I. Introduction
Globalization has transformed the organization of
international economic relationships around the world, affecting the economic,
social and political sphere of societies and citizens. It is characterized by a
complex set of interconnectivities and interdependence with an increasing
number of actors vying to influence the outcome of these relationships. They
lay competing claims to resources, markets and legitimacy and are engaged in
activities traditionally defined as belonging to the domain of diplomacy.
Sovereign states remain the traditional subjects of international law, but in
practice remain interdependent in the pursuit of their economic interest.
Owing to this fact of interdependence of sovereign
nations in the conduct of their international economic and commercial
activities, sovereign states and other actors in the international system who
are guided by the international laws, fashion out ways on how they further
their individual and sometimes group interests. This usually leads to
diplomatic activities. In this paper we shall examine the concept of economic
diplomacy in international law. By concept, we mean, a though, opinion, and
general notion, idea especially formed by generalization from particular
examples.[1]
Having realized from the dictionary definition that a concept is not yet a law
but a general notion, we shall in this paper discuss; the various terms and
definitions, the concept of economic diplomacy; the nature and practice of
economic diplomacy, an appraisal of the concept of economic diplomacy and the
future of economic diplomacy. This discussion is predicated on the presumption
that economic diplomacy is being conducted under the known principles of
International law which sources[2]
remain, international conventions, general principle of law recognized by
civilized nations, teachings and writings of highly qualified publicists.
II. The Concept of Economic Diplomacy in International Law
It may be convenient at this point to define the various
terms of this subject before we offer the conceptual definitions of the
subject. When we talk of ‘economic’ we mean relating to or concerned with
economics, financially sound, reasonably profitable; useful in the production
of wealth or promotion of commercial prosperity.[3]
Also the term ‘diplomacy’ is variously defined. In fact
many of the definitions given by renowned writers of the subject often show
wide divergences in their conception of the word ‘diplomacy’. Sir Ernest
Satow in his celebrated “Guide to diplomatic practice’ sees diplomacy as:
The application
of intelligence and tact to the conduct of official relations between
governments of independent states, extending sometimes also to their business
with vassal states or more briefly still, the conduct of business between
states by peaceful.[4]
Horton Kaplan confuses diplomacy with formulation of
policy. He defines diplomacy for instance, as:
The formulation
of a strategy aiming at achieving national interests in the international field
and carrying out of this strategy by diplomats.[5]
Professors O. Ojo and Sesay[6]
state that:
The word diplomacy may be defined as the
means and methods through which a nation state conducts its business with other
actors in the international system.
It should be noted that this particular definition has
taken cognisance of the fact that diplomatic activities have gone beyond the
traditional view of state to state relations to recognize the increasing
importance of the economic diplomatic activities of other ‘actors’ in the
international systems.
In the light of this proliferation of actors involved in
international relations and diplomatic activities, Mellissen offers the most
succinct definition of contemporary diplomacy by stating:
Diplomacy is
defined as the mechanism of representation, communication and negotiation
through which states and other international actors conduct their business.[7]
Diplomacy evolved over time and so did its definition and
the professional identity of diplomats. The recorded history of Diplomacy dates
back to ancient Greece
and has evolved over time. Important contributions to the diplomatic method
have been made at different times in recorded history particularly during the
periods of the Italian city-states, in France
before and after the French revolution, and in England starting with
industrialization and expansion of its empire.
Diplomacy functions through a labyrinth of foreign
offices, embassies, legations, consulates and special missions all over the
world. It is commonly bilateral in character but as a result of the growing
importance of international conferences, international organizations, regional
arrangements and collective security measures, its multilateral aspects have
become increasingly significant.
Diplomacy has been seen as the method or process by which
the policies of states especially foreign policies are carried out. This in
fact, underscores the importance of Diplomacy in statecraft or state
operations.
Without proper implementation or realization of state
policies through the medium of Diplomacy, the policies remain redundant and
aborted notwithstanding how lofty or beneficial they may be to the propounding
states. One cannot but agree that Diplomacy requires tact and intelligence.
