Small state diplomacy and global competitiveness

Abstract

Competitiveness is not only an economic matter; it is also a foreign policy issue. It requires the coordinated action of the state, business community and civil society. Global economic institutions now confront a new challenge to design strategies and roadmaps for reform that will build on the achievements of the past, and cope with an increasingly new set of ripples that poses risks to the orthodox practice of development and ignite a search for a new kind of diplomacy. A global dialogue on competitiveness and economic development is in the making, and small economies have a vested interest to be part of that dialogue. While small states have fewer resources to devote to the tasks of diplomacy and effective interaction with other states, this shortcoming can be reduced by alliances and networks, given the large number of small states with common interests. Small states in Europe are strategically placed to recalibrate that continent’s approach to regional and international diplomacy in its quest to promote competitiveness, and sustain growth and equity in its development goals. As such, it can bring important lessons to the attention of other small states in the world and add considerably to the expectations of this exercise in global analytical leadership.