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The Diplomacy of the Financial Crisis in Context

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Chapter Summary

This chapter looks back at how financial diplomacy worked in the recent past and then considers present performance and future prospects. The focus is on the process of decision-making and negotiation, rather than the content of policy. The chapter looks not at the measures adopted, but at the new processes of decision-making and negotiation that emerged from the financial crisis. It focuses on financial issues, leaving aside other areas such as macroeconomic policy, trade negotiations, and help for poor countries or climate change. It examines these processes using an analytical framework that sees governments, in their economic diplomacy, as trying to reconcile various tensions so that policies reinforce each other rather than conflict. Three such tensions are identified: between economics and politics; between domestic and external pressures; and between government and other forces.

Keywords:decision-making; economic diplomacy; financial crisis; financial diplomacy



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