Diplomacy generally is conducted on the basis of
intricate code that has evolved over many centuries. There are both written and
unwritten rules of the game. It has been said that the unwritten rules of the
game are as important as the written regulations.
Some of the known written regulations relating to the
conduct of Diplomacy include: The famous Regalement of 1815, the Conventions on
Diplomatic and Consular Officers adopted by the American Nations at Havana in
1928, the Vienna Convention on Diplomatic Relations of 1961, the Vienna
Convention on Consular Relations of 1963.
The foregoing background concerning Diplomacy generally
in international law may be necessary for a good appreciation of the concept of
Economic Diplomacy in International Law, which is the subject of this paper.
The dynamics of modern international law and state
relations especially in the modern trend of globalization, competition for
foreign direct investment as well as growing influence of international economic
standard setting organizations such as WTO, ITU, ILO, etc, has brought economic
Diplomacy to prominence in international law. As a result of modernity, the
interplay of relationships between states has become characterized by a complex
set of interconnectivities and interdependencies with an increasing numbers of
actors vying to influence the outcome of these relationships. The realm
international law is now witnessing an increase and competing claims to
resources, markets and legitimacy.
Private firms and companies from states are now
vigorously engaged in rapid expansions through merger and acquisition and other
forms of co-operative joint venturing across boarders, while at the same time
intensifying efforts to influence domestic and international policies in heir
favour.
The economy has become the focal point of most
independent states and actors in international law. Nation states are now
engaged in fierce competition for economic gains and at the same time seek
co-operation with other states in order to shape regulatory institutions in
their favour. Countries now more than ever before compete with each other to
attract foreign direct investment, push other countries to gain market access
for their national companies and attempt to protect their domestic markets by
covert or overt trade barriers. At the same time, countries now see the need to
deepen their co-operation at standard and rule setting intergovernmental
institutions such as the World Trade Organization, International
Telecommunications Union, etc, so as to realize the policies of their states.
Proceeding from the foregoing, the concept of Economic
Diplomacy will be better appreciated not by a definition of the concept but by
looking at its functions. Thus, it has been stated that,
Economic Diplomacy is
concerned with economic policy issues, including the modus/work of
delegations/operations at standard setting organizations. Economic Diplomacy
involves monitoring and reporting on economic policies of foreign countries and
give the home governments advice on how to best influence them. Economic
Diplomacy employs economic resources, either as rewards or sanctions in pursuit
of a particular foreign policy objective. This is sometimes called economic
statecraft.[8]
Further elucidation of this issue will be appreciated by
a look at the goal of the Economic Diplomat, thus, it has been stated that,
The goal of
economic diplomats is to competently influence multilateral economic policy by
coordinating specialized ministries, by shaping the negotiation process at
economic standard setting organizations, and by constructively including
non-state actors when useful and appropriate.”[9]
The above description of the scope of activities of
Economic Diplomacy/Economic Diplomat shall provide the necessary guide to this
paper. Proceeding from the above position, Economic Diplomacy can therefore be
said to be very relevant in various spheres of international law and will
involve a look at economic and trade policies/issues, the activities of
institutions and organizations concerned with economic and trade matters,
interest in the economic affairs of other states, the application of resources
of a state to further the economic interest of a nation.
III. Nature and Practice of Economic Diplomacy
An x-ray of the economic diplomatic activities in
International Law will also involve an examination of the institutions and
organizations from where most of these policies originate. Economic diplomatic
activities of a state are carried on through the foreign policies of the state.
These foreign policies are shapened by what states consider as their best
economic interests and advantages. These policies are either aimed at
protecting the local economy or taking advantage of a week system or opponent.
A ready example of conflicting state policies that shapen economic diplomacy is
the on-going trade dispute between USA
and China.
While China has found in US
a ready market for its cheap textile products, the US is bent on adopting the policy
of trade restrictions to protect its local textile industry from an unfair
competition from Chinese textile products. Another example can be readily seen
in our Nigeria policy of the
closure of its borders with Benin
Republic sometime more
than one year ago. Nigeria, which is a signatory to the ECOWAS free trade
movement among the member states, but intent of protecting its economy from
loss of tariffs and unfair competition through smuggling activities through
Benin Republic announced the closure of its borders with Benin Republic whose
economy is totally dependent on its trading activities with Nigerians engaged
rather on diplomatic missions which eventually led to the re-opening of the
border. In fact economic diplomacy looks at how decisions are made domestically
and the processes of negotiating them internationally.
