The concept of economic diplomacy and its activation

“Economic diplomacy” is one of the new, efficient, and very powerful tools of systems and governments in the international space to create action to achieve better positions in the world economy. Economic diplomacy is a series of official diplomatic measures that initially facilitate access to foreign markets for national businesses. Secondly, they are trying to attract foreign direct investment and thirdly, they emphasize influencing international laws to promote national interests.

It should be pointed out that economic diplomacy includes concepts such as sanctions and punishments to put pressure on countries, economic support or development aid, and help in the international scene. In this regard, we can mention the effects of imposing sanctions on the countries of Russia, Iran, or Cuba, or the large financial aid of Japan and the United States to countries that are aligned with their policies.

History of economic diplomacy

Before the end of the Cold War, for many years, the concern of many governments and policies governing international relations was to maintain national security and territorial integrity through military power. But with the emergence of deep changes in the world arena. Like the creation of financial institutions, and organizations, the expansion of the globalization of the economy and the rise and increase of interdependence among the countries of the world, the end of the Cold War and the collapse of the Soviet Union, etc., the economy gradually became an issue affecting international relations.

In this way, security requirements at the national and international levels became less important and the issue of economy became more important; So that the foreign policy of the governments, which was based on security and political issues, turned to economic issues, and the old and traditional diplomacy gave way to economic diplomacy as a junction between diplomacy and economic interests.

In this way, the military and political environment of the world changed its approach towards economization. Real power was defined based on the capacities and abilities of each country to integrate with the world economy and not just based on maintaining personal territory and military power.

The importance of developing economic diplomacy

Currently, “economic development” has become an effective and important factor in determining the strength of countries and the efficiency of governments. In this way, gaining economic power by conquering global markets has become the main concern of governments. In such a situation, it should be kept in mind that achieving economic capability and, as a result, achieving economic expansion will not be possible except in the shadow of effective and constructive interaction with the international economy. Therefore, it is very important and necessary for governments to consider some of the requirements for all their institutions and decision-making circles to gain a better position in the global economy. This is achieved in the field of foreign policy by explaining and implementing economic diplomacy.

Economic Diplomacy in Iran

Currently, due to the unfavorable state of the domestic economy and its unfavorable position in the world economy. As well as the emphasis of the country’s high-level documents, especially the perspective document, on the promotion of Iran’s economic and technological platform in the region. Prioritizing effective and fruitful economic interactions with the world in the form of economic diplomacy has the potential to take advantage of the resources and benefits of the global economy. It has become a necessary and inevitable principle, because in the current situation that the country is under international pressure due to the imposition of economic sanctions. Adopting a developmental foreign policy and active interaction at the regional and extra-regional levels, by showing Iran’s security image dimly, can lead to stability in the attraction of foreign investment and commercial relations through the method of building trust in foreign relations. And increasing the economic efficiency of new and knowledge-based technology transfer methods will have positive effects on the development and growth of the country.

To successfully implement economic diplomacy in Iran, it is necessary to put the economic situation of the country in an acceptable condition. Because it certainly cannot be expected in the current unfavorable conditions (including unstable, low-quality, and oil-dependent economic growth, the small share of the industry sector in the GDP, inappropriate institutional framework, prevalence of unproductive economic activities, anti-production business environment, export limited to raw materials and goods with low added value, etc.), simply by using economic diplomacy to achieve a suitable position in the global economy and benefit from its benefits.

For this reason, it is necessary to strengthen the infrastructure and requirements related to the improvement of the country’s economic situation, especially in the field of production and the realization of productive economic growth.

In the second step, some requirements are needed at the national level (including institutional requirements: the formation of a specific and special pillar or institution in the diplomatic system of the country, as well as requirements regarding the country’s economic diplomacy agents: that is, economic diplomats) and requirements at the international level (including some actions at the international level) to be considered.

In any case, the creation of active economic diplomacy in the country can provide the necessary platforms for the extent of interaction with the global economy and ultimately benefit from its benefits, and help to achieve national power in the international arena and neutralize sanctions. For this reason, the formation of a serious determination and determination to fulfill the required requirements and solve the existing inadequacies on the way to the operationalization of this type of diplomacy is obligatory and necessary.

Basic measures to pave the way for economic diplomacy in Iran are as follows:

• Providing a favorable perspective of the domestic economy from the method of increasing the production and export capacity of the country to raise and increase the opportunities for constructive and effective interaction with other countries.
• Focusing on regional cooperation as an effective factor to guarantee economic and political stability and security against external threats.
• Laying the foundation for benefiting from the benefits of being a member of the World Trade Organization, along with trying to join this organization.
• Increasing the expertise and organizational capacities of the country’s diplomacy through the method of strengthening the foundation of expertise and amending the rules and structure of the country’s diplomacy. Also, establishing cooperation and coordination of this ministry with other governmental, non-governmental, and private actors.
• Presenting Iran’s economic capabilities in the official languages of different countries and not just English, along with establishing wider communication and laying the groundwork for economic relations by Iranian diplomats.
• Paying attention to emerging threats and benefiting from the successful experiences of other international actors

Activation of economic diplomacy in Africa

Activating economic diplomacy in Africa requires a long-term strategic plan. Iran has established a car production line in some African countries such as Senegal and Tunisia, but because it was only government and the private sector were not involved, we have not seen a significant impact. The weakness of economic diplomacy is not only in Africa but also in other continents, because Iran’s foreign policy in the last four decades has been mostly security-oriented and politics-oriented. And to some extent cultural and economy-oriented was not a priority and this marginal view was more visible in Africa.

If we intend to get rid of the single-product economy and sell raw materials and overcome the sanctions, Iran’s international trade and the country’s foreign policy should prepare a long-term strategic plan, and decision-making institutions such as the meeting and the Security Council should develop a 30-year long-term strategic plan. And we should have a transformative view about the continents and this strategic plan should enter the field in practice and not remain at the level of slogans. Like China, which signed a 50-year long-term program with five African countries 10 years ago.