Track 06Module 4 of 53 sources
Sanctions, finance as a weapon and defence
Explain how control of financial networks becomes state power, and what that does to reserves, gold and payment systems.
Key ideas
- States that control hubs such as dollar clearing and payment messaging can watch and block flows. That is weaponised interdependence.
- Sanctions on reserves push other central banks toward gold and alternative payment rails.
- Defence spending is rising across regions. Arms-transfer data show who is buying from whom.
- Secondary sanctions matter for India through discounted crude, payment channels and trade routes.
CoreThe standard references. Work through them once the idea is clear.
Paper
Weaponized Interdependence: How Global Economic Networks Shape State Coercion
Farrell, Newman · 2019 · International Security · doi:10.1162/isec_a_00351
The paper that named weaponised interdependence.
Book
Underground Empire
Henry Farrell, Abraham Newman
The book-length version, on how the US built and uses its network power.
Data
SIPRI databases: arms transfers and military spending
SIPRI
Data on military spending and arms transfers.
Practice
Pick one sanctioned economy. Find how its oil exports changed route and price, and who bought them.
See it live
Where this leads
06.2 · Geopolitics and MarketsEnergy, chokepoints and commoditiesKnow the physical routes and players behind oil, gas and metals, and what a disruption means for India.05.3 · Macro and LiquidityThe dollar, carry and the global financial cycleExplain why a strong dollar tightens conditions everywhere, and how carry trades build and unwind.