It is to be noted that the economic diplomatic activities
are conducted within the confines of International Law and through, bilateral
treaties, multilateral treaties, through the UN and its various agencies, some
regulatory or standard setting institutions and other convenient international
fora.
In its activities and deliberations, the United Nations
dwells into economic issues concerning member states. The concept of Economic
Diplomacy in International law can be better assessed based on some important
economic projects canvassed within the United Nations.
In 1955, the third committee of the General Assembly
adopted a draft article as part of the covenants on the right of
sell-determination, the second paragraph of which stated,
The peoples may, for their own ends, freely
dispose of their natural wealth and resources without prejudice to any
obligations arising out of international economic cooperation based upon the
principle of mutual benefit and international law. In no case may a people be
deprived of its own means of subsistence.”
The concept of economic self-determination stemmed from a
General Assembly Resolution of 21st December 1952.[10]
Much later, work in the United Nations’ Commission on
Permanent Sovereignty Over Natural Resource and the Economic and Social Council
culminated in the adoption of Resolution 1803 (xviii) by the General Assembly
on 14th December 1962. The resolution was in the form of a
declaration on permanent sovereignty over natural resources, it referred to the
inalienable right of all states freely to dispose of their natural wealth and
resources in accordance with their nation’s interest and to have respect for
the economic independence of states.
Further economic ramifications of this resolution can be
discerned from the following incidence of the resolution:
(a)
It gave control of the wealth and resources of a
nation to the people of that nation and for the development and well being of
its people.
(b)
The exploration and disposition of a nation’s
resources and the import of foreign capital required in the state must be in
conformity with the rules and conditions which the people of a nation considers
to be necessary or desirable.
(c)
In cases where the people desire capital
importation, the earnings on that capital shall be governed by the national
legislation in force as well as international law.
(d)
The economic development of developing countries
whether in the form of public or private capital investments, exchange of goods
and services, technical assistance or exchange of scientific information shall
be such as to further their independent national development and shall be based
upon respect for the nation’s sovereignty over their national wealth and
resources.
Still on the economic activities of the United Nations,
since 1972, the less developed countries pressed for the establishment of a “new
deal” in their relations with the industrialized nations. This pressure was
reflected in particular, in the United Nations General Assembly Resolution 3201
of May 1 1974, containing a declaration on the establishment of a new
International Economic Order.
On the 12th December 1974, the General
Assembly adopted the Charter of Economic Rights and Duties of States,
Resolution 3281 (xxix).
These resolutions had far reaching economic contents
guiding/regulating the economic activities of the member states.
The Consideration of these resolutions in this paper is
germane and significant for certain reasons, it shows how far major
institutions in international politics and international law like the United
Nations can affect the economic policies/fortunes of member states, it also
shows how concerned such institutions is about the economic realities of member
states, it further brings into prominence the role of Economic Diplomacy
(piloted by economic diplomats) on international law. The undercurrents of
Diplomacy employed in the emergence of these resolutions is quite enormous and
intriguing, for example, in passing resolution 1803, more than 12 nations abstained
from voting though present, 2 nations clearly voted against the resolution and
87 nations voted in favour. In Resolution 3231 (Charter of Economic Right and
Duties of State), 10 nations abstained in voting, a total of 6 nations strongly
opposed the resolution, while 120 nations voted in favour. The main countries
that were against the resolutions and voted against them includes, the United States, the United
Kingdom, German Federal Republic,
Denmark, Belgium,
Luxemburg. It is imagined that throughout the period and event leading to the
passage of these economic resolutions, Economic Diplomacy by the contending
states was at its best.
