Organization and Functioning of Economic Diplomacy: Exploring the Impact of Economic Aid as a Tool of Economic Diplomacy
Organization and Functioning of Economic Diplomacy: Exploring the Impact of Economic Aid as a Tool of Economic Diplomacy

Author(s): Emilio Cika
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Economic diplomacy; Economic aid; Tools of economic diplomacy
Summary/Abstract: Depending on the goals it seeks to accomplish, economic diplomacy in the modern, globalized world has access to a wide range of methods. Even though they are diverse, their nature and traits allow for the primary division of two sizable groups. International relations analysis is made easier by the classification of economic diplomacy instruments, which is more for academic and instructional purposes than for practical use. This paper aims to study how foreign economic aid is a tool widely used in international relations. Economic aid is institutionalized in the global economy, often to certify “good behavior”. Foreign economic aid is a very complex issue in international relations. The case of aid packages to Ukraine during its conflict with Russia highlights their importance but also raises questions about their effectiveness. Nevertheless, economic aid is considered one of the most important tools of economic diplomacy, primarily when directed towards poor and developing countries to strengthen economic structures, reinforce democratic institutions, consolidate the rule of law, reduce corruption, etc.

• Details
• Contents