Economic Diplomacy Research Articles

Economic Diplomacy in the Caribbean

Abstract Caribbean economic diplomacy is at a crossroad, not knowing where and how to turn. This paper opens an intense discourse on the issues facing the Caribbean economy – the nexus between integration and convergence, the stress and resilience of its economic institutions, as well as the dilemma of leaders in the practice of economic diplomacy. The paper also examines the old and new challenges of global cooperation and the framework of power and geopolitics in the conduct of economic diplomacy in the Caribbean. As the frontiers of Caribbean diplomacy shift, its unique and diverse landscape makes the region an enigma with unfolding foreign policy options on a fragile map of the many Caribbeans in one economic space.

Sino–Japanese third-party market cooperation: asymmetries of economic diplomacy and politico-economic gaps

Abstract In the wake of the intensifying Sino–Japanese rivalry in Asia, a new third-party market cooperation (TPMC) framework emerged in late 2018. The new mechanism was inaugurated around the time of former Japanese Prime Minister Shinzo Abe's visit to Beijing, displaying new attempts at Sino–Japanese economic diplomacy. Nonetheless, this article highlights the absence of major cooperative outcomes and suggests a pessimistic vision of TPMC's future, as three pairs of politico-economic gaps have led to asymmetries in the approaches adopted by China and Japan. First, a government-to-government policy asymmetry occurred between China's initiatives and Japan's responsiveness, as the latter merely utilized the TPMC as a temporary diplomatic tool to restore bilateral relations in late 2018 and appeared to have lost its policy momentum in the following years. Second, asymmetries in business modes and investment management between the two countries' enterprises have led to technical barriers in materializing the two governments' agreements into specific TPMC business collaboration. This study illustrated a project of Sino–Japanese collaboration in building a high-speed railway in Thailand, and saw this failed case as a warning for existing gaps of commercial modes. Third, both countries are now confronted with domestic underdeveloped public–private partnerships between state and private sectors. This article also aims to provide some policy-oriented implications for steadily implementing the Sino–Japanese TPMC in the future.

The ‘Pragmatic cooperation’ in the Belt and Road Initiative: the Sino-Turkmen natural gas engagement

ABSTRACT This article examines China’s ‘pragmatic cooperation’ approach in the Belt and Road Initiative (BRI) using the Sino-Turkmen natural gas engagement as a case study. The disputes between China and Turkmenistan about the natural gas pricing mechanism, supply and prospective development have worsened after the request for pragmatic cooperation within the BRI. This article suggests that depoliticized economic diplomacy – such as advocating for pragmatic cooperation – does not necessarily avoid political disputes. Instead, mutual awareness is the key to achieving a win–win result.

Introduction: Now is the Time to Study Economic Diplomacy

Introduction: Now is the Time to Study Economic Diplomacy

INDONESIA'S ECONOMIC DIPLOMACY IN INDONESIA-EFTA COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT (IE-CEPA)

This article aims to analyze Indonesia's economic diplomacy in the Indonesia-EFTA Comprehensive Economic Partnership Agreement (IE-CEPA), which can provide excellent opportunities for Indonesia to increase trade and investment with EFTA countries. The analytical framework used in this article is economic diplomacy with the operationalization of trade diplomacy, according to Okano-Heijmans. The research method in this article uses qualitative methods. The results of this article show that Indonesia's economic diplomacy gives a positive view of IE-CEPA as an important agreement to strengthen economic relations between Indonesia and EFTA countries through reducing import duty rates, eliminating non-tariff barriers, and protecting investment, which is expected to increase the power of competitiveness of Indonesian products in the European market and increase Indonesia's exports to EFTA countries.

STRATEGI DIPLOMASI EKONOMI INDONESIA DALAM MEMAJUKAN PEMBANGUNAN EKONOMI NASIONAL MELALUI KEPEMIMPINAN INDONESIA DALAM FORUM G-20 TAHUN 2022

This article discusses the role of Indonesia's economic diplomacy in national economic development through the G20 Presidency in 2022. As a member and host of the G20, Indonesia has the opportunity to strengthen partnerships, boost productivity and enhance sustainable economic growth. This article focuses on Indonesia's five main pillars as the G20 Presidency and the six priority agendas in financial track to be discussed. It also emphasizes how economic diplomacy fulfills Indonesia's national interest in economic development. The importance of the G20 in supporting the international development agenda, especially the Sustainable Development Goals (SDGs) which includes goal 8 on decent work and economic growth, is also emphasized. As a member of the G20, Indonesia is committed to implementing SDGs programs and paying attention to its targets, including per capita economic growth, increased productivity, development- oriented policies, and world resource efficiency. Indonesia's 2022 G20 presidency, with the theme "Recover Together, Recover Stronger" is an opportunity to strengthen Indonesia's economic diplomacy and build the nation's image. This article highlights Indonesia's foreign policy measures that focus on economic diplomacy to achieve national interests. In this context, the role of Indonesia's economic diplomacy during the 2022 G20 Presidency is the focus of this article.