It is salient to point out that the United States and its
allies came out frayed in the interplay of Economic Diplomacy that followed the
passage of these resolutions, so much so that till date the United States and
its allies have remained persistent Objectors to these resolutions.[11]
Another aspect of economic diplomacy can be gleaned from
the activities of International Monetary Fund (IMF), Established in 1945, under
the terms of the Articles of Agreement which emerged after the Bretton Wood
Conference. The organization now comprises of over 182 states. The principal
purpose of the IMF is to facilitate the expansion and balanced growth of
International Trade and to contribute thereby to the promotion and maintenance
of high levels of employment and this is to be secured by stable exchange
rates, financial discipline and the avoidance of balance of payments
disequilibria.
IMF operates through a board of Governors, an Interim
Committee, an Executive Board and a Managing Director. In addition, there is a
Development Committee, which advises the IMF and the Governors of the World
Bank on matters concerning developing countries.
All decisions of the IMF is by consensus of members in a
system of weighted voting whereby members that has stronger economic
strength is allotted more voting power.
Furthermore, by Article 1(iv) of the Agreement, one of
the purposes of the fund is to assist in the establishment of a multilateral
system of payments in respect of current transactions between members and in
the elimination of foreign exchange restrictions, which hamper the growth of
world trade.
In addition to its duties in relation to monitoring
exchange rate and its role in promoting currency convertibility, the IMF is
also charged with providing international liquidity. By the 1969 amendment of
the Articles of IMF Agreement, Special Drawing Rights (SDRS) was created to
promote international liquidity to assist member states confront their balance
of payment problems.
It is submitted that from the foregoing, the formation,
structure, operations and management of IMF falls under purview of Economic
Diplomacy. The art of Economic Diplomacy is brought into play especially in the
decision making, as exemplified in the weighted voting system.
Another veritable example of economic diplomacy is the
emergency of General Agreement on Tariff and Trade (GATT), which is a standard
setting organization. USA
took the bold step of drafting the ambitious multilateral agreements, which
later metamorphosed to the General Agreements on Tariffs and Trade (GATT). GATT
is a product of enormous economic diplomatic debates held in Geneva 1947 that lasted from April to
September. It proceeded from this multilateral convention incorporating the
results of more than 120 sets of bilateral negotiations among twenty nations
embracing more than 43,000 separate terms. The resulting agreements affected
more than three-fourths of the import trade of the participating nations and
about three-fourth of the total world imports. The general provisions of GATT
established for the first time a generally accepted international code of
treatment in commercial relations.[12]
What is fundamental in this presentation concerning the
passage of GATT is to appreciate the level of Economic Diplomacy/Negotiations
that transpired to give birth to this international economic regulation. It
further underscores the monumental contributions of Economic Diplomacy in the
regime of laws/regulations of International Law.
As a treaty, the objective of GATT is to establish a
common code in respect of international trade by providing mechanisms both for
consultation and for reducing and stabilizing tariffs. The fundamental
principles of GATT agreement include:
(i)
The principle of most favoured nation state.
(ii)
The reduction of tariff barriers.
(iii)
Non-discrimination between imported and domestic
goods.
(iv)
Elimination of import and export quotes.
(v)
Restriction of exports subsidies.
The dynamics of diplomacy with economic content was amply
demonstrated in the formation of UNCTAD (United Nations Conference on Trade and
Development). UNCTAD is a product of the resentment by the developing countries
against the operations of GATT. The under-developed countries through their
various diplomats mounted enormous pressure on the UN, which led to the UNCTAD
Conference in Geneva
1964. Attended by representatives of 120 countries and regional organizations,
UN Agencies. UNCTAD is reputed to be the largest international conference ever
held, it was dominated by representatives of developing countries with the
delegates of the industrialized nations on the defensive. The conference
witnessed the emergence of the world largest pressure group consisting of the
developing countries. At the end of UNCTAD, the developing countries were able
to wrest some concessions from the industrialized states. The conference
approved a new charter of international economic relations. At its nineteenth session
held later in the year, the UN General Assembly adopted resolution 1995(xix)
providing for the establishment of UNCTAD as a permanent body.
Further dynamics of economic diplomacy led to the
emergence of World Trade Organization (WTO). The Uruguay round of negotiations and
Diplomacy, which lasted for a period of seven years gave birth to World Trade
Organization (WTO) in 1995 under the Marakesh agreement. The World Trade
Organization is to provide a common institutional framework for free trade realization
in the world. It has the objective of reduction of tariffs and ending
discriminately treatment in trade relations.
