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Diplomatic prowess
JUN 05 -
Diplomacy is employed by the government to promote and enhance national economic interest within dynamic global economic environment. Government conducts its economic diplomacy by applying economic tools such as reward and sanction to influence or changes other’s course of action as per acceptable norms and standards. Economic diplomacy also seeks to bridge differences and find out common ground to serve mutual economic interest. It is also a way to forge friendly and better economic relations between and among the countries.
Diplomacy is carried out by the national representatives-diplomats-as per government’s will and direction They demonstrate their professional skills, approaches and art of negotiation to conduct their assigned task at various levels such as governmental and non-governmental, bilateral, regional and multilateral. They also offer relevant information and data by collecting and analyzing it from different sources and techniques about receiving state’s socio-economic and political status to the sending government for the formulation of workable policy guidelines.
Economic diplomacy has brought fundamental change in the global politics. The approach to diplomatic dealings has changed significantly in the contemporary world. Economic interest of any country has become a determinant of its foreign policy. Various significant agreements are concluded at the various regional and multilateral forums. Many non-governmental agencies such as multi lateral organisations and civil society have become influential actors in shaping the international relations. New approach of diplomatic dealings has gained more significance particularly after the end of cold war along with the rapid wave of globalization. Developing countries have also assimilated them into new approach and adopted it as a mean to revive their socio-economic condition as well as build better economic relations with developed countries.
Nepal too has a long history of diplomatic dealing. It gained prominence with the entry to the United Nation in 1955. Nepal is also a founding member of Non-Aligned Movement (NAM). All these opened up new avenue to strengthen and enhance its international posture in the comity of nations. It has, now, diplomatic relations with 130 countries and stationed its 30 diplomatic machineries at difference places abroad. Nepal has already become a member of various regional and multilateral international institutions such as WTO, IMF, World Bank, ADB, UNCTAD, BEMESTEC, SAARC, and SAFTA. But it has not been able to exploit the full benefit from these institutions. Socio-economic condition of the country has been remained fragile. Government has not been able to enhance its economic diplomacy as a part of its foreign policy. Nepal’s foreign policy has largely focused on garnering more and more development assistance from bilateral and multilateral sources to run its annual national development plan. It has not been given its priority to promote and enhance export trade, tourism, foreign investment, foreign employment, and technological transfer during bilateral and multilateral talks. Huge trade deficit, increasing foreign debt servicing, low economic growth, huge unemployment, massive poverty and shortage of foreign currency have remained as the long outstanding issues in the country.
Hydropower, biodiversity, tourism, agro-industries, and health and education are the highly potential sectors to attract more investment along with abundant natural resources, cheap labour forces, develop capital market and financial institution and huge market potentialities due to its immediate neighbours. But these sectors have been remained under utilized due to lack of capital, technology, and managerial skills as well as concerted effort of the government to attract more investment. Government also needs to show sincere efforts to attract more non- resident Nepalis with their capital, technology, skills and long experiences by addressing their legitimate concern which is the most viable and sustainable source of investment to run mega project in the country.
Natural diversity, historical and cultural heritage, typical lifestyle, religious harmony and coexistence, magnificent mountain range, scenic beauty, festivals, floras and faunas are the features that attract visitors. Nepal can be a premium destination for the tourist, if government as well as private sector takes joint initiative to promote and enhance Nepal’s international posture adopting various international promotional campaign and activities collectively. Tourism industry of Nepal is a sustainable source of foreign currency earning, employment and poverty reduction. It can also contribute to national economic growth as well.
Furthermore, increasing unemployed or underemployed labour forces in the country is not only a burden to the nation, if it utilize properly by producing skilled work force which is demanded by various multinational companies abroad. It can contribute to enhance national GDP by foreign currency earning, but government should explore new labour destination by utilizing its machineries abroad. Various socio-economic problems such as political instability, smuggling, trafficking, social unrest, civilian violence etc. are exacerbating due to increasing level of unemployment in the country. In this context, exploration of more potential labour destinations abroad can be a viable option to absorb increasing labour forces considering poor socio-economic condition and industrial development of the country. It is also important for the poverty alleviation, increase national revenue and foreign currency reserve in the country.
International trade volume of the country is running with huge trade deficit, however, it has established bilateral trade relations with many countries as well as concluding regional trade agreements i.e. SAFTA to enhance and promote its export trade and better economic relations. It has also an opportunity to get preferential treatment for its manufacturing goods and services in the developed countries due to having a least developed and land locked country. Although, it is bearing huge trade deficit due to lack of competitiveness, product and market wise diversification and supply side constraints. Government should provide clear direction to its diplomatic machineries as well as national representative to enhance and promote duty free and quotas free market access to its products in the developed countries which is critically important to revitalize its international trade as well as reduce trade deficit.
Thus, considering the socio-economic condition of the country, the government should be, first of all, redefined and reset its new foreign policy with defining clear priority. It should further be adopted the economic diplomacy as core foreign policy priority to enhance and promote its export trade, foreign investment, tourism, technology transfer, and foreign employment for the reenergize and revive its national socio-economic condition as well as attain sustainable and broad-based development at all affairs of state. Economic diplomacy should also be taken as a mean to fulfil overwhelming people’s desires and aspiration by promoting more socio-economic opportunities to them.
(The author is post graduate from
KDI School of Public Policy and Management, South Korea)
Posted on: 2010-06-06 07:34
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