International Journal of Academic Research ISSN: 2348-7666 Vol.1 Issue.1, June, 2014

Innovative Approaches in International Relations: Promotion of Economic as an Instrument of : An Analysis

Dr. Vidya .H.N, Associate Professor in History, Government Arts College Karnataka, Hassan-573201

Abstract

An attempt is made in this paper to analyze the innovative approaches in international relations – promotion of economic diplomacy as an instrument of economic development. This paper covered various diplomacy aspects and found that has engaged in economic diplomacy primarily through the use of trade and . Further it explained various promotions by the international relations and concluded that Economic diplomacy can be used to generate and increase economic security has become a tested method and several countries all over the globe are initiating drives towards adoption of this policy Key words: Economic Diplomacy, innovation, promotions, liberalization, globalization, development

1. Introduction divergent economic situations. Use of to achieve mutual interest Diplomacy is a technique to uphold started from ancient India. Various excellent affiliation among different forms of diplomacy in ancient India states, to negotiate divergence & were used as a tool of achieving good conflict or to facilitate additional good economic relationship. Previously a commodore relationship. We come group of negotiators recognized as across several instances of use of diplomats were sent to a particular diplomacy to preserve & protect Nation or region with a specific task www.ijar.org.in 107

International Journal of Academic Research ISSN: 2348-7666 Vol.1 Issue.1, June, 2014

of negotiating. They used to discus & , import, investment, about a particular issue with lending, aid, free trade agreements, their counterpart in several rounds. tourism, Marketing, currency etc This was called as informal (Moons, 2009). diplomacy. But today use of diplomatic 2. Classification of diplomacy mission is more acknowledged around the world Diplomats are appointed in We can classify diplomacy based on embassy offices & embassies are a these objectives and nature of tasks highly grown up bureaucracy. They like reside in the country with which they Conciliatory & pacifying moves have to maintain good relations along Peace Keeping & peace with their paraphernalia. They will maintenance attend all issues connected with mutual cooperation & assistance. Negotiating for monetary & fiscal This is called as formal diplomacy. gains But these days with the rise of Avoiding Hostilities global economic liberalization the Envisaging Partnership In international relations has taken up a Economic Development, modified role acting as an economic promoter as well. The political Cultural Exchange, aspects of international relations Environment & Eco management have taken a back seat & economic , advocacy has come to the fore front. Human Rights Issues. Priorities have changed; Nations have adopted Economic diplomacy as a Tours & Travel device of promoting international Export & Import Policy relations. Economic diplomacy is the use of the full spectrum economic From other aspect we are tools of the state to achieve observing aggressors / allies to its national interest (Balachandran, boycott aggressors, 2005). Economic diplomacy includes diplomacy based of relationship and all the economic activities, including respect, gun board / military power www.ijar.org.in 108

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diplomacy, and cooperation with trade, commerce nuclear diplomacy in practice and manpower placement to Srinivasan, T.N. (2002). From all the developed, developing and least above types and forms of diplomacy developed countries, and various we would like to discuss with the regional, sub-regional, political and economic diplomacy and how it can economic groups” be used as a tool of economic India has engaged in economic development. Several under diplomacy primarily through the use developed countries around the world of trade and aid Achs, D(2002). For are suffering from scarcity of example, in order to build a stronger, resources, over pressure from more stable relationship population growth, unemployment, with , India granted it an extreme poverty etc (Van Bergeij, $800 million soft loan, and provided Peter A. G 2009). Existing internal $200 million in aid. India set up a resources are not enough for development wing in its government developing these nations by in January 2012 (Panagariya, themselves Datt, Sundharam, K.P.M. Arvind (2008). The Development (2009). But without further economic Partners Administration (DPA) is a development it is impossible to primary way India uses economic ensure basic needs of human life such diplomacy, in this case development as food, cloths, shelter, and aid, as a way to engage diplomatically. health care Srinivasan, T.N. (2002). The DPA is building 50,000 housing The objective of foreign policy units in Sri Lanka, a large may be shifted from existing “is to transmission line in Puli Khumri, develop and maintain friendly Afghanistan, and extends Lines of relations with other States and foster Credit projects globally, particularly cooperation with developed, in Africa. Economic diplomacy and developing and least developed the DPA are very important to Indian countries, and various regional, sub- foreign policy. As the former Indian regional, political and economic foreign secretary Lalit groups” is to develop and maintain Mansingh stated: "The fact that the friendly economic / trade relations DPA division is located in the with other States and foster ministry of external affairs shows it is www.ijar.org.in 109