Economic consideration and efforts in Economic Diplomacy
has led to the formation of several other organisations and institutions regulating
conduct, relations in the international and regional sphere, some of these
include:
(1)
International Bank for Reconstruction and
Development (IBRD) 1946
(2)
International Finance Corporation (IFC) 1956
(3)
International Development Association (IDA) 1960
(4)
International Centre for the Settlement of
Investment Disputes (ICSID) 1966
(5)
Multilateral Investment Guarantee Agency (MIGA) 1988
(6)
World Intellectual Property Organisation (WIPO)
(7)
Organization for Economic Co-operation and
Development (OECD)
(8)
European Economic Community (EEC)
(9)
European Free Trade Association (EFTA)
(10)
Benelus Union
(11)
North Atlantic Free Trade
Association (NAFTA)
(12)
Economic Community of West African States (ECOWAS)
(13)
African Economic Community (AEC)
(14)
Common Market for Eastern and Southern Africa (CMESA) 1993
(15)
African Union (AU)
Another area in which Economic Diplomacy has held sway is
in the area of foreign investment and its protection. Foreign investment has
turned out to be a major source of economic and industrial growth of many
states.
The basis of foreign investment generally is purely
economic, both for the capital exporting and capital importing country. The
obstacle of foreign investment, which includes political climate, fear of
government control, exchange restrictions, makes Economic Diplomacy more needful
in these areas of international law. The capital exporting counties need to be
assured that their investment will be protected and worthwhile and the capital
importing country must be impressed with the economic gains of the foreign
investment. In practice, foreign investment involves various negotiations
between nations and national agencies sometimes for several years before it can
be realized.[13]
The protection of foreign investment has become one of
the pre-occupation in international law in recent times. The fall of
colonialism and imperial states has elicited the need for the protection of
foreign investments. Here again, all the steps taken or adopted to protect
foreign investments have been grounded on Economic Diplomacy. Some of the
standards accepted generally for the protection of foreign investments have
been products of continuous usage by states in their Bilateral Investment
Treaties (BITS), which were later to become customary usage of International
Law. These include, the Most Favoured Nation (MFN) standards, the standard of
national treatment, the international minimum standards, etc.
Furthermore, it must be underscored that it is the level
of negotiations/Diplomacy between nations that will determine the use of any of
the standards of protection for foreign investment.
It is to be noted also that it was the resultant
diplomatic moves persistently put forward by the Western countries especially
by the United States that ensured that the United Nations included payment of
compensation in case of Nationalization and expropriation in Article 2 2(c) of
the Charter of Economic Rights and Duties of States, Resolution 3281.
It has been stated[14]
that presently, there is no multilateral provisions on the protection of
foreign investment. However, in 1995, Organization for Economic Corporation and
Development (OECD) made up of 29 developed countries started negotiations
towards the establishment of a Multilateral Investment Treaty (MAI), once
again, this is a concerted effort to advance the economic influence of their
member states.
All the proposals in the said proposed treaty are geared
to protect the economic policies of the governments of the member states. The
drafters of the said treaty are very hopeful that it will form the basis for a
WTO, UN or World Bank sponsored universal multilateral treaty on foreign
investment.[15]
If this is done, Economic Diplomacy would have reckoned another major stride in
international law this time by member states of OECD.
Another aspect of Economic Diplomacy, borders on the
conduct of states in the economic affairs of other states. Modern Diplomacy now
involves detailed study and analysis of the policies of states by the embassies
and consular offices of other states. This is with the intendment of proffering
necessary advice to their respective countries and for the purpose of
evaluating whether or not such policies affects the economic interest of home
countries.
The situation is even stretched to seeking to influence
certain legislations in the foreign countries and even or
organizations/institutions. Thus, it has been noted that there are more staff
and activities going on the Geneva office of
Industrialized Countries Embassy to WTO than is the case at their bilateral
Embassies in Switzerland.[16]
Countries have sponsored the opening of special offices in Brussels in order to influence decision
making at the EU Commission and EU related institutions.
