics, market competition is the rivalry among sellers trying to achieve such goals as increasing profits, market share and sales volume by varying the elements of the marketing mix : price, product, distribution and promotion. Merriam-Webster defines competition in business as "the effort of two or more parties acting independently to secure
23400-754: The development of industrial capitalism and representative democracy became widespread at the same time as capitalism, leading capitalists to posit a causal or mutual relationship between them. However, according to some authors in the 20th-century, capitalism also accompanied a variety of political formations quite distinct from liberal democracies, including fascist regimes, absolute monarchies and single-party states . Democratic peace theory asserts that democracies seldom fight other democracies, but others suggest this may be because of political similarity or stability, rather than because they are "democratic" or "capitalist". Critics argue that though economic growth under capitalism has led to democracy, it may not do so in
23600-634: The distribution of goods and services are mainly determined by competition in goods and services markets. Economists, historians, political economists, and sociologists have adopted different perspectives in their analyses of capitalism and have recognized various forms of it in practice. These include laissez-faire or free-market capitalism , anarcho-capitalism , state capitalism , and welfare capitalism . Different forms of capitalism feature varying degrees of free markets , public ownership , obstacles to free competition, and state-sanctioned social policies . The degree of competition in markets and
23800-461: The economic progress of man was that age which came to an end in August 1914. From the 1870s to the early 1920s, the global financial system was mainly tied to the gold standard . The United Kingdom first formally adopted this standard in 1821. Soon to follow were Canada in 1853, Newfoundland in 1865, the United States and Germany ( de jure ) in 1873. New technologies, such as the telegraph ,
24000-484: The end of the Cold War, writing books on the subject in the 1990s— Diplomacy and The Grand Chessboard: American Primacy and Its Geostrategic Imperatives . The Anglo-American classical geopolitical theories were revived. Kissinger argued against the belief that with the dissolution of the USSR, hostile intentions had come to an end and traditional foreign policy considerations no longer applied. "They would argue … that Russia, regardless of who governs it, sits astride
24200-399: The era of merchant capitalism and mercantilism as the origin of modern capitalism, although Karl Polanyi argued that the hallmark of capitalism is the establishment of generalized markets for what he called the "fictitious commodities", i.e. land, labor and money. Accordingly, he argued that "not until 1834 was a competitive labor market established in England, hence industrial capitalism as
24400-466: The expansion on the biological conception of geography, without a static conception of borders. Positing that states are organic and growing, with borders representing only a temporary stop in their movement, he held that the expanse of a state's borders is a reflection of the health of the nation—meaning that static countries are in decline. Ratzel published several papers, among which was the essay "Lebensraum" (1901) concerning biogeography . Ratzel created
24600-493: The expense of another state. During the Industrial Revolution , industrialists replaced merchants as a dominant factor in the capitalist system and effected the decline of the traditional handicraft skills of artisans , guilds and journeymen . Industrial capitalism marked the development of the factory system of manufacturing, characterized by a complex division of labor between and within work process and
24800-468: The extent of Soviet espionage. Clandestine atomic spies from the Soviet Union, who infiltrated the Manhattan Project at various points during WWII, played a major role in increasing tensions that led to the Cold War. In addition to usual espionage, the Western agencies paid special attention to debriefing Eastern Bloc defectors . Edward Jay Epstein describes that the CIA understood that
25000-406: The fall of the communist governments of Europe from 1989, which concluded with the fall of the Soviet Union in 1991. The Western Bloc included the US and a number of First World nations that were generally capitalist and liberal democratic but tied to a network of often authoritarian Third World states, most of which were the European powers' former colonies . The Eastern Bloc was led by
