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About this book

This book aims to identify what components are needed for economic diplomacy in today’s rapidly changing world, looking at the nature, focus and tenets of economic diplomacy, and the differences between economic diplomacy and commercial diplomacy. Further, it considers the new kind of diplomacy that will be required for emerging markets, in contrast to maintaining the traditional techniques used for economic diplomacy between states. The author emphasises the negotiating techniques necessary for successfully engaging in economic diplomacy in the current diplomatic atmosphere. Importantly, it also discusses how to pursue economic diplomacy at international fora and with regard to private foreign investments. Lastly, it addresses the role of non-governmental organisations in economic diplomacy. Given its scope, the book will benefit not only practicing diplomats, but also graduate students.

Table of Contents

Frontmatter

Chapter 1. The Nature of Economic Diplomacy and Foreign Policy-Making

Abstract
Economic diplomacy in many major ways forms the basis for foreign policy-making. It is, of course, predominantly concerned with foreign trade policy-making. In order to operate successful economic diplomacy, diplomats should possess the qualities of good negotiators.
Charles Chatterjee

Chapter 2. The Focus of Economic Diplomacy Foreign Policy-Making

Abstract
In addition to truly international diplomacy at international fora, the main focus of economic diplomacy takes place through bi-lateral and multilateral economic diplomacy. In this context, one should also consider the Charter of Economic Rights and Duties of States, 1974; the Doha Declarations held at different dates, as these documents primarily contained dynamic principles of economic diplomacy.
Charles Chatterjee

Chapter 3. The Tenets of Economic Diplomacy and Foreign Policy-Making

Abstract
Economic diplomacy of dependency must be avoided—participatory economic diplomacy should be encouraged by the international community of diplomats—the prerequisites of a participatory economic diplomacy—the role of bargaining power in economic diplomacy—the principal tenets of economic diplomacy—reciprocity—the meaning of international co-operation—matters of international economic concern—the lack of appropriate economic diplomacy and its impact on the State and its peoples.
Charles Chatterjee

Chapter 4. The Boundaries of Economic Diplomacy and Foreign Policy-Making

Abstract
Functions of diplomats engaged in economic diplomacy—the role of certain documents developed by the UN in identifying the boundaries of economic diplomacy—a brief discussion of economic rights and duties of States—legally binding effect of these documents/instruments—the New International Economic Order—its impact on developing countries—interrelations between trade and development.
Charles Chatterjee

Chapter 5. Economic Diplomacy and Commercial Diplomacy

Abstract
Differences between these two types of diplomacy—which type of diplomacy is narrower than the other—the balance between economic diplomacy and foreign policy-making needs to be struck—challenges confronted by developing States.
Charles Chatterjee

Chapter 6. Emerging Markets and Diplomacy

Abstract
The advent of emerging markets would require diplomats to devise new strategies of transnational trade and private foreign investment, an unchartered field for them. These economies have their own characteristics too. No preconceived ideas on the part of diplomats will do—it should be regarded as a challenge for diplomats. The challenging factors have been identified in the country-profile of these markets. It would be unwise of them to disregard these markets from a commercial standpoint. A difficult question the diplomats would be required to resolve is whether emerging economies should be westernised or modernised.
Charles Chatterjee

Chapter 7. The Changing Pattern of International Economic Diplomacy

Abstract
The speed of changes in economic diplomacy since the 1980s, in particular, has been rapid—the UN Declaration on the New International Order, 1974, among others, is a pointer to this issue—a new dynamics of economic diplomacy particularly since 1974—fresh ideas in relation to payment (buy back or countertrade) should be re-introduced. One should not underestimate the capacity of the decolonised countries in negotiating techniques for concluding bi-lateral or multilateral trade agreements. Both parties should be prepared to reciprocate in relation to trade and investment. Diplomats are now required to acquire new knowledge in regard to developing countries.
Charles Chatterjee

Chapter 8. Negotiating Techniques in Economic Diplomacy

Abstract
In view of the new dimensions to economic diplomacy, diplomats are now required to learn new forms of negotiating techniques in order to achieve economic reciprocity between trading partners in the world—the role of security issues in negotiating techniques—thus, the traditional practice of conducting bi-lateral investment treaties between home and host States should be reviewed—the growth and development of bi-lateral trading arrangements in the olden days, and a comparison of the trade practices between the older and modern days—the new methods of non-monetary payments.
Charles Chatterjee

Chapter 9. Economic Diplomacy in Crisis

Abstract
The need for successful multilateral economic co-operation and also the need for a new kind of training for diplomats in the contemporary world, otherwise, economic diplomacy will encounter crisis. The dynamics of changing economic diplomacy have been sufficiently identified by various UN institutions through Declarations and resolutions—there hardly exists any room for old-fashioned power politics between States—various stages of negotiating techniques which diplomats are required to learn and practice in the contemporary world.
Charles Chatterjee

Chapter 10. International Trade Practice

Abstract
Transactional tools of import-export trade—the League of Nation’s effort to institutionalise trade—the UN practice on this issue—the need for transition from the GATT system to the WTO system—the concepts “equality on law” rather than “equality in fact”—the futility of applying MFN treatment in import-export trade.
Charles Chatterjee

Chapter 11. Economic Diplomacy at International Fora

Abstract
The special knowledge and negotiating techniques needed of diplomats for conducting economic diplomacy at international fora, namely ECOSOC, WTO, etc. Various institutions under the UN have already developed guidelines on this issue—the requirements for preparations for successfully operating economic diplomacy at international fora—the causes of failure of economic diplomacy at international fora.
Charles Chatterjee

Chapter 12. Economic Diplomacy and Private Foreign Investment

Abstract
The traditional prejudices against developing countries in regard to private foreign investors particularly in respect of risks need to be changed; by the same token, some of the old-fashioned contractual terms incorporated into investment contracts based on bi-lateral treaties should be reviewed as a matter of urgency. On the other hand, developing countries, in general are required to assure private foreign investors of the impartiality of their judicial system perhaps by making them separable and separate from the executive organs of the government concerned. Although during the initial period of decolonisation the incidence of risks was high, they are now almost absent.
Charles Chatterjee

Chapter 13. Developing Countries and Economic Diplomacy

Abstract
In view of the advent of a large number of newly born States, the traditional diplomatic practices should be reviewed. Some of the so-called developing countries are no longer so. On the other hand, developing countries are also required to initiate a new type of economic diplomacy at various international fora, and cater for private foreign investors.
Charles Chatterjee

Chapter 14. The Role of Non-Governmental Organisations in Economic Diplomacy

Abstract
Varieties of non-governmental organisations are currently involved in socio-economic development process. Their work should be compared with that of inter-governmental organisations, where relevant. The contributions that these organisations may make to contributing to socio-economic developing of States and the role of domestic NGOs should be reviewed for making them even more effective in their activities and their role as initiators of new legislation, where necessary.
Charles Chatterjee

Backmatter

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