chapter  2
23 Pages

Challenge and response in the new economic diplomacy

ByNicholas Bayne

This chapter analyses the progress of economic diplomacy over the last 25 years. It identifies the new strategy adopted over this period and assesses its impact. The chapter examines in successive sections:

• Two powerful forces moulding economic diplomacy – the end of the Cold War and the advance of globalization – that made heavy demands on governments;

• The strategy for economic diplomacy developed in response to these demands; • The results achieved from this strategy until it was interrupted by the financial

crisis that began in 2007; • The changes in the strategy f lowing from the crisis and its aftermath.