25200-623: The first time ever, a "non-Eurasian" power had emerged as a key arbiter of "Eurasian" power relations. The book states its purpose: "The formulation of a comprehensive and integrated Eurasian geostrategy is therefore the purpose of this book." Although the power configuration underwent a revolutionary change, Brzezinski confirmed three years later, Eurasia was still a mega-continent. Like Spykman, Brzezinski acknowledges that: "Cumulatively, Eurasia's power vastly overshadows America's." In classical Spykman terms, Brzezinski formulated his geostrategic "chessboard" doctrine of Eurasia, which aims to prevent
25400-522: The following: In free market and laissez-faire forms of capitalism, markets are used most extensively with minimal or no regulation over the pricing mechanism. In mixed economies, which are almost universal today, markets continue to play a dominant role, but they are regulated to some extent by the state in order to correct market failures , promote social welfare , conserve natural resources , fund defense and public safety or other rationale. In state capitalist systems, markets are relied upon
25600-611: The form of a hypothesized 'racial character,' to the factor of greatest significance in the constitution of human society. These differences led after 1933 to friction and ultimately to open denunciation of geopolitics by Nazi ideologues. Nevertheless, German Geopolitik was discredited by its (mis)use in Nazi expansionist policy of World War II and has never achieved standing comparable to the pre-war period. The resultant negative association, particularly in U.S. academic circles, between classical geopolitics and Nazi or imperialist ideology,
25800-400: The formation of NATO , which was essentially a defensive agreement in 1949. The Soviet Union countered with the Warsaw Pact in 1955, which had similar results with the Eastern Bloc. As by that time the Soviet Union already had an armed presence and political domination all over its eastern satellite states, the pact has been long considered superfluous. Although nominally a defensive alliance,
26000-477: The future as authoritarian régimes have been able to manage economic growth using some of capitalism's competitive principles without making concessions to greater political freedom . Political scientists Torben Iversen and David Soskice see democracy and capitalism as mutually supportive. Robert Dahl argued in On Democracy that capitalism was beneficial for democracy because economic growth and
26200-462: The generalizations and broad abstractions employed by the German and Anglo-American traditions (and the new geographers ), this school does focus on spatial dimension of geopolitics affairs on different levels of analysis. This approach emphasizes the importance of multi-level (or multi-scales) analysis and maps at the opposite of critical geopolitics which avoid such tools. Lacoste proposed that every conflict (both local or global) can be considered from
26400-520: The grain reserves of Ukraine, and many other natural resources. Mackinder's notion of geopolitics was summed up when he said: Who rules Central and Eastern Europe commands the Heartland. Who rules the Heartland commands the World-Island. Who rules the World-Island commands the World. Nicholas J. Spykman was both a follower and critic of geostrategists Alfred Mahan, and Halford Mackinder . His work
26600-475: The idea that if all participants focus on their own goals, society's well-being will be water under the bridge, Smith maintains that despite the concerns of intellectuals, "global trends will hardly be altered if they refrain from pursuing their personal ends." He insisted that the actions of a few participants cannot alter the course of society. Instead, Smith maintained that they should focus on personal progress instead and that this will result in overall growth to
26800-459: The importance of social organization in the development of power. After World War I , the thoughts of Rudolf Kjellén and Ratzel were picked up and extended by a number of German authors such as Karl Haushofer (1869–1946), Erich Obst , Hermann Lautensach, and Otto Maull . In 1923, Karl Haushofer founded the Zeitschrift für Geopolitik (Journal for Geopolitics), which was later used in
27000-643: The industrial centers of the Periphery were necessarily located in widely separated locations. The World Island could send its navy to destroy each one of them in turn, and could locate its own industries in a region further inland than the Periphery (so they would have a longer struggle reaching them, and would face a well-stocked industrial bastion). Mackinder called this region the Heartland . It essentially comprised Central and Eastern Europe : Ukraine , Western Russia , and Mitteleuropa . The Heartland contained
27200-429: The interests of international political actors focused within an area, a space, or a geographical element, relations which create a geopolitical system. Critical geopolitics deconstructs classical geopolitical theories, by showing their political or ideological functions for great powers . There are some works that discuss the geopolitics of renewable energy . According to Christopher Gogwilt and other researchers,
