Party polics︎ and commercial diplomacy: The case of the

Štěpánka Zemanová, University of Economics, Research project • Czech foreign policy acvism: opportunies and constraints (2013-2015) • Supported by: Czech Science Foundaon

• Does the Czech republic behave as an acve small state in key agendas of its foreign policy? • Reasons why…?

2 Theorecal background • Behavioural paerns: – Acvism / no acvity / re-acvism – Offensive / neutral /co-operave

• Support to external economic relaons – Limited acvity at the level of economic diplomacy – Fluctuaons in commercial diplomacy depending on government (openness of the Czech economy > 80%)

3 Need of commercial diplomacy • Czech Republic – open economy (export/GDP > 80%) – dependent on internal markets (no border with non-members) – unfavorable posion in global value chains – export and investment acvity concentrated in big firms, lile acvity of CMSEs

4 Theorecal background – commercial diplomacy Intervenonism

Free market Free market failures

Support to entrepreneurs disturbing compeon Support to entrepreneurs necessary

Basic service to entrepreneurs (informaon, the same level of service for all) Broad service to entrepreneurs

5 Research design • Approaches of main polical pares in their internal document – Civic Party (ODS) – Social-democrats (ČSSD) • Governmental programmes and governmental acvity

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Commercial diplomacy 1992 1996 1998 2002 2006 2010 2013 KSČM ČSSD ČSSD ČSSD KSČM KSČM KSČM Not mentioned ODS ODA KSČM KSČM Strana Úsvit ODS ODS zelených

Liberal model ODA ODS Koalice ODS ODS ANO (KDU-ČSL, TOP 09 ODS US- DEU) VV KDU-ČSL TOP09 ČSSD ČSSD ČSSD! ČSSD State support to entrepreneurs in elecon programs Interventionist model KDU-ČSL KDU-ČSL

! (economic policy)

!

Support to external 1992 1996 1998 2002 2006 2010 2013 economic relations Not mentioned KSČM ODS ODS ODS KDU-ČSL KDU-ČSL KDU-ČSL ODA Koalice SZ ODS Úsvit (KDU-ČSL, US – DEU) KSČM Necessary (but no ODS ODS TOP 09 ANO model) ODA ODS

ČSSD ČSSD KSČM ČSSD ČSSD ČSSD ČSSD Interventionism KSČM ČSSD KSČM KSČM KSČM VV TOP09 !

7 Commercial diplomacy in elecon programs (foreign policy)

Commercial diplomacy 1992 1996 1998 2002 2006 2010 2013 KSČM ČSSD ČSSD ČSSD KSČM KSČM KSČM Not mentioned ODS ODA KSČM KSČM Strana Úsvit ODS ODS zelených

Liberal model ODA ODS Koalice ODS ODS ANO (KDU-ČSL, TOP 09 ODS US- DEU) VV KDU-ČSL TOP09 ČSSD ČSSD ČSSD! ČSSD Interventionist model KDU-ČSL KDU-ČSL

! 8 !

Support to external 1992 1996 1998 2002 2006 2010 2013 economic relations Not mentioned KSČM ODS ODS ODS KDU-ČSL KDU-ČSL KDU-ČSL ODA Koalice SZ ODS Úsvit (KDU-ČSL, US – DEU) KSČM Necessary (but no ODS ODS TOP 09 ANO model) ODA ODS

ČSSD ČSSD KSČM ČSSD ČSSD ČSSD ČSSD Interventionism KSČM ČSSD KSČM KSČM KSČM VV TOP09 ! Key findings • Support of exporng firms and investment strongly dependent on the composion of the government (key polical part forming the government) • Impact on – Extent of service provided to entrepreneurs (liberalism/ intervenonism) – Instuonal background of services (economic/foreign policy - – Ministry of industries and trade / Ministry of foreign affairs)

9 Key findings • Differences in approaches between key governmental pares limit the quality of the service to entrepreneurs • Limited contribuon to solve problems of the Czech economy – dependence on internal market, middle level in the global value chains

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