ECONOMIC DIPLOMACY STRATEGY FOR THE RECOVERY OF THE SLOWDOWN OF GLOBALIZATION (SLOWBALIZATION)

José Manuel Macedo Botelho,Iveta Mietule,Irina Maksymova,Hanna Puriy,Volodymyr Kulishov

doi:10.35774/jee2021.02.246

Abstract

The article investigates a transition from globalization to its more restricted model called «slow stabilization» or «slowbalization» in the context of the most decisive challenge to economic diplomacy. The authors of this study identify the problems of globalization, outline possible causes and consequences, and consider the option of returning to comprehensive protectionism as a manifestation of the economic diplomacy of national economic systems in the context of globalization and «slowbalization». The novelty of this work is in using economic diplomacy, in the unique pandemic context, as a driver to support economic recovery, helping to define national and international policies and creating a strong network where government, embassies, consulates, agencies, institutions, companies and households can come together to achieve effective cooperation. The research concludes that economic diplomacy in general, and export promotion agencies in particular, encourage export promotion and trade growth. Authors establish that the strategy of economic diplomacy is the driver of recovery and can assist in the scenario of deceleration defining a clear export strategy, creating a large network that involves all actors and network of offices abroad to spread the exports policy, and employing a wide variety of instruments, such as bilateral, regional, and multilateral agreements.

Highlights

There is no doubt, the world economy is going through a difficult transition from globalization to slowbalization, while the tension between economic nationalism and globalization intensifies, which shapes up to be one of the most decisive challenges for economic diplomacy
Economic diplomacy provides a precious practical methodology for the recovery under the crisis while the slowdown in globalization is caused by a unique crisis in the modern world – a health crisis – and urgent national and international policies must be introduced to protect businesses and families and increase trade growth. In view of this fact, the national governments require the strategy of economic diplomacy focusing on recovering and rebuilding in the context of slowbalization
Globalization can be defined as the free worldwide flow of goods, services, data, capital and technology (Milanovic, 2012; Campbell, 1994)

Summary

Literature Review and Problem Statement

There is no doubt, the world economy is going through a difficult transition from globalization to slowbalization, while the tension between economic nationalism and globalization intensifies, which shapes up to be one of the most decisive challenges for economic diplomacy. Economic diplomacy provides a precious practical methodology for the recovery under the crisis while the slowdown in globalization is caused by a unique crisis in the modern world – a health crisis – and urgent national and international policies must be introduced to protect businesses and families and increase trade growth. In view of this fact, the national governments require the strategy of economic diplomacy focusing on recovering and rebuilding in the context of slowbalization. The relationship between economic diplomacy through embassies and consulates and the impact on the exports

Methodology of Research

Research Results

Conclusions