Economic Diplomacy in South Asia

Abstract

‘Economic diplomacy’ can serve to open avenues for testing new tracks for business relationships that can deliver a peace dividend. A successful business performance will be defined by new variables such as best business practices, innovation, R&D and cross-cultural skills, which will in turn help in engaging new stakeholders in diverse areas of cooperation. The South Asian and world economic community seems to be working on a set of myths with respect to Indo-Pakistan relations, which are inconsistent with the evidence at hand. The South Asian business community as a whole has always been ahead of its governments in giving support to economic confidence-building measures and doing business where prospects for profits have looked bright and feasible. ‘Strategic philanthropy’ by corporates is giving rise to new trends in corporate citizenship. This may be the best timing for corporates in South Asia to recognise that reducing political tensions and security risks in the region can have a profound long-term impact on their businesses.