BY DR. JORGI KOTE

In the meeting of Prime Minister Rama with our ambassadors abroad last September, in the one with the senior leaders of the Ministry of Foreign Affairs in January of the current year and especially in the new Law on the Diplomatic Service, the need for a qualitative turn and the promotion of the economic dimension of our diplomacy is rightly emphasized. This concern was also strongly raised several years ago by Prime Minister Rama, even with assignments for ambassadors and diplomats to obtain a master's degree in economics/business. However, the results in this field are minimal, although not solely due to diplomacy. I say this both from the extensive theoretical and practical international practice and from the long experience I have in diplomacy abroad, especially in Belgium, Luxembourg and Berlin; also thanks to the qualification and experience as an economist in foreign trade, the one-year training at the Vienna University of Economics and Business and elsewhere.

First and foremost, success in achieving this objective requires that the government and our diplomatic leaders have a clear understanding and picture of economic diplomacy, its framework, its "whys", its actors and its constituent components.

The well-known Indian expert, Ambassador Keshan Rana, who has served in many high-ranking and ambassadorial positions in various countries, defines economic diplomacy as "a process through which different countries deal with the outside world with the aim of maximizing national benefits in the areas of trade, investment and other forms of economic gain from these exchanges thanks to their comparative advantages."

Economic or entrepreneurial diplomacy, as it is otherwise known, is very ancient; according to Egyptian archival sources, the economy was the basis and main motive of diplomatic negotiations and agreements as early as 1460-1220 BC. In this field, Belgium stands out, along with other larger countries; this is because due to its specific conditions, Belgian policy has been constantly conditioned by its economic independence. This is also because in the north Belgium had the Netherlands, which owned the trade channels and, consequently, the developed Belgian industry could not do anything without its own independent trade channels. Consequently, in addition to many other measures in the diplomatic field, even before World War I, Brussels became the host of the World Trade Exhibition (EXPO)! Subsequently, in 1958, another EXPO was opened in Brussels with the famous Atomium as its symbol.

The need to strengthen this dimension of diplomacy has been further highlighted by developments over the last 35 years, the globalization of economic and trade relations, the expansion of multinational companies, the extension of the market economy to eastern countries, the intensification of competition for technology and foreign investment, the energy and oil crisis, environmental protection, increased social welfare, etc.

Economic diplomacy is also important because it acts as a key, opener, promoter and powerful catalyst for political ties between different countries. Thus, our diplomatic relations with Greece in 1971 were opened after talks between their Chambers of Commerce; our talks in 1985 with the FRG were also conducted with the mediation of the giant “Mercedes-Benz”.

Meanwhile, many political projects and programs have been born from economic diplomacy. It is known that today's EU was born as a union of coal, steel and atomic production and later moved into a customs, monetary and economic union. Very soon, they naturally paved the way for political union and the best emancipatory civic values. Thus, the foundations for peace were laid, which created the necessary fertile ground for the development of Western values ​​and standards of the EU.

Economic diplomacy also plays an extremely important role in terms of image, as the product of a long work. The German social-economic miracle in the early 50s, achieved after the devastation it suffered in all aspects after the end of World War II, was the decisive factor in creating a new qualitative and positive image of it in the eyes of other nations.

The four main pillars of economic diplomacy are: promoting trade and exports, attracting foreign investment, absorbing modern technology, and managing economic aid & development.

Economic diplomacy is carried out by and in the world's economic, trade and financial organizations, groups and forums, especially the World Bank, the IMF, the World Trade Organization (WTO), the OECD, the European Investment Bank, the Bank for Reconstruction and Development, etc., where our country has been a member for over 20 years.

Economic diplomacy is increasingly being practiced and promoted by regional economic organizations; among the most well-known of these are the Organization of the Black Sea Economic Cooperation, where Albania was among the first founding countries in 1992, and the Free Trade Agreement of the countries of the region (CEFTA), the Central European Initiative, etc.

The second and main direction has to do with the role of official diplomacy, diplomatic missions abroad, in cooperation and support of line ministries, as well as their programs and projects. Foreign Ministries have the economy among the most important components of their activity. Although until recently, diplomats or economic attachés were considered the “last hole of the horse”. In fact, in certain cases, working in those sectors was considered a kind of “punishment” or demotion for diplomats. But, in the last 20 years, economic diplomacy has emerged from the periphery of the foreign service, moving closer to its center.

