130
The policymaking of the political economy of oil in the systemic attitude leads
to the promotion of the role of the great powers. It can be generally acknowledged
that energy is the infrastructure of economic and strategic mobility of countries and
great powers. In other words, the change in the formations of political economy will
be a function of the energy issue, and the effects of any change in energy prices can
be seen in the behavioral pattern of the great powers. One of the features of the
United States should be to influence global economics and politics through the control of energy resources, especially fossil fuels (Pennrose 1988:20).
The global economy crisis in 2000–2001 should be considered as a cyclical crisis
in the global economy and politics. Economic theorists argue that the constant
transformation in the production of consumer goods and services will lead to the
creation of cyclical stages of the crisis, the prosperity and normalization of economic processes. A country that can control crisis cycles will need to balance energy
production and consumption on a global scale. Based on this view, if the oil price
stagnated at the mid-2001 level, the global GDP growth rate would be 5% higher
than the crude oil price in March 2004. This means that any regional crisis can have
its own effects on the economic and strategic spheres. Therefore, an increase of 5%
will increase oil prices by $10 per barrel. Based on this approach, the issues of the
American economic crisis in 2007 could also be considered (Mosalla Nezhad
2016:190).
Policymaking in the political economy of oil at the international level is such that
strategic policies and measures such as sanctions, balances of oil revenues, and
economic growth of oil-exporting countries are shaped by the imperatives of the
global system; such a process is that oil is priced according to the needs and signs
of the global economy, and this is indicative of the fact that oil is among the strategic
goods of the global economy as well as the global commodity market. The policy of
the oil economy has effects in various economic spheres (Mosalla Nezhad 2016:195).
The core of economic policymaking for oil should be analyzed on the basis of
global economic strategies that are conducted on a US-led basis. Since the United
States is a balancing force for global economic institutions, it has the ability to coordinate the issues of oil, economics, security, and strategic power of regional countries. In other words, countries that play a role in controlling the global economy
make every move based on strategic imperatives. Such a process implies that there
is always a direct and mutual relationship between economics, security, and strategic action patterns of countries (Mosalla Nezhad 2016:175).
Any international politics and political economy related to oil has its own effects
in the regional and international environment. In this process, the “global market
pull” in relation to oil and its impact on global security are among the components
that have influenced US strategic policy in dealing with Iran. The policy of Iran’s
economic sanctions in the field of energy should be considered as one of the factors
associated with global economics and security in the strategic approach of the
United States and other actors in the economy (Mosalla Nezhad 2016:175).
An increase in oil prices will change the trade balance between countries and
exchange rates. Countries that supply all their needs for oil from the place of import
tend to have a kind of coherence in their balance of payments, which exacerbates
4 George W. Bush Energy Diplomacy
The policymaking of the political economy of oil in the systemic attitude leads
to the promotion of the role of the great powers. It can be generally acknowledged
that energy is the infrastructure of economic and strategic mobility of countries and
great powers. In other words, the change in the formations of political economy will
be a function of the energy issue, and the effects of any change in energy prices can
be seen in the behavioral pattern of the great powers. One of the features of the
United States should be to influence global economics and politics through the control of energy resources, especially fossil fuels (Pennrose 1988:20).
The global economy crisis in 2000–2001 should be considered as a cyclical crisis
in the global economy and politics. Economic theorists argue that the constant
transformation in the production of consumer goods and services will lead to the
creation of cyclical stages of the crisis, the prosperity and normalization of economic processes. A country that can control crisis cycles will need to balance energy
production and consumption on a global scale. Based on this view, if the oil price
stagnated at the mid-2001 level, the global GDP growth rate would be 5% higher
than the crude oil price in March 2004. This means that any regional crisis can have
its own effects on the economic and strategic spheres. Therefore, an increase of 5%
will increase oil prices by $10 per barrel. Based on this approach, the issues of the
American economic crisis in 2007 could also be considered (Mosalla Nezhad
2016:190).
Policymaking in the political economy of oil at the international level is such that
strategic policies and measures such as sanctions, balances of oil revenues, and
economic growth of oil-exporting countries are shaped by the imperatives of the
global system; such a process is that oil is priced according to the needs and signs
of the global economy, and this is indicative of the fact that oil is among the strategic
goods of the global economy as well as the global commodity market. The policy of
the oil economy has effects in various economic spheres (Mosalla Nezhad 2016:195).
The core of economic policymaking for oil should be analyzed on the basis of
global economic strategies that are conducted on a US-led basis. Since the United
States is a balancing force for global economic institutions, it has the ability to coordinate the issues of oil, economics, security, and strategic power of regional countries. In other words, countries that play a role in controlling the global economy
make every move based on strategic imperatives. Such a process implies that there
is always a direct and mutual relationship between economics, security, and strategic action patterns of countries (Mosalla Nezhad 2016:175).
Any international politics and political economy related to oil has its own effects
in the regional and international environment. In this process, the “global market
pull” in relation to oil and its impact on global security are among the components
that have influenced US strategic policy in dealing with Iran. The policy of Iran’s
economic sanctions in the field of energy should be considered as one of the factors
associated with global economics and security in the strategic approach of the
United States and other actors in the economy (Mosalla Nezhad 2016:175).
An increase in oil prices will change the trade balance between countries and
exchange rates. Countries that supply all their needs for oil from the place of import
tend to have a kind of coherence in their balance of payments, which exacerbates
4 George W. Bush Energy Diplomacy