Foreign policy as a tool for economic development

Author: Nasir Khan

The emerging powers, whose primary objective, both nationally and globally, has been to assist their growth and augment their protrusion has greatly, influenced current international political dynamics. However, as most work on this partnership, little has been written on how the foreign policy of these countries will support their development goals.

The foreign policy of a state is directly associated with its national interest and national power. The national power of a state is based on the quality of government’s policies and strategies. The national interest is an indispensible component of foreign policy but it also based on the vested interests of state with diplomatic strategy to develop the relationship with the foreign world. So, if the national interest and national power are not parallel to each other, the foreign policy will never be good.

The role of the state in growth promotion strategies is the theme of many works on the political economy. There is a clear line of thought that recogniseswhen it comes to addressing that divides developing countries like Pakistan from developed countries.

One has to consider the importance of the state in this phase when evaluating the role of foreign policy in promoting growth in Pakistan. With this in mind, Pakistan’s foreign policy can be divided into two broad fields, namely economics and politics, by which it affects the development of the country.These can be further broken down into lines of action directly linked to boosting the economic development of a nation and reducing the degree of inequality, which is typically not a priority for most policymakers.

In order to safeguard and develop its trade flows, to preserve its sovereignty in relation to more powerful states, the circumstances of a country’s standing in the international arena is of utmost significance

There are three main lines of action that can openly affect the country’s development strategy and it can be differentiated when dealing with the economic field of foreign policy. The following are lines of action: (a) promotion of trade and commerce; (b) investment and venture policy; and (c) agreements on diplomatic, strategic, financial and commercial matters.In the context of politics, the lines of action are more implicitly related to the promotion of growth and development, as their practical and realistic consequences do not enter the economic and social arenas so easily, but contribute to maintaining a favorable atmosphere for the progress of the other lines of action. In this context, it is possible to list three other lines of action: privileges to explore resources, international cooperation; and international projection.

Promoting trade requires not only quantitatively growing domestic exports, but also qualitatively upgrading them. This is what Pakistan needs to do. This action involves measures to promote exports with more value addition of the components, taking into account the aforementioned principle of growth. To do so, foreign policymakers typically aim to enter new markets and encourage high-value – added products in their trade with conventional partners, formerly little involved in national products. This action relies greatly on a national policy of raising the productivity and efficiency of domestic goods that is propped up by increases in the skill levels of personnel. Pakistan has been lacking to implement such measures and policies to enhance the value addition of products.

The investment strategy of a country involves two positions: magnetizingFDI classically presented as of paramount importance in the initial stages of diversification of output, and extending national investment abroad. FDI is known to be potentially advantageous for investors as well beneficiaries. However, the weaker side, the beneficiary needs to be anxious about ensuring the transfer of technology, that is essential for growth and development. On the investment side, expanding the outreach of a nation to other regions unlock new potential and possibilities for international investment by domestic businesspeople. Pakistan’s policymaker must consider it while making the foreign policies.

The third line of action, which is a historically recent feature, seeks to create structural conditions for a national development strategy. In this line of action, the policy intends to demand satisfactory development environment, the exclusion of unjust trade practises in developed countries, fairer intellectual property administration and the panorama of developing unfair intellectual property rules for the development of unconventional programs.

A few other lines of action have a more meanderingsway on a country’s economic growth and development, but can make amammoth contribution to all facets of expansion, growth and development. In order to safeguard and develop its trade flows, to preserve its sovereignty in relation to more powerful states, the circumstances of a country’s standing in the international arena is of utmost significance, meeting support for their functions in multilateral and joint forums, gaining access to cutting edge technology and generating the indispensable and requisite climate for their companies to step up thedomestic and international activities. Consequently, the political bubble has a constructive influence on the overall achievement of the economic sphere and the lines and measurements of the operations. In Pakistan’s foreign policy context, there is a need of hour to develop such foreign policies which are purely based on the economic growth and development. This is onlyway to create a positive and soft image in the world through the appropriate foreign policy mechanism.

Here, I would like to discuss the two models of foreign policy and economic development; the Turkish and Brazil model of foreign policy.

It has been quite illuminating of how foreign policy functions as an apparatus and mechanism to make easy the growth of these countries to apply the aforementioned model to cases. Given their disparities, when handling with the globalisation of domestic business operations, one of the key priority areas of state intervention abroad, the foreign actions of the two countries have a lot in common. The trend assumed by their policies often has a lot to do with their economic models, which are responsible for the discrepancies in terms of their involvement in multilateral forums and how they contribute to the economic sector of foreign policy.

There are significant similarities between the two countries’ trade and investment policies, as both have continued to extend their areas of operation into untraditional territories, exploring new opportunities for political and economic benefits. While this approach has faced some opposition, it has found support from companies interested in exporting and/or investing abroad. Meanwhile, FDI continues to be pursued by the two nations to broaden domestic economic activities. This duality is an inherent feature of semi-peripheral actors, where growth is of utmost importance to both inward and outward investment flows, although the latter is still a recent phenomenon. This dual relationship is also expressed in their co-operation policy, in which the two countries are presenting a recent step towards providing co-operation to other countries, with inward co-operation flows from central countries having been drastically reduced.

Foreign relations of Pakistan have been in melancholy in this democratic term due to many reasons.

The external component of national policy is foreign policy. It is the first line of defence of a nation and the primary advocate of its interests abroad. It aims to mitigate risks and threats to the country’s stability and economic well-being, while at the same time enhancing its options and opportunities for action. The difference between national capabilities and national goals is bridged. It is not planned to market home-made, ill-conceived plans overseas. It is unable to project a positive picture of a poor state of affairs. It is the need of hour to develop Pakistan’s foreign policy in the favor of economic development to benchmark the Brazil and Turkish foreign policies.

Nasir Khan (Ph.D. Scholar in Media and Crime, CSS Coach and author of different books on International Relations, Criminology and Gender Studies)

fastian.mentor@gmail.com

Share
Leave a Comment

Recent Posts

  • Editorial

Targeted Tragedy

By the time of writing this editorial on Thursday evening, the number of innocent passengers…

12 hours ago
  • Cartoons

TODAY’S CARTOON

12 hours ago
  • Editorial

Sour Sweeteners

Sugar. The sweetener word brings sour taste to one's mind when people come across the…

12 hours ago
  • Op-Ed

Trump’s Bureaucracy Cuts

The stunning results of the USA elections surprised both Democrats and Republicans alike. Trump's unprecedented…

12 hours ago
  • Op-Ed

Countering Misinformation

The advancement of technology around the world and the widespread spread of social media have…

12 hours ago
  • Op-Ed

“It’s the economy stupid!”

Pakistan's democratic system is in jeopardy. Civilians and the military have taken turns to rule…

12 hours ago