“Economic diplomacy has been broadly defined as promotion of trade and trade related activities, attraction of outward and inward investments i.e. FDIs, FIIs and International Joint Ventures (IJVs), enhancement of tourism, telecommunication and energy and transport networks, exchange of business delegations, facilitation of merges and acquisitions and buy-outs and commercial collaboration between entities and corporates among others.”__________________________________
by Dr. Bandula Perera
(March 27, Colombo, Sri Lanka Guardian) Today economic diplomacy has become a cogent and compelling driving force for the political development of any nation, be it developed or developing.
Economic diplomacy has been broadly defined as promotion of trade and trade related activities, attraction of outward and inward investments i.e. FDIs, FIIs and International Joint Ventures (IJVs), enhancement of tourism, telecommunication and energy and transport networks, exchange of business delegations, facilitation of merges and acquisitions and buy-outs and commercial collaboration between entities and corporates among others.
The Foreign Offices and ministries, the world over, are directly engaged in promoting the intrinsic and inherent economic interest of their respective countries, in general, and their economies, in particular. Many policy makers and economists consider globalization as the most significant and momentous economic, political and social evolution of the 20th century, thus linking, integrating and transcending the comity of nations.
The Minister of Foreign Affairs of Sri Lanka, Rohitha Bogollagama, has often accentuated in private and in public as well as in international fora the crucial importance of promoting and extending greater importance to economic diplomacy. According to the Minister, economic diplomacy in the greater sphere of foreign policy of Sri Lanka would play a highly proactive role in advancing its economy, in all aspects. He, compared to many of his predecessors, had the distinct advantage of being the Minister in charge of Investment Promotion and Enterprise Development as well as Minister of Industries and Minister of Advanced Technology and National Enterprise Development, during his earlier ministerial portfolios. He has also been instrumental in the formation of the much needed SME Bank and National Enterprise Development Authority to promote and advance small and medium entrepreneurs. Further, he has been a practising corporate lawyer and was the chairman of the Board of Investment and the Cement Corporation in the early to mid 1990s, among others.
During his last ministerial portfolio, he introduced the concept of Sri Lanka being a centre point or strategic location for trade and investment, to potential foreign investors. One may state that these endowments, attainments and experience would be most beneficial for his office to promote and advance economic diplomacy of the country with a high degree of efficacy. Some of the highly developed nations, let alone developing nations, base their power on economic superiority, military supremacy and supremacy in the domain of production and services, which are increasingly transcending their respective foreign policy priorities to the economic realm and are intricately linking them as well. Needless to state, these courses of action need to be executed through judicious and sagacious tools of economic diplomacy. It would be opportune to assess his performance in office, particularly with regard to economic diplomacy, since he assumed this highly demanding and exacting ministerial portfolio approximately a year ago.
Economic diplomacy initiatives
As a close observer of economic development and dynamics, both globally and in the region as well as in Sri Lanka, I recollect Minister Bogollagama’s first visit after assuming office as the Minister of Foreign Affairs was to none other than New Delhi. It would be fitting to state that India is central to political and economic interests of Sri Lanka. He left for New Delhi, barely two days after assuming office, given the importance. During this visit to New Delhi as well his subsequent visits, he called not only on the political leadership but also interacted with leading corporate captains of the country. Minister Bogollagama was particularly enthusiastic in concluding the Comprehensive Economic Partnership Agreement (CEPA) with India without causing any injury to the Sri Lankan industrial and business community. Having attended the India Economic Summit of the World Economic Forum in New Delhi, in the past, Minister Bogollagama along with the relevant line ministries of Sri Lanka, was instrumental in launching the IJV between the National Thermal Power Corporation (NTPC) of India and the CEB of Sri Lanka. The said proposed IJV is estimated to be over USD 450 million. He managed to interest the largest company in India i.e. Reliance Industries Limited, and Oil and Natural Gas Corporation (ONGC) to view Sri Lanka very favourably as a highly favoured investment destination, particularly in the domain of oil and gas exploration. It was heartening to note that Minister Bogollagama conducted most of these discussions and negotiations during his previous portfolios. After becoming the Minister of Foreign Affairs, he extended his already cultivated and established relations and credence with the Indian political leadership and corporates to bring them to fruition. His official visits to other South Asian countries were also successful since he impressed on them the potential in economic cooperation and development as well as enhancement of intra-regional trade and air connectivity among others. It would be fitting to note that the Foreign Minister, given his office, had to promote and advance economic diplomacy, at a juncture, when the country was countering terrorism in an unprecedented manner. Further, his primary objective, often, has been to vehemently condemn the atrocities of the LTTE and address other terrorist and foreign policy related issues. One could see these courses of action as execution of astute economic diplomacy.
During an official visit to France, Minister Bogollagama conducted his customary discussions and parleys with his counterpart minister and met with the French Minister for Immigration, Integration and National Identity. Given the extensive Sri Lankan populace in France, the French Minister for Immigration has expressed interest in enhancing employment opportunities for Sri Lankans in the professional and skilled work categories. Further, Minister Bogollagama succeeded in obtaining the assistance of the French government to establish French teaching Institutes and Sri Lankan students to pursue disciplines such as IT and natural science in France. During this same visit to Europe, the Foreign Minister had an audience with HRH Princess Astrid of Belgium in Brussels. Since Belgium had assisted Sri Lanka expansively during the Tsunami of 2004, he had briefed the princess and the accompanying Ministers of the significant progress Sri Lanka has achieved, including the projects which are in the pipeline. The Government of Belgium was pleased and heartened of the manner in which Sri Lanka has managed to economically resuscitate in the aftermath of the tsunami, and was very receptive to extend future cooperation and assistance, including to the "Negenahira Navodaya", which is the development of the eastern part of Sri Lanka. The Foreign Minister during this three country visit, conducted discussions with his counterpart Minister of Germany, who assured that Germany would continue to extend its development cooperation and bilateral economic assistance to Sri Lanka.
Accomplishments
Foreign Minister’s visits to China, Malaysia, Singapore, Philippines, South Korea, Libya, the US, the UK, Saudi Arabia, Qatar, Iran, Jordan, Japan and Italy were used not only to conduct diplomatic parleys and calls but also to stimulate interest to commit investments in Sri Lanka, with particular focus on oil and gas exploration, to secure new employment opportunities, to present the factual situation of the country thus alleviating any apprehensions and for Sri Lanka to become a member of key and economically and politically significant international organisations/associations among others. To elaborate, in Malaysia the Foreign Minster expressed the country’s interest to join the Organisation of Islamic States (OIS) and to be an observer in the much vibrant regional grouping of the ASEAN. During his participation at the Asia Cooperation Dialogue (ACD) in South Korea, which consists of 30 countries, Minister Bogollagama managed to secure the hosting of the 8th ACD Foreign Ministers’ Meeting in Sri Lanka in 2009.
(Dr. Perera obtained his PhD in the UK and has held senior positions both in the public and private sector. Currently, he is a director of several companies. He has been the Additional Director General of the BOI and former Chairman of IDB and Ceylon National Chamber of Industry.)
- Sri Lanka Guardian
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