Major Concepts of the Turkey Blue Homeland Strategy

The article analyses the key directions of Turkey’s foreign policy under the presidency of Recep Tayyip Erdogan. It examines concepts such as “ba-lance” in relations with the Middle East and the West, which Turkey is trying to achieve through the development of its economy and international trade. The article also focuses on the concept of “security in the East”, which reflects Turkey’s focus on security concerns from terrorist groups on its border with Syria and Iraq. Researchers on this topic also note the strategy of the “new Ottoman space”, which reflects Turkey’s intentions to increase its influence on the countries of the Balkans and the Caucasus. The article analyses the concept of “active diplomacy”, which consists in establishing diplomatic ties with new states, as well as developing and deepe-ning relations with countries that already have diplomatic ties with Turkey. In addition, the article focuses on the concept of “neighbourhood policy”, which reflects Turkey’s commitment to maintaining peace and stability in the region. The article also examines Turkey’s role in international organisations, such as NATO and the UN, and its “economic diplomacy” strategy, which reflects Turkey’s intention to attract foreign investment and develop trade relations with other countries. The Blue Homeland Strategy encompasses a number of policies and initiatives, including expanding Turkey’s naval capabilities, improving coordination between the various branches of the military, strengthening relations with allied countries, and promoting economic development in the maritime sector. The strategy emphasises the importance of diplomacy and legal initiatives to protect Turkey’s maritime rights in accordance with international law. “The Blue Homeland is seen as a comprehensive approach to addressing Turkey’s maritime security challenges and protecting its national interests. In addition, the Blue Homeland strategy also plays an important role in achie-ving Turkey’s broader foreign policy goals. The article provides an in-depth analysis of the main directions and concepts of Turkey’s foreign policy strategy, which helps to understand the complexity and importance of this country’s foreign policy activities in the modern world.

NGO Involvement in the Indonesia-EFTA CEPA Negotiations on Palm Oil

Crude palm oil is considered a strategic export commodity for Indonesia because of its contribution to the domestic economy and development so the government will always ensure that agreements related to CPO are included in the discussion of international trade agreements, including the Indonesia EFTA CEPA. However, the agreement related to CPO in Indonesia-EFTA CEPA received an unfavorable response from several national NGOs in Switzerland who are members of The Swiss Palm Oil Coalition. They urged the government of Switzerland to exclude CPO from the free trade agreement. This research aimed to find out the involvement of NGO in Indonesia-EFTA negotiations on palm oil using the conceptual framework of economic diplomacy. The research method used in this paper is descriptive qualitative. The data collection methods used are interview methods, document-based methods, and internet-based methods with data analysis techniques consisting of data reduction, data presentation, and verification and conclusion drawing. Based on the results of the research, it can be concluded that the form of NGO involvement in the palm oil negotiations in the Indonesia-EFTA CEPA can be divided into two, namely NGOs as consulting partners, and NGOs as pressure groups. Keywords: Crude Palm Oil; Economic Diplomacy; Indonesia-EFTA CEPA; NGO

Upaya Kerja Sama Multilateral Indonesia dalam Menanggapi Kebijakan Red Ii Uni Eropa

Indonesia has the largest palm oil plantation industry and is the world's largest producer of palm oil. Palm oil commodities originating from Indonesia are exported to almost all continents with the highest consumers found in the Asian continent and the European Union region. The European Union as one of the major consumers of Indonesian palm oil in 2018 revised its policy to Renewable Energy Directive II (RED II) which reaped negative sentiment towards the Indonesian palm oil industry. Then, the Government of Indonesia responded to these negative issues through several diplomatic efforts, such as multilateral cooperation. This article discusses Indonesia's trade diplomacy activities to the European Union using multilateral cooperation. This research uses qualitative research methods with the concept of economic diplomacy The data used in this study was obtained using several data collection techniques, such as literature studies. These data are analyzed and discussed using the framework of economic diplomacy concepts to explain the economic diplomacy activities carried out by Indonesia to the European Union on its palm oil commodities by joining multilateral cooperation. The result of this study is that Indonesia in making efforts to maintain its palm oil follows several bilateral and multilateral cooperations such as its participation in CPOPC.

