Trade as a tool of diplomacy and global security

Abstract

This paper investigates how economic-security linkages can be used in a creative way to contribute global security. It argues, although aggregate studies on correlations between alliances, trade and war have yielded conflicting results, economic interdependence and cooperation created by various economic diplomacy tools including trade can be very effective in conflict prevention. The most obvious example is the European Union as a“peace project”. Three case studies will be examined in that framework. Upon assessment of Thomas Friedman’s theory of conflict prevention, this study touchs upon some aspects of the economic-security linkages like business’ role in conflict prevention, increasing number of regional trade integrations, Doha Development Agenda and trade liberalization, and finally the relationship between peace and prosperity. It concludes that trade and economic projects can help in achieving peace by facilitating interactions fostering prosperity and sustainable development.