Terrorism
Impact On Economic Diplomacy

By C D Bhatta

Diplomacy has always been an important factor to foster foreign policy in the international arena since time immemorial. There has been natural and substantial changes in the way diplomacy is being conducted. For example, during the Cold War era ‘discrete diplomacy’ was at its height while after the Cold War ‘open diplomacy’ has dominated the international affairs. During the ‘open diplomacy’ era or in the 1990s the international relations has been influenced by the economic factor.

Testimony

Most of those regional organisations of the Cold War era have shifted their agendas from the traditional one, that is, most of them were formed to ward off the threats emanating from the Cold War rivalries, to economic one. The formation of EEC, ASEAN, NAFTA, APEC and other regional organisations into the economic powerhouse is a testimony to this end. Economic diplomacy has been practised widely around the world because it was felt that only the new diplomacy can respond to the new realities being faced by the world, promote continued economic liberalisation market and free international trade. Economic diplomacy will not only help in creating new opportunities but it will also enhance our pursuit of our more traditional foreign policy objectives. This was the foreign policy vision jointly enunciated by the international leaders in the 21st century.

The end of the Cold War paved the way for new notion of diplomacy. During the Cold War era, the world diplomacy was focussed more on secure regional stability and managing the balance of power between to super states and two competing models of governance. The fall of the Berlin war gave an impetus to accelerate international relations in more harmonised way. It provided a sense of easiness in the world.

After the collapse of the Berlin Wall and the prior to 9/11, we have been living in a world without any clear common enemy. There existed competition among nations only in the economic front. The fierce economic competition among countries that have been aligned with each other militarily is a reality of the post-Cold War world. The change in global position from post-World War II economic dominance to economic interdependence of today has brought a shift towards an increasingly aggressive trade posture. Every important economy is similarly engaged in expanding overseas market.

In order to tune with international spirit, Nepal, also, followed up the same suit with the formation of economic wing at the Ministry of Foreign Affairs to coordinate economic activities at home and foster economic activities at the international level.

The Nepalese government has embraced the worldwide concept of economic liberalisation, free market economy and trade in order to invite Foreign Direct Investment into the country, as FDI has been a major ‘mantra’ of development in the world. Policies were shaped up and there has been tangible effects seen on the Nepalese economy, albeit, the foreign policy mandarins were less effective. The surge Nepal witnessed early 1990s was mainly due to the growing spill over impact of ‘globalisation’ factor in the world. At the regional level, an attempt was made to revitalise the SAARC and the concept of free market area within SAARC was born. For South Asia, it was a good start.
The arrival of the new millennium was celebrated by the world with great fanfare. Renewed commitment to combat with famine, economic backwardness and poverty was made. Concept of ‘global brotherhood’ was developed. There was no threat that could jeopardise the conducive environment to forge any necessary alliance for this cause. Nevertheless, ‘all was not going well’ in the international affairs. The new jackals have already planted their roots in the world and were trying to destabilise the world order. They did it by blowing up the twin tower of World Trade Centre in New York. The series of terrorists’ attacks of late 1990s and 9/11 have entirely changed the face of the world.

he fierce effect of 9/11 lies mostly on economic front. As the world was hit by the acts of terrorists in the very beginning of the 21st century, there has been a major shift in conducting the foreign economic policy in the world. The spate of ‘terrorism’ has hit hard on the western world. The recent attack in Bali, Indonesia, the spread of concept of Pan-Islamic state in the region and the increased religiously motivated fanatic views have further dominated the world affairs, which have further jeopardised the economic activities.

The terrorism has resulted in major slump in the economic development. These acts have forcefully changed the basic notion of the economic diplomacy that was popularised in the 1990s. The developed countries are virtually closing doors of economic diplomacy due to perceived threat coming out of terrorist which are mainly seen in the Third World.

While discussing the case of future of economic diplomacy in Nepal, it is gloomy.‘Political terrorism’ spread by the Maoists guerrillas has hit Nepal. Nepalese economy has been hit by the series of incidents over the years. The unimaginable incident in Royal Palace and the series of events in the political spectrum have hit the country very badly from every aspect thereby tarnishing the image of the nation at the international level. Its repercussions have seen heavily on the economic arena. The tourism industry is virtually dead and others are on the path of tourism industry. The system of governance has completely collapsed. The commitment towards democracy and governance are the key points for the prosperity of any society and so is the point to receive foreign direct investment into the country. The already unresolved foreign policy agendas have been superseeded by the new one and the layer of unresolved issues keeps on rocketing.

Demand

The political turmoil in the country has ruined everything. Nepal has been on the CNN and BBC almost everyday where country’s sorry state has been projected repeatedly. Kathmandu based diplomatic community and other international organisations are worried about their security. The regional economic or political cooperation in South Asia is either already dead or on the verge of collapse. The most stunning demand of today is to invest on political stability in the country, for that reason, peace from every aspect.

Other Story

• France Says Goodbye To “Mobylette”