Duvall & Associates, Inc.
BUSINESS ADVISOR NEWSLETTER
 

 Battleground of the future will be in boardrooms

- by Alan Duvall 

Published in Dayton Daily News  February 25, 2007 

“You can keep your Marxist ways, for it’s only just a phrase... money makes the world go round.”  Monty Python 

For decades after World War II, Europe used the unified armies of NATO as shelter from the perceived military threat from its eastern neighbor, Russia.  But in the end, it was economic forces, not tanks, which brought down the Berlin Wall and freed much of Eastern Europe from the ruling grip of the U.S.S.R.  

Ironically, it is now Russia’s economic power in the guise of oil which may pose the greatest threat to Europe.  Purportedly, Europe receives 30% of its oil imports from Russia, a vulnerability exposed when the oil flow was halted due to Russia’s ongoing pipeline dispute with Belarus.  If Russia unilaterally cuts off Europe’s oil supply, Europe’s economy may be strangled as well. 

The world’s countries are quickly discovering the battlefields of tomorrow may be fought more by corporate boardrooms than physical militias. 

The U.S. has constantly used economic sanctions to bring into line rogue countries such as Libya, Iran and North Korea into line.  Recently, such financial attacks may even have generated temporary nuclear conciliations from North Korea (although time will certainly measure the ultimate success).  America has also resorted to “freezing” financial assets to hinder the ability of terrorist groups to fund destructive activities. 

Some nations have economically counter-attacked. Venezuela’s President Chavez has constantly used oil revenues to fund his political agenda south of the border.  In a flanking maneuver, he has just ordered the public seizure of privately owned telecommunications, oil and power companies.  

China has long been known for its lax enforcement of international patent and copyright property laws.  Now add Thailand and Brazil, which threaten to undermine American drug patents by producing generic substitutes. 

The globalization and interdependence of the world’s disparate economies leave many nations vulnerable to the economic forces of neighbors and terrorists.  For example, al-Qaida recently urged followers to destroy global facilities providing oil to the U.S. 

“There is nothing quite as beautiful as cash ... With money you can make a splash.”  Monty Python      

Alan Duvall is a certified public accountant in Dayton.  Contact him at Alan@Duvallcpa.com.