Structurally, the US Department of State has a special Undersecretary who directs economic diplomacy, while India and Brazil have special committees; Switzerland has one of the most efficient institutions – the Swiss Trade Promotion Office. Meanwhile, Germany has listed economic diplomacy among the three main pillars of its foreign policy; its exports provide 45% of GDP; its GIZ is known worldwide for its assistance in the field of technical and financial cooperation. In our country too, GIZ has made significant investments in some of the most vital areas, such as environmental protection, tourism, and business promotion. Also, 25 years ago, with the support of the German government, the “Albania-Germany Economic Association” (DAW) was established in Berlin. With cooperation and joint efforts, it gradually increased its ranks and later became the basis for the creation of the Joint Chamber of Commerce. As I have written at length in the books "Berlin without Walls" (2009) and "Diplomacy for All" (2014), during my work at the Embassy in Berlin in the first decade of the 2000s, we had her fruitful help and cooperation.

Given the above, embassies in foreign countries and their economic sectors are becoming increasingly active. They are concerned with following the economic policies of the country where they are accredited, the consequences for the region and our country, as well as with the economic policies of their own country, especially in terms of foreign investments, trade exchanges, fairs, exhibitions and business support. Economic diplomats in these countries are rarely seen in offices and more in trade negotiations, contracts and agreements, even though they are not directly involved in them, accompanying business groups, economic delegations, participating in fairs, etc., dealing with their preparation until completion.

As for our country, the then government leaders, at the ambassadors' meeting in 2007, declared economic diplomacy a top priority. There were some disagreements, a deputy minister was appointed and a special General Directorate was created, which was dissolved in 2012 as part of the cuts. However, looking at the concrete results, I don't know how much we can talk about any special and visible innovation in the true sense of the word. We say this because whether we like it or not, economic diplomacy exists. The question is what organizational measures and concrete steps a country takes, the changes it makes in the relevant human resources, the cooperation with the relevant departments and institutions to promote, accelerate and increase its effectiveness in practice. So, we are talking about a qualitative leap in economic diplomacy, a field full of major challenges even for much more advanced countries.

Given the future and dynamics of this dimension and the shortcomings in the diplomatic corps, in addition to the MFA, promising steps are being considered and taken by such important institutions as the Chamber of Commerce, the Investment Promotion Agency or any other line department to send their representatives or economic attachés abroad; this would create real opportunities for all parties involved in this process to deal professionally and every day with the numerous economic files. International practice shows that in order to cover the relevant expenses, cooperation can also be established between interested entities and institutions and private business.

The third necessary aspect of economic diplomacy is related to other important economic actors and factors, such as firms, public and private banks, domestic and foreign, and especially chambers of commerce and industry, the latter in Western countries have a long and rich tradition, but also considerable competence and weight in expanding economic relations and increasing them as well as in drafting the relevant legal framework. In some cases, such as in Japan, Austria, Germany, etc., they have their representatives in different countries, or branches near the most important political and economic metropolises in the world. In our country too, recently these chambers have been increasing their role. This also includes various associations according to crafts and professions, think-tanks, interest groups and lobbying etc. But again this is insufficient. Thus, in our country there is an Investment Promotion Agency with concrete activities. But, is its role where it is required? Does it have sufficient funds and competencies?

In addition to the above, the success of economic diplomacy requires the cooperation and coordination of the three aforementioned components of economic diplomacy with the other dimensions addressed in these writings. However, it seems that we are still in the theoretical phase of the problem and, moreover, the actors and other decisive factors of this dimension rather criticize or demand from official diplomacy, without offering anything, however modest.

Finally, it is not enough to raise economic diplomacy as a problem or even criticize it, even in high tones; promoting economic diplomacy requires the government and heads of diplomacy to sit down with their staffs and advisors, drafting and implementing a concrete action plan with measures in all the aforementioned directions, from determining the necessary funds, creating structures in the Ministry and other institutions and recruiting diplomats with an economic and business profile; just not like some neighboring country that a few years ago appointed many "economic promoters" abroad in its main diplomatic missions; but it made a mistake by setting a norm, i.e. securing 10 or more foreign investment companies within a year, something impossible. Then, even if a serious foreign investor secures an embassy, ​​it would be enough. On the other hand, the relevant state bodies in Tirana also need to evaluate the efforts, proposals and projects of the Embassies more accurately than they have been up to now, and not leave them to the end or even cancel them at the last moment, as has happened in many cases, rejecting a long work of several years with the companies in question. Because before a foreign investment company decides to come to our country, it carries out a series of procedures, starting from market studies, economic credibility, etc. which are not done with a pen or a conference, but require time, funds and long-term efforts. However, when they do not materialize, they create disappointment among foreigners, lead to their departure and the spread of a negative perception.

These and other measures are necessary and urgent; otherwise, let us not be surprised when this right idea and demand also dies out like a “flame of straw” as has happened over the past 20 years. That is why we said from the beginning that promoting Economic Diplomacy is a serious major challenge and not a propaganda slogan, just to wash our mouths or to get ahead.