https://www.wsj.com/articles/what-real-economic-warfare-looked-like-russia-ukraine-world-trade-great-britain-11647637729?mod=opinion_lead_pos7
In the wake of Russia’s invasion of Ukraine, Moscow has accused the West of waging economic warfare. Many in the West have agreed, celebrating the supposedly unprecedented nature of Western sanctions as evidence that the West isn’t dead yet. But these claims on both sides are overwrought. There are precedents: The U.S. government froze the assets of Japan’s central bank in July 1941. And we could go back further still, to a time when the world knew better than it does today what this kind of warfare could achieve.
The only previous period when the world economy was as globalized as it is now was in the early 20th century, before World War I. Then as now, advanced industrial nations depended on access to the global trading system for sociopolitical stability. Globalization was characterized by high volumes of international trade, driven by cheap oceanic transportation and facilitated by cable and wireless communications and sophisticated financial instruments.
These made possible long-distance supply chains and just-in-time ordering (then known as “hand to mouth”). The system lowered costs and reduced consumer prices, but it was fragile. If an economic shock occurred, its effects were bound to propagate swiftly throughout the entire system. All of this should sound familiar.
Britain, the hegemon of the day, had a uniquely powerful capacity to turn the propagation of shock to its advantage. British companies dominated the infrastructure of the global trading system: international financial services, shipping and telecommunications. Taking what would now be called a “whole of government” approach, the British government realized the strategic opportunity latent in this dominance well before 1914 and planned accordingly.