Geopolitics, Economics, and Energy Resources
Geopolitical Space
Western World
The Western world (USA, Australia, Europe) shares common geopolitical characteristics.
Latin America
Latin America encompasses the territories conquered and ruled by the Spanish and Portuguese between the 16th and 19th centuries, including all of America south of and including central Mexico. A legacy of conquest includes cultural uniformity, with Catholicism as the predominant religion and Spanish and Portuguese as the primary languages. However, diverse ethnicities exist:
- Southern states (Argentina, Chile, and Uruguay) have primarily European populations.
- Central American and Andean countries (Bolivia, Colombia, Ecuador, and Peru) have predominantly indigenous populations.
- Brazil and the Caribbean islands are home to native and African populations.
During the latter half of the 20th century, most Latin American states were ruled by military dictatorships. Currently, almost all have transitioned to democratic systems, though social and economic inequalities remain high.
Africa
Africa possesses a wealth of natural resources and diverse landscapes, yet faces significant economic hardship. Cultural and linguistic diversity is vast. While Islamic culture unifies Northern Africa, the rest of the continent comprises numerous ethnic groups whose traditional power structures hinder democratic development. Social and economic inequality is prevalent.
Near and Middle East
Located between the eastern Mediterranean shore and the Indus River, this region is the heart of the Muslim world. Authoritarian governments with limited freedoms and discriminatory conditions for women are common. This area is crucial to the global economy, holding the world’s largest oil and natural gas reserves.
Post-Soviet Space
The 1991 disintegration of the Soviet Union led to the independence of its former republics. The pre-existing political and economic structures, often repressive, were tied to the Soviet regime. Vast economic and cultural disparities, combined with the region’s natural resources, have fueled numerous conflicts.
Economic Systems
Communism (Planned Economy)
Emerging in the early 20th century Soviet Union, communism featured state ownership of resources and most companies, with the economy managed according to overarching objectives. Adopted also in Eastern European and some Asian countries, it declined with the fall of most communist regimes in the late 20th century.
Capitalism
Originating in 16th-century Europe, capitalism involves multiple decision-making actors, often competing and interacting through markets. Key features include:
- Private ownership of companies and most productive factors, with a limited state role.
- Individual profit as the primary driver of economic decisions, often neglecting collective benefit.
- Competition among companies to maximize profits, leading to successes and failures.
- Division of labor and increasing specialization to enhance profitability.
The Economic Circuit
Individuals sell their labor to companies for wages. Companies produce and sell goods and services, which individuals purchase using a portion of their wages. The state collects taxes to fund public services. Relationships between producers and consumers create daily flows of goods and services, transported across various locations. Corresponding cash flows also circulate.
Economic Actors
- Companies (production units) utilize resources and human labor to create a wide array of goods and services.
- Households (consumer units) receive income from work, used for consumption or saving.
- The state establishes rules governing producer and consumer behavior, and also intervenes as a producer through public companies.
Ore Types and Mining
Ore Types
- Energy ores: coal, oil, etc.
- Minerals: iron, copper, nickel, etc.
- Non-metallic minerals: clay, limestone, etc.
Mining Types
- Surface mining: used when mineral layers are near the surface. Lower cost but greater environmental impact.
- Underground mining: involves drilling vertical, horizontal, or inclined tunnels to extract ore. Higher risk.
Energy Sources
All human activities require energy. Consumption has risen 35% in the last 25 years and is projected to double again by 2020. Energy consumption levels vary significantly, correlating with economic development and living conditions. A country’s consumption is measured in tonnes of oil equivalent (TOE), with one TOE equal to the energy in one tonne of oil (equivalent to 1.435 tonnes of coal).
Historically, energy sources have evolved: initially wood, wind, and water; in the 19th century, coal; and in the 20th century, oil, which will likely remain dominant for decades. Currently, we rely heavily on non-renewable fossil fuels. Nuclear power (7% of usage) presents waste disposal and environmental risks. Renewable sources (wind, solar) offer lower environmental impact but are more expensive.
Oil
Oil is a plant-based substance accumulating at varying depths in continental or oceanic areas. Its importance stems from its use as a raw material for numerous consumer products. Oil exploitation is controlled by a few large companies.