IE University IE International Policy Review (IPR) Journal 01 (1) https://ipr.blogs.ie.edu/ Understanding Paradiplomacy: An Analysis of Subna- tional Diplomatic Activity in Brazil, Belgium, and the United States Andrew Hyde Fitzgerald IE University, Madrid, Spain E-mail: [email protected] Published April 10, 2019 Abstract Since the creation of the new world order in the aftermath of the Second World War, non-state actors have grown in both economic and political importance. While non-state actors such as multinational corporations, non-governmental organiza- tions, and international organizations have all been adopted into international relations literature, cities meanwhile have mainly been ignored. The paper provides examples of subnational actors in Brazil, Belgium, and the United States conducting international activities without the role of their central governments. Keywords: Paradiplomacy, subnational, foreign policy 20 © IE University Creative Common License Journal 01 (1) Fitzgerald sovereignty within its borders as Westphalian sov- Who Can Conduct International Relations? ereignty is defined as the sovereigns right to “gov- The purpose of this essay is to shed light on the ern their peoples free of outside interference, changing nature of the international political sys- whether any such external claim to interfere was tem. Subnational actors are playing an increasingly based on political, legal or religious principles.”2 fundamental role in contributing to global econom- The creation of the United Nations and the imple- ics and political norms. In order to conceptualize mentation of international law reduced the state’s this phenomenon, this essay employs examples of total power. In the current geopolitical order, it is paradiplomatic activities conducted by subnational possible to prosecute the leader of a sovereign na- actors within Brazil, Belgium, and the United tion-state for committing war crimes or crimes States. Relations between cities existed long be- against humanity. On the economic spectrum, fore the invention of the nation-state. The antiq- states who are members of the World Trade Or- uity of diplomacy is evidenced by ancient Greek ganization must adhere to the rulings of WTO city-states exchanging ambassadors with one an- judges, regardless of the outcome. The second his- other in order to solidify trade and peace agree- torical event was the collapse of the Soviet Union ments. It was not until 1648, in the aftermath of in 1991 and the advancement of hyper-globaliza- the 30 Year War, in which 20% of Germany’s total tion.3 Although multinational corporations (MNCs) population perished, that Europe’s major powers were powerful before the collapse of the USSR, the introduced the concept of national sovereignty at 1990s were a crucial decade for MNCs as firstly, the peace of Westphalia.1 Eastern European markets opened to Western firms. Secondly, the United States, where the ma- The New World Order and the Rise of Non-State jority of the MNCs were headquartered, enjoyed a Actors period as the world’s sole hegemony while techno- logical progress in the fields of telecommunications Since the Peace of Westphalia and until the after- and the internet made radical strides in reducing math of the Second World War, the nation-state geography as a factor between locations. MNCs be- reigned supreme in its monopoly over diplomatic came important actors within the international po- relations. Two major historical events have oc- litical system, along with other non-state actors curred since 1648 which shifted the state’s monop- such as non-governmental organizations. oly over Westphalian sovereignty. Firstly, the crea- tion of the United Nations and the International The City as an International Actor Court of Justice in 1945 introduced the concept of international laws and global governance on a The 21st century is characterized by global urbani- semi-enforceable scale. These international insti- zation. In total, 52% of the world’s total population tutions reduced the state’s ability to maintain total resides in urban areas.4 In the Western world, all countries maintain a majority urban population. 1 Teschke, Benno. The Myth of 1648: Class, Geopolitics, and the 4 United Nations, Department of Economic and Social Affairs, Pop- Making of Modern International Relations. London: Verso, 2003. ulation Division (2018). World Urbanization Prospects: The 2018 2 Janis, Mark W., and Carolyn Evans. Religion and International Revision, Methodology. Working Paper No. ESA/P/WP.252. New Law. Leiden: Martinus Nijhoff Publishers, 2004. York: United Nations. 3 Rodrik, Dani. One Economics, Many Recipes: Globalization, Insti- tutions, and Economic Growth. Princeton, NJ: Princeton University Press, 2009. 