International Journal of Academic Research ISSN: 2348-7666 Vol.1 Issue.1, June, 2014

in sync with our foreign policy national foreign policy Roche, objectives of transforming India into Elizabeth(2012). a global player” Roche, Elizabeth To get a strategic platform to exploit (2012).That means the goal would be the coming multilateral regime developing and maintaining friendly countries has to priorities country economic / trade relations with other Srinivasan, T.N. (2002). states Panagariya, Arvind (2008). 1. Promotion & branding & trade It is necessary to deploy trade and marking business related professionals for better achievement in economic 2. Trade sponsorship, diplomacy. 3. Investment appeals & Investment Usually LDC countries use same magnetism, set of negotiators in every 4. Acquiring Innovative Technology platform. As a result they become 5. Employing New Technology, hub of everything but master in none Sankaran, S. Indian 6. Managing enhanced External Economy (1994). Economic Assistance 3. Promotion of Foreign Time have to develop different set Investment of negotiators specialized in different field like (1) bilateral For attracting foreign investment trade negotiators, (2) regional countries needs to project a positive trade negotiators, (3) multilateral image in abroad ( Achs,D) Country trade negotiators master in Branding would be essential, because different WTO agreements, (4) without a brand image it would not separate set of negotiators for be easy to get foreign negotiating with development investment(Sankaran). The partners / donors, (5) trade government should promote the promoters in the missions in country at abroad, which is a primary aboard, and (6) supreme council of action of economic diplomacy. The negotiators for coordinating all image of a country affects its trade, these platforms and harmonizing global politics, and international and directing uniformity with the relations. www.ijar.org.in 110

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4. Economic Diplomacy 3. The ministry of foreign affairs, the embassies and diplomats of 1. To promote to mobilize the country will be accountable investment, for the projection of a ‘correct’ 2. Promote tourism and better image of the country overseas. management of national image. This will automatically balance the financial arrangements (Achs, D). But their capacity to project a positive country image or change Investment mobilization would call the undue negative perception for a global presence of the competent may be limited. The diplomats companies or internationalization of abroad have to be proactive rather the local companies. than reactive. The foreign 1. Developing panoramic tourist ministry has to give importance to destinations and improving their promote trade and development infrastructure especially by organizing trade fairs, communication & transport participating foreign exhibitions, amenities to attract foreign organizing investors’ conferences tourists would boost the economy. and holding up B2B dialogues etc. It also generates recurring & mission abroad should act as enduring employment. facilitators of joint business councils, joint chambers, joint 2. For projecting a positive national trade facilitator taskforce etc. image abroad, the political leaders between the countries have to be responsible about what (Srinivasan, T.N ). they say regarding their country.They should know that 5. Promotion of a National the world media report what they Image say. Their statements can and do Through a constructive national damage the image of the country. image, a better promotion of products Structuring a fine representation and services abroad consequently is & image building about the boosted up and this ameliorates to country will act as promotional create a brand image of the products activity in the world media. in the consumers’ mind Panagariya, www.ijar.org.in 111

International Journal of Academic Research ISSN: 2348-7666 Vol.1 Issue.1, June, 2014

