Ιn international relations today, economic diplomacy has moved to center stage. Ministries of foreign affairs are increasingly being called upon to focus on issues of aid, trade, investments, multilateral economic negotiations and other components of what is referred to as ‘economic diplomacy.’ The Greek Ministry of Foreign Affairs has initiated a model of integrated diplomacy, dynamically responding to the challenges of today’s increasingly globalized and interconnected world. We have a model in mind which we are actively promoting and which we will continue to do so with the best of our resources.

The core philosophy of our model is that the private sector is, without a doubt, the driving force of economic development.

The Greek Ministry of Foreign Affairs has traditionally regarded itself as a political ministry. This is not without reason, given that ever since its establishment as a modern state, Greece has been confronted ― and remains confronted ― with grave political issues. Nowadays, similar to most foreign ministries of developed economies, an equal emphasis is being placed on economic diplomacy. The Greek Ministry of Foreign Affairs, mainly under the new Greek government, has already undertaken noteworthy efforts in that direction. We are aware that a lot remains to be done. We are in the process of introducing strategic planning, improving the services provided, offering comprehensive electronic data services and, above all, fostering a change in attitude.

The image of Greece

Greece enjoys a positive image in many of the new and fast-growing markets. Firstly, the fact that Greece is one of the few outward-looking European countries without a colonial past is a significant asset. Secondly, the Greek diaspora has always been a crucial factor in building bridges and in fostering good relations with countries around the globe. Thirdly, we possess an extensive international network of Greek embassies and consulates which, while having been created for different reasons, are now playing an important role in economic diplomacy at the local level.

In this context, the role of Greek businesses abroad is of the utmost importance to Greece’s outward-looking economic development. This is the case in the telecommunications sector, in shipping, in banking and financial institutions, as well as in construction, the food industry, tourism and other sectors. The government in general and the Ministry of Foreign Affairs in particular will be active in providing constructive support to these businesses. It is these businesses which are the pioneers of our economic development; it is these businesses which are a crucial factor in promoting the aims of our foreign policy. Indeed, the great increase in exports that has been observed of late is, in fact, their achievement. The rest of us ― the Greek state and its agencies ― simply facilitate their work.

It should also be remembered that, looking beyond our borders, the development of our economic diplomacy is a collective effort which involves the entire Greek government as well as various state agencies. Such agencies include the Hellenic Board of Foreign Trade, the Hellenic Center for Investment and many others which have been working hard and have yielded positive results these last two years. The Greek Ministry of Foreign Affairs supports any Greek business which chooses to extend its activities in markets abroad. We do this because we believe that the economic flourishing of Greek businesses is of significance not only for the businessmen and women themselves, but also for their employees, as well as for Greece and the countries with which they enter into business relations.

New and old markets

Our economic diplomacy has, over these last two years especially, been very active in opening new markets. We can already cite several successful examples. The prime minister’s trip to China has opened new prospects which are now being broadened and further developed. A salient example of this is the recent visit to Greece of a high-level political and commercial Chinese delegation which attended the largest and most important Greek-Chinese business forum that has ever been held in Greece. Of equal importance is the effort which is currently under way in the Middle East. The president of the republic has made successive visits to the region, as have the prime minister and many other ministers. Moreover, alongside other ministries, the Ministry of Foreign Affairs has promoted and encouraged a series of business delegations and interstate agreements.

With regard to the region ‘closer to home,’ as it were, namely the Balkan region, for us, the idea is to have two parallel and mutually reinforcing processes with the same ultimate aim: the complete integration of the Balkans into Europe, and the transformation of Greece from a peripheral and geographically distant EU member state into a country which is at the center of one of the most rapidly developing and most dynamic European regions.

The Balkans, a single economic area

One of the core pillars of our foreign policy is to promote and foster peace, stability, development and prosperity in our region. A way to achieve this is by promoting the creation of a single economic area in the Balkan region.

How, both today and in the future, can we promote and continue to promote and encourage the formation of a single economic area in the Balkans?

Greece has a consistent and comprehensive strategy, led by the prime minister and with the Ministry of Foreign Affairs at the forefront. Our strategy includes, supports and promotes a series of national, regional and European policies. For instance, one of our fundamental policies is the creation of a free trade zone which includes both our closest and more distant Balkan neighbors and which will replace their complex bilateral agreements as they stand today. Our common objective is for this new agreement to be concluded within 2006. It will include provisions based on European standards for the harmonization of rules and regulations, the settling of disputes, the economic transactions regarding services, the protection of intellectual property etc.

The major transport corridors

Our second fundamental aim is to promote the establishment of major transport corridors linking the countries of the region. European and international organizations are bearing the main load of this effort and Greece is actively encouraging them in this endeavor. In parallel, Greece is financially supporting such efforts through the Hellenic Plan for the Reconstruction of the Balkans (HiPERB), which is financing sections of Corridor X, a road link between Greece and the rest of the European Union which is of vital importance. Greece is also prepared to do the same in the case of Corridor IV, the vertical corridor of the Eastern Balkans. Moreover, as was agreed between the ministers of transport at the recent SEECP summit, we encourage similar efforts with railway transportation.

The energy axes

Greece’s third aim is the creation of a single energy market. This is an effort which is actively promoted by both the Greek Ministry for Development and the Ministry of Foreign Affairs. To this end, the Energy Charter between the 25 members of the EU and the nine neighboring countries of our region was signed last October. Based on this, these nine countries harmonize their national legislation on energy with that currently in effect within the European Union.

Our fourth fundamental aim is the creation of great energy axes which extend beyond the Balkans, thereby connecting the wider region. I would like to note here the linking of the Greek electricity network with the Turkish (2006) and the Bulgarian ones. Of equal importance is the Russian-Bulgarian-Greek political agreement for the construction of the Burgas-Alexandroupolis pipeline, which has finally been signed after 13 years of negotiations, as well as the beginning of the construction of the natural gas pipeline from Baku (Azerbaijan) to Komotini (Greece) via Karacabey (Turkey), and its subsequent extension to Italy via an underwater link.

Development aid

Greece’s fifth aim is to promote policies which will unify the Balkan economic area in multiple sectors. This is promoted through development aid which is being administered by the Ministry of Foreign Affairs. An example of this is the high-speed Internet linking of various research and education institutions of the Balkans, through HiPERB, which will also facilitate the development of high-speed Internet connections for the wider region. At the same time, we are encouraging our businesses to invest in the region by providing them with incentives through HiPERB which still has considerable potential in the countries of the Western Balkans.

A successful model of diplomacy

For us in today’s world, successful diplomacy can only be achieved through a model of integrated diplomacy which combines the political and economic dimensions of our international relations. A successful economic diplomacy is certainly no simple task. Ministries of foreign affairs must both readjust their modus operandi and expand their institutional capabilities in order to deal with the interconnected economic and sociopolitical challenges of today as well as those of tomorrow. We must continue to work toward finding ways to facilitate business, for that holds the key for an economically prosperous future for our region. We may at times experience setbacks or difficulties, yet it is vital that we remember that we must constantly adapt to an ever-changing global reality. We must also remember that the advantages both at home and abroad can be impressive and, hence, are worth the effort.

Part of this article was delivered by Minister Bakoyannis as a speech to the Exporters’ Association of Northern Greece (SEVE), May 31, 2006.

Article by: Dora Bakoyannis(more...)
	Dora Bakoyannis is the Greek minister for foreign affairs.