the role of trade in foreign policy: cyprus example assist. prof. dr. ozan Örmeci

THE ROLE OF TRADE IN THE ROLE OF TRADE IN FOREIGN POLICY: CYPRUS FOREIGN POLICY: CYPRUS

EXAMPLEEXAMPLE

Assist. Prof. Dr. Ozan Assist. Prof. Dr. Ozan ÖrmeciÖrmecihttp://http://

www.ozanormeci.com.trwww.ozanormeci.com.tr


EXAMPLEEXAMPLE- International trade is the exchange International trade is the exchange of capital, goods, of capital, goods, and services across international borders or and services across international borders or territories. In most countries, such trade territories. In most countries, such trade represents a significant share of gross domestic represents a significant share of gross domestic product (GDP). While international trade has product (GDP). While international trade has been present throughout much of history been present throughout much of history (see Silk Road, Amber Road), its economic, (see Silk Road, Amber Road), its economic, social, and political importance has been on the social, and political importance has been on the rise in recent centuries.rise in recent centuries.- In recent decades, with the effect of In recent decades, with the effect of globalization and developing communication and globalization and developing communication and transportation technologies, the international transportation technologies, the international trade increased all over the world and trading trade increased all over the world and trading agents have become significant international agents have become significant international political actors. political actors.


EXAMPLEEXAMPLE- While the rising international trade strengthens While the rising international trade strengthens globalization, globalization also looks for globalization, globalization also looks for increasing international trade to surpass national increasing international trade to surpass national boundaries. boundaries. - For many thinkers, the management of For many thinkers, the management of economics has become more important in many economics has become more important in many countries than the management of politics in the countries than the management of politics in the recent years. recent years. - The relative loss of power of the states and the The relative loss of power of the states and the capital’s search for profitable markets and cheap capital’s search for profitable markets and cheap laborlabor,, turned politics into economic turned politics into economic administration unlike what Mao’s famous dictum, administration unlike what Mao’s famous dictum, “Politics take command”. “Politics take command”.


EXAMPLEEXAMPLE- While the supremacy of economic mentality While the supremacy of economic mentality over political mentality create problems related over political mentality create problems related to social justice, in some cases in could help to social justice, in some cases in could help political problems to be resolved due to political problems to be resolved due to increasing economic integration on problematic increasing economic integration on problematic sides which could create “win-win” situations. sides which could create “win-win” situations. - A win-win game is a game which is A win-win game is a game which is

designed in a way that all participants designed in a way that all participants

can profit from it in one way or the other.can profit from it in one way or the other.

In conflict resolution, a win-win strategy In conflict resolution, a win-win strategy

is a conflict resolution process that aims is a conflict resolution process that aims

to accommodate all disputants. to accommodate all disputants.


EXAMPLEEXAMPLE- In International Relations, integration theories In International Relations, integration theories open the door for “win-win” situations. According open the door for “win-win” situations. According to Reinhard Meyers, integration requires the to Reinhard Meyers, integration requires the emergence of common norms, values and targets emergence of common norms, values and targets with the opposing sides. There are different with the opposing sides. There are different theories about integration.theories about integration.

1. 1. FunctionalismFunctionalism: As it was advocated first by : As it was advocated first by David Mitrany in “A Working Peace SystemDavid Mitrany in “A Working Peace System”” ((1943), integration should start from economics 1943), integration should start from economics since creating “win-win” situation is much more since creating “win-win” situation is much more difficult in politics. However, if economic difficult in politics. However, if economic integration is achieved successfully, then integration is achieved successfully, then political integration can also be realized. political integration can also be realized. European Union can be analyzed as a European Union can be analyzed as a functionalist project that started with European functionalist project that started with European Coal and Steel CommunityCoal and Steel Community (ECSC) (ECSC). .


EXAMPLEEXAMPLE2. 2. TransactionalismTransactionalism: Transactionalism was : Transactionalism was developed by Karl Deutsch in the 1950s. Deutsch developed by Karl Deutsch in the 1950s. Deutsch believed that integration could be achieved best believed that integration could be achieved best by managing communication on different sides by managing communication on different sides by establishing a common language and culture. by establishing a common language and culture. This will lead to political and economic This will lead to political and economic integration in the subsequent process.integration in the subsequent process.