IV. An Appraisal of Economic Diplomacy in International Law
The use of economic resources as rewards or punishment in
the pursuit of national goals and policies has come to be seen as a veritable
operation of Economic Diplomacy. History and current events have demonstrated
how some nations especially the rich ones employ their economic resources to
foster or frustrate certain policies in the world, which may be economic,
political, military or otherwise. The NICARAGUA
CASE (MERITS) between Nicaragua
vs United States.
In this case, the government of United States
terminated economic aids to Nicaragua
on the ground that it had aided guerrillas fighting against the El Salvador government, which enjoyed good
relations with US by allowing USSR
arms to pass through its ports. Nicaragua
brought this case claiming that the US had acted in breach of the
bilateral 1956 US-Nicaragua treaty of friendship, commerce and navigation. The
court declined jurisdiction on the ground that the US had reservation on article 2(4)
of UN Charter.
This conduct has the benefit of a chequered history of
practice, for example, in 1945, the United States granted most favoured nations
treatment to more than thirty countries of the world and also granted them 50%
reduction of American tariffs, this gesture was conditioned on the concession
by those countries that benefited from the treatment to allow free flow of
goods to their countries with minimal restrictions. It is to be noted that USA took this
step to foster their pursuit of free trade policy in the world.
It has been recorded that the Soviet Union was able to
hold the Soviet block of Eastern Europe together politically for several years
because of her several aids to these countries and threats of boycott of
purchase of goods from those countries.
Since the end of the Second World War, USA has
consistently adopted the policy of granting aids and soft loans to many
countries for reconstruction and development purposes. However, this is
conditioned and targeted at ensuring that these countries in turn buy all
necessary material goods and even personnel from the people and government of America.
This approach of threat to boycott of economic and
marketing patronage has frequently been employed in international energy and
oil business by countries to ensure adherence to certain policies preferred by
the threatening nations.
It has been noted that the importance of Economic
Diplomacy in International Law has engendered the emergence of non-state actors
seeking to shape economic and business policies of their countries and of the
world. E.g. transnational companies in the United
States have been engaged in Diplomatic offensive lobbying
the government and the congress to grant permanent normal trade relations
status to China.
This step is purely for economic survival of these transnational companies.
Even NGOs are adding their voice to the economic policy debates by lobbying
across national boundaries on issues such as poverty alleviation, safe
environmental practices, human right protection and unfettered capitalism.[17]
An appraisal of economic diplomacy cannot be completed
without considering its effects on both the developed and developing nations
particularly with regard to the nations sovereignty. It is submitted that
economic diplomacy has become a veritable tool in the hands of developed
nations in pursuing its economic agenda in international law. With the level of
technology, human and material resources available to the developed nations,
they tend to conduct economic diplomatic activities that tend to undermine the
principle of sovereign equality of states particularly when considered in relation
to the developing nations. Conversely, the developing nations, without any
measure of economic and political strength seem to be at the receiving end of
the economic diplomatic activities of the developed nations.
With respect to the developing nations this makes the
principle of sovereignty, according to George Schwarzenberger “a mere dejure
sovereignty”.[18]
Furthermore, with the increasing influence of non-state actors like
multinational and transnational corporations, in the conduct of economic
diplomacy, particularly considering the enormous financial and economic
resources available to them, developing nations are further pushed to surrender
some aspects of their sovereignty in order to attract direct foreign
investment. It is submitted that the fact that economic diplomacy is a nascent
phenomenon, there are bound to develop new ethos and standards, outside the
known principles of international law, in the conduct of economic diplomacy in
international law.
V. The Future of Economic Diplomacy
Traditionally, diplomacy has been the prerogative of
envoys representing central government offices and their mandate confined to
the affairs of the state, today, management of international economic relations
is no longer confined to the state but rather extended to civil and commercial
affairs. Protagonists of these new interest groups will certainly be business
executives’ members of civil societies and representatives of NGOs.
