SECURITY AND ECONOMY

SECURITY AND ECONOMY

Marcella Panucci, Alessandro Aresu

Obiettivi formativi

The course aims to provide students with an advanced understanding of the interactions between economic systems and security dynamics in the contemporary international context. In particular, it seeks to: Analyze the role of economic tools as instruments of geopolitical power Examine key policy instruments (trade, investment, industrial policy, competition, technology governance) from a security perspective Explore the different models of economic security adopted by the European Union, the United States, and China Understand the impact of technological transformations and global crises on economic and strategic balances Equip students with analytical tools to assess public policies in complex and interdependent environments

Risultati di apprendimento attesi

By the end of the course, students will be able to: Understand and define the concept of economic security and its evolution Critically analyze the interaction between markets, states, and geopolitical dynamics Evaluate the effectiveness and implications of economic policy tools from a security perspective Compare regulatory and strategic approaches across the EU, the US, and China Assess the role of emerging technologies in global competition Apply theoretical frameworks to real-world policy cases and international scenarios

Contenuti Del Corso

This course explores the deep interconnections between economic systems and security dynamics in the contemporary global order. It examines how states use economic tools - trade, investment, industrial policy, antitrust, technology governance - as instruments of power and security. The course adopts an interdisciplinary approach combining international political economy, law, and strategic studies, with a strong focus on EU policy frameworks, comparative perspectives (US, China), and current geopolitical developments.

Testi Di Riferimento

Blackwill, R. D., & Harris, J. M. (2016). War by Other Means: Geoeconomics and Statecraft. Cambridge, MA: Harvard University Press. (Selected sections will be indicated during the course.) Farrell, H., & Newman, A. L. (2019). “Weaponized Interdependence: How Global Economic Networks Shape State Coercion.” International Security, 44(1), 42–79.

Metodologie Didattiche

Blended: frontal and participative method through project works. - Class participation is crucial for a successful preparation. The course on European Industrial Policy mainly relies on EU policy papers, international press articles, comments and reports that Professors will provide in advance and that students will be required to read and comment during the lecture. - Simulations: during the course the dynamics of policy decision making will be simulated. - Case studies will be investigated with the support of external experts.

Modalità di verifica dell'apprendimento

Attending students are assessed through a system of continuous assessment, which accounts for one-third (1/3) of the final grade. Continuous assessment includes various activities carried out during the semester - such as practical exercises, group work, presentations, individual tests, or short written assignments - aimed at monitoring progressive learning and the development of analytical skills. At the end of the course, attending students take an individual final exam, accounting for two-thirds (2/3) of the overall grade. The final exam is designed to assess knowledge of course content, critical thinking, and the proper use of theoretical and analytical tools. It may consist of a written and/or oral examination. The combination of continuous assessment and final exam applies only to the examination sessions immediately following the course. In subsequent sessions (retake sessions), students are assessed through a single final exam (100%), and continuous assessment results are no longer considered. Continuous assessment is mandatory for attending students, and the corresponding grades cannot be refused. Students who are exempted from attendance or are non-attending are assessed exclusively through a final exam (100%), based on an appropriate study load compensating for missed coursework during the semester. Final grades cannot be refused.

Criteri per l’assegnazione dell’elaborato finale

Evaluation criteria include: Interest and engagement demonstrated throughout the course Relevance and originality of the topic Clarity of structure and coherence of the argument Ability to integrate theoretical frameworks and empirical analysis Quality of sources (academic and institutional)

Settimana 1

Part I – Foundations: Security and Economic Systems The New Geopolitical Economy Global fragmentation after the Cold War (US, China, EU, Russia, Middle East) From globalization to de-risking COVID-19 and Ukraine war Theories of Economic Power Liberalism vs protectionism Market economy vs state capitalism Economic statecraft Interdependence and vulnerability

Settimana 2

Part II – Economic Security: Concepts and Instruments Economic Security in the “Age of Insecurity” Definitions (EU, OECD) Geoeconomics and open strategic autonomy Resilience and supply chains Trade as a Security Tool Export controls: Cold War and U.S.-China competition Sanctions and extraterritoriality WTO crisis

Settimana 3

Case Study/Simulation

Settimana 4

Investment Screening and Economic Sovereignty FDI screening Golden power Foreign subsidies Outbound investment

Settimana 5

Part III – Industrial Policy and Strategic Sectors The Return of Industrial Policy EU industrial strategy Strategic sectors Strategic Technologies Semiconductors AI and supercomputing Technological sovereignty

Settimana 6

Defence, Space and Dual-Use Ecosystems Civil-military integration Space economy Defence industrial base

Settimana 7

Part IV – Finance, Competition, and the New Order Banking and Finance: From Intermediaries to Security Tools Weaponization of finance AML/CFT, SWIFT, sanctions enforcement Financial stability as national security CBDCs and monetary sovereignty

Settimana 8

Competition, State Aid, and European Champions From fair to strategic competition Relaxation of State Aid IPCEIs and industrial ecosystems IP pooling and standard-setting

Settimana 9

Part V – Regional Models of Economic Security The European Union Economic Security Strategy Trade defence tools (CBAM, FSR, ACI) Strategic dependencies

Settimana 10

The United States National security and economic policy The rise of sanctions in the XXI century after 9/11 CHIPS Act, IRA: new industrial policy Extraterritoriality and the role of the dollar Protectionism and the new US State capitalism

Settimana 11

China Chinese reforms and the lessons of the Asian Tigers State capitalism and market forces: SASAC and public-private ecosystems Made in China 2025 and a new search for self-sufficiency Dual circulation and new tools (antitrust, export controls) The “New Advantage of Backwardness”: how China thinks

Settimana 12

Part VII – Crisis, Governance and Future Scenarios Lecture 16 – Crisis and the Future of the Global Economic Order Knowledge as security: supply chain review Financial crises and systemic risk Energy security and critical materials Fragmentation vs cooperation Climate and industrial policy trade-offs