by Áron Pap, 2014
Everyone knows what economy is, however most of the people do not know the exact meaning of it. It is extremely hard to understand the functioning of the economy because it has several different fields. It is a very complex system, consequently only a few can see through the economy. Generally citizens do not spend time with trying to make sense of the economic world that surrounds them so they do not realize how enormous power the economy has. Lots of people think that it is only a "toy" in the politicians' hands. However that is not true. There is a very strong connection between economy and politics. They influence each other, moreover they cannot work properly without the help of the other. It is a debated question that is it POLITICS and economy or ECONOMY and politics? Which is the superior? Which has the leading role?
This question cannot be answered. For example, in the European Union a country can only have an important say in decision-making if it has a strong national economy. So in this case the economy is the decisive. On the other hand, there is no strong economy without a well-set political background. Accordingly the politics is also crucial factor.
Nevertheless the relationship between economy and politics can be the source of numerous conflicts, especially when the economy is used for political purposes. In this way the economy becomes a powerful tool.
It becomes a weapon.
It is dangerous and double-edged weapon. Obviously it depends on who uses it. In wrong hands it can turn citizen's life into a nightmare, whereas in good hands the economical changes are able to develop an area. It affects every field of life and as a consequence, its influence is a determinant factor. This shows the huge power of the economy. It should not be forgotten that with big power comes enormous responsibility. So politicians always have to retrace whether economical punishment is needed against other countries in case of international conflicts, because the citizens are the endurer of these penalties in most cases. That is not fair, because they do not have any (direct) say in their governments' decisions, however their life will be damaged anyway. Nevertheless there are many examples both for bad and good use of economy as a tool. Numerous international conflicts have been solved in this way. Nowadays the most known situation is going against Russia. It is the crimean or ukrainian conflict. Firstly the USA started sanctions and now the EU joined. However, they have not made economical sanctions yet, they only froze the bank accounts of russian politicians and banned them from entering the EU or the USA. European and american politicians both say that if Russia does not stop deepening the crimean crisis, there will be economical sanctions. It is for sure, that these economical penalties could deflect Russia, but it is dangerous, because the EU has too much dependence on Russia due to oil and gas import. It is a very complex conflict, however it is feasible, that the power of EU and USA will solve this problem as well.
To sum up, economy has enormous power. Its impact can change the world. It can start a war or solve international conflicts, it depends on people. The main goal of the economy is to make the life better on Earth, so the economy must be a tool to make peace.
Written by Lilla Bendicskó, Áron Csóka and Áron Pap