Zeihan’s primary models are influenced by his geographic-based perspective on how our world works. As he puts it in the introduction, “Geopolitics is the study of how place [rivers, mountains, etc.] impacts … everything.” Early chapters discuss what he calls the balance of transport, which is roughly easy transport within a country (for economic development and forming political and cultural ties) and hard transport from outside of it (for defense). These transport issues are inherently tied to geography. What’s the best way to move things? Water-based transportation is extremely cheap. Think 17 cents per container mile vs. $2.40 for semis on an American highway, with a more extreme disparity for other countries, trade between continents, and populations in hard-to-access places. On the defensive side of that equation, geographic features on borders such as deserts, mountains, and oceans get Zeihan’s attention.
He uses ancient Egypt to illustrate a great balance of transport. The reliable water and rich soil of the Nile’s floodplains created near-perfect farming conditions, and the Nile itself allowed easy travel and trade throughout the valley. Combined with impenetrable desert borders, this geography “was one of the few places in the world where there was enough water to survive, and enough security to thrive.” Because of that, the “geography nearly guaranteed that the Egyptians would be on the road to civilization.” He gives us a quick run through Egyptian history to tell a story of that road, beginning with the settlement of the area about eight thousand years ago, consolidation into a single kingdom more than five thousand years ago, and then stagnation as the increasingly centralized government devoted more labor to monument building rather than technological progress, eventually being conquered by seafaring people seeking to rule the Mediterranean.
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To escape our pre-civilization/hunter-gatherer days – Zeihan refers to this as “when life sucked” – the mechanism that he identifies is basically a typical economist’s story. Sedentary agriculture as invented by the Egyptians and other ancient cultures became a transformative technology, letting populations grow and devote labor and resources to non-farming purposes. From this, we got specialization, increased production, trade (particularly where there was easy transportation – population centers were always near water) and capital formation in a self-reinforcing cycle. For thousands of years after this transformative technology was introduced, incremental improvements in agriculture and other areas followed, but “a robust, secure, and sustainable food supply” was the base of any civilization.
This cycle accelerated when we harnessed a couple of new packages of technologies over the last six-hundred years. He lumps the source of much progress together with the terms deepwater navigation and industrialization. The first is everything needed to sail the seas, from shipbuilding capabilities to compasses to weapons. Industrialization is exactly what you’re thinking of. He simplifies it as the combination of labor and capital with higher-output energy sources like oil and coal to put productivity on steroids.
Zeihan gives us a story of the Ottoman Empire entering a prolonged decline as deepwater navigation technologies took off in the fourteenth century. These technologies enabled the European powers (first Portugal and Spain, and then England) to capture increasing shares of trade with Asia, dropping prices in Europe and depriving the Ottomans of much of the income to which they had grown accustomed. Most significantly, they turned “the ocean from a death sentence to a sort of giant river.” Trade became global, but it was still mostly among people with nearby water-based transportation.
Industrialization technologies changed that. Steam and coal brought power to mining and transportation, and along with interchangeable parts, improved manufacturing. Chemical breakthroughs led to fertilizers (improving crop yields), and with more transportation options, more land was brought into cultivation. Improvements in cements in the 1820s enabled larger buildings and infrastructure. These technologies continually improved the productivity cycle that began with agriculture.
Zeihan concludes a chapter on America with the “nuts and bolts” of how countries rule the world. “The balance of transport determines wealth and security. Deepwater navigation determines reach. Industrialization determines economic muscle tone. And the three combined shape everything from exposure to durability to economic cycles to outlook.” As we’ll see shortly, he really likes America’s position on all of these factors. But first, we need to understand the other analytical tool that informs Zeihan’s model.
