Title:	CAPITAL EVOLUTION AND ECONOMIZATION OF GEOPOLITICAL REALITY
Authors:	Grushko, Viktor
Affiliation:	Ternopil Volodymyr Hnatiuk National Pedagogical University 2 Maxyma Kryvonosa str., 46027, Ternopil, Ukraine e-mail: grushko.vs@gmail.com
Bibliographic description:	Grushko, V. (2019) Evoliutsiia kapitalu ta ekonomizatsiia heopolitychnoi realnosti [Capital evolution and economization of geopolitical reality]. Sotsialno-ekonomichni problemy i derzhava [Socio-Economic Problems and the State] (electronic journal), Vol. 21, no. 2, pp. 271-281. Available at: http://sepd.tntu.edu.ua/images/stories/pdf/2019/19gvsegr.pdf
Issue Date:	dec-2019
Submitted date:	oct-2019
Publisher:	Ternopil Ivan Puluj National Technical University
DOI:	https://doi.org/10.33108/sepd2019.02.271
UDC:	327 (73)
JEL:	N40
Keywords:	geo-economic area networks of economic flows and exchanges productive capital concentration of capital post-industrial economy
Pages:	271-281
First page:	271
Last page:	281
Abstract:	The dynamics of gradual growth of the economic factor share in the process of geopolitical reality formation under the influence of capital accumulation, as well as growth of its potential and diversification of existence forms are described in the article. The displacement of military-political levers of influence by economic ones, which at the present stage are able to provide the desired results in cheaper and safer ways, has been established. Capital is described as the most effective tool in the fight for: external markets and geo-economic areas; the value of income; the resources of influence, which in the long history of mankind has taken various forms. The peculiarities of society geo-economic interests’ focus on different forms of capital in the pre-industrial, industrial and post-industrial era are investigated. Differences in the specifics of their interest’s realization through geopolitical and geo-economic instruments are analyzed. The peculiarities of forming the basis of power and influence in geopolitics and geoeconomics are revealed. The key role of flows, exchanges, control over international networks, such as trade routes, cash flows, circulation of securities, dissemination of scientific and technical achievements, is determined. The fundamental importance of controlling the geographical area, in particular land and trade routes, as dominant forms of capital, at the pre-industrial stage of development and its connection with the rise of the geopolitical weight of the states which controlled them during that period is defined. The increase in those geopolitical subjects’ share which have previously mastered scientific and technological progress as a mean of multiplying the potential of labor means, as the dominant form of capital in the industrial age, is revealed. The change of priorities in the mechanisms of value added formation in the post-industrial period, which the new virtual capital has radically reformed the geopolitical space in, as well as the adoption of new geopolitical-geo-economic paradigms under the influence of the human capital role growth are analyzed. An increase in the value of external markets, uncontrolled by foreign political and economic entities, has been revealed in relation to the possibility of obtaining a significant amount of income at the present stage of society's development. Established as an increase in the value of human capital, the virtual economy filled geopolitics with economic meanings in the post-industrial period, laying the foundations for the domination of geo-economic reality, in which space is no longer divided into rigidly isolated separate areas with rigid lines of demarcation between them. Causes of movement of money, capital and other economic resources across borders intensification, characterized as the absence of rigid barriers between modern geo-economic spaces compared to geopolitical ones are defined. The importance of banking activity legalization in the transition from pre-industrial geopolitical reality to industrial, its role in the intensification of scientific and technological progress, in blurring the boundaries between geo-economic areas of the world at the post-industrial stage of society development is outlined. The ways of using people as capital from pre-industrial slavery to the technologies of manipulating of large masses of people who have established themselves in the form of ideologies in recent centuries are revealed. The analysis, as the domination of public property instead of asserting social justice in the socialist geopolitical space, provides only the concentration of power in a narrow circle of people, not the welfare of the majority of the population. The belief in the imaginary properties of money in the geo-habitat where liberal ideals were established, which encourages large masses of people to accumulate a social product that increases the wealth of limited social groups, is revealed. High efficiency of productive capital initially captured in the West was discovered. It replaced the unproductive “accumulation of wealth” of the subsistence epoch, providing high growth rates in the wealth production and the ability for continuous self-improvement, which ensured the geo-economic leadership of the transatlantic geo-economic. Large-scale imbalances between virtual, electronic-digital capital and the production of goods and services have been identified, which determine decisively the contemporary socio-economic contrasts between different geo-economic areas of the world. The differences in size of the capital concentration in different geo-economic regions of the planet are established. The differences in the forms of capital, which are mastered in different geo-economic areas and used in the competition of geopolitical subjects, are outlined. The complex of purposeful actions of the countries from successful geo-economic areas to preserve their leading positions in the process of capital accumulation is revealed. It is established that the periodic revolutionary transitions from one technological institution to another open the window&#x#x20;of possibilities for accelerated own capitalization of the second and third world countries, as well as geo-economic areas which they include. At the same time the process of periodic relocation of capital concentration centers and competition aggravation during periods when a potential probability of changing global geo-economic leadership emerges is described.
URI:	http://elartu.tntu.edu.ua/handle/lib/30964
ISSN:	2223-3822
Copyright owner:	Scientific Journal "Socio-Economic Problems and the State"
URL-releated material:	http://sepd.tntu.edu.ua/images/stories/pdf/2019/19gvsegr.pdf
References:	1. Grushko, V. S. (2017) Sfera sensiv u dynamitsi rozvytku suspilstva u konteksti zmin semiotychnoi realnosti kultury [The Sphere of Meanings in the Dynamics of Social Development in the Context of Changes in the Semiotic Reality of Culture]. Lutsk: Sociological Studies: A Scientific and Practical Journal of the Eastern European National University L. Ukrainka, No. 1 (10), pp. 6-12. 2. De Soto Ernando (2017) Zahadka kapitalu: Chomu kapitalizm peremahaie na Zakhodi i nide bilshe [The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else]. Kyiv: Our format. (in Ukrainian). 3. Ilin, V. V. (2007) Finansova tsyvilizatsiia [Financial civilization]. Kyiv: Book. (in Ukrainian). 4. Katasonov, V. Ju. (2013) Kapitalizm. Istorija i ideologija denezhnoj civilizacii [Capitalism. History and ideology of monetary civilization]. Moscow: Institute of Russian Civilization. (in Russian). 5. Ferhiuson, Nil (2017) Evoliutsiia hroshei. Finansova istoriia svitu [The Ascent of Money. Financial History of the World]. Kyiv: Our format. (in Ukrainian). 6. Hantington Samyuel (2003) Stolknovenie tsivilizatsiy [Clash of Civilizations]. Moscow: AST Publishing House LLC. (in Russian). 7. Kharari Yuval Noi (2018) Liudyna rozumna. Istoriia liudstva vid mynuloho do maibutnoho [Sapiens: A Brief History of Humankind]. Kharkiv: Family Leisure Club. (in Ukrainian). 8. Shpengler Osval'd (1999) Zakat Evropy: Ocherki mifologii mirovoj istorii. T. 2 Vsemirno-istoricheskie perspektivy [The Decline of the West: Essays on the mythology of world history. T. 2 World historical perspectives]. Minsk: OOO Potpourri. (in Belarus).
Issue type:	Article
Appears in Collections:	Scientific Journal "Socio-Economic Problems and the State", Vol.21, No.2