Our diplomats must be adept at economic diplomacy

The global context in which Bangladesh conducts its foreign policy is becoming increasingly uncertain. The international system that for decades rested on widely accepted rules and institutions is facing serious strain. Strategic rivalries among major powers, economic sanctions, and military conflicts are reshaping the landscape of global trade and diplomacy. The ongoing war between Iran and the US-Israel, Russia and Ukraine, illustrate how geopolitical disputes can quickly disrupt energy markets, shipping routes and investment flows.

In such circumstances, the ability of states to protect their economic interests through diplomacy becomes more important than ever. For developing countries that rely heavily on exports, remittances and foreign investment, economic diplomacy is no longer merely a policy choice; it is a strategic necessity. Bangladesh, whose growth over the past decades has been closely linked with integration into the global economy, must therefore approach economic diplomacy with renewed seriousness and creativity.

In such an environment, economic diplomacy is no longer merely an option; it has become a necessity. Countries that are able to skilfully navigate geopolitical tensions while safeguarding trade and investment flows will be better positioned to sustain growth. For a developing economy like Bangladesh, which depends heavily on global markets for exports, remittances and foreign investment, the stakes are particularly high.

Yet in Bangladesh the phrase economic diplomacy has often been invoked more frequently than it has been practised. Successive governments have pledged to place economic interests at the centre of foreign policy. Policy papers have been written and ambitious plans announced. In reality, however, much of this vision has remained confined to official documents, with only limited progress on the ground.

The new political government that has taken office after more than a year and a half of an interim administration therefore faces both an opportunity and a challenge. The restoration of an elected government has attracted significant attention not only among citizens but also within the international community and regional partners. Expectations are high that foreign policy will be aligned more effectively with the country's economic aspirations.

History offers an important reminder that diplomacy has always been closely connected with commerce. Long before the emergence of modern nation-states, diplomatic missions were often inseparable from trade negotiations. Ancient envoys frequently served as merchants, negotiators and political emissaries at the same time.

The earliest recorded diplomatic exchanges in civilisations such as Mesopotamia and ancient India frequently revolved around trade privileges and commercial access. The prosperity of kingdoms depended heavily on securing markets, safe passage for caravans and stable trading routes.

One of the most remarkable examples of this fusion between diplomacy and commerce was the Silk Road. For centuries, this vast network of routes linking East Asia, Central Asia, the Middle East and Europe thrived not merely because of merchants but also because rulers maintained diplomatic understandings that enabled the movement of goods across territories.

In classical antiquity, Greek city-states and later the Roman Empire frequently sent envoys to neighbouring regions to secure favourable trading conditions and protect commercial interests. Diplomacy was not simply about political alliances; it was equally about ensuring economic prosperity.

During the medieval period, merchant republics such as Republic of Venice and Republic of Genoa developed sophisticated diplomatic networks primarily to safeguard their trading empires. Consuls and envoys stationed in foreign ports negotiated tariffs, mediated commercial disputes and secured privileges for merchants.

South Asia too has a long tradition of economic diplomacy. Historical records indicate that emissaries during the Mauryan Empire and later the Mughal Empire negotiated commercial arrangements alongside political agreements. Maritime trade across the Indian Ocean depended heavily on diplomatic engagement among kingdoms to maintain open ports and safe navigation.

The modern diplomatic system that emerged in Europe after the Peace of Westphalia formalised many of these practices. By the nineteenth century, consulates had become key instruments for promoting trade and assisting merchants abroad. Their primary task was not only political representation but also the expansion of commercial interests.

Bangladesh has long recognised the importance of this approach but has struggled to translate ambition into measurable outcomes. Diplomatic missions abroad often lack clear performance indicators linked to economic objectives. As a result, the country's extensive diplomatic network remains underutilised in advancing economic interests.

A practical reform would be the introduction of a performance index for diplomats serving overseas. Such an index should evaluate their contributions in promoting exports, attracting investment, facilitating technology transfer and enhancing the international image of Bangladesh.

Embassies should be judged not merely by their ceremonial activities or reporting duties but by tangible economic achievements. How many trade partnerships have been facilitated? How many investment leads have been generated? What initiatives have been undertaken to promote Bangladeshi products and services?

Linking promotions and rewards to these outcomes would encourage diplomats to focus on economic engagement. When loyalty or administrative seniority becomes the primary basis for career advancement, the incentive to innovate diminishes.

Training is another critical area. Economic diplomacy requires expertise in international trade, finance, industrial policy and global supply chains. Diplomats must be equipped with the analytical skills needed to engage effectively with multinational corporations, investors and trade organisations.

The foreign policy framework articulated by Tarique Rahman has emphasised national interest and economic diplomacy as central guiding principles. Translating this vision into reality will require institutional reforms and strategic coordination across government agencies.

The geopolitical landscape also presents several challenges. Bangladesh must carefully balance its relations with major powers including India, China, United States and Russia. Each of these relationships carries significant economic implications.

Maintaining constructive ties with India is crucial for regional stability and connectivity. At the same time, China remains a major development partner and investor in infrastructure. Engagement with the United States is vital for trade access and technological cooperation, while Russia continues to play an important role in energy and strategic projects.

Navigating these relationships requires careful diplomacy to ensure that cooperation with one partner does not undermine relations with another. The guiding principle should remain clear: safeguarding Bangladesh's economic interests while maintaining strategic autonomy.

Another major challenge lies ahead with Bangladesh's scheduled graduation from the Least Developed Countries category in November 2026. While this milestone represents a significant development achievement, it will also lead to the gradual loss of preferential trade benefits in international markets.

Without the cushion of duty-free and quota-free access in some markets, Bangladeshi exports will face tougher competition. Economic diplomacy will therefore become even more important in negotiating favourable trade arrangements and identifying new export destinations.

The government could consider establishing specialised committees that bring together economists, diplomats and trade experts to coordinate strategies. Such bodies would help ensure that foreign policy decisions are aligned with economic objectives.

Equally important is engagement with the private sector and civil society. Regular dialogues involving business leaders, economists and policy experts could help shape a more responsive and inclusive foreign policy.

Bangladesh's economic achievements over the past decades have been remarkable. The country has emerged as one of the world's leading exporters of ready-made garments and has lifted millions of people out of poverty. Yet sustaining this progress in an increasingly uncertain world will require a more sophisticated approach to diplomacy.

The lesson from history is clear: diplomacy has always been about prosperity as much as politics. From the caravans of the Silk Road to the complex supply chains of today's global economy, nations have relied on diplomatic engagement to secure trade, investment and economic opportunity.

For Bangladesh, the task now is to transform economic diplomacy from a familiar slogan into a concrete and measurable strategy. If embassies abroad can truly function as ambassadors of trade, investment and innovation, the country will be better positioned to navigate the shifting currents of the global economy and sustain its path toward prosperity.

mirmostafiz@yahoo.com