David Miliband

Foreign Secretary

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Thursday 26 March, 2009

Foreign Policy in a Recession

Everyone is talking about it, so why shouldn't the Foreign Office?  The truth is that the economic downturn around the world will affect foreign policy, and the fortunes of different countries.  One set of debates are clear - nationalism vs internationalism. A major challenge of the London Summit  is to address the danger of economic nationalism.

But as I said in my speech to the FCO Leadership Conference, there are still a lot of unknowns.  About political risks in exposed countries. About the fortunes of countries dependent for public revenue on commodities like oil. It is the job of foreign policy to shape multilateral institutions - to minimise the political risks to stability, and to maximise the pressure for rights and responsibilities to be balanced.

Its not clear who the real winners and losers will be.  At the moment no one is winning.  If the result is a stronger multilateral system, we all can get a share of the upturn. 

Posted at 14:33 26 March 2009 by David Miliband  |  Comments[3]

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Dear Mr.David, I agree with you that the world is not winning and we should adopt a stronger multilateral system. In order to have a stronger multilateral system we should have a deep insight for future making tough and bold decision. The world should now come up with some innovative hedging strategies like why not a price fix for crude oil for 2 years for the global economy to stabilise world would witness a steady growth rate and a win-win situation for both sellers and buyers. I had sent my recommendations to the HMG through my Hon MP. Also its surprising on the National Front the Govt doesnt charge VAT in the £100 billion Betting and Gambling industry. My suggestions was forwarded by my MP to Sec of State for Culture Media and Sports for his consideration. I firmly beleive Govt is missing out £15 billion annually. Regards / Venkat.

Posted by VENKATRAGAVAN M SANTHANAM on March 28, 2009 at 10:09 PM GMT #

Crises are constructive because they produce leverages to change. Without crisis no growth, no dynamism and no way ahead will be found. Westphalian state system is going through a political and economic metamorphosis. Changes are so profound. The nation-state not yet grasped or handled them properly, but surely it will. This crisis is an opportunity to think anew. It might further push the sovereign limits of the nation-state to find new ways to end the anarchy in international system.

Posted by Chamila Liyanage on March 29, 2009 at 02:19 AM BST #

In face of a crisis, people tend to withdraw to their national fortresses and even into their family fortresses for protection. That’s the human nature. Economic downