economic diplomacy
DESCRIPTION
Bahan kuliah EPITRANSCRIPT
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ECONOMIC DIPLOMACY
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Why Economic Diplomacy?
Economic diplomacy has shaped the construction of Indonesias foreign policy, particularly since the economic and financial turmoil in 1997 and 2007 global crisis
Direction of President SBY: we must step up our economic diplomacy instructed all Foreign Service Officers to bolster efforts in pursuing Indonesias economic interests
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What are the challenges ?
Economic diplomacy in a narrow sense ? It should be in the broadest sense
The need to develop a clear reference of what exactly economic diplomacy is
How to manage economic diplomacy effectively in an integrated, coherence manner?
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THE CONCEPT OF ECONOMIC DIPLOMACY
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in some respects, economic diplomacy is like sex: easier to describe if you have practised it yourself..
(Nicholas Bayne & Stephen Woolcock, The New Economic Diplomacy)
Its not easy to define what economic diplomacy is
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Diplomacy is the conduct of relations between states and other entities with standing in world politics by official agents and by peaceful means .. (Bull, H., 1995)
Could be first look at the term of diplomacy
Diplomacy is concerned with the management of relations between states and between states and other actors (Barston, R.P., 2006)
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Some features of economic diplomacy
is concerned with international economic issues and of domestic interests
Mainly concerned with what governments do, in the broadest definition
It uses variety of instruments it embraces the whole spectrum of measures
It is sensitive to market developments
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primary goal: political
sanctions w
inducements w w financial diplomacy w
tool: political tool: economic
w trade diplomacy
w commercial diplomacy
primary goal: economic
Source: Okano-Heijmans, The Hague Journal of Diplomacy, 6 (2011)
power play end **stability**
business end **prosperity**
Okano-Heijmans - Strands of Economic Diplomacy
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Items of Five Strands of Economic Diplomacy
Commercial diplomacy
Trade diplomacy Financial diplomacy
Inducements Sanctions
Trade promotion
Investment
promotion
Business advocacy
Tourism
promotion
Promotion of socially
responsible investing
Bilateral: FTAs,
EPAs Multilateral: WTO
(anti dumping)
Tariffs
Export or import licenses
Import or export
quotas
Trade and investment barriers
Currency swap
agreements
Exchange-rate policy
Buying/selling of
government bonds
Freezing assets
Withholding dues or payments
Bilateral aids:
grants, loans, debt relief
Humanitarian aid
Granting access
to technology
Granting membership of
international organization
Embargo
(exports; states)
Boycott (imports;
individuals)
Aid suspension
Capital control
Blacklist
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ECONOMIC DIPLOMACY
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Economic Diplomacy is the use of political means as leverage in international negotiations with the aim of enhancing national economic prosperity, and the use of economic leverage to increase the political stability of the nation
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Notes :
Economic diplomacy should be understood in the broadest sense there are five strands of economic diplomacy; it should functions at multiple levels: bilateral, regional, multilateral
It is of importance that economic diplomacy should be carried out in a coherent, coordinated manner
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It is needed to formulate a general direction on economic diplomacy
It is crucial to develop synergy and coherence in conducting economic diplomacy