lee %26 hocking economic diplomacy finaljuly282008 (1)

8/9/2019 Lee %26 Hocking Economic Diplomacy Finaljuly282008 (1)

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Word version of:

Lee, Donna and Brian Hocking (2010) ‘Economic Diplomac! in "o#er$ %&

Denemark (ed&) The International Studies Encyclopedia, 'ol& , pp 121*122+&

Wile Blackell&

E-./.- DL.%-

Introduction

n$erna$ional developmen$s are driven # and impac$ on a n3m#er of economic,

social, c3l$3ral and poli$ical fac$ors * none more so $4an $4ose rela$ing $o $4e processes

and s$r3c$3res of $4e orld econom& 5o 4a$ e6$en$, if an, does $4e s$3d of

diplomac 4ave $4e anal$ical $ools $o 4ig4lig4$ and e6plain ma7or glo#al economic

developmen$s s3c4 as regionali8a$ion, glo#ali8a$ion, and economic developmen$9

54is is a 3es$ion of$en ignored # sc4olars of diplomac #3$ one 4ic4 $4ose 4o

s$3d n$erna$ional "ela$ions (") are cons$an$l confron$ing& ains$ream s$3dies of

diplomac 4ave $radi$ionall approac4ed in$erna$ional rela$ions 3sing realis$ and

neorealis$ frameorks (see Lee ; H3dson 200


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s$3d of diplomac $oards a #e$$er 3nders$anding of $4e processes and prac$ices of

economic diplomac& =everal sc4olars 4ave impor$ed anal$ical $ools from o$4er

social science fields and in par$ic3lar n$erna$ional oli$ical Econom (E) and

B3siness =$3dies $o 4ig4lig4$ $4e impor$ance, and impac$, of economic ac$ors and

economic in$eres$s $o diploma$ic prac$ice and processes& n so doing $4e 4ave

developed ne concep$s of diplomac > ca$al$ic diplomac, ne$ork diplomac,

m3l$i*s$ake4older diplomac > 4ic4 provide ne $ools no$ onl $o recogni8e a

grea$er varie$ of s$a$e and non*s$a$e ac$ors in diploma$ic prac$ice #3$ also $o 4ig4lig4$

$4e varied and c4anging c4arac$er of diploma$ic processes& Diplomac, in $4is vie, is

no$ confined $o in$er*s$a$e rela$ions in an in$erna$ional ss$em, #3$ also involves $4e

social, economic, c3l$3ral and poli$ical rela$ions among ne$orks of poli$ical ac$ors in

formal and informal domes$ic and ss$emic environmen$s& n essence $4e s$3d of

diplomac 4as s4if$ed from a foc3s on $4e diplomac of economics in 4ic4 $4e ke

$4eme as $4e economic $ools of s$a$ecraf$ $o $4e s$3d of economic diplomac in

4ic4 $o $4emes emerge& 54e firs$ is $4a$ of diploma$ as agen$ in n$erna$ional

"ela$ions (") and E& 54e second $4eme is 4o $o fi$ non*s$a$e and non*foreign

minis$r officials in$o diploma$ic agenc&

%gains$ $4is #ackgro3nd, $4e essa 4ig4lig4$s 4o, # foc3sing on economic ma$$ers,

$4e s$3d of diplomac 4as evolved concep$3all in order $o accommoda$e ke

ss$emic level processes s3c4 as regionali8a$ion and glo#ali8a$ion, $4e c4anges $o $4e

organi8a$ion of diplomac i$4in governmen$s and $4e developmen$ of ne forms of

diploma$ic prac$ice alongside $4e emergence of ?ne! diploma$ic ac$ors&

Economics Matters

2


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@e developmen$s s3c4 as $4e crea$ion of $4e pos$ World War 5o Bre$$on Woods

ins$i$3$ions (mainl $4e World Bank AWB and $4e n$erna$ional one$ar C3nd

AC), $4e oil crises of $4e 1+0s, $4e decline of %merican 4egemon, developing

co3n$r de#$ from $4e 10s onards, $4e Eas$ %sian financial crisis in $4e 10s, and

$4e rise of $4e -4inese and ndian economies in $4e 2000s, provide evidence of $4e

4ig4 s$akes involved in in$erna$ional economic rela$ions as ell as $4eir poli$ical and

social impor$ance& =3c4 developmen$s can c4ange o3r 3nders$anding of $4e a $4e

orld orks and force ma7or in$ellec$3al s4if$s in " s3c4 as $4e emergence of

$4eories of in$erdependence, 4egemonic decline, developmen$, economic and poli$ical