Do Interstate Visits Matter? Political-Geographic Analysis of Slovak Economic Diplomacy

The aim of this article is a political-geographical analysis of political and economic relations between the Slovak Republic and the countries of the world from 1993 to 2019. We spatially analyze more than 15,000 trips of Slovak government officials to countries around the world and their relation to foreign trade. Using the statistical method of correlation, we examine the degree of relationship between trade indicators and political interactions (represented by government visits) in more than 150 countries around the world. We cartographically define spatial concentration, especially the high direct correlation between trade and trips, and examine the factors and causes of this correlation on the example of selected countries with significant values. The countries of the Eastern Partnership, the Middle East, the Western Balkans, and East Asia have the highest correlation coefficients. Our article seeks to contribute to the discussion on the effectiveness of economic diplomacy using geographical approaches.

Impact of Digitalization on Economic Diplomacy: Mega-Trends and opportunities

The accelerated process of innovation and diffusion of digital technologies over the last decades has greatly impacted all areas of society, becoming one of the most significant socio-economic phenomena of the contemporary world, transforming the way things are done, businesses are developed, or diplomatic goals are achieved. Economic diplomacy has been transformed in numerous ways, with new tools, actors and processes being involved, and with an ongoing increase of awareness in its opportunities as well as potential risks. The purpose of this paper is to highlight the impact digitalization has on economic diplomacy under the pressure of digitalization and the related “products” of the digital world (such as Big Data), and to identify, in perspective, the mega-trends and opportunities that shape economic diplomacy in the digital age.

Commentary: Nepal's Balancing Act in the Middle East

Nepal was the first South Asian country to establish diplomatic relations with Israel in 1960, and other Middle Eastern countries followed suit in the late 1970s and early 1980s. Although Nepal and Israel have excellent bilateral relations, Nepal has yet to support Israel in multilateral forums, owing to a dilemma in maintaining balanced relations with other Middle Eastern countries. Because Middle Eastern countries are commonly identified by their reliance on labor imports, they have also become a labor destination for Nepal. With a high concentration of Nepali workers (77%), countries such as the UAE, Qatar, Cyprus, Bahrain, Israel, Saudi Arabia, and Kuwait have dominated Nepal's labor migration. Remittances from these countries are huge every year, and they have become the backbone of Nepal's economy. As a remittance-driven economy, labor export has always been a major tool of Nepal's economic diplomacy, which is frequently at the forefront of Nepal's foreign policy toward Middle Eastern nations. As a result, the paper argues for more determined action in the Middle East region, through which Nepal can develop its economic, investment, trade, and tourism interests by negotiating more advantageous relationships with Middle Eastern countries.

Foreign Policy, Public Diplomacy, and Social Media

This paper observes the practice of Indonesian Missions abroad in conducting public diplomacy via social media. The research question is how do the Indonesian Missions abroad utilize social media to connect with the public and to support Indonesia’s foreign policies? This paper uses a descriptive qualitative method with primary and secondary data. Primary data are gathered by observing @indonesiainjeddah and @desrapercaya on Instagram. Secondary data are compiled by using literature studies of articles from reputable journals. There are three main findings of this paper. Firstly, the Ministry of Foreign Affairs of Indonesia emphasizes the importance of digital technology for diplomacy, proven by the Social Media Awards to appreciate the efforts in disseminating Indonesia’s foreign policy overseas. Secondly, the Indonesian Consulate in Jeddah, @indonesiainjeddah, has utilized social media account to disseminate Indonesia’s foreign policy, covering economic and health diplomacy, diplomacy for citizens’ protection, and Indonesia’s G20 Presidency. Thirdly, Ambassador Desra Percaya, @desrapercaya, has contributed to disseminating the foreign policy of Indonesia in the context of economic diplomacy, sports diplomacy, and the regional issue of ASEAN, with the additional element of cultural diplomacy. These findings confirm that Indonesia’s public diplomacy can be conducted using social media, to further promote Indonesia’s foreign policy.

