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The Method of Struggle in the New World Order: Trade Diplomacy

Countries unite in form of regions and continents to seize global opportunities in coordination

Shifting from a bipolar world order to a global equation of unknown origin in the new century has broken all taboos. Endless struggles and unfinished accounts of the World Wars, which we experienced since the beginning of the last century, continue today through global trade just like underground-intertwined fault lines that are not visible from the surface. However, the “principles and methods” of these struggles have changed a long time ago. So much so that states do not struggle over the classical methods of the past of “acquiring land or transferring resources”, instead they implement strategic plans on “producing trade and innovation”.

We have already said that the method in today’s world, where global information is developing almost at the speed of light, has changed. This is because the age, during which states that regarded themselves powerful realized their individual interests through secret agreements, is left behind. Although thousands of years old habits cannot be suddenly left behind, now signs of such intentions are coming quickly to light and cause counter re exes in much shorter periods. Moreover, this process, which used to be an effect-response in the same plane in the past, now creates a domino effect in all sectors and a very difficult situation to recover.

TRADE DIPLOMACY

The essential change in the new century becomes mandatory at this point: “Trade diplomacy based on multilateral, innovative, sustainable and accurate strategic plans.” This definition is regarded as the most logical and lucrative common act of our age for the solution of many problems that have accumulated over the centuries. Now countries unite in coordination with regions and continents and try to capture global opportunities. In fact, countries that are not able to find partners on their continents show the re ex to act together with countries that experience similar economic problems.

“What will come after this age, where thousands of years of traditional administrative/commercial principles and procedures were buried in such a short time, and how will the process evolve?” The answer to this question lies again, in “multilateral trade diplomacy based on innovative, sustainable and accurate strategic plans”. In this regard, the quality of trade diplomacy of the countries is measured with official strategic plans, well-coordinated non-governmental organizations on a sectoral basis and effective work of successful professional organizations.

THE OBLIGATION OF MULTILATERALISM

The most evident change of trade diplomacy in the global era is the necessity of being “multilateral”. Because nowadays not a single country or two countries creating a center of power but the win-win logic, in which many states or commercial institutions and organizations belonging to different countries come together to form types of diplomacy, succeeds. The bipolar trade period, where one side is chosen and the other opportunities are postponed, is over. States that immediately recognize this and engage commercial and professional organizations with commercial institutions of other countries with similar economic and commercial problems will be able to catch this window of opportunity. However, it should not be ignored that this multilateralism should be evaluated in all aspects, both positive and negative. For example, in very difficult cases, such as the Brexit process, the UK needs to compare opportunities and threats very well.

INNOVATION AND TECHNOLOGY ARE INDISPENSABLE FOR THIS AGE

The trade diplomacy of today must also be “innovative”. In fact, innovation and technology have become the essential reality of our age. The concepts we mentioned, have become of must important parameters in every area, starting at the national security of the countries and reaching to communication, production methods and commercial markets. In fact, no matter the area, the ones that are the first to produce the most useful technology become the indispensable leader of the sector. Moreover, this leadership gives countries a long-term and very important advantage, as other states become compulsory buyers. We can see how South Korea, which had the same development grade as Turkey in the 1990s, used the innovation and technology opportunity as it exceeded 30 thousand dollars national income per capita as of 2018.

SUSTAINABILITY INSTEAD OF PERIODIC VICTORIES

Trade diplomacy must be sustainable. This activity is like a never-ending flag race, a process with constantly changing rules and methods with innovation in its center. A victory in the sector can only create a jump for that particular period. This sustainability however, enables continuous analysis on the international economic and commercial grounds and undelayed integration according to the spirit of time by revising the current strategic plan.

TRADE DIPLOMACY IS BASED ON RIGHT STRATEGIC PLANNING

Solid and exible strategy plans with the reality to create international investment and commercial demand, enabling countries to evaluate their own economic and legal situations with a real perspective and to implement their structural reforms decisively are needed. Within this scope, indices such as ease of doing business in the country, nation-brand value, entrepreneurship and competitiveness have become the most important indicators to attract investors from a global perspective and to reach new markets. Among the very important common features of top countries in the mentioned indices are; a high confidence index, a solid legal ground, predictability of the investment climate, quality of human capital, norms applied within a correct control system rather than bureaucratic obstacles and of course a high welfare level in the country.

To summarize; in the present century, in order to become part of countries with a high confidence index and welfare, characterized by growth and enrichment and happy employers and full employment, it is necessary to increase the capacities of enterprises and institutions with multilateral, innovative, sustainable and real strategic planned trade diplomacy potential and to build the legal-economic basis needed to use this ability.

International Investment and Project Director Pınar Tenteoğlu

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