Arvind (2008). This would facilitate has a great job to collect demands for better market access, salesmanship, professional / workers and making networking and regulatory (customs arrangement of proper placement of & procedural) management would native people there. Thus economic facilitate the export of commodities, diplomacy could increase manpower services and projects. Value creation export as well as foreign remittance of products is essential (Sankaran). earnings of a country. The missions abroad have to identify 7. Promotion of Ensuring the demand for his country products Proper Education in the host market and facilitate B2B interactions to promote export to that Ensuring proper education and country. Opting for economic training up people on latest technical diplomacy to magnetize foreign knowhow is also important for proper investment would thus become a growth of a country. great political strategy these days providing scholarship in higher (Roche, Elizabeth). education Promotion Of Employability 6. short training Large unemployed population is a diploma facilities major problem in most of the LDCs. Orientation programs But this burden may be transform into resources if proper arrangement Organizing international can be done through manpower seminars export. Remittance is one of the main international Short stay programs sources of foreign currency in many countries. Population growth of many Cultural exchange programs developed countries is negative Inter university study programs (Panagariya, Arvind ). Over Organizing international populated countries could bargain Entertainment & Cultural study with those countries to send tours professionals and semi-skilled workers to those markets (Datt, Coherent image building Ruddar; Sundharam ). Diplomatic articulations missions in the respective country www.ijar.org.in 112

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Increasing foreign visits 2. Increased Mobilization of the Network Abroad Incorporating global language & media devices 3. Ministerial Visits With an Economic Dimension international Campaigning for best practices 4. Promotion Of country’s new Innovation submission for hi-tech media coverage of the country’s customs 5. Attracting Foreign Investment to country A genuine can facilitate more representatives in 6. Mobilizing Soft Power Tools affording these options Panagariya, 7. Support For transportation Arvind (2008). Thus it can play a vital role in technology transfer and 8. Better Communication With up gradation and transfer of latest Businesses knowledge .The economy soon after 9. Promotion of up gradation of will pick up as it naturally attract Technology technicians globally. A major problem of LDCs country’s 8. Promotion of Technology product quality is inferior; as a result Economic diplomacy needs they failed to compete with superior technology for rapid development and qualitative products in local or export industrialization. When TRIPS market. This is because they do not agreement will come into force on have upgraded technology. So LDCs, then absorbing foreign facilitating technology up-gradation technology will be costly and difficult may boost up production. There are to achieve. Before mandatory several international bodies working enforcement the Agreement on Trade to facilitate technology transitions Related Aspects of Intellectual and technology up-gradation. Property Rights (TRIPS) LDCs Diplomatic assignments to those should concentrate on obtaining it countries can play a vital role to (technology) for industrialization. secure local bodies with those international technology transfer 1. The Business & the Global organizations (Panagariya, Economy Directorate www.ijar.org.in 113

International Journal of Academic Research ISSN: 2348-7666 Vol.1 Issue.1, June, 2014

Arvind (2008). Stable Supply Of 7. Extension Of Highways, Sub Resources, Ways, National Highways, Express Highways, Corridors , 1. Energy & Food To Country , 8. Expansion Of Industrial Parks 2. Exportation Of Infrastructure Abroad , 9. Eco Tourism 3. Inbound Tourism Promotion 10. Opening Out Of Amusement & Parks 4. Promotion Of "Country’s 11. Creating Under Water Brand" Amusement & Water Sports 10. Promotion Of Industrial 12. Organizing A Mega Sporting Infrastructure Event Industrialization would need 13. Kicking of Musical Concert infrastructure development, better 14. Film Award Ceremony value services and other logistics support. All these require money 15. Organizing Cricketing Event which has to be generated through 16. Hosting Beauty Pageants following methods. 17. Hospitality Services 1. Improving Logistic Sustenance 18. Therapeutic & Medicinal 2. Developing Infrastructure Symposia 3. Deployment Of Optimum 19. Beginning Pleasure Trips Transport Facilities 20. Initiating Cruise Tours 4. Expansion Of Communication 21. Promotion of Pilgrimage Amenities destination 5. Bridging Inter Connectivity 22. Encircling with Educational With Rails & Roads Hub activities 6. Deep Sea Port, Sea Port, 23. Advertizing Musical Operas / Concerts/ live shows

