ABSTRACT
This chapter intends the record of economic diplomacy. The end of the Cold War and the advance of globalisation created a new set of international political pressures at the start of the 1990s. The need for genuinely worldwide institutions is one of the consequences of advancing globalisation. The poorest countries in general pose no threat to the economic system and offer few economic attractions. Policy towards them must be politically motivated and such motivation was largely lacking during the 1990s. The United States mobilised an impressive international coalition to fight against terrorism. The fight against terrorism also motivated the unexpected American pledge of increased official aid in the context of the UN meeting on financial flows for developing countries held at Monterrey in March 2002. The interaction of international and domestic pressures has become a standard feature of economic diplomacy. International commitments on climate change, biodiversity and protecting the ozone layer were embodied in formal United Nations treaties.