27400-463: The kind of world-view, the kind of beliefs, and the social structure that would probably prevail in a state which was at once unconquerable and in a permanent state of "cold war" with its neighbours. In The Observer of 10 March 1946, Orwell wrote, "...after the Moscow conference last December, Russia began to make a 'cold war' on Britain and the British Empire." The first use of the term to describe
27600-696: The least corrupt, operates largely under a one-party rule. Furthermore, it does not vigorously defend freedom of expression as evidenced by its government-regulated press , and its penchant for upholding laws protecting ethnic and religious harmony, judicial dignity and personal reputation. The private (capitalist) sector in the People's Republic of China has grown exponentially and thrived since its inception, despite having an authoritarian government. Augusto Pinochet 's rule in Chile led to economic growth and high levels of inequality by using authoritarian means to create
27800-406: The least, with the state relying heavily on state-owned enterprises or indirect economic planning to accumulate capital. Competition arises when more than one producer is trying to sell the same or similar products to the same buyers. Adherents of the capitalist theory believe that competition leads to innovation and more affordable prices. Monopolies or cartels can develop, especially if there
28000-402: The loyalty of non-aligned countries , such as India . By the 1970s, Japan and Western Europe rebuilt their economies, allowing them more diplomatic independence. After the Sino-Soviet split between the USSR and China in 1961, the U.S. initiated contacts with China in 1972 . In the same year, the US and USSR signed a series of treaties limiting their nuclear arsenals, which eased tensions for
28200-403: The market mechanism is the only way of deciding what to produce and how to distribute the items without using coercion. Milton Friedman and Ronald Reagan also promoted this view. Friedman claimed that centralized economic operations are always accompanied by political repression . In his view, transactions in a market economy are voluntary and the wide diversity that voluntary activity permits
28400-428: The market, competing for the attention and exchange resources of buyers. Competition results from scarcity , as it is not possible to satisfy all conceivable human wants, and occurs as people try to meet the criteria being used to determine allocation. In the works of Adam Smith, the idea of capitalism is made possible through competition which creates growth. Although capitalism had not entered mainstream economics at
28600-434: The mid-17th century. "Capitalism" is derived from capital , which evolved from capitale , a late Latin word based on caput , meaning "head"—which is also the origin of " chattel " and " cattle " in the sense of movable property (only much later to refer only to livestock). Capitale emerged in the 12th to 13th centuries to refer to funds, stock of merchandise, sum of money or money carrying interest. By 1283, it
28800-424: The money paid as wages (usual for short-term work-contracts) or salaries (in permanent employment contracts), the work product generally becomes the undifferentiated property of the employer. A wage laborer is a person whose primary means of income is from the selling of their labor in this way. The profit motive , in the theory of capitalism, is the desire to earn income in the form of profit. Stated differently,
29000-411: The most prominent architects of America's early Cold War strategy, especially those who believed that the Cold War would eventually be fought by political rather than military means, such as George F. Kennan. Soviet and Eastern Bloc authorities used various methods to suppress Western broadcasts, including radio jamming . American policymakers, including Kennan and John Foster Dulles , acknowledged that
29200-679: The planet – the Royal Geographic Society in London" Haushofer adopted both Mackinder's Heartland thesis and his view of the Russian-German alliance – powers that Mackinder saw as the major contenders for control of Eurasia in the twentieth century. Following Mackinder he suggested an alliance with the Soviet Union and, advancing a step beyond Mackinder, added Japan to his design of the Eurasian Bloc. In 2004, at
29400-667: The policy change. Once again, the East Berlin communists attempted to disrupt the Berlin municipal elections , which were held on 5 December 1948 and produced a turnout of 86% and an overwhelming victory for the non-communist parties. The results effectively divided the city into East and West, the latter comprising US, British and French sectors. 300,000 Berliners demonstrated and urged the international airlift to continue, and US Air Force pilot Gail Halvorsen created " Operation Vittles ", which supplied candy to German children. The Airlift
