South Asian diplomats meet Dutch business representatives

Diplomats from Bangladesh and Pakistan met with representatives of Dutch businesses at the Clingendael Institute. During the event, the diplomats knew how to promote their countries to the Dutch businesses with slogans such as “Vibrant Bangladesh” and “ Rediscover Pakistan”. This group of twenty South Asian diplomats, who are currently enrolled in a six-weeks training programme at the Clingendael Academy, follow several workshops and lectures in their training module on Economic Diplomacy.

Nation Branding

In Economic Diplomacy training, the instrument of developing a “nation-brand” forms one of the central themes. How can diplomats positively affect the reputation of their country to attract investors and tourists and increase international trade? During the workshop “nation-branding” the diplomats learned about formulating short pitches combined with catchy slogans.

Straight after the workshop, the lessons learned could be put into practice at a network event with Dutch business representatives. Invitees travelled to the Clingendael Institute to gather relevant contacts and to gain first-hand information about economic opportunities in both countries.

Diplomats in discussion with Mrs. Vivienne Van Dijk, Triade 

“Doing well by doing good”

Is it always in the interest of countries such as Pakistan and Bangladesh to attract foreign businesses? Business practices lower in the supply chain receive fierce criticism from governments and civil society. Human costs may outweigh the advantages of the international investor or consumer. The death toll of the collapse of the Bangladeshi factory building Rana Plaza gives some tragic evidence of the consequences of poor safety inspections and extremely low wages.

But many multinational enterprises respond to the increasing criticism by formulating a Corporate Social Responsibility (CSR) code. CSR became popular in 2000, when Kofi Annan launched the United Nations Global Compact. It was a multilateral platform where enterprises took position next to governments and civil society, and adhered to the principles of responsible business performance. CSR is often explained as the business´ Triple Bottom Line. As opposed to the business´ single economic bottom line, the triple line also takes into account social and environmental costs. 

Global Rulers

The need for a global framework in which the private sector takes over some public responsibilities becomes very clear when one considers the findings of the NewScientist. Their study shows that just 1% of the network of transnational enterprises together own 40% of the total share of revenue. This wealthy group of 150 enterprises could well be seen as the world´s global rulers.

The CSR flag

Can CSR principles really make a difference? Results are still doubtful. Instruments to monitor the implementation of CSR are limited. Despite guidelines within the frameworks of the UN and the European Union; and despite promises of the Organization for Economic Cooperation and Development (OECD) to let enterprises adhere to the OECD Guidelines for Multinational Enterprises also outside the member states’ territories, there are hardly any instruments to sanction enterprises that are violation the CSR principles. Many claim that CSR is purely a license to continue operating.: a sales strategy that seems to work perfectly in Europe.

Debating Session with interns from the Ministry of Foreign Affairs

CSR mechanics play an important part in the policy brief of Minister Ploumen “What the world deserves: a new agenda for aid, trade and investment”. Can companies be involved in Dutch development policies in such a way that the same – or even better – goals for the Dutch focus countries can be achieved?  Can the Millenium Development Goals only be achieved through trade and investment? These questions were put on the table during a debating session between diplomats from Bangladesh and Pakistan on the one side, and a group of interns from the Dutch Ministry of Foreign Affairs on the other side. The representatives of the Dutch Ministry defended the new development policy and referred multiple times to Dutch CSR frameworks to which Dutch companies have to comply. However, the South Asian diplomats convinced the jury of their point of view. They claimed that there was only one truly important bottom line for companies: financial gain.

Debating session between diplomats from Bangladesh and Pakistan and interns from the Dutch MFA

Discussion skills are one of the most important parts in persuasiveness and representation of interest. With this in mind, it was not unexpected that the South Asian diplomats won the debate: they took part in a six week training programme in Diplomatic Skills training and International Affairs at the Clingendael Institute. During this training, many workshops addressing international affairs dealt with negotiations, intercultural communication, policy writing, speeching, protocols and trainings in how to deal with the media amongst many others. The group will remain in the Hague until the 18th of April.