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Foreign Affairs
The Geopolitics of the Afterlife: How Spiritual Economics Is Reshaping Global Power
By Dr. Henry Kensington
Senior Fellow, Council on Foreign Relations
Former Undersecretary for International Religious Affairs
Abstract
The global economy of death and the afterlife, long dismissed as mere superstition, has emerged as a critical arena of geopolitical competition. From China's crackdown on paper money burning to the Vatican's financial diplomacy, states are increasingly recognizing that control over spiritual economies translates into tangible geopolitical influence. This article examines how the commodification of eternity is reshaping international relations and argues that Washington must develop a coherent strategy for engaging with this emerging domain of great-power competition.
Introduction: The Unseen Battlefield
In the shadow of great-power competition over trade routes, military bases, and technological supremacy, a more subtle but equally consequential struggle is unfolding: the battle for control over humanity's relationship with mortality. What appears to be cultural policy in Beijing, religious diplomacy in Rome, or financial regulation in Riyadh is, in fact, a sophisticated form of geopolitical maneuvering in the emerging domain of afterlife economics.
For too long, Western policymakers have treated spiritual economies as marginal to core national security interests. This oversight represents a strategic vulnerability. As this article will demonstrate, the management of death and the afterlife—through everything from funeral industries to digital memorial services—has become a critical tool for projecting soft power, managing social stability, and even conducting economic warfare. The United States must recognize that in the twenty-first century, great-power competition extends beyond the material world into the spiritual realm.
The Three Spheres of Afterlife Geopolitics
1. The Sino-Sphere: State Control and Economic Management
China's recent campaign against "feudal superstitions," including restrictions on paper money burning and elaborate funeral practices, represents more than cultural purification. It is a calculated effort to assert state control over a parallel economy that operates outside official oversight. According to estimates from Peking University's Center for Underground Economics, Chinese households divert approximately $15 billion annually into afterlife-related transactions—funds that bypass the formal banking system and evade taxation.
This crackdown follows a pattern seen throughout Chinese history: the centralization of spiritual authority as a means of consolidating political power. What distinguishes the current approach is its sophistication. Rather than simply banning traditional practices, Beijing is offering state-sanctioned alternatives: digital memorial platforms, AI-powered ancestor worship apps, and blockchain-based spiritual services that bring these transactions into the regulated economy.
The strategic implications are profound. By controlling the means of spiritual exchange, China gains leverage over its diaspora communities, influences cultural norms across Southeast Asia, and creates new channels for economic penetration. When a Malaysian Chinese businessperson uses a Beijing-approved digital platform to honor ancestors, they are not merely practicing tradition; they are participating in China's expanding sphere of influence.
2. The Vatican Sphere: Financial Diplomacy and Moral Authority
The Holy See's unique position as both a religious authority and a sovereign state has long provided it with unconventional diplomatic tools. What has changed is the scale and sophistication of its financial operations. The Vatican Bank, once notorious for opacity, has evolved into a sophisticated institution managing assets estimated at $5-7 billion, with extensive investments in global markets.
More significantly, the Vatican has leveraged its moral authority to create what might be called "spiritual derivatives"—financial instruments whose value derives from religious promises. The medieval indulgence system, often dismissed as historical curiosity, contained the seeds of modern financial innovation: futures contracts on salvation, options on spiritual outcomes, and complex risk-transfer mechanisms.
Today, this expertise manifests in the Church's management of global humanitarian networks, its influence over ethical investment standards, and its role in mediating conflicts where religious dimensions complicate traditional diplomacy. When the Vatican engages in debt relief advocacy or promotes ethical banking principles, it is exercising a form of spiritual soft power that secular states struggle to match.
3. The Islamic Sphere: Religious Tourism and Financial Architecture
Saudi Arabia's management of the Hajj pilgrimage represents perhaps the most direct form of afterlife geopolitics. The annual gathering of millions of Muslims in Mecca generates an estimated $12 billion in direct revenue, with additional billions flowing through related industries. More importantly, it solidifies Saudi leadership of the Islamic world and provides unparalleled opportunities for diplomatic engagement.
Beyond tourism, Islamic financial principles have created parallel economic structures that challenge Western-dominated financial systems. The prohibition of interest (riba) and emphasis on asset-backed financing have spawned a $2.5 trillion industry that operates according to different rules than conventional finance. This alternative financial architecture provides Muslim-majority countries with greater autonomy in navigating global economic pressures and sanctions regimes.