Determining priorities for Ukraine’s post-war reconstruction in the conditions of preparation for EU membership

The priorities for Ukraine’s post-war reconstruction in preparation for its membership in the European Union are to ensure integration, efficient use of resources, socio-economic growth, and sustainable development. Finding ways to effectively develop the economic and other sectors, adapt to European norms and create a sustainable framework for integration into the European space was the purpose of this study. The methodology is based on the empirical research method. The reform priority coefficient was calculated using a formula for determining the priority areas for improving the economic, demographic, and political sectors of Ukraine. The study identified priority areas for Ukraine’s post-war development, including mechanisms such as ensuring sustainable economic growth, modernising infrastructure, developing trade relations with EU countries, supporting innovation and entrepreneurship, improving the quality of education and healthcare, which can be used by scientists and the state to ensure the country’s effective development and obtaining the status of a full EU member. The importance of ensuring social protection of the population, including raising living standards and ensuring access to basic social services, was identified. The study found that effective economic diplomacy and the expansion of international relations with EU member states are crucial factors for Ukraine’s successful preparation for EU membership. The focus is on ensuring strategic orientation, efficient use of resources and achieving the country’s socio-economic development in line with European standards and values. In practice, these results can become the basis for developing strategic decisions and programmes in line with EU criteria

Indonesia's Economic Diplomacy in Facing Red (Renewable Energy Directive) and European Union Palm Oil Policy

This study aims to examine Indonesia's economic diplomacy efforts in dealing with the Renewable Energy Directive (RED) and palm oil policies in the European Union. This economic diplomacy effort is a step to deal with the impact caused by policies implemented by the European Union. The method used is descriptive qualitative with data collection techniques in the form of literature review related to the problem under study. This literature includes books, journals, written reports, articles, news collections on the internet, and documents related to the object of research. Furthermore, the data analysis technique used is qualitative. The results found that in dealing with the policy, Indonesia used commercial diplomacy by cooperating with stakeholders to form FoKSBI, as well as making ISPO policies and suing the European Union regarding its claims

Economic Diplomacy through the Development of Nickel Smelters and Battery Plants in Indonesia: Obi Island Case Study

There is a high demand for electric batteries worldwide, driven by a growing movement towards environmentally friendly electric cars. As the country with the largest nickel producer, Indonesia can develop the technology of making raw nickel into raw materials for the world's electric batteries that will be supplied until 2040. The large number of these has an impact on the proliferation of foreign investment in Indonesia. This article will discuss the success of the Indonesian government in restoring the post-Covid-19 economy through international forums and bilateral cooperation, especially with China. The analysis of this theme uses qualitative methods to explore the success and impact further. Then, the concepts of economic diplomacy and state economic security become analytical tools to strengthen the author's argument regarding the long-term effect of too much foreign investment in Indonesia, especially cooperation with the Nickel Smelter owned by China.

Eski ve Modern İpek Yolunun Jeopolitik Boyutu

The old Silk Road, that connected the West and East, was a center of cultural and trade interaction in the Asian continent from China to the Mediterranean Sea, but in 2013 it was referred by the Chinese president Xi Jinping as “One Belt, One Road” (OBOR), which announced that China would fund a New Silk Road Economic Belt across Eurasia to connect China with Europe, the Middle East, and South Asia. Different from the old Silk Road, current Silk Road includes the flow of financial services, information, technology as well as the Chinese initiative to strengthen connectivity in Central Asia and beyond. Comparing the modern Silk Road with the old Silk Road, in this paper we focus on China’s regional and international expansion, and the relevance of new Silk Road as one of the current largest programmes of economic diplomacy. Thereby, by using the qualitative descriptive methodology and interdisciplinary approach, this paper demonstrates that the new Silk Road comprises a new global order; therefore, it must be seen as the link between the past, present, and future. That is why its concept must be analyzed with reference to the old Silk Road, but also in wider geopolitical context.

Externality of Economic Diplomacy in Indonesia: Case Study of Investment within Palm Plantation Sector

The rapid global trade has made the role of economic diplomacy becoming more significant for Indonesia. However, as international cooperation strengthened and investment flows increased following the success of economic diplomacy, externality towards the environment also appeared. By using green political theory as a theoretical basis, this article reveals how Indonesia’s economic diplomacy has overlooked environmental considerations and harmed the nature. This article uses an analytical framework highlighting commercial policy, assets as bargains, and laws governing business to examine the oil palm plantation case in Boven Digoel, Papua. Based on secondary data obtained from relevant literature and primary data collected through interviews, this research finds that the reliance of Indonesia’s economic diplomacy on commercial paper UU PMA 1967 (the 1967 Foreign Investment Law), forest assets offered as bargaining chips, and laws governing business as stated in PP.33/Menhut/2010 has resulted on the state’s neglect of nature protection. Keywords: Economic Diplomacy, Externalities, Green Political Theory, Natural Resources, Commercial Policy. Meningkatnya perdagangan global menyebabkan diplomasi ekonomi semakin penting bagi Indonesia. Namun, arus investasi dan menguatnya kerja sama internasional sebagai hasil dari diplomasi ekonomi ternyata menimbulkan eskternalitas terhadap lingkungan. Dengan menggunakan teori politik hijau sebagai landasan teori, tulisan ini mengungkap bahwa diplomasi ekonomi yang tidak mempertimbangkan aspek lingkungan menyebabkan kerusakan alam. Artikel ini menggunakan kerangka analisis yang menyoroti commercial policy, assets as bargain, dan hukum yang mengatur bisnis untuk menelaah kasus perkebunan kelapa sawit di Boven Digoel, Papua. Analisis dikembangkan secara kualitatif berdasarkan data sekunder yang didapat dari berbagai sumber kepustakaan yang relevan dan data primer yang dikumpulkan melalui wawancara penelitian ini menemukan bahwa dalam praktiknya diplomasi ekonomi mengabaikan kepentingan lingkungan. UU PMA 1967, aset yang ditawarkan, dan PP.33/Menhut/2010 merupakan bentuk dari pengabaian pemerintah terhadap perlindungan alam. Kata-kata Kunci: Diplomasi Ekonomi, Eksternalitas, Teori Politik Hijau, Sumber Daya Alam, Kebijakan Komersial.