$ransi$ion, regionali8a$ion, and glo#ali8a$ion& Wi$4in eac4 of $4ese in$ellec$3al s4if$s

e see a significan$ movemen$ aa from $4e narro foc3s on s$a$es and sec3ri$

iss3es $oards analsis of $4e in$erdependence of economic, social and poli$ical iss3es

as ell as $4e in$erconnec$edness of s$a$e and non*s$a$e ac$ors in $4e in$erna$ional

ss$em&

B3$ $4e li$era$3re on diplomac 4as #een far less infl3enced # $4ese developmen$s

$4an 4as $4e " canon more generall& 543s $4e economic dimensions of diploma$ic

prac$ice con$in3e $o a$$rac$ li$$le a$$en$ion& Hoever, $4ere is groing recogni$ion $4a$

economic diplomac is significan$ #o$4 $o an 3nders$anding of $4e concep$ and

prac$ice of diplomac& /o$ onl 4ave e #eg3n $o recogni8e and $o e6plain $4e

everda impac$ of diplomac in $4e economic sp4ere and $4e role of diploma$s in $4e

developmen$ and reg3la$ion of marke$s, e 4ave also #eg3n $o e6amine $4e role of

diploma$s in ‘glo#al economic governance!& 54is is appropria$e #eca3se, con$rar $o

some of $4e governance li$era$3re, diploma$s remain 4ig4l significan$ plaers in $4e

crea$ion and main$enance of $4e prac$ices and ins$i$3$ions and r3les of in$erna$ional

F


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economic rela$ions, Diploma$s are of$en invisi#le servan$s of $4e orld econom and

an acco3n$ of developmen$s in orld economic 4is$or needs $o acknoledge $4eir

role& E3all significan$ is $4e lead role $4a$ diploma$s pla in $4e 3nno$iced everda

even$s in $4e developmen$ of marke$s, 4e$4er $4a$ #e in ‘selling socks for Bri$ain! as

one diploma$ descri#ed 4is commercial ac$ivi$ies, or nego$ia$ing a ne loan i$4 $4e

C&

54e s$3d of economic diplomac is concerned no$ onl i$4 $4e #roader diploma$ic

agendas as $4e emerge from $4e processes of marke$ in$egra$ion s3c4 as 4ig4 car#on

econom nego$ia$ions, in$ellec$3al proper$ rig4$s #argaining, e*commerce

agreemen$s, $ransna$ional finance nego$ia$ions, #3$ also i$4 c4anges in diplomac

and especiall i$4 $4e emergence of ne modes of diplomac, ne diploma$ic ac$ors

and ne formal and informal s$r3c$3res of diplomac& an of $4ose 4o s$3d

economic diplomac are making a conscio3s effor$ $o address $4e lack of a$$en$ion $o

$4ese ne s$r3c$3ral and agenc developmen$s # mains$ream s$3dies of diplomac&

54e s$3d of economic diplomac also informs o3r 3nders$anding of $4e in$erna$ional

poli$ical econom in $4a$ i$ forces 3s $o recogni8e $4a$ diploma$s (as agen$s) are

significan$ ac$ors and par$ of a dense, e$ largel 3ne6plored, ne$ork of marke$

ac$ors in $4e orld econom& %f$er all, as an e6ample, c3rren$ commercial diplomac

> $4e promo$ion of inard and o3$ard inves$men$ as ell as e6por$s > involves $4e

searc4 for compe$i$ive advan$age in $4e orld econom # diploma$*#3siness

ne$orks& %n E agenda $4a$ incl3des analsis of c3rren$ diploma$ic prac$ice i$4 i$s

emp4asis on agenc ill #e$$er e6pose $4e connec$ions #e$een 43man agenc and

ss$emic $ransforma$ion and s$a#ili$ > and $43s add $o de#a$es a#o3$ $4e rela$ions4ip


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#e$een s$r3c$3re and agenc in E& 54ose 4o come $o $4e s$3d of E from a

s$3d of diplomac perspec$ive, are in$en$ionall seeking $o signpos$ $4e role of

agenc in $4e orld econom& =ince E is predominan$l concerned i$4 $4e

rela$ions4ip #e$een s$a$es and marke$s, i$ $ends $o place emp4asis on s$r3c$3res and

process in $4is rela$ions4ip ra$4er $4an agenc& B foc3sing on $4e role of diploma$s as

agen$s, researc4 in$o economic diplomac can provide insig4$s in$o $4e poli$ical

processes involved in $4e crea$ion, reg3la$ion, and developmen$ of marke$s&

Economic diplomac sc4olars foc3s on $4e role of diploma$ic ac$ors and $4e linkages,

ac$ivi$ies and ins$i$3$ions in 4ic4 $4e ork as $4e seek #o$4 $o crea$e and manage

economic in$erdependence and dependence& Diploma$s are ke plaers in nego$ia$ions

$o es$a#lis4 marke$ r3les and reg3la$ions, $4e dissemina$ion of norms and c3l$3res in