29600-441: The political decision-making level on either side. Similarly, there is no evidence, on either side, of any major political or military decision that was prematurely discovered through espionage and thwarted by the other side. There also is no evidence of any major political or military decision that was crucially influenced (much less generated) by an agent of the other side. According to historian Robert L. Benson, "Washington's forte
29800-479: The presence of the Red Army —alarmed the US and UK. Western leaders saw this as a clear instance of Soviet expansionism, clashing with their vision of a democratic Europe. Economically, the divide was sharpened with the introduction of the Marshall Plan in 1947, a US initiative to provide financial aid to rebuild Europe and prevent the spread of communism by stabilizing capitalist economies. The Soviet Union rejected
30000-484: The previous stage of mercantilism, invested capital in the East India Companies and other colonies, seeking a return on investment . In the mid-18th century a group of economic theorists, led by David Hume (1711–1776) and Adam Smith (1723–1790), challenged fundamental mercantilist doctrines—such as the belief that the world's wealth remained constant and that a state could only increase its wealth at
30200-599: The previous stagnant system of custom and feudal obligation. The economic doctrine prevailing from the 16th to the 18th centuries is commonly called mercantilism . This period, the Age of Discovery , was associated with the geographic exploration of foreign lands by merchant traders, especially from England and the Low Countries . Mercantilism was a system of trade for profit, although commodities were still largely produced by non-capitalist methods. Most scholars consider
30400-467: The principle of spaces polymorphic faces depending from many factors among them mankind, culture, and ideas) as opposed to determinism. Due to the influence of German Geopolitik on French geopolitics, the latter were for a long time banished from academic works. In the mid-1970s, Yves Lacoste —a French geographer who was directly inspired by Ancel, Braudel and Vidal de la Blache—wrote La géographie, ça sert d'abord à faire la guerre (Geography first use
30600-491: The reason for a business's existence is to turn a profit. The profit motive functions according to rational choice theory , or the theory that individuals tend to pursue what is in their own best interests. Accordingly, businesses seek to benefit themselves and/or their shareholders by maximizing profit. In capitalist theoretics, the profit motive is said to ensure that resources are being allocated efficiently. For instance, Austrian economist Henry Hazlitt explains: "If there
30800-435: The rest of society do not increase in the same proportion. The relationship between the state , its formal mechanisms, and capitalist societies has been debated in many fields of social and political theory, with active discussion since the 19th century. Hernando de Soto is a contemporary Peruvian economist who has argued that an important characteristic of capitalism is the functioning state protection of property rights in
31000-517: The resulting concentration of wealth can destabilize democratic societies and undermine the ideals of social justice upon which they are built. States with capitalistic economic systems have thrived under political regimes deemed to be authoritarian or oppressive. Singapore has a successful open market economy as a result of its competitive, business-friendly climate and robust rule of law. Nonetheless, it often comes under fire for its style of government which, though democratic and consistently one of
31200-559: The role of intervention and regulation , as well as the scope of state ownership, vary across different models of capitalism. The extent to which different markets are free and the rules defining private property are matters of politics and policy. Most of the existing capitalist economies are mixed economies that combine elements of free markets with state intervention and in some cases economic planning . Capitalism in its modern form emerged from agrarianism in England , as well as mercantilist practices by European countries between
31400-556: The role of geopolitics in the Nazi Third Reich suggest a fundamental significance on the part of the geo-politicians in the ideological orientation of the Nazi state. Bassin (1987) reveals that these popular views are in important ways misleading and incorrect. Despite the numerous similarities and affinities between the two doctrines, geopolitics was always held suspect by the National Socialist ideologists. This