21 © IE Creative Common License Journal 01 (1) Fitzgerald The global percentage of city residents is expected the term paradiplomacy, which he defines as “a di- to reach 65% by 2050, with growth powered by rect international activity by subnational actors Asian and African megacities such as New Delhi, supporting, complementing, correcting, duplicat- Mumbai, Karachi, Shanghai, Cairo, and Lagos. Ac- ing, or challenging the nation-states’ diplomacy.”7 cording to Glaser, cities are the ideal environment The ability of a city to introduce a paradiplomatic for conducting economic interactions, as repre- strategy greatly depends on the laws within the na- sented by the rapid acceleration of global urbani- tion-state. The following paragraphs investigate zation. The top 10 largest cities in the world ac- the national legislation in place which regulates in- count for a GDP-PPP of $9.5 trillion, which is bigger ternational activities conducted by cities and re- than Japan and Germany’s economies combined.5 gions. Depending on the regulation, individual cit- Meanwhile, the 300 largest metropolitan eco- ies and states can be in a better position to conduct nomic areas account for almost half of all global paradiplomacy. This paper examines the cases of economic activity and represent 67% of global GDP Brazil, Belgium, and the United States. growth.6 While cities possess enormous economic power, their political impact is underdeveloped as Brazilian Paradiplomacy: The Rise of the Global in many circumstances; they do not possess signif- South icant legislative power. In order to address their lack of political power, cities and regions have Since 2005, Brazilian states have implemented suc- opened representations in different countries cessful strategies of paradiplomacy. Under the Bra- throughout the world. The representations act as zilian constitution of 1988, Article 21 states that liaison offices to encourage cultural, economic, “the federal government has the power to main- and political interaction between said region or city tain relations with foreign states and international and the host-actor. Although in its infant stages, organizations” yet Article 22, which lists the federal subnational led diplomacy represents a shift from government’s exclusive powers, does not mention traditional state monopolized diplomacy to mod- foreign relations, thereby opening the possibility ern diplomacy, which includes non-state actors. for Brazilian cities and regions to engage in inter- national activities.8 The State of São Paulo boasts What is Paradiplomacy? the largest regional GDP in South America, ac- counts for 40% of all foreign direct investment in Although ancient in its origins, subnational diplo- Brazil and 26% of Brazilian exports. Due to São macy has largely been ignored due to international Paulo’s large role in Brazil’s economy, São Paulo’s relations’ state-centric perception of the interna- has developed an extensive international relations tional political system. In 2016, Rodrigo Tavares re- policy.9 The São Paulo In the World, International leased Paradiplomacy; Cities and States as Global Relations Plan of 2011 led São Paulo to establish Players. Tavares’ vision was to demonstrate the international relations with over 100 countries and unseen impact that cities and regions have upon 20 multilateral organizations. São Paulo partici- the international political system. Tavares coined pates in 14 networks of sub-national governments 5 United Nations, 2018 8 Tavares, 212 6 Curtis, Simon. Global Cities and Global Order. Oxford: Oxford Uni- 9 Tavares, 212 versity Press, 2016. 7 Tavares, Rodrigo. Paradiplomacy: Cities and States as Global Play- ers, 211, New York: Oxford University Press, 2016, 22 © IE Creative Common License Journal 01 (1) Fitzgerald and has created 100 active cooperation programs central supplier of power for foreign policy. In and projects.10 Although São Paulo has the most terms of representations abroad, Flanders has robust international relations office, other cities eleven located throughout Europe, the United such as Rio de Janeiro, Porto Alegre, Belo Hori- States, and Africa. The Walloon Export and Foreign zonte, Salvador, Palmas, and Recife all have inter- Investment Agency (AWEX) has 90 offices world- national relations offices.11 The agendas of the in- wide while conducting operations in 100 countries. ternational relations offices include attracting in- Flanders and Wallonia both engage in diplomatic ternational investment, raising the international functions such as signing trade agreements, cul- reputation of the city or create an image-building tural exchanges, and ratifying treaties with other strategy, and to facilitate international coopera- sovereign states.14 Stéphane Paquin,