$4e in$erna$ional econom, $4e promo$ion and implemen$a$ion of economic policies,

and $4e advocac of p3#lic and priva$e economic in$eres$s& %nd # in$rod3cing non*

s$a$e ac$ors in$o $4e frame $4ro3g4, for e6ample, $4e concep$ of ca$al$ic diplomac,

some sc4olars of economic diplomac 4ave #een a#le $o #ring $o o3r a$$en$ion $4e

con$es$s #e$een compe$ing social forces a$ $4e domes$ic and ss$emic level (see for

e6ample Hocking 1a, 200


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diplomac per se& $ is also a$ $4e ver roo$ of o3r 3nders$anding of $4e prac$ice and

p3rpose of economic diplomac& f diplomac is $ied $o s$a$e ac$ors and s$a$e in$eres$s

$4en economic diplomac $ends $o #e limi$ed $o $4e 3se of $radi$ional diploma$ic $ools

$o ac4ieve $4e economic goals of $4e s$a$e& Inders$ood in $4is s$a$e*cen$ric realis$

frameork, economic diplomac is seen primaril as in$ergovernmen$al, cond3c$ed

# foreign service officials and as a means for advancing $4e economic in$eres$s of $4e

s$a$e in foreign co3n$ries and $4e orld econom& 54is prominen$ line of arg3men$ in

$4e conven$ional vie of economic diplomac sees a cons$i$3$ive rela$ions4ip #e$een

diplomac and s$a$e sovereign$, as ell as a cons$i$3$ive rela$ions4ip #e$een

diploma$ic ss$ems and an anarc4ic ss$em of sovereign s$a$es (Bars$on 1+G

Jardner 1G ars4all 1+G Wa$son 12)& Jenerall diplomac (incl3ding

economic diplomac) is ‘$4e means # 4ic4 s$a$es p3rs3e $4eir foreign policies!

(Berridge 2002G F)& Economic diplomac is $4e p3rs3i$ of economic sec3ri$ i$4in an

anarc4ic in$erna$ional ss$em& % #rief revie of $4e con$en$s of $4e ma7or diplomac

$e6$#ooks s4os $4a$ economic diplomac is generall defined as $4e 3se of

$radi$ional diploma$ic $ools s3c4 as in$elligence ga$4ering, lo##ing, represen$a$ion,

nego$ia$ion and advocac $o f3r$4er $4e foreign economic policies of $4e s$a$e

(Bars$on 1+G Berridge 2002G Hamil$on ; Lang4orne 1G Knsson and Hall 200G

ars4all 1+G Wa$son 12)& %$ $4e poer pla end of economic diplomac is 4a$

Baldin (1) calls economic s$a$ecraf$ 4ic4 is $4e s$ra$egic 3se of posi$ive and

nega$ive economic sanc$ions s3c4 as $rade em#argoes as ell as aid programs #

s$a$es and o$4er ac$ors s3c4 as $4e Ini$ed /a$ions $o coerce o$4er s$a$es $o coopera$e

(see also Davis 1, Hogan 1+G @3n8 1+G Mimmerman 1F)& 543s economic

diplomac conceived in $4is realis$ a is concerned i$4 $4e economic agenda in

diplomac 4ic4 can #e dis$ing3is4ed from $4e poli$ical agenda& $ does no$ involve a


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differen$ $pe of diplomac nor a differen$ se$ of diploma$ic ac$ors (see for e6ample

$4e en$r on economic diplomac in Berridge and Kames!s Dictionary of Diplomacy,

200F: 1)& %nd similar concep$s s3c4 as trade diplomacy and commercial diplomacy

are, for $4e mos$ par$, also conceived in $4is a&

%nd e$, as one former %m#assador 4as ri$$en

‘Ni$ is increasingl diffic3l$ $o dis$ing3is4 #e$een 4a$ is poli$ical in diplomac and

4a$ is economic, and indeed, 4e$4er $4ere is a dividing line #e$een $4e $o 4ic44as an validi$ a$ all&!1

ndeed, some s$3dies 4ave s4on $4a$ $4e ver origins of diplomac in mos$ co3n$ries

lie in developing cordial rela$ions in order $o facili$a$e $rade (see Lee ; H3dson

200


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$erms, mos$ co3n$ries o3ld find s3c4 a separa$ion simpl 3norka#le& n all

co3n$ries economic diplomac is a ke s$rand in diploma$ic s$ra$eg and i$ $4erefore

#ecomes necessar for s$a$es $o develop an in$egra$ed or coordina$ed diplomac& 54is

coordina$ed diplomac involves a m3l$iplici$ of ac$ors and individ3als #3il$ aro3nd

polic ne$orks dran from several governmen$ minis$ries, incl3ding $4e foreign

minis$r , as ell as $4e priva$e and civil sec$or ac$ors placed in na$ional, regional and

in$erna$ional levels (Hocking 200


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n a glo#al, in$erdependen$ econom, economic diplomac s3#s3mes more iss3es,