31600-486: The routine of work tasks; and eventually established the domination of the capitalist mode of production . Industrial Britain eventually abandoned the protectionist policy formerly prescribed by mercantilism. In the 19th century, Richard Cobden (1804–1865) and John Bright (1811–1889), who based their beliefs on the Manchester School , initiated a movement to lower tariffs . In the 1840s Britain adopted
31800-436: The shores of Eurasia." Nicholas J. Spykman 's vision of Eurasia was strongly confirmed: "Geopolitically, America is an island off the shores of the large landmass of Eurasia, whose resources and population far exceed those of the United States. The domination by a single power of either of Eurasia's two principal spheres—Europe and Asia—remains a good definition of strategic danger for America. Cold War or no Cold War. For such
32000-652: The soil; the regulation of prices...". After the period of the proto-industrialization , the British East India Company and the Dutch East India Company , after massive contributions from the Mughal Bengal , inaugurated an expansive era of commerce and trade. These companies were characterized by their colonial and expansionary powers given to them by nation-states. During this era, merchants, who had traded under
32200-467: The source of the term, Lippmann traced it to a French term from the 1930s, la guerre froide . The roots of the Cold War can be traced back to diplomatic and military tensions preceding World War II. The 1917 Russian Revolution and the subsequent Treaty of Brest-Litovsk , where Soviet Russia ceded vast territories to Germany, deepened distrust among the Western Allies. Allied intervention in
32400-460: The specific post-war geopolitical confrontation between the Soviet Union and the United States came in a speech by Bernard Baruch , an influential advisor to Democratic presidents, on 16 April 1947. The speech, written by journalist Herbert Bayard Swope , proclaimed, "Let us not be deceived: we are today in the midst of a cold war." Newspaper columnist Walter Lippmann gave the term wide currency with his book The Cold War . When asked in 1947 about
32600-440: The state of capitalism in 1867. The postwar boom ended in the late 1960s and early 1970s and the economic situation grew worse with the rise of stagflation . Monetarism , a modification of Keynesianism that is more compatible with laissez-faire analyses, gained increasing prominence in the capitalist world, especially under the years in office of Ronald Reagan in the United States (1981–1989) and of Margaret Thatcher in
32800-446: The strategic management of geopolitical interests…. But in the meantime it is imperative that no Eurasian challenger emerges, capable of dominating Eurasia and thus also of challenging America… For America the chief geopolitical prize is Eurasia…and America's global primacy is directly dependent on how long and how effectively its preponderance on the Eurasian continent is sustained." The Austro-Hungarian historian Emil Reich (1854–1910)
33000-420: The term "capitalism" by many authors as "mainly rhetorical, functioning less as an actual concept than as a gesture toward the need for a concept". Scholars who are uncritical of capitalism rarely actually use the term "capitalism". Some doubt that the term "capitalism" possesses valid scientific dignity, and it is generally not discussed in mainstream economics , with economist Daron Acemoglu suggesting that
33200-418: The term "capitalism" should be abandoned entirely. Consequently, understanding of the concept of capitalism tends to be heavily influenced by opponents of capitalism and by the followers and critics of Karl Marx. Capitalism, in its modern form, can be traced to the emergence of agrarian capitalism and mercantilism in the early Renaissance , in city-states like Florence . Capital has existed incipiently on
33400-525: The term "capitalism" while it was used twice in the more political interpretations of his work, primarily authored by his collaborator Friedrich Engels . In the 20th century, defenders of the capitalist system often replaced the term "capitalism" with phrases such as free enterprise and private enterprise and replaced "capitalist" with rentier and investor in reaction to the negative connotations associated with capitalism. In general, capitalism as an economic system and mode of production can be summarized by
33600-684: The term "geopolitics" and its practical application stemming from its association with World War II and pre-World War II German scholars and students of geopolitics are largely specific to the field of academic geography, and especially sub-disciplines of human geography such as political geography. However, this negative association is not as strong in disciplines such as history or political science, which make use of geopolitical concepts. Classical geopolitics forms an important element of analysis for military history as well as for sub-disciplines of political science such as international relations and security studies . This difference in disciplinary perspectives
