Economic vulnerability is a security challenge for small states

What does a missile exchange between Iran and Israel have to do with the price of a taxi ride in Gaborone? At first glance, very little. Botswana has no stake in the conflict and is not a major player in Middle Eastern politics. Yet when tensions rise between Tehran and Tel Aviv, many Batswana are eventually hit by price increases in imported products, transport fares, and fuel. So, an important question arises: Why do countries not directly involved in geopolitical conflicts bear part of the economic costs of those conflicts?

The answer offers insight into the broader picture of the politics of the present-day world. In an increasingly interconnected world, the consequences of conflict no longer stop at national borders. They can be found in energy markets, shipping lanes, financial institutions, and global supply chains. Small and import-reliant countries such as Botswana are particularly sensitive to geopolitical unrest elsewhere, as it can easily become a domestic economic issue. The recent confrontation between Iran and Israel is but the latest example of the new paradigm: small countries’ economic vulnerability is a key part of their national security.