$43s e6panding $4e po$en$ial n3m#er of na$ional and ss$emic plaers i$4 economic

in$eres$s and responsi#ili$ies in $4e diploma$ic process (Bane ; Woolcock 200+)& n

$4is 3nders$anding of diplomac i$ is necessar for sc4olars $o iden$if $4e linkages

#e$een $4is diverse se$ of p3#lic and priva$e ac$ors and in$eres$s * $4a$ is, $4e na$3re

of $4e diploma$ic ne$orks and $4e rela$ions4ips #e$een p3#lic and priva$e i$4in

diploma$ic ss$ems&F -onse3en$l, c4anges $o diploma$ic prac$ice can #e 3nders$ood

in $erms of c4anges $o diploma$ic ne$orks and $o $4e /D= i$4in s$a$es $4a$ var

$4ro3g4 $ime and across iss3es&

Diplomacy and Globalization

Cor m3c4 of $4e 20$4 -en$3r onards $4e glo#al econom 4as #ecome more

in$egra$ed ei$4er $4ro3g4 regionali8a$ion or a process man descri#e as

‘glo#ali8a$ion!& ndeed glo#ali8a$ion is c3rren$l one of $4e mos$ idel 3sed > and

con$es$ed * concep$s in "& =ome sc4olars of diplomac 4ave #een fairl slo $o f3ll

address $4e impac$ of $4e process and effec$s of glo#ali8a$ion 3pon diploma$ic prac$ice

and organi8a$ion&


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ne and e6is$ing economic for3ms& $ involves ne$orks of s$a$e and non*s$a$e ac$ors

a$ domes$ic and ss$emic levels in p3rs3i$ of priva$e as ell as p3#lic in$eres$s& 54ese

ne$orks opera$e in, infl3ence and are infl3enced #, an increasingl in$egra$ed and

in$erdependen$ orld economG $4a$ is a glo#ali8ing econom&

Cor $4e p3rposes of $4is necessaril #rief piece, le$ 3s se$ aside $4e man cri$i3es of

$4e concep$ of glo#ali8a$ion and ass3me $4a$ i$ is primaril an economic process

driven # ne $ec4nologies 4ic4 4eig4$ens in$erdependence and in$egra$ion& 3$

simpl, glo#ali8a$ion means $4a$ $4ere is m3c4 more economic ac$ivi$ occ3rring in

na$ional, regional and in$erna$ional marke$s d3e $o ever increasing flos of capi$al,

$rade, services, people, ideas and informa$ion #e$een s$a$es, firms and individ3als&

=3c4 c4anges, 3i$e na$3rall, 4ave increased $4e need for and significance of

in$egra$ed diplomac $o 4elp facili$a$e as ell as manage and govern economic

developmen$ and marke$ in$egra$ion& C3r$4ermore, if e 3nders$and glo#ali8a$ion $o

incl3de 4ig4er levels of in$egra$ion of progressivel more compe$i$ive marke$s as a

res3l$ of increasing li#erali8a$ion of in$erna$ional $rade and finance, $4en diplomac

#ecomes an impor$an$ $ool for managing increased economic risks and oppor$3ni$ies&

Cinall, since glo#ali8a$ion is one of man processes (s3c4 as regionali8a$ion and

dependenc) 4ic4 #reaks don $4e #arriers #e$een $4e domes$ic and $4e

in$erna$ional, $4e agendas of economic diplomac are fo3nd more a$ $4e fading

#o3ndaries #e$een in$erna$ional and domes$ic rela$ions& -lima$e c4ange, for

e6ample, is an iss3e $4a$ $ranscends na$ional #o3ndaries e$ 4as enormo3s economic

implica$ions in rela$ion $o lo car#on economic gro$4 s$ra$egies& E3all in$eres$ing

is $4e need for s$3dies of diplomac $o encaps3la$e $4e increasing domes$ica$ion of

=ee igman (200) for a de$ailed disc3ssion of some of $4e ne non*s$a$e ac$ors in economicdiplomac&

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diplomac 4ic4 res3l$s from $4e #reakdon of domes$ic*ss$emic #arriers in $4e

orld econom& 54is is encaps3la$ed in $4e groing concern in /D=s i$4 p3#lic

diplomac& ncreasingl, $4is is seen as more $4an $4e managemen$ of image s3c4 as

$4e I@!s ‘-ool Bri$annia! #randing e6ercise designed $o a$$rac$ foreign direc$

inves$men$ in$o $4e Bri$is4 econom& 3#lic diplomac also 4as a #roader concern

i$4 promo$ing $4e s$ra$egic o#7ec$ives of $4e s$a$e in $4e econom, s3c4 as -anada!s

p3#lic diplomac on clima$e c4ange&

54e impac$ and significance of glo#ali8a$ion for diplomac 4as #een 4ig4lig4$ed in a

n3m#er of as& Here e foc3s on fo3r ke modes of economic diplomac 4ic4 are

seen as cri$ical $o managing con$emporar glo#ali8a$ionG commercial diplomac, $rade

