Economic Integration as an Instrument of Geopolitical Stability in the Black Sea Region: The Case of Special Economic Zones and the "Middle Corridor"

Abstract

The Black Sea region remains one of the most critical geopolitical arenas in the contemporary international system,
where Russia’s full-scale invasion of Ukraine, energy security dilemmas, and competing connectivity projects shape the prospects
for strategic stability. While traditional security approaches emphasize military and hard-power dimensions, this paper examines
the potential of economic integration as a tool for fostering geopolitical stability. Focusing on the interplay between political
economy, Special Economic Zones (SEZs), and the Middle Corridor (Trans-Caspian International Transport Route), it analyzes
how economic instruments can mitigate tensions and enhance resilience in the region. Drawing on Georgia’s experience, the
study highlights the role of free industrial zones in Poti, Kutaisi, and Tbilisi as platforms for attracting foreign direct investment
(FDI), stimulating export-oriented growth, and integrating into global value chains. These SEZs, when synergized with the
logistical infrastructure of the Middle Corridor—particularly the ports of Poti and Batumi—offer significant potential for trade
diversification, economic interdependence, and “soft” stabilization. The corridor’s growing cargo volumes since 2022
demonstrate its strategic value as an alternative to northern routes, yet persistent challenges such as infrastructure bottlenecks,
and risks of asymmetric dependencies remain.
This research employs a political economy framework, combining qualitative case study analysis with statistical data
from international organizations. It argues that while economic integration through SEZs and the Middle Corridor can
contribute to strategic stability by creating shared interests and reducing conflict incentives, such outcomes are not automatic.
They require complementary institutional reforms, transparent governance, and coordinated international corroboration to
address risks of enclave development and external influence. The paper concludes with policy recommendations, emphasizing
the modernization of SEZs toward sustainable and inclusive models, accelerated development of the Middle Corridor (including
the Anaklia Deep Sea Port), and strengthened multilateral cooperation. Ultimately, economic integration should be viewed not
as a panacea, but as a vital complementary pillar to conventional security measures in the pursuit of long-term stability in the
Black Sea region.