33800-458: The term "private capitalism" in 1863. There is no universally agreed upon definition of capitalism; it is unclear whether or not capitalism characterizes an entire society, a specific type of social order, or crucial components or elements of a society. Societies officially founded in opposition to capitalism (such as the Soviet Union ) have sometimes been argued to actually exhibit characteristics of capitalism. Nancy Fraser describes usage of
34000-466: The term in his first work, What is Property? (1840), to refer to the owners of capital. Benjamin Disraeli used the term in his 1845 work Sybil . Alexander Hamilton used "capitalist" in his Report of Manufactures presented to the United States Congress in 1791. The initial use of the term "capitalism" in its modern sense is attributed to Louis Blanc in 1850 ("What I call 'capitalism' that
34200-449: The term is currently being used to describe a broad spectrum of concepts, in a general sense used as "a synonym for international political relations", but more specifically "to imply the global structure of such relations"; this usage builds on an "early-twentieth-century term for a pseudoscience of political geography " and other pseudoscientific theories of historical and geographic determinism . Alfred Thayer Mahan (1840–1914)
34400-429: The territory which Halford Mackinder called the geopolitical heartland, and it is the heir to one of the most potent imperial traditions." Therefore, the United States must "maintain the global balance of power vis-à-vis the country with a long history of expansionism." After Russia, the second geopolitical threat which remained was Germany and, as Mackinder had feared ninety years ago, its partnership with Russia. During
34600-414: The time of Smith, it is vital to the construction of his ideal society. One of the foundational blocks of capitalism is competition. Smith believed that a prosperous society is one where "everyone should be free to enter and leave the market and change trades as often as he pleases." He believed that the freedom to act in one's self-interest is essential for the success of a capitalist society. In response to
34800-592: The two monsters – Britain and Russia – it was the latter that Mahan considered more threatening to the fate of Central Asia . Mahan was impressed by Russia's transcontinental size and strategically favorable position for southward expansion. Therefore, he found it necessary for the Anglo-Saxon "sea power" to resist Russia. Homer Lea , in The Day of the Saxon (1912), asserted that the entire Anglo-Saxon race faced
35000-427: The unification of this mega-continent. "Europe and Asia are politically and economically powerful…. It follows that… American foreign policy must…employ its influence in Eurasia in a manner that creates a stable continental equilibrium, with the United States as the political arbiter.… Eurasia is thus the chessboard on which the struggle for global primacy continues to be played, and that struggle involves geo- strategy –
35200-437: The view that man and societies are influenced by climate. He believed that hotter climates create hot-tempered people and colder climates aloof people, whereas the mild climate of France is ideal for political systems. Considered one of the founders of French geopolitics, Élisée Reclus , is the author of a book considered a reference in modern geography (Nouvelle Géographie universelle). Alike Ratzel, he considers geography through
35400-403: The war and unveiled the Truman Doctrine , which framed the conflict as a contest between free peoples and totalitarian regimes. American policymakers accused the Soviet Union of conspiring against the Greek royalists in an effort to expand Soviet influence even though Stalin had told the Communist Party to cooperate with the British-backed government. Enunciation of the Truman Doctrine marked
35600-410: The word being coined by socialist critics of capitalism, economist and historian Robert Hessen stated that the term "capitalism" itself is a term of disparagement and a misnomer for economic individualism . Bernard Harcourt agrees with the statement that the term is a misnomer, adding that it misleadingly suggests that there is such a thing as " capital " that inherently functions in certain ways and
35800-411: The world, while Soviet involvement in regime change included the funding of left-wing parties , wars of independence , revolutions and dictatorships. As nearly all the colonial states underwent decolonization and achieved independence in the period from 1945 to 1960, many became Third World battlefields in the Cold War. At the end of World War II, English writer George Orwell used cold war , as
