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Security First: How War Is Reshaping Economic and Foreign Policy

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In today’s international system, one reality is becoming increasingly difficult to ignore: security has returned to the center of global decision-making. For much of the post–Cold War era, states prioritized economic growth, globalization, and cooperation. Markets expanded, trade deepened, and diplomacy often focused on integration rather than confrontation. But the resurgence of major conflicts most notably the Russia–Ukraine War and escalating tensions across the Middle East has fundamentally altered that trajectory.

Governments are now recalibrating their priorities. Economic policy is no longer just about efficiency and growth; it is about resilience, protection, and strategic survival. Foreign policy, once shaped by diplomacy and economic partnerships, is increasingly driven by military realities and security concerns.

The Return of Hard Power

For decades, many policymakers believed that economic interdependence would reduce the likelihood of war. However, recent events have demonstrated that hard power military strength and strategic deterrence remains decisive. The North Atlantic Treaty Organization has expanded its defense posture, while countries across Europe and Asia have significantly increased military spending.

This shift is not limited to traditional military powers. Even smaller and middle-income states are investing in defense capabilities, border security, and intelligence systems. The logic is clear: in an unpredictable world, vulnerability carries a higher cost than ever before.

As a result, foreign policy doctrines are evolving. Diplomacy is still important, but it is increasingly backed by military credibility. States are no longer relying solely on dialogue; they are ensuring they have the power to defend their interests if dialogue fails.

Economic Policy as a Security Tool

Perhaps the most profound transformation is the fusion of economics and security. Governments now treat economic instruments as tools of strategic competition. Sanctions, export controls, and trade restrictions have become central features of foreign policy.

The use of sanctions against Russia following the invasion of Ukraine illustrates this trend. Western countries leveraged their economic power to isolate Russia from global financial systems, demonstrating that economic pressure can function as a form of warfare sometimes described as “economic statecraft.”

At the same time, supply chains are being restructured. Countries are reducing dependence on geopolitical rivals, especially in critical sectors such as energy, semiconductors, and food security. This process—often referred to as “de-risking” rather than full decoupling marks a significant departure from the era of deep globalization.

In effect, globalization is not ending, but it is being reshaped by strategic considerations.

Energy and the Politics of Survival

Energy has become one of the most critical battlegrounds in this new security-driven order. The disruption of energy supplies particularly in Europe after the Russia–Ukraine War has forced governments to rethink their energy strategies.

States are diversifying energy sources, investing in renewables, and forming new partnerships. Control over strategic chokepoints such as the Strait of Hormuz has gained renewed importance, as any disruption could have global economic consequences.

Energy policy is no longer just about sustainability or cost it is about national survival and geopolitical leverage.

Alliance Politics in a Fragmented World

The security-first approach has also reshaped alliances. Traditional alliances are being strengthened, while new ones are emerging. The European Union, for instance, is increasingly integrating security considerations into its economic policies.

At the same time, many countries particularly in the Global South are adopting more flexible strategies. Rather than aligning fully with one bloc, they are pursuing multi-vector foreign policies, engaging with multiple powers to maximize their strategic autonomy.

This reflects a broader shift toward a multipolar world, where power is distributed among several major actors rather than dominated by a single hegemon.

The Rise of Strategic Uncertainty

One of the defining features of the current era is uncertainty. Conflicts are more complex, involving not just states but also non-state actors, cyber operations, and information warfare. The line between war and peace is increasingly blurred.

Cyberattacks, disinformation campaigns, and economic coercion are now integral parts of geopolitical competition. These tools allow states to pursue their objectives without crossing the threshold of conventional war, making conflicts more persistent and harder to resolve.

As a result, policymakers must operate in an environment where risks are constant and outcomes are unpredictable.

Implications for Small States and Emerging Regions

For smaller states and emerging regions such as those in the Horn of Africa the shift toward security-first policies presents both challenges and opportunities. On one hand, increased global competition can lead to external interference and instability. On the other, it creates space for strategic engagement.

States that can position themselves as reliable partners in security, trade, or logistics may benefit from increased attention and investment. Strategic location, political stability, and diplomatic agility become valuable assets in this environment.

For regions like Somaliland, this evolving landscape underscores the importance of clear foreign policy vision, institutional strength, and proactive diplomacy.

Conclusion: A New Logic of Global Politics

The return of war as a central factor in international relations has ushered in a new logic: security first, economics second but increasingly intertwined. Governments are no longer treating economic policy and foreign policy as separate domains. Instead, they are integrating them into a unified strategy aimed at safeguarding national interests.

This does not mean that cooperation and diplomacy have disappeared. Rather, they are being redefined within a more competitive and security-conscious framework. The challenge for policymakers is to balance these dynamics ensuring security without undermining the economic foundations of global stability.

In this new era, success will depend on adaptability. States that can navigate the intersection of security, economics, and diplomacy will be best positioned to thrive in an increasingly uncertain world.


© The Times of Israel (Blogs)