The New Tools of Spiritual Statecraft
Digital Memorialization and Data Sovereignty
The emergence of digital afterlife services represents a new frontier in the geopolitics of mortality. Companies offering virtual cemeteries, AI-powered grief counseling, and blockchain memorial tokens are accumulating vast datasets on human psychology, family networks, and cultural practices. This information has obvious intelligence value, but its strategic significance runs deeper.
Consider the case of Eternal Memory Inc., a Chinese company that has digitized ancestral worship rituals used by overseas Chinese communities. The data collected—family relationships, migration patterns, economic status—provides Beijing with unprecedented insight into diaspora networks. More troubling, the platform's terms of service grant the company rights to user data that could be exploited for political purposes.
Western technology companies have been slow to recognize the strategic importance of this domain. While Silicon Valley focuses on commercial applications, Chinese firms, often with state backing, are building infrastructure that could shape spiritual practices for generations. The battle for control over digital memorialization is, in essence, a battle for cultural influence in the digital age.
Spiritual Sanctions and Economic Warfare
The United States has weaponized financial connectivity through sanctions that exclude targeted entities from the dollar-based global economy. A similar dynamic is emerging in spiritual economies, where control over key institutions can be leveraged for geopolitical ends.
Russia's invasion of Ukraine provides a case study. The Moscow Patriarchate's support for the war created divisions within global Orthodoxy, with some churches breaking communion with Moscow. This religious schism has economic consequences: reduced pilgrimage revenues, disrupted charitable networks, and diminished influence over Orthodox communities worldwide.
More subtly, spiritual sanctions can target specific individuals or groups. When a religious authority declares someone spiritually bankrupt or excludes them from ritual participation, the effects can be devastating within tight-knit communities. While such measures lack the coercive power of economic sanctions, they can be highly effective in contexts where religious identity trumps national allegiance.
Policy Recommendations for Washington
1. Establish an Interagency Task Force on Spiritual Economics
The complexity of afterlife geopolitics demands coordinated action across multiple government departments. The State Department, Treasury, Commerce, and intelligence community should establish a permanent working group to monitor developments in this domain and develop integrated strategies. This task force should include experts in religious studies, anthropology, and digital technology alongside traditional policy analysts.
2. Develop Principles for Ethical Engagement
As the United States engages with spiritual economies, it must establish clear ethical guidelines. These should include respect for religious freedom, protection of personal data, and transparency in financial dealings. By setting high standards, Washington can distinguish its approach from more predatory models and build trust with religious communities worldwide.
3. Support Alternative Digital Infrastructure
To counter Chinese and Russian efforts to dominate digital memorialization, the United States should support the development of open-source, privacy-protecting platforms for spiritual practices. This could include funding for academic research, technical standards development, and startup incubation in the ethical technology space.
4. Integrate Spiritual Economics into Diplomatic Training
Foreign Service officers and other diplomats need better tools for understanding and engaging with spiritual economies. Training programs should include modules on religious finance, digital memorialization, and the geopolitical dimensions of death practices. Cultural attachés, in particular, should be equipped to recognize when apparently traditional practices serve contemporary strategic purposes.
5. Leverage American Soft Power in Spiritual Innovation
The United States possesses unique advantages in this domain, including world-leading universities, vibrant religious communities, and technological innovation capacity. By supporting research at the intersection of technology and spirituality, Washington can help shape emerging norms rather than reacting to initiatives from competitors.
Conclusion: The High Stakes of Afterlife Geopolitics
The management of death and the afterlife may seem distant from traditional concerns of statecraft, but this perception is dangerously outdated. As great-power competition intensifies, control over spiritual economies provides leverage in cultural influence operations, economic penetration, and even conventional diplomacy.
China understands this reality, hence its sophisticated approach to managing traditional practices while promoting state-approved alternatives. The Vatican has centuries of experience in spiritual statecraft. Islamic financial institutions have created parallel economic structures that enhance autonomy from Western pressure.
The United States, by contrast, risks being left behind. Its technological dominance in other domains has not translated into leadership in spiritual innovation. Its commitment to religious freedom has not produced a coherent strategy for engaging with the economic dimensions of faith.
This must change. The battle for influence in the twenty-first century will be fought not only on battlefields and trading floors but in temples, cemeteries, and digital memorials. Washington must recognize that in the age of great-power competition, even eternity has become contested terrain.
Dr. Henry Kensington is a senior fellow at the Council on Foreign Relations and former undersecretary for international religious affairs at the U.S. Department of State. His forthcoming book, "The Eternal Balance of Power: Geopolitics and the Afterlife Economy," will be published by Princeton University Press.
This article appears in the January/February 2024 issue of Foreign Affairs.