Globalization and technological revolution has increased
the speed of change within different spheres of daily life and international
relations. Wider availability of information and knowledge and easier access
has spurred higher aspirations among different peoples. Internet based
technology makes it possible for people and businesses to establish
supra-territorial relationships, which were n the past the realm of a
privileged few. One of the unintended developments of globalization is the
participation of non-state actors in diplomacy.
Seen from this perspective, it will become imperative
that different actors in the enlarged sphere of post-modern diplomacy acquire
the additional competencies to engage constructively in policy dialogue. This
will naturally continue to reshapen the confines of international economic
laws, as the post-modern economic diplomats both state and non-state actors set
to achieve the following basic objectives and tasks:
(1)
To influence political, economic and social policies
to create the right conditions for economic development taking into account the
needs and aspirations of other stakeholders.
(2)
To work with rule-making international bodies whose
decisions affect international trade and financial regulations.
(3)
To forestall potential conflicts with foreign
governments, NGOs, and various economic actors thereby aiming to minimize
political and economic risks.
(4)
To use multiple international for and media channels
to safeguard the image and reputation of their own country, enterprise and NGO.
(5)
To create social capital through dialogue with all
stakeholders whom the process of economic development and globalization might
impact.
(6)
To sustain credibility and legitimacy of their
representative bodies in the eyes of the public and their own communities.
VI. Conclusion and Suggestion
The focus of this paper has been an attempt to consider
the various forays, contributions and impact made by the Economic Diplomacy to
the body of International Law. This examination has revealed that economic and
trade issues has come to dominate the ideologies and policies of both the
states and international institutions constituting the operators of
international law and relations. The reason for this disposition is very
obvious, being that economic stability has come to be sine qua non to political
stability.
Furthermore, Economic Diplomacy has come to occupy a
centre stage in International Law in modern times owing to the fact that after
the cold war era, boundaries between business and diplomacy have gradually
become blurred. States now more than ever before appear to be championing
economic development and trade relations in today’s global economy, which has
become increasingly interconnected and interdependent.
One other issue that has necessitated the emergence of
Economic Diplomacy is the north-south dialogue referring to the economic gap
and disequilibrium existing between the developed and developing countries. So
long as the developing countries continue the contention of reducing this gap,
Economic Diplomacy must continue to feature prominently in International Law.
It is posited that with the predominance of economic and
trade in world affairs, Economic Diplomacy will inevitably take the centre
stage in International Law, and would continue to shapen the existing norms and
practices until such a time when there shall be written codes on the conduct of
economic diplomacy in international law for both state and non-state actors.
[1] The New Lexicon Webster’s Dictionary of English Language, 1994
Edition
[2] Article 38 of the Statute of International Court of Justice
[3] The New Lexicon Dictionary
[4] Ernest Satow, A Guide to Diplomatic Practice (London: Longman 1975)
Page. 1
[5] Morton Kaplan, Introduction to Diplomatic Strategy in World
Politics, July 1952 page 548
[6] Olusola Ojo and Amadu Sesay, Concepts in International Relations
(JAD Lagos, 1988) page 141
[7] Mellissen, Jan (1999) ed. “Innovation in Diplomatic Practice”
Macmillan, London,
pp XVI-XVII
[8] See G.R. Berridge Alan James “A Dictionary of Diplomacy” Palgrave Publication, Hampshire, UK
2001 at page 81
[9] Raymond Saner, Lichia Yiu: International Economic Diplomacy
Mutations in Post-Modern Timed, Netherlands Institute of International
Relations Clingerdael, page 20
[10] Resol, 626 (vii) see also
Resol, 1314 (xiii)
[11] See IAN BROWNLIE, Principles of Public International Law, 3rd
Edition, Page 543
[12] Palmer and Perkins – International Relations, 3rd
Edition – Page 538
[13] Under the Treaty of Rome
1947
[14] SAM KARGBO – International Protection of Foreign Investment at page
94
[15] IBIB
[16] Raymond Saner, Lichia yiu, International Economic Diplomacy,
Mutations in Post Modern Times pages 12-13
[17] Raymond Saner, International Economic Diplomacy – Mutations in Post
Modern Times pages 2, 7 and 27
[18] George Schwarzenberger, Principles and Standards of International
Economic Law, page 31