Vegetable Oil Economic Diplomacy as an Instrument of Indonesian Foreign Policy

The development of international politics due to the Russian-Ukrainian conflict has caused international political instability and pressure on agricultural products and the energy sector in the world. Indonesia’s leading export commodity, under discriminatory pressure from the European Union, also has economic implications due to the Russian-Ukrainian war. Disruption to the world’s vegetable oil supply chains, the urgent need for food security, and the impact on achieving the goals of sustainable development that have been agreed upon so far make Indonesia seek to use the existing narrative through economic diplomacy. This condition is also related to Indonesia’s vegetable oil diplomacy as one of the foreign policy instruments. Therefore, economic diplomacy regarding Indonesian vegetable oils is also part of Indonesia’s national interest. This article uses qualitative methods with a descriptive-analytical type on how Indonesia uses the narrative of sustainable development issues in the context of Indonesian vegetable oils to achieve Sustainable Development Goals 2030, including instruments of economic diplomacy in realizing Indonesia’s national interest in Indonesia’s vegetable oil diplomacy. Keywords: economic diplomacy, Indonesia, foreign policy, vegetable oil, SDGs 2030 Perkembangan politik internasional akibat konflik Rusia-Ukraina telah menimbulkan dampak tidak hanya instabilitas politik internasional, namun juga tekanan terhadap komoditas produk pertanian maupun sektor energi di dunia. Komoditas ekspor unggulan Indonesia yang selama ini mendapatkan tekanan yang bersifat diskriminatif dari Uni Eropa juga memiliki implikasi ekonomi akibat terjadinya perang Rusia-Ukraina. Gangguan terhadap rantai pasok minyak nabati dunia dan sangat diperlukan tersedianya ketahanan pangan serta dampak terhadap pencapaian tujuan dari pembangunan berkelanjutan yang telah disepakati selama ini, menjadikan Indonesia berupaya menggunakan narasi yang ada melalui diplomasi ekonomi. Hal ini juga terkait dengan diplomasi minyak nabati Indonesia sebagai salah satu instrumen kebijakan luar negeri. Diplomasi ekonomi berkenaan dengan minyak nabati Indonesia juga merupakan bagian dari kepentingan nasional Indonesia. Artikel ini akan menjelaskan dengan metode kualitatif dengan jenis deskriptif analitis bagaimana Indonesia menggunakan narasi pembangunan berkelanjutan dalam konteks minyak nabati Indonesia guna mencapai Sustainable Development Goals 2030, termasuk instrumen diplomasi ekonomi dalam mewujudkan kepentingan nasional Indonesia dalam diplomasi minyak nabati Indonesia. Kata-kata Kunci: diplomasi ekonomi, Indonesia, kebijakan luar negeri, minyak nabati, SDGs 2030

Tourism and Classic Diplomacy: the Case of Strengthening Israeli–tanzanian Bilateral Relations

This article considers the link between tourism and classic diplomacy as a field of study and policy. The article focuses on the contribution of tourism to the strengthening of bilateral relations between governments, through analysis of Israeli–Tanzanian relations as a crucial case study. Thus, in addition to the literature that focuses on people-to-people diplomacy and tourism, this article highlights the role that tourism plays in strengthening diplomatic relations between states. Tourism is positioned within the broader context of economic diplomacy, and the interrelationships between tourism and diplomacy—theoretically and practically—are examined. This article finds that tourism is an important tool for promoting bilateral relations between governments in the context of classic diplomacy.