Economic Diplomacy and Diplomatic Economists in the Asia–Pacific

Abstract

This chapter reviews international economic diplomacy in the Asia–Pacific. In recent years there has been a switch from economic to non-economic objectives, while still using economic policies, though more as negative sanctioning tools. After the Second World War there was a huge expansion in economic globalisation: economic diplomacy and geopolitical diplomacy were often in lockstep, and economists were in the ascendency. The United States-led rules of the game encapsulated in policies such as the Washington Consensus helped bring about a trade-driven improvement in economic livelihoods through the region, and put a particular slant on economic diplomacy. This is illustrated by the example of the APEC organisation and its role in trade liberalisation and growth. Recently the breakdown in the globalisation consensus is changing this approach, leading to a rift between the economic and non-traditional non-economic objectives of diplomacy.