Diplomatic Investments
Molloy, Michael Sean
2005
- Submitted in partial fulfillment of the degree Master of Arts in Law and Diplomacy at the Fletcher School of Law and Diplomacy. Abstract: This paper argues that the aims of American and Chinese commercial policies promoting foreign direct investment (FDI) have been successfully aligned with the effects of their implementation; private sector interests have complemented and reinforced the commercial ... read morepolicy intentions of both nations to encourage development while at the same time helping to promote the peaceful resolution of bilateral tensions. This successful alignment of governmental policies and business interests has given rise to diplomatic investments, which continue to play a role in defining opportunities for stable and productive mutual gains for both countries. The study begins with an overview of the current state of economic integration between the U.S. and China, identifying some of the key benefits which the implementation of diplomatic investments have brought to the bilateral relationship in terms of economic development and political stabilization. This dual advantage of effectively implemented pro-FDI commercial policies is further elaborated on through a blending of both realism and complex interdependence frameworks; a combination of both theories is used as a complementary means for analyzing this dynamic. A brief historical account of commercial policies is then provided in an attempt to demonstrate a positive correlation between pro-FDI policy implementation and non-violent conflict on the one hand, and instances of armed conflict during periods devoid of such policy initiatives on the other. A statistical analysis is next undertaken to demonstrate how the FDI policy implementation process has created a framework for cooperation which enables private sector interests to naturally promote a more stable and productive framework for economic interdependence. The changes brought about by increased economic integration have made both countries increasingly vulnerable to a prolonged cessation of bilateral commercial activity, further reinforcing both national and private sector interests in building a stronger structure for the peaceful resolution of conflict. These theoretical, historical, and statistical interpretations of the pro-FDI policymaking process are then applied to three case studies in which recent potentially violent crisis situations were peacefully resolved. Explanations for the peaceful resolutions of the Taiwan Strait Crisis of March, 1996, the Chinese Embassy bombing in Belgrade in May, 1999, and the EP-3 Incident of April, 2001 would all be incomplete without an appreciation for the pacifying role played by government commercial policies and the market forces they helped to unleash through the promotion of foreign investments. Expert testimonies regarding each case are included to demonstrate that policymakers, academics, and business leaders alike recognize the importance of FDI in promoting cooperative resolutions to the geopolitical conflicts in question. The paper concludes by stating that the successful management of the bilateral commercial policymaking process contributes to peaceful, non-violent diplomatic relations between the U.S. and China because economic security for both countries has become increasingly tied to the continuance of structurally interdependent trade and investment. As long as economic growth is maintained and both countries continue to benefit from FDI exchanges, these current trends are likely to continue.read less
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- cn69mg22k
- Component ID:
- tufts:UA015.012.DO.00101
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