36000-400: The world. Movements against nuclear weapons testing and for nuclear disarmament took place, with large anti-war protests . By the 1970s, both sides had started making allowances for peace and security, ushering in a period of détente that saw the Strategic Arms Limitation Talks and the 1972 visit by Richard Nixon to China that opened relations with China as a strategic counterweight to
36200-450: Was 'signals' intelligence - the procurement and analysis of coded foreign messages." leading to the Venona project or Venona intercepts, which monitored the communications of Soviet intelligence agents. Moynihan wrote that the Venona project contained "overwhelming proof of the activities of Soviet spy networks in America, complete with names, dates, places, and deeds." The Venona project was kept highly secret even from policymakers until
36400-409: Was Karl Haushofer who called Mackinder's Geographical Pivot of History a "genius' scientific tractate." He commented on it: "Never have I seen anything greater than those few pages of geopolitical masterwork." Mackinder located his Pivot, in the words of Haushofer, on "one of the first solid, geopolitically and geographically irreproachable maps, presented to one of the earliest scientific forums of
36600-441: Was a frequent commentator on world naval strategic and diplomatic affairs. Mahan believed that national greatness was inextricably associated with the sea—and particularly with its commercial use in peace and its control in war. Mahan's theoretical framework came from Antoine-Henri Jomini , and emphasized that strategic locations (such as choke points , canals, and coaling stations), as well as quantifiable levels of fighting power in
36800-422: Was a geopolitical rather than an ideological cold warrior. Three years after Kissinger's Diplomacy , Zbigniew Brzezinski followed suit, launching The Grand Chessboard: American Primacy and Its Geostrategic Imperatives and, after three more years, The Geostrategic Triad: Living with China, Europe, and Russia. The Grand Chessboard described the American triumph in the Cold War in terms of control over Eurasia: for
37000-409: Was a strong promise that West Germany would not develop nuclear weapons. Widespread fears of another rise of German militarism necessitated the new military to operate within an alliance framework under NATO command. In 1955, Washington secured full German membership of NATO. In May 1953, Lavrentiy Beria , by then in a government post, had made an unsuccessful proposal to allow the reunification of
37200-444: Was also adopted in the field of geopolitical thought where it now plays a role. The geopolitical stance adopted by Russia has traditionally been informed by a Eurasian perspective, and Russia's location provides a degree of continuity between the Tsarist and Soviet geostrategic stance and the position of Russia in the international order. In the 1990s, a senior researcher at the Institute of Philosophy, Russian Academy of Sciences of
37400-417: Was also fearful of a reconstituted Germany; his vision of a post-war Germany did not include the ability to rearm or pose any kind of threat to the Soviet Union. In early 1948, following reports of strengthening "reactionary elements", Czech Communists executed a coup d'état in Czechoslovakia (resulting in the formation of the Czechoslovak Socialist Republic (9 May 1948)), the only Eastern Bloc state that
37600-430: Was as much a logistical as a political and psychological success for the West; it firmly linked West Berlin to the United States. In May 1949, Stalin backed down and lifted the blockade. In 1952, Stalin repeatedly proposed a plan to unify East and West Germany under a single government chosen in elections supervised by the United Nations, if the new Germany were to stay out of Western military alliances, but this proposal
37800-479: Was based on assumptions similar to Mackinder's, including the unity of world politics and the world sea. He extends this to include the unity of the air. Spykman adopts Mackinder's divisions of the world, renaming some: Under Spykman's theory, a Rimland separates the Heartland from ports that are usable throughout the year (that is, not frozen up during winter). Spykman suggested this required that attempts by Heartland nations (particularly Russia ) to conquer ports in
38000-447: Was contingent upon German economic recovery. One month later, Truman signed the National Security Act of 1947 , creating a unified Department of Defense , the Central Intelligence Agency (CIA), and the National Security Council (NSC). These would become the main bureaucracies for US defense policy in the Cold War. Stalin believed economic integration with the West would allow Eastern Bloc countries to escape Soviet control, and that
