Global Perspectives on Responsible Economic Statecraft

Abstract

Responsible Economic Statecraft conceptualizes state behavior through action, reaction, and interaction: For more Responsible Action, states should strive to balance seemingly competing goals, including efficiency, security, social equality, and environmental protection. Trying to achieve one objective, for instance, economic growth, without considering its relation to others, such as resilience, undermines broader goals. Crafting "Grand Strategies" with clear objectives, synergies, and tools can help break persisting silos across related policy areas. In case of administrative constraints, external consultation with diverse stake-holders can be leveraged, bringing in interdisciplinary expertise and recommendations. For more Responsible Reaction, states will have to shift the perception that their strategies are primarily developed in response to adversaries. To this end, states should emphasize proactive, long-term policies in line with global goals and tailored to the needs of partner countries and their own. Updated communication strategies showcasing successful joint projects can further increase their appeal as potential cooperation partners. To prevent a "race to the bottom" where great power competition leads to excessive securiti-zation of economic relations, states should adapt the rules of the global economy to target specific undesirable actions rather than particular countries. For more Responsible Interaction, states should consider the potential adverse consequences the application of economic state-craft can have on other countries and across sectors. To mitigate these effects, they should establish mechanisms for forecasting, impact assessment, and adaptation in close cooperation with affected stakeholders. Providing space for different perspectives across cooperation settings and addressing internal challenges can reduce accusations of double standards where countries are criticized for not applying their stated values-including in the areas of environmental protection or human rights-consistently themselves. This can help build trust and reinforce the rules-based global order.