Dr. Md. Shairul Mashreque :
The Prime Minister concerns much about economic diplomacy asking the foreign ministry to play a role in increasing foreign investment in Bangladesh at a very recent conference in London. The conference was attended by15 Bangladeshi Ambassadors and High Commissioners in Europe. Economic diplomacy should get more priority along with political diplomacy so that our ongoing development activities continue,”
Economic diplomacy presupposes the decision-making, policy-making and advocating of the sending state-business interests. Economic diplomacy requires application of technical expertise that analyse the effects of a country’s (receiving state) economic situation on its political climate and on the sending state’s economic interests. The sending state and receiving state, foreign business leaders, as well as government decision-makers, work together on some of the most cutting-edge issues in foreign policy, such as technology, the environment, and HIV/AIDS, as well as in the more traditional areas of trade and finance. Versatility, flexibility, sound judgment and strong business skills are all needed in the execution of economic diplomacy.’
Economic diplomacy incorporates international and domestic economic issues including’ the “rules for economic relations between states” that has been pursued since World War II. And owing to the increased globalisation and the resultant interdependence among state during the 1990s obliges “economic diplomacy to go deep into domestic decision making” as well. This covers “policies relating to production, movement or exchange of goods, services, instruments (including official development assistance), money information and their regulation” (b. There are ‘Players: state and non-state actors – All government agencies that are involved in international economic mandates are players in economic diplomacy (though they often do not describe them as such). Further, non-state actors such as non-government organisations (NGOs) engaged in international economic activities are also players in economic diplomacy (Bayne and Woolcock (eds) 2007). Businesses and investors are also actors in the processes of economic diplomacy, especially when contacts between them and governments are initiated or facilitated by diplomats.’ Berridge and James (2003) state that “economic diplomacy is concerned with economic policy questions, including the work of delegations to conferences sponsored by bodies such as the WTO” and include “diplomacy which employs economic resources, either as rewards or sanctions, in pursuit of a particular foreign policy objective” also as a part of the definition. Rana (2007) defines economic diplomacy as “the process through which countries tackle the outside world, to maximize their national gain in all the fields of activity including trade, investment and other forms of economically beneficial exchanges, where they enjoy comparative advantage.; it has bilateral, regional and multilateral dimensions, each of which is important”.
The broad scope of this latter definition is especially applicable to the practice of economic diplomacy as it is unfolding in emerging economies. This new approach involves an analysis of a nation’s economy, taking into account not only its officially reported figures but also its gray, or unreported, economic factors. An example might be the new Republic of Kosovo; in that emerging nation, widely regarded as a candidate for “poorest nation in Europe”, an enormous amount of economic activity appears to be unreported or undocumented by a weak and generally ineffectual central government. When all economic factors are considered, the so-called “poorest” nations are demonstrably healthier and thus more attractive to investment than the raw statistics might otherwise show.
Emerging economies have learned that they are not flowers and businesses are not like bees; in other words, a nation that wants to attract business must be proactive rather than passive. They must seek out opportunities and learn to bring them home. Tax and other concessions will likely be necessary and in the short term costly. However, creative support of new business opportunities can generate major chances for success. This sort of activity is also a part of economic diplomacy.
The sort of economic diplomacy that utilises a nation’s already-deployed corps of diplomats to promote the nation and seek business opportunities is not traditional, but its effectiveness is apparent. Emerging nations seeking to conserve scarce personnel and financial resources immediately benefit from multitasking.
Our PM Sheikh Hasina has to bear the heavy weight challenges for infrastructural development. The main areas are Padma Bridge, metro rail, safe drinking water, modernisation of railway and highway development. In fact she seems to throw down the gauntlet. So she stresses on economic diplomacy as way forward to attract foreign investment.
Bangladesh under Hasina has become an emerging tiger. It has targeted more than seven percent economic growth. This is certainly an emerging economics. But the main handicap is political crisis and fuzzy political governance without democratic values. We may go for political diplomacy. But important thing to do is institutionalising democracy through free and fair election. Stick to professionalism avoiding partisanisation.
(Dr. Md. Shairul Mashreque, Chittagong University)
