In a new issue of Finance and Development, the International Monetary Fund examines the rise of geoeconomics, arguing that economic analysis must adapt as governments increasingly use tariffs, sanctions, export controls and other economic tools to pursue national security, growth and influence. The publication frames this as a structural shift in international relations rather than a temporary phase. The issue brings together research and commentary on how control of financial infrastructure, technology and critical commodities can create leverage, while warning that overuse of such power can push countries to develop alternatives and weaken that leverage. Contributions also assess the trade-off between resilience and efficiency, the choices facing middle powers and regions such as Sub-Saharan Africa, India and Europe, and how the multilateral trade system could be reworked to accommodate geopolitical rivalry while limiting disruptive trade wars and protecting neutral countries. Across the articles, the central message is that resilience may require selective intervention, but excessive fragmentation would undermine the gains from global cooperation and rules-based predictability.
International Monetary Fund2026-06-02
International Monetary Fund publishes Finance and Development issue on geoeconomics as tariffs sanctions and export controls reshape global power
The International Monetary Fund’s latest Finance and Development issue examines the rise of geoeconomics, arguing that economic analysis must adapt as governments increasingly use tariffs, sanctions, export controls and other tools for national security, growth and influence. It explores how control of financial infrastructure, technology and critical commodities creates leverage but can spur alternatives if overused, assesses resilience-efficiency trade-offs and implications for middle powers and regions, and considers how the multilateral trade system could be reworked to manage geopolitical rivalry while limiting fragmentation.