ALTERNATIVE FINANCING FORMS
FOR ENTREPRENEURS AND INVESTORS
3 questions to smart minds
Photo: Dr. Timo Blenk

The new dimension of geopolitical influence / Political due diligence

For this 3 questions to Dr. Timo Blenk

Agora Stra­tegy Group AG
Photo: Dr. Timo Blenk
16. Octo­ber 2024

Geopo­li­ti­cal deve­lo­p­ments have many effects, inclu­ding on compa­nies and invest­ments. Poli­ti­cal due dili­gence helps to anti­ci­pate, under­stand and miti­gate the impact of poli­tics and regu­la­tion on compa­nies, inclu­ding port­fo­lio compa­nies. You can read more on this topic in the upco­ming issue of FYB 2025, which will be published at the end of November! 


For this 3 ques­ti­ons to Dr. Timo Blenk, Part­ner and CEO of Agora Stra­tegy Group AG

1. What influence do the elec­tions have on rela­ti­ons between the countries?

In total, natio­nal elec­tions were held in 64 count­ries around the world in 2024 — from Russia to Iran, India, South Africa, Taiwan and France, to name but a few. Para­do­xi­cally, these chan­ges tend to contri­bute to growing uncer­tainty and promote tensi­ons rather than coope­ra­tion. In Taiwan, the elec­tion victory of Lai Ching-te of the Demo­cra­tic Progres­sive Party, whom China regards as a sepa­ra­tist, is exacer­ba­ting the stra­te­gic alignment of the two count­ries and rela­ti­ons between the US and China. In France, the rise of Marine Le Pen’s right-wing natio­na­list party Rassem­blem­ent Natio­nal and the left-wing alli­ance Nouveau Front Popu­laire cast doubt on Macron’s posi­tion. Right-wing parties such as the AfD, the French RN and the FPÖ in Austria also bene­fi­ted from the elec­tions to the Euro­pean Parlia­ment. Even if the demo­cra­tic center of the Parlia­ment largely holds its ground and the right-wing pres­sure does not neces­s­a­rily have to be inter­pre­ted as an indi­ca­tor of the future direc­tion of the EU, the EU and its citi­zens should prepare them­sel­ves for drastic changes. 

2. We read in the media about the poli­ti­ciza­tion of busi­ness and tech­no­logy. What exactly does this mean? 

In this respect, one speaks of the “Weapo­niza­tion of Ever­y­thing”. This term descri­bes the poli­ti­ciza­tion of busi­ness and tech­no­logy as tools for geopo­li­ti­cal or stra­te­gic purpo­ses. The suppo­sedly “apoli­ti­cal entre­pre­neur” no longer exists. 

The area of hybrid warfare with anti-infor­ma­tion campaigns and cyber­at­tacks on compa­nies, parti­cu­larly in the area of criti­cal infra­struc­ture, and the debate about tariffs and non-tariff trade barriers also remain decisive for compa­nies and inves­tors. Whether desi­red or not, entre­pre­neurs cannot escape this trend and must become more “geopo­li­ti­cal” in their mindset. 

3. How can entre­pre­neurs arm them­sel­ves against this?

Compa­nies and inves­tors are not power­less in the face of this deve­lo­p­ment. There is considera­ble room for maneu­ver. Even with compa­ra­tively small invest­ments to streng­then a company’s resi­li­ence and ability to react quickly, compa­nies can gain market share and over­take compe­ti­tors. Conver­sely, for inves­tors this means that even more thoroughpoli­ti­cal due dili­gencepays off.

 

About Dr. Timo Blenk

Dr. Timo Blenk is a proven expert in geopo­li­tics and secu­rity policy. Timo Blenk has been CEO and Part­ner of the Agora Stra­tegy Group since 2018. Agora Stra­tegy has deve­lo­ped into the leading German manage­ment consul­tancy for geopo­li­tics — with around 300 experts world­wide. For Agora Stra­tegy, it is crucial to trans­late geopo­li­ti­cal chal­lenges measur­a­bly, concre­tely and with a clear focus into the stra­te­gic actions of compa­nies and to imple­ment them toge­ther with the client. — https://www.agora-strategy.com

Subscribe newsletter

Here you can read about the latest transactions, IPOs, private equity deals and venture capital investments, who has raised a new fund, how Buy & Build activities are going.

Get in touch

Contact us!
fyb [at] fyb.de