By Dr. Saman Shali
From Western Europe to East Asia, Eurasia's vast and interconnected landmass (54,760,000 km) holds immense economic significance. With its diverse set of countries, cultures, and geopolitical dynamics, Eurasia has the potential to play a significant role in power-sharing on the global stage. Its impact on the global economy is shaped by a combination of factors, including its geographical location, abundant resources, diverse economies, and the development of various trade and infrastructure networks. The effects of Eurasia on the world economy are multifaceted and wide-ranging:
1. Multilateral Diplomacy: Eurasian nations can participate in international organizations such as the Organization for Security and Cooperation in Europe (OSCE), the Shanghai Cooperation Organization (SCO), and the United Nations through multilateral diplomatic initiatives. These forums offer discussion, compromise, and collaboration on various international concerns.
2. Geopolitical Considerations: The geopolitical dynamics of Eurasia are closely linked to its economic significance. Due to its size and diversity, the region is a hub for rivalries and interests amongst significant world powers. In order to handle problems and stop them from worsening, Eurasia frequently needs diplomatic initiatives. Diplomatic efforts and international organizations are essential to preserve regional security and stability. Geopolitical stability or tensions can impact Eurasia's trade, investment, and economic growth.
3. Promoting Human Rights and Democracy: Eurasian nations can advocate for human rights and democratic values within their region and beyond. They can influence global norms and foster a more inclusive international community by setting an example and engaging in dialogue.
4. Commercial and Connectivity: Due to its geographic center, Eurasia is situated at the intersection of critical commercial routes that connect Europe, Asia, and Africa. The evolution of the historic Silk Road and contemporary projects like the Belt and Road Initiative shows its historical and current significance as a commerce route. These routes' increased interconnectedness promotes trade in products and services, strengthens economic cooperation, and accelerates economic growth within and outside the region.
5. Natural Resources: Minerals, agricultural land, energy reserves, and other resources are abundant throughout Eurasia. The region's energy resources, especially oil and natural gas, are vital to global supply chains and markets. Major energy exporters like Kazakhstan, Azerbaijan, and Russia impact the security and cost of energy globally. With all these resources, this new force will rule the global economy. Eurasia is one of the most natural resource-rich regions in the world, with 31 percent of its proven natural gas reserves, 17 percent of oil reserves, 23 percent of iron ore, 14 percent of gold, and 7 percent of copper.
6. Economic Diversity: The economies of Eurasia are diverse, encompassing both emerging markets in Eastern Europe and Asia and highly developed Western European nations. This diversity supports various economic activities, from traditional industries and agriculture to advanced manufacturing and technological innovation.
7. Cooperation and Economic Integration: Continual efforts are being made to improve economic integration throughout Eurasia. The goals of initiatives such as the Eurasian Economic Union (EAEU) and regional organizations are trade, investment, and economic cooperation among member nations. These initiatives may result in joint development projects, expanded market access, and economic balance.
8. Scientific and Technological Innovation Collaboration: Eurasia is home to several countries with advanced technological capabilities, including Western European nations and countries like China, South Korea, and Japan. Collaborative research and development projects can lead to technological advancements that benefit global industries and address common challenges. These technological advancements influence global innovation, supply chains, and industries, contributing to economic growth and competitiveness.
9. Infrastructure Development: The Belt and Road Initiative (BRI) in Eurasia is one example of an infrastructure project changing trade and regional connectivity dynamics. More effective movement of goods and services is made possible by constructing ports, railroads, energy pipelines, and transportation networks. This activities promotes trade and economic expansion. Additionally, the introduction of security threats like cyberattacks and espionage, as well as economic development, can result from infrastructure initiatives that increase connectivity.
10. Demographic Factors: Eurasia is home to most of the world's population (5,111,000,800), about 71% of the planet's population. Demographic trends, such as population growth, urbanization, and changes in workforce composition, can influence consumption patterns, labor markets, and economic opportunities.
11. Environmental Protection and Sustainability: Cooperation can favor global sustainability regarding environmental challenges like resource management and climate change. The economic activity in Eurasia affects the environment. It is essential to balance environmental sustainability and economic growth to reduce pollution, depleted resources, and climate change.
12. Economic Shifts and Growth Potential: As economies in Eurasia continue to develop and evolve, they can become significant contributors to global economic growth. Emerging markets in Asia, in particular, have demonstrated substantial growth potential, driving innovation and consumption patterns.
13. Nonproliferation Challenges: Eurasia is home to several countries with nuclear capabilities, including Russia, China, India, and Pakistan. Ensuring nonproliferation and preventing the spread of nuclear weapons in the region is a critical concern for global security.
In conclusion, Eurasia can play a vital role in world power-sharing by leveraging its geopolitical position, economic potential, and diplomatic capacities. Eurasian countries can contribute to a more balanced and stable global order through collaborative efforts in diplomacy, conflict resolution, economic cooperation, cultural exchange, and addressing global challenges. Effective power-sharing requires a commitment to mutual understanding, shared goals, and a willingness to work together to address the complex challenges of the 21st century.
Saman Shali has a Ph.D. in Science (1981) from the University of Sussex. Dr. Shali worked as an Assistant Researcher and Assistant Professor at the University of Sussex, King Saud University, and Pennsylvania State University. He is also a senior fellow at the Mediterranean Institute for Regional Studies.