ECONOMICS

The principal Issues of Commercial Diplomacy as identified in the Charter of Economic Rights and Duties of States

The principal Issues of Commercial Diplomacy as identified in the Charter of Economic Rights and Duties of States, 1974

Introduction

The charter of economic rights and duties of states was put in place to cater to a variety of needs. Of the many reasons was the formulation of norms regarding economic matters which have an international footing. Such economic issues usually are meant to benefit the developing countries. Parallel to the aims which led to the formulation of the Resolution, it was deemed wise to allocate the same as a Charter. This was informed by the hope that subsequent laws pertaining both economic and socio-economic matters would be formulated on the bedrock set up by the Charter.

Commercial Diplomacy

By definition 'commercial diplomacy' is the work of diplomatic missions in support of the home country's business and finance sectors. Distinct from although obviously closely related to economic diplomacy, it is now common for commercial diplomacy to include the promotion of inward and outward investment, as well as trade. Important features of this work are the supply to the sending state's trade ministry and businessmen (especially those from small businesses) of information about export and investment opportunities, maintaining contact with the businessmen and chambers of commerce of the receiving state, and organizing and supporting trade missions from home. In American diplomatic missions this work is currently undertaken largely by officers of the foreign commercial service of the Department of Commerce, assisted by the mission's economic officer and possibly others.

This paper is purposed to critically analyze the issue of commercial diplomacy identified in the Charter of economic rights and duties of states.

Discussion & Analysis

Background

There is need to appreciate what were the factors which informed the formulation of the Charter. After World War Two, decolonization became wanton and in tandem expectations were raised with respect to industrialized nations. It was believed that the industrialized countries would see the importance of developing the South. By so observing, they would financially support its ambitions for development. In as much as the hullabaloo on development was rampant, the North did not assist them in any way. Since the case of the South was being witnessed in other countries globally, there was a unison outcry that the subsisting global order was not only unfair but perpetuated inequality among the nations. They therefore came together, as was expected, and advocated for sovereign equality of the states. Although bold, this was undoubtedly a controversial attempt to effectuate such principle. This was to be achieved by reforming or rather amending the prevailing international with respect to economic law and policy. In 1974, the United Nations General Assembly espoused two resolutions that were designed to form the basis of this change. There were termed as the “Declaration on the Establishment of a new Economic Order” and the “Programme of Action on the Establishment of a New International Economic Order.” By the end of 1974, the General Assembly ...