diplomac, finance diplomac, and cons3lar visa services in rela$ion $o increased

migra$ion flos& Ho 4as $4e developmen$ of $4ese modes of economic diplomac

s4aped $4e a e $4ink a#o3$ 4o $4e diploma$s are, 4a$ diploma$s do, and 4o

$4e do i$9

Commercial Diplomacy

.ne of $4e ke developmen$s 4as #een $4e gro$4 of commercial diplomac i$4in

$4e /D= (-oolsae$ 200


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54ro3g4o3$ $4e las$ $o decades in par$ic3lar governmen$s 4ave increased

commercial diploma$ic ac$ivi$ies # increasing f3nding for e6por$ and inves$men$

s3ppor$ in foreign minis$r s and o$4er agencies as ell as crea$ing ne or #ols$ering

e6is$ing ins$i$3$ional frameorks& =econd 4as #een $4e draing in of priva$e ac$ors

from #3siness& "esponding $o compe$i$ive press3res and $4e need $o find and e6ploi$

ne marke$s for domes$ic goods and services, commercial diplomac primaril

involves e6por$ and inves$men$ s3ppor$ and advocac for domes$ic #3siness&

-ommercial diplomac foc3ses on #3ilding ne$orks of diploma$s and #3siness

gro3ps #ased in overseas missions $o promo$e $rade and inves$men$ as ell as

#3siness advocac& Cor man developing co3n$ries, commercial diplomac also

incl3des $o3rism promo$ion as a primar ac$ivi$& Diploma$ic ne$orks provide

commercial in$elligence, $o3rism marke$ing, #3siness links and par$ner searc4es, as

ell as #3siness assis$ance& -oncep$3all, s$3dies of commercial diplomac poin$ $o

comple6 organi8a$ional ne$orks involving minis$ries of commerce (of$en i$4 $rade

promo$ion agenciesOdepar$men$s), $rade and finance, in addi$ion $o $4e foreign

minis$r& B3siness gro3ps are also, no$ s3rprisingl, ke plaers in $4ese ne$orks and

in man cases are formall placed in$o overseas missions and cons3ls $4ro3g4

secondmen$ programs&+ B3siness involvemen$ is also c4anneled $4ro3g4 o$4er

governmen$ depar$men$s as ell as $4o3g4 links i$4 na$ional and local c4am#ers of

commerce& n $4is concep$3ali8a$ion of commercial diplomac, #3siness ac$ors are

merged i$4 $4e s$a$e ra$4er $4an a3$onomo3s and as s3c4 #o$4 p3#lic and priva$e

in$eres$s are incl3ded in diploma$ic represen$a$ion&

Trade Diplomacy

+ =ee Lee (200


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54e sc4olars4ip on $rade diplomac 4as also #eg3n $o s4ape $4e a e re*$4ink

diplomac # 4ig4lig4$ing $4e role of non*s$a$e ac$ors, ne$orks, ideas and

ins$i$3$ions in diploma$ic processes and o3$comes& /e as of concep$3ali8ing

diplomac 4ave emerged from s$3dies of $rade& Developmen$s in in$erna$ional $rade

rela$ions s3c4 as $4e gro$4 of regional $rade organi8a$ions, $4e crea$ion of $4e World

5rade .rgani8a$ion (W5.), $4e e6$ension of $4e $rade $alks agenda $o incl3de ne

iss3es s3c4 as in$erne$ gam#ling, 4ig4lig4$ $4e need $o recogni8e and 3nders$and $4e

ne ac$ors, ne $opics and ne for3ms of economic diplomac poin$ $o $4e necessi$

of moving #eond $4e predominan$ realis$ concep$ion of diplomac& Earlier

conven$ional classic s$3dies of $rade diplomac s3c4 as -3r8on (1) and H3dec

(1+) provide s$a$e*cen$ric acco3n$s of poer*#ased diplomac in $4e Jeneral

%greemen$ on 5ariffs and 5rade (J%55)& 54is is no$ s3rprising given $4e

in$ergovernmen$al na$3re of $4e J%55OW5. regimes& "ecen$ ork con$in3es $o

emp4asi8e $4e roles of s$a$es in $rade diplomac #3$ also poin$s $o $4e role of non*s$a$e

ac$ors in m3l$ila$eral, regional and #ila$eral $rade rela$ions (Hocking and cJ3ire