3. 3. IntergovernmentalismIntergovernmentalism: Developed by Andrew : Developed by Andrew Moravcsik, Intergovernmentalism is based on the Moravcsik, Intergovernmentalism is based on the good governance of political and economic good governance of political and economic integration by governments on the both sides. integration by governments on the both sides. Without effective political governance, Moravscik Without effective political governance, Moravscik thought integration will not be successful. This thought integration will not be successful. This will require negotiations but also at the same will require negotiations but also at the same time consensus. time consensus.


EXAMPLEEXAMPLE4. 4. SupranationalismSupranationalism: Supranationalism claims : Supranationalism claims that integration will be successful only if that integration will be successful only if supranational actors are involved. This could supranational actors are involved. This could take place in 2 different ways. One is called take place in 2 different ways. One is called “institutionalism” and is based on the creation of “institutionalism” and is based on the creation of supranational actors having more power than supranational actors having more power than national actors. The other way is called national actors. The other way is called “socialization” and is based on the changing “socialization” and is based on the changing identities and the emergence of new identities and the emergence of new supranational identities during the integration supranational identities during the integration process. The new “European” identity that was process. The new “European” identity that was created during EU integration process over the created during EU integration process over the national identities, can be used as an example national identities, can be used as an example here. According to Ernst Haas, this will take here. According to Ernst Haas, this will take place due to “spill over” effects that will follow place due to “spill over” effects that will follow economic integration.economic integration.


EXAMPLEEXAMPLECYPRUS DISPUTE AND EAST CYPRUS DISPUTE AND EAST

MEDITERRNEAN ENERGY RESOURCES MEDITERRNEAN ENERGY RESOURCES AS A CASE STUDYAS A CASE STUDY


EXAMPLEEXAMPLE- The discovery of natural gas resources in the Eastern Mediterranean, could be used as a leverage for the solution of the Cyprus Dispute or Cyprus Problem. - The drilling and the safe transportation of Cyprus natural gas resources may direct two neighboring political entities; TRNC and Cyprus Republic to work together and reach a consensus for the settlement. - This cooperation may be strengthened since Israel’s newly discovered natural gas resources may also be transported from the same pipeline route.


EXAMPLEEXAMPLE


EXAMPLEEXAMPLE- Since European countries are in the search of new and cheaper energy resources as well as alternatives to Russian natural gas and an American company Noble Energy is the principal actor in this process, this new process will have the support of major international actors such as USA and EU. - Turkey and Greece, two guarantor states for the 1960 Republic, also seem supportive of this process where another guarantor the U.K. and natural gas market leader Russian Federation do not seem disturbed. - These are all signs of potential success for economic integration that could be followed by political integration.


EXAMPLEEXAMPLE“First thing first”

- According to integration theories that I summarized (Functionalist paradigm mainly and also Supranationalism), economic integration should take place first in order to encourage and facilitate political integration later.- A hasty political integration that is not backed up concrete and guaranteed economic interests, could be problematic and even spoil further economic and political integration.- Thus, it might be better to solve energy problem first and then to focus on political integration.


EXAMPLEEXAMPLE“Think Big”: Mediterranean Union

- With the recent discoveries in Israel and Crete in addition to potential new energy resources in the region, it might be also possible to look to “big picture” and bring into agenda a larger Mediterranean Union that was advocated by former French President Nicolas Sarkozy in the past.- Non-EU countries such as Turkey, Israel, Lebanon, Tunisia, Egypt, Libya, Morocco, Syria and Palestine can work on a greater project with the help of Mediterranean EU countries such as Greece, Cyprus Republic, Italy, France and Spain together.



- But for sure, this will need visionary leaders in all major countries in the Mediterranean and also leader countries to assume such role. Israel, France, Turkey and Greece could be the leading countries of such a new geopolitical design.- Main problems for such a design for the moment are; Syrian civil war, instabilities in Libya and Egypt, Arab-Israeli conflict, Turkish-Israeli tension, Turkish-Greek disagreement and the Cyprus Dispute.

the role of trade in foreign policy: cyprus example assist. prof. dr. ozan Örmeci

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