No nation was ever ruined by No nation was ever ruined by tradetradeINDIAN ECONOMIC D IPLOMACY THEORY AND PRACTICE

AMBSSADOR RAJENDRA ABHYANKAR AT I IM SHILLONG JULY 10,2015

- Benjamin Franklin

Overview Definitions: Bilateral, Regional,

International

International Organizations/Groups dealing with economic matters

India’s economic interests and tools at its disposal

Examples of successes and losses in economic diplomacy

Defining Economic Diplomacy

Definition: Economic diplomacy includes all external economic activities, including but not limited to export, import, investment,

lending, aid, free trade agreements, etc.Tools: Economic diplomacy is the use of the full spectrum

economic tools of the state to achieve its national interest. What are there tools?

What does it involve for a diplomat?

Defining Economic DiplomacyHistory of Economic Diplomacy

India’s economic reform process changing of goals from self-sufficiency and import-substitution to

export promotion

Areas: goods, services, investment, professionals

Participants: government, non-governmental , corporate and NGO’s

BILATERALMerchandise Trade : FTA’s and PTA’sServices: CIT, Financial other- start-ups outsourcingProfessionals ‘movement of natural persons’ migration,level playing field

REGIONALSAARCASEANMGCINDIA-EUBRICSIBSA

MULTILATERALWTO/GATTUNCTADG-20

World Trade Organization (WTO)Created in January 1995 succeeded the former GATT

Secretariat ( 1948)

159 countries are members

Goals/Duties Administer WTO trade agreements Assist/encourage trade negotiations and handle trade disputes Monitor national trade policies Provide technical assistance and training for developing countries Maintain communications and cooperation with other international organizations Tariff Negotiation Rounds: Kennedy Round, Uruguay Round, Doha Round India’s interests

Bretton Woods Agreement

Met in New Hampshire in July 1944

Fueled by the lack of international trade during the Great Depression and effects of WWII

Created: International Bank for Reconstruction and Development (IBRD) (now The

World Bank)Focuses on worldwide development/poverty alleviation

International Monetary Fund (IMF)Oversees the international monetary exchange and provides monetary aid to developing countries

System collapsed around 1971, but IMF and World Bank still influential in economic diplomacy today.

New Initiatives: G-20; BRICS Bank,Chinese-sponsored IIIB

The World Bank and International Monetary Fund (IMF)

Organization of Petroleum Exporting Countries (OPEC)/OAPEC

Created at the Baghdad Conference on September 1960

Purpose was to create coordination among oil producers in the Middle East Made up of 12 members Raises and lowers production amounts to maintain prices of oil

Now represents the one of the most well-known cartels

Oil Diplomacy : India’s current policy and imports of oil and gas

Central Asia, Sudan, Russia, Iraq, Iran

Recent examplesEU- INDIA RELATIONSHIPINDIA-ASEAN OIL PROJECTS : GOVERNMENT,CORPORATECASES OF ADVOCACY: grinding electrodes in Germany, other M & A in Europe, and ASEAN (Indonesia)

http://www.history.com/topics/suez-crisis

http://www.oecd.org/about/history/

http://www.imf.org/external/about/histcoop.htm

http://www.worldbank.org/en/about/history

http://www.econlib.org/library/Enc/OPEC.html

http://www.opec.org/opec_web/en/about_us/24.htm

http://www.theguardian.com/world/1999/mar/05/eu.wto3

http://www.iucat.iu.edu/catalog/12650307

http://www.bbc.co.uk/news/business-20263308

http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm

http://www.gmanetwork.com/news/story/345051/economy/opinion/china-s-bullying-economic-diplomacy-may-backfire-say-experts

http://www.theguardian.com/world/1999/mar/05/eu.wto3

http://www.bbc.co.uk/news/business-20263308

http://edition.cnn.com/2013/12/13/business/ukraine-protests-explainer/index.html?hpt=hp_t2

http://www.clingendael.nl/sites/default/files/20030100_cli_paper_dip_issue84.pdf.

http://www.britannica.com/EBchecked/topic/454413/OPEC/233528/History

http://www.ft.com/intl/cms/s/0/778739c4-f869-11db-a940-000b5df10621.html#axzz2rENpFQh9

Photos:

http://content.time.com/time/business/article/0,8599,1852254,00.html

http://informacionlibre2000.wordpress.com/2012/10/13/gloriosa-victoria-el-polemico-mural-de-diego-rivera-para-guatemala

http://www.opec.org/opec_web/en/about_us/24.htm

http://www.gcpr.net/tops-and-flops-in-international-pr-wrap-up/

http://purevisibility.com/blog/seo/international-seo-infographic/

http://www.wto.org/english/res_e/photo_gallery_e/photo_gallery_e.htm

http://en.wikipedia.org/wiki/Panama_Canal_locks

http://www.nytimes.com/2008/03/02/books/review/Kurtz-Phelan-t.html?_r=0

Resources