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24. Endorsing Musical Nights/ 37. Co -hosting new entertainment events activities such as launch o f new cars . Electronic items, mobile 25. Installation Of awards such as phones, I pods, tablets etc. Best Tourist Award, best citizen award/ best traveler 38. Conduct of Consumer friendly events on Nutrition & edibles 26. Sponsoring International Film Festivals 39. Wide range of Incentives for Shopper friendly customers 27. Sponsoring gallantry / bravery awards 40. Encompassing festivities & celebrations & partying 28. Hosting Foreign Investment Drives 41. Show casing best practices 29. Pioneering Hosting Job Fairs 42. Promotional activities through brochures & handbook 30. Accommodating International Business Deals 43. Hosting jeweler exhibitions 31. Introducing innovative 44. Initiating Aqua sporting events contests like motto cross, The government has to mobilize formula car race, mud bike resources from domestic as well as race , skiing , Para jumping , foreign sources The World Trade para gliding fencing ,sailing Organization’s (WTO) Aid for Trade ,karaoke ,taekwondo etc to the developing countries could be a 32. Organizing Science exhibitions , good source. Besides appealing for foreign investment in major local 33. Venturing Adventure sports infrastructure project may be another 34. Reinventing traditional sports approach to build industrial 35. Massage centers spa facilities infrastructure like. ,herbal health products 1. Maintaining good relations with 36. Introducing new contests like the donor agencies / countries is a spelling bee, young scientist, major task on the negotiators in young achiever ,young Brain, this regard. etc www.ijar.org.in 115

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2. Gathering Concurrence of issues together. The ethnicity, evolution of of common interest civilization, historicity, and customary practices of a country will 3. Creating consensus on universal guide in formulation of a vision topics statement which can be its best 4. Debating for propelling positive practice. approach towards resource 9. Conclusion management Thus Globalization has expanded 5. Accommodating good will gesture and accelerated economic 6. Signaling strategic economic interdependence among Nations. prudence through political Economic diplomacy thus is rooted in diplomacy the vision, efficacy, organization and 7. Gesticulation of thematic motivation of its people and approaches institutions, including the leaders, the officials, and civil society at large. 8. Promotion of best Practices The diplomatic missions of a country Replicating best practices could be have so many important roles to play a good means for economic for quick sustainable economic development for any country. It is development of the country. quite easy to duplicate any Economic diplomacy could be a very development models rather than effective tool to foster all round inventing the same. Collecting best development of a nation. Various practices from different regions would under developed countries can handle assist in addressing serious economic this tool for quick access to economic problems. particularly resources & promotion of financial to the countries developed with benevolence. Thus Economic similar backdrop could be vigilant to diplomacy and economic security know preeminent practices there and have risen to the top of international facilitate replication in back home. A policy agenda these days .That country can argue to adopt best Economic diplomacy can be used to practices on par with other countries generate and increase economic through innovative thinking security has become a tested method combining culture & convention & several countries all over the globe www.ijar.org.in 116

International Journal of Academic Research ISSN: 2348-7666 Vol.1 Issue.1, June, 2014

are initiating drives towards adoption Guapo Costa, ed., Instituto of this policy. Superior de Ciéncias Sociais e References Politicas, 2009 Panagariya, Arvind (2008). India: Achs, D. Jeffrey; Bajpai, Nirupam The Emerging Giant. Oxford and Ramiah, Ananthi University Press. (2002). "Understanding Regional Economic Growth in India" Panagariya, Arvind (2004). India in the 1980s and 1990s: A Agreement on Trade Related Triumph of Reforms Investment Measures (TRIMS) & Agreement on Trade-Related Roche, Elizabeth, "India goes from Aspects of Intellectual Property aid beneficiary to donor", Ministry Rights (TRIPS) addresses many of of External Affairs, Government these issues. of India, July 1, 2012 Balachandran, G., ed. India and Srinivasan, T.N. (2002). Economic the World Economy, 1850– Reforms and Global 1950 Oxford University Press, Integration (PDF). 17 January 2005. 2002. Datt, Ruddar; Sundharam, K.P.M. Sankaran, S. Indian Economy: (2009). Indian Economy. New Problems, Policies and Delhi: S. Chand Group. p. 976 Development (Margham Publications, 7th ed. 1994). Fergusson, Ian F. (18 January 2008)." Van Bergeij, Peter A. G., Negotiations: The Doha "Economic Diplomacy and the Development Agenda" Geography of International Trade", Edward Elgar Publishing, Moons, Selwyn and Van Bergeijk, North Hampton, 2009 Peter A. G., Economic Diplomacy and Economic Security, New Frontiers for Economic Diplomacy, pp. 37-54, Carla

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