How does multipolarity affect the space economy?
Written By Samay Bhurat
International Business / Geopolitical Economy Essay
Theme: Space Economy, Multipolarity, Commercialisation, Governance, Strategic Competition
Tools / Frameworks: Realism, Liberalism, Critical Political Economy, Governance Analysis, Strategic Risk Analysis, Conceptual Model Development
Context:
This project examined how an increasingly multipolar world could influence the development of the space economy.
At first, the topic felt far outside my usual field of business and management. I had not previously thought of space as a serious avenue for business research. However, the project showed me that the space economy is not only about rockets, satellites, or exploration. It is also about markets, commercialisation, defence systems, private-sector growth, public-private partnerships, governance, and geopolitical competition.
The essay explored whether the space economy is becoming more cooperative and interdependent, or whether multipolar rivalry is pushing it toward fragmentation.
The project received a mark of 85/100.
Figure 1: Multipolarity and commercialisation shape the space economy through geopolitical competition and defence/security considerations, with governance acting as a moderator.
Problem:
The main problem was that the space economy can be understood through two competing narratives.
One view suggests that commercialisation, private-sector innovation, international treaties, and shared exploration goals are making space more cooperative. Another view suggests that space remains deeply connected to national power, surveillance, defence, strategic autonomy, and geopolitical rivalry.
The project therefore asked:
To what degree could an increasingly multipolar world influence the development of the space economy?
A further challenge was that the space economy is shaped by many forces at once: states, firms, military needs, governance gaps, international law, technology, and investment. I needed to build a framework that connected these forces rather than treating them separately.
My Role:
This was an individual essay project.
My role was to research an unfamiliar sector, identify suitable theories, build a clear argument, and create a conceptual model to explain the development of the space economy.
I used three theoretical lenses. Realism helped explain the role of power, security, and strategic competition. Liberalism helped explain governance, treaties, and cooperation. Critical political economy helped explain how commercialisation remains connected to state power.
My main argument was that realism provides the strongest overall explanation. Commercialisation and governance matter, but they operate within a wider structure of strategic rivalry.
Method:
The project used a theory-led literature review and conceptual analysis approach.
I first examined the historical background of space as a strategic domain, especially during the Cold War, when satellites, surveillance, and space systems became linked to military advantage.
I then analysed the shift from state-led space activity to a more commercialised model involving private firms, public-private partnerships, and lower launch costs. However, the research showed that commercialisation did not remove state power. Instead, it made the space economy more complex.
The analysis focused on four areas:
Multipolar competition as a key driver of the modern space economy.
Governance limits and the weakness of existing international space rules.
Commercialisation as a force that can strengthen strategic competition.
Interdependence as a constraint on complete fragmentation, but not a replacement for rivalry.
The conceptual model connected these ideas by showing multipolarity and commercialisation as drivers, geopolitical competition and defence/security considerations as mechanisms, governance as a moderator, and fragmentation versus interdependence as the final outcome.
Output:
The final output was a critical essay on cooperation, competition, and the future structure of the space economy.
The essay argued that the space economy is not moving toward simple global cooperation. Instead, it is being shaped by the interaction of commercial expansion and multipolar strategic rivalry.
Private firms have become more important, but they do not operate separately from the state. Their satellite networks, launch systems, data capabilities, and infrastructure often become tied to national security priorities.
The essay also found that governance exists, but remains limited. Treaties and international agreements can support cooperation, but they often lack strong enforcement and are shaped by dominant state interests.
The final conclusion was that the space economy is likely to become more fragmented, but not completely disconnected. Cooperation will continue where interests align, but rivalry will remain the deeper structural force.
Skills Applied:
International political economy analysis
Geopolitical risk analysis
Strategic industry analysis
Market research
Conceptual model development
Systems thinking
Key Insight:
The biggest insight from this project was that an unfamiliar sector can still be analysed through business and strategy.
Before this essay, I did not see the space economy as a business-management topic. Through the research, I realised that it involves many familiar business issues: market access, private investment, regulation, competition, public-private partnerships, infrastructure, risk, and strategic positioning.
The second insight was that commercialisation does not automatically reduce geopolitical competition. Private firms may reduce costs and expand participation, but their technologies can still become part of national strategy. A satellite system can be both a business asset and a security asset.
This made the space economy a useful example of how business and geopolitics increasingly overlap.
Reflection:
This project pushed me outside my comfort zone.
Unlike my other projects, this was not based on a familiar company, customer problem, or business setting. I had to first understand the basic structure of the space economy before I could analyse it properly.
The hardest part was avoiding a purely descriptive essay. There was a lot of information about rockets, satellites, treaties, private companies, and national space programmes. The challenge was turning that information into a clear argument. The conceptual model helped because it forced me to identify the drivers, mechanisms, moderator, and outcome.
The project also improved my confidence in approaching unfamiliar sectors. It showed me that I can enter a new topic, apply theory, and build a structured argument. This is useful for strategy, consulting, international business, and policy-related work.
Professional Value:
This project demonstrates my ability to research unfamiliar sectors, apply international business and political-economy theory, analyse geopolitical risk, and explain how commercial markets are shaped by power, governance, and strategic competition.