38200-414: Was inspired by the French geographer Paul Vidal de la Blache (who in turn was influenced by German thought, particularly that of Friedrich Ratzel whom he had met in Germany). Braudel's method was to analyse the interdependence between individuals and their environment. Vidalian geopolitics is based on varied forms of cartography and on possibilism (founded on a societal approach of geography—i.e. on
38400-496: Was largely unregulated by the state, but became more regulated in the post– World War II period through Keynesianism , followed by a return of more unregulated capitalism starting in the 1980s through neoliberalism . The existence of market economies has been observed under many forms of government and across a vast array of historical periods , geographical locations , and cultural contexts. The modern industrial capitalist societies that exist today developed in Western Europe as
38600-453: Was left as the world's sole superpower. In February 1946, George F. Kennan 's " Long Telegram " from Moscow to Washington helped to articulate the US government's increasingly hard line against the Soviets, which would become the basis for US strategy toward the Soviet Union for the duration of the Cold War. The telegram galvanized a policy debate that would eventually shape the Truman administration 's Soviet policy. Washington's opposition to
38800-436: Was no direct fighting between the two superpowers , though each supported opposing sides in major regional conflicts known as proxy wars . Aside from the nuclear arms race starting in 1949 and conventional military deployment , the struggle for dominance was expressed indirectly via psychological warfare , propaganda campaigns , espionage , far-reaching embargoes , sports diplomacy , and technological competitions such as
39000-487: Was now restricted to the island of Taiwan , the nationalist government of which exists to this day. The Kremlin promptly created an alliance with the newly formed People's Republic of China. According to Norwegian historian Odd Arne Westad , the communists won the Civil War because they made fewer military mistakes than Chiang Kai-Shek made, and because in his search for a powerful centralized government, Chiang antagonized too many interest groups in China. Moreover, his party
39200-402: Was parity in the quantity and quality of secret information obtained by each side. However, the Soviets probably had an advantage in terms of HUMINT (human intelligence or interpersonal espionage) and "sometimes in its reach into high policy circles." In terms of decisive impact, however, he concludes: We also can now have high confidence in the judgment that there were no successful "moles" at
39400-428: Was turned down by the Western powers. Some sources dispute the sincerity of the proposal. Britain, France, the United States, Canada and eight other western European countries signed the North Atlantic Treaty of April 1949, establishing the North Atlantic Treaty Organization (NATO). That August, the first Soviet atomic device was detonated in Semipalatinsk , Kazakh SSR . Following Soviet refusals to participate in
39600-499: Was understandable, for the underlying philosophical orientation of geopolitics did not comply with that of National Socialism. Geopolitics shared Ratzel's scientific materialism and geographic determinism, and held that human society was determined by external influences—in the face of which qualities held innately by individuals or groups were of reduced or no significance. National Socialism rejected in principle both materialism and determinism and also elevated innate human qualities, in
39800-710: Was used in the sense of the capital assets of a trading firm and was often interchanged with other words—wealth, money, funds, goods, assets, property and so on. The Hollantse ( German : holländische ) Mercurius uses "capitalists" in 1633 and 1654 to refer to owners of capital. In French, Étienne Clavier referred to capitalistes in 1788, four years before its first recorded English usage by Arthur Young in his work Travels in France (1792). In his Principles of Political Economy and Taxation (1817), David Ricardo referred to "the capitalist" many times. English poet Samuel Taylor Coleridge used "capitalist" in his work Table Talk (1823). Pierre-Joseph Proudhon used
40000-432: Was weakened during the war against Japan . Meanwhile, the communists told different groups, such as the peasants, exactly what they wanted to hear, and they cloaked themselves under the cover of Chinese nationalism . Confronted with the communist revolution in China and the end of the American atomic monopoly in 1949, the Truman administration quickly moved to escalate and expand its containment doctrine. In NSC 68 ,
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