200


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$4e n3m#er of #ila$eral free $rade agreemen$s #e$een s$a$es 4ic4, added $o $4e

ne$ork of regional $rade agreemen$s s3c4 as /or$4 %merican Cree 5rade %greemen$,

$4e E3ropean Inion, =o3$4ern %frican Developmen$ -omm3ni$, and =o3$4 %sian

%ssocia$ion for "egional -oopera$ion all e6$end $4e agenda and need for $rade

diplomac& 3c4 of $4e li$era$3re on $rade diplomac foc3ses on m3l$ila$eral $rade

nego$ia$ions and par$ic3lar providing de$ailed acco3n$s of J%55OW5. "o3nds

(-roome 1G Lee 1G Lee ; Wilkinson 200+G Win4am 1)& 5rade diplomac is

of$en regarded as a 8ero s3m game of 4ard in$ergovernmen$al #argaining #e$een

ra$ional*ac$or s$a$es in p3rs3i$ of ma6im3m concessions from o$4ers 4ils$ conceding

li$$le as possi#le (.dell 2000G =$ein#erg 200F)& 3c4 of o3r 3nders$anding of $4e

diplomac of economic nego$ia$ions 4as #een impor$ed from prominen$ E sc4olars

s3c4 as Ko4n .dell& .dell (2000) makes 3se of game $4eore$ical models $o $ease o3$

$4e diploma$ic processes involved in nego$ia$ions in $4e orld econom in order $o

e6plain coopera$ive #e4avior #argaining and o3$comes among self*in$eres$ed s$a$es in

for3ms s3c4 as $4e W5.&

%dop$ing a similar neo*li#eral game $4eore$ic approac4, 3$n3m (1) 4as #een

infl3en$ial in 4ig4lig4$ing $4e impor$ance of domes$ic as ell as in$erna$ional fac$ors

in in$erna$ional economic nego$ia$ions& n $4is seminal ork 4e developed $4e 4ig4l

infl3en$ial concep$ of ‘$o*level games and, i$4 o$4ers, also in$rod3ced $4e concep$

of ‘do3#le*edged diplomac! (Evans e$ al& 1F) $o 4ig4lig4$ 4o diploma$ic

processes involve #argaining a$ #o$4 domes$ic and ss$emic levels, as ell as $4e

opening 3p of economic diplomac $o incl3de legisla$ors and, conse3en$l, domes$ic

#ased in$eres$ gro3ps& 54is ork 3sef3ll de$ails $4e complica$ed diploma$ic process

Level refers $o in$erna$ional #argaining and Level refers $o domes$ic level #argaining #e$eenin$eres$ gro3ps&

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in in$erna$ional economic nego$ia$ions in 4ic4 diploma$s m3s$ no$ onl nego$ia$e

i$4 o$4er s$a$es a$ $4e ss$emic level #3$ also nego$ia$e i$4 poerf3l poli$ical ac$ors

#ack 4ome in $4e na$ional sp4ere& n so doing 4e 4ig4lig4$s $4e endogeno3s and

e6ogeno3s so3rces of diploma$ic processes and prac$ice&

3$nam!s insig4$s in$o $4e domes$ic con$e6$ of $rade nego$ia$ions a$ leas$ #egin $o

recogni8e $4e conflic$ed na$3re of s$a$es! in$eres$s in $rade diplomac& =$opford and

=$range (11) also 4ig4lig4$ $4ese conflic$s i$4in s$a$es # 3nderscoring $4e

comple6 and dnamic c4arac$er of $rade rela$ions in a con$in3o3sl c4anging

in$erna$ional poli$ical econom s$r3c$3re Pcross reference $o E and nego$ia$ion

$4eorQ& n draing in $4e c4anging s$r3c$3ral con$e6$ $o economic diplomac $4e

s3ccessf3ll c4allenge $4e ass3mp$ion #3il$ in$o ra$ional ac$or models of $rade

diplomac $4a$ s$a$e in$eres$s can #e fi6ed and, indeed, knon& =$opford and =$range

concep$3ali8e economic diplomac as ‘$riang3lar! domina$ed # s$a$e*s$a$e, s$a$e*firm

and firm*firm rela$ions& n $4is $riang3lar diplomac #3siness diploma$s are ke

plaers and a s$ra$egicall s3ccessf3l s$a$e ill seek allies i$4 poerf3l firms $o

increase i$s s$r3c$3ral poer& Lang4orne (200) 4as referred $o $4e am#assador*like

role of $4e -E. of icrosof$ Bill Ja$es, for e6ample, in 4is s$3d of $4e groing

infl3ence of $ransna$ional firms in con$emporar diplomac& .ne of $4e ke iss3e

areas 4ere $ransna$ional #3siness 4as #een ac$ive in $rade diplomac is in in$ellec$3al

proper$ rig4$s ("s)& =3san =ell!s seminal ork on " nego$ia$ions demons$ra$es

no$ onl $4e large n3m#er of plaers (#3siness, s$a$es, laers, in$er*s$a$e

organisa$ions, 3sers) involved in $4e nego$ia$ions #3$ also $4a$ $4e ne$ork of

plaers f3nc$ions 3i$e differen$l from one period $o ano$4er as $4e na$3re of, and

conflic$s i$4in, $4e iss3e c4anges (=ell 200F)& B3siness gro3ps ere, for e6ample, a

