Economic Coercion Theory

Economic Coercion Theory suggests that powerful countries or entities can influence or control other nations by manipulating economic resources—like trade, aid, or investments. This leverage pressures weaker countries into conforming to the interests or policies of the stronger party, often limiting their independence. Essentially, economic dependence becomes a tool of coercion, where financial influence is used to sway political decisions, behaviors, or alliances without direct military force. The theory highlights how economic relationships can serve as instruments of control, shaping international dynamics through economic pressure rather than overt conflict.