- It is the specific region of contemporary diplomatic activity, connected with the use of economic issues as object and means or combating and collaborating with the international relations.
- It is the formulation and advancing policies relating to production, movement or exchange of good, services, labor and investment in other countries, including through involving private sectors in the decision making process to influence negotiating notation remain in the global or regional competitive market.
- It is a set of activities related to cross border economic activities like export, import, investment, lending, aid, migration pursued by a state or non-state actors.
- To obtain foreign aid/loan with low interest and long return time
- To obtain high wage more secured jobs for national work force
- To obtain enough grant for development
- To promote export, trade agreement, trade fair and access to foreign market
- Achieve infrastructure development, environmental development, poverty alleviation, education, skill development, employment through foreign help aid.
- To obtain various opportunities like training & scholarship
- Import required good for reasonable price
- NRN’S skills, resources, experience for national progress
- Promote entrepreneurship by connecting private sector of two countries
- Attract FDI
- Easy technology transfer
Factors affecting economic diplomacy
- Civil society and influence of citizens
- Education, health, art, literature, sports and national recognition
- Monetary policy and trade liberalization
- Economic transparency, responsibility & accountability
- Private sector involvement in National economy
- Political leadership’s capacity and vision
- State’s participation in international for and its stand
- Political stability and good governance
- Relation with neighboring countries, other nations & intel’s institutions
- Training on economic diplomacy to staff of embassy of Nepal abroad
- Nepal development Forum established
- Establishment of Institute of Foreign Affairs
- Diplomatic relation with few countries and lacks manpower with skills of economic diplomacy.
- Lack of political stability, policy and investor’s friendly environment
- Lack of coordination among various bodies like MOFA, MOF, private sector, MOH etc.
- Delay response to new trends and development
- Political influence on selection of ambassadors & other vital parts
- Inefficient homework and planning
- Economic diplomacy is not getting required attention from state
- Shortage of resources and manpower for tactful economic diplomacy
- Reward & punishment mechanism for implementation
- Increase communication between sectors directly or indirectly related to economic diplomacy like tourism, starts, culture, trade etc.
- Long term vision & policy is required from political sector
- Remove political intervention
- Routine interaction program should be held for discussion and idea generation
- Increase coordination between various ministries like MOFA, MOH, etc.