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ke promo$er of $4e 1 W5. %greemen$ on 5rade "ela$ed %spec$s of n$ellec$3al

roper$ "ig4$s (5"s) d3ring $4e Ir3g3a "o3nd $alks in order $o pro$ec$ $4eir

knoledge capi$al, 4ereas 4en $4e iss3e s4if$ed $o one of glo#al p3#lic 4eal$4 in

$4e Do4a "o3nd #3siness gro3ps re$rea$ed and p3#lic 4eal$4 /J.s #ecame $4e

prominen$ ac$ors Pcross reference $o E sec$ionQ& %s $4e iss3e of "s clearl s4os,

i$ is impor$an$ no$ $o limi$ o3r concep$3ali8a$ion of agenc in $rade diplomac $o s$a$es

and firms&

.$4er infl3en$ial s$3dies of $rade diplomac s3gges$ an even more comple6 process of

$rade nego$ia$ions& Hocking (200


17/25

li#eral ideas 4ic4, $4e arg3e, crea$e pover$ in developing co3n$ries and increase

ine3ali$ #e$een $4e poerf3l ind3s$riali8ed co3n$ries and $4e poerless less

developed co3n$ries (=c4ol$e e$ al& 1G Wilkinson 200)&

54e s$3d of $rade diplomac 4as cer$ainl improved o3r 3nders$anding of $4e W5.

process and $4e orkings and effec$s of ins$i$3$ional environmen$s on $rade $alks

4e$4er i$ #e $4e ver de$ailed disc3ssion of W5. nego$ia$ions (see Kaara ; @a

200 mainl foc3sing on s$ra$egic alliance #3ilding > of $4e ne coali$ion

gro3ps i$4in $4e W5. s3c4 as $4e J20 and $4e %frica Jro3p (Lee 200G /arlikar ;

53ssie 200


18/25

%no$4er ke iss3e area in $4e glo#al econom is in$erna$ional finance and in $4e

con$e6$ of glo#ali8a$ion, finance diplomac is mainl concerned i$4 a$$emp$s #

governmen$s $o crea$e s$a#ili$ in a regime 4ic4 lacks $4e r3les and las of $4e

in$erna$ional $rade regime& 3c4 like s$3dies of $rade diplomac, $4e li$era$3re goes a

long a $o s4aping a #roader concep$3ali8a$ion of economic diplomac since i$

poin$s $o $4e role of non $radi$ional diploma$ic ac$ors s3c4 as finance minis$ries,

cen$ral #anks s3c4 as $4e Bank of England, #3siness gro3ps and $4e #anking sec$or, as

ell as non $radi$ional diploma$ic for3ms s3c4 as $4e World Economic Cor3m

(WEC)&1F

nfl3en$ial ork on $4e Jro3p of =even (J+) Jro3p of Eig4$ (J) as ell as $4e C

and WB no$ s3rprisingl (since J+OJ s3mmi$r is 4oll in$ergovernmen$al and $4e

C and WB are ins$r3men$s of governmen$s) $ends $o reinforce a s$a$e*cen$ric

approac4 $o financial diplomac (Bane 1G B3dd 200FG @ir$on 1G Wicks 200+)&

os$ s$3dies of financial diplomac are concerned i$4 $4e fail3re of financial

diplomac $o aver$ $4e vario3s financial crises of recen$ ears s3c4 as $4e %sian

Cinancial -risis of $4e 10s and s$3dies of $4e C and WB generall foc3s on $4e

economic effec$s of $4e policies of $4ese organi8a$ions ra$4er $4an $4e diploma$ic

process of $4e nego$ia$ions& n one no$a#le e6cep$ion, @a4ler (1F) adop$s $4e $o*

level approac4 $o financial diplomac developed # 3$nam $o acco3n$ for $4e fail3re

of $4e C $o reac4 agreemen$ i$4 developing co3n$ries& @a4ler finds Level

fac$ors i$4in $4e C as ell as $4e recipien$ co3n$ries #es$ e6plain $4e fail3re $o

reac4 agreemen$ despi$e $4e apparen$ s$r3c$3ral poer of $4e C& "ecen$

developmen$s s3c4 as $4e J20 mee$ings of Cinance inis$ers as ell as $4e no

reg3lar mee$ings of $4e fas$ developing co3n$ries and in$eres$ed par$ies $4ro3g4 $4e1F Cor a de$ailed s$3d of $4e WEC see igman (200+)&

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nel crea$ed B"-=% organi8a$ion 4ic4 is a ne$ork of s$a$es, /J.s and

#3siness (-ooper e$ al& 200) 4ave e6panded analsis of finance diplomac $o incl3de

ne$orks of s$a$e and non*s$a$e ac$ors as ell as ne regimes&

Migration and Consular Work

.ne fea$3re of glo#ali8a$ion is $4e increased flo of people across #orders& Jroing

levels of migra$ion and $o3rism as ell as $4e en4anced $4rea$ of $errorism in $4e firs$

decade of $4e 21s$ -en$3r 4ave increased $4e vol3me and significance of cons3lar

visa services 4ile a$ $4e same $ime redefining and recons$i$3$ing $4e concep$ of

?cons3lari$! (Dickie, 200+)& 543s na$ional diploma$ic ss$ems are responding $o

en4anced pop3la$ion mo#ili$ $4e $4rea$ posed # $errorism and organi8ed crime #

loca$ing a police presence in ke missions& % recen$ s$3d of $4e developmen$ of a

common E3ropean Inion 'isa polic 4as poin$ed $o $4e c4anges $o $4e managemen$

of $4e cons3lar f3nc$ion emerging from $4is diploma$ic colla#ora$ion& 54ese incl3de

4ig4 levels of in$ergovernmen$al coopera$ion #e$een cons3lar services across E3rope

(CernRnde8, 200)&

-ons3lar visa services are ano$4er e6ample of diploma$ic developmen$s facili$a$ing

$4e merger of $4e domes$ic and in$erna$ional arenas of diplomac in a similar fas4ion

$o $4e developmen$s in p3#lic diplomac& =$3dies of visa services again demons$ra$e

4o c4anges in $4e orld econom s3c4 as increasing flos of migran$ orkers

c4ange diplomac and $4e a e vie i$& Jiven $4e $ransna$ional and glo#al $4rea$

posed # diseases s3c4 as =%"=, as ell as $4e need $o con$rol $4e flo of s3spec$ed

$erroris$s across #orders visa iss3ance 4as #ecome a cri$ical diploma$ic ins$r3men$ $o

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facili$a$e coopera$ion and signal recogni$ion& %l$erna$ivel, non*iss3ance is a

diploma$ic $ool $o en4ance $4e sec3ri$ in$eres$s of $4e s$a$e or par$ of a coercive

diplomac s$ra$eg $o signal pro$es$ or non*recogni$ion as in $4e case of I@ visa

polic $oards Mim#a#e from 2002 (=$ringer 200


21/25

B3dd, -& (200F) J =3mmi$s and 54eir repara$ion& n Bane, /& ; Woolcock, =

(eds&) The New Economic Diplomacy: Decision$making and negotiation in

international economic relations& %lders4o$: %s4ga$e&

-lapp, K& (200) Developing -o3n$ries and $4e W5. %gric3l$3re /ego$ia$ions& 54e

-en$re Cor n$erna$ional Jovernance nnova$ion Working aper /o& & Wa$erloo&

-oolsae$, "& (200


22/25

Hamil$on, @&, ; Lang4orne, "& (1) The "ractice of Diplomacy: its e%olution-

theory and administration& London: "o3$ledge&

Heron, 5& (200+) E3ropean 5rade Diplomac and $4e oli$ics of Jlo#al Developmen$:

"eflec$ions on $4e EI*-4ina ‘Bra Wars! Disp3$e& (o%ernment and .pposition


23/25

@a4ler, & (1F) Bargaining i$4 $4e C: 5o*Level =$ra$egies and Developing

-o3n$ries& n Evans, &B&, Kaco#son, H&@&, ; 3$n3m, " (eds&) Dou+le$Edged

Diplomacy: nternational *argaining and Domestic "olitics& Berkele: Iniversi$ of

-alifornia ress, FF*F


24/25

elissen, K& (ed&) (200) The New "u+lic Diplomacy: Soft power in nternational

!elations& Ho3ndmills: algrave&

oses& K&W&, ; @n3$sen, 5& (2002) Jlo#ali8a$ion and $4e "eorgani8a$ion of Coreign

%ffairs! inis$ries& Disc3ssion apers in Diplomac /o& 0& /e$4erlands ns$i$3$e of

n$erna$ional "ela$ions&

/arlikar, %& (200F) nternational Trade and De%eloping Countries: *argaining

Coalitions in the (#TT and WT.& London: "o3$ledge&

/arlikar, %&, ; 53ssie, D& (200


25/25

=c4ol$e, K&%&, .!Brien, "&, ; Williams, &, (1) 54e World 5rade .rganisa$ion and

-ivil =ocie$& n Hocking, B&, ; cJ3ire, = (eds&) Trade "olitics: nternational-

Domestic and !egional "erspecti%es& London:"o3$ledge, 12*1+&

=ell, =& (200F) "ri%ate "ower- "u+lic 9aw: The (lo+ali0ation of ntellectual "roperty

!ights& -am#ridge: -am#ridge Iniversi$ ress&

=$ein#erg, "&H& (200F) n $4e =4ado of La or oer9 -onsens3s Based Bargaining

.3$comes in $4e J%55OW5.& nternational .rganisation (2), FF*F+

lee %26 hocking economic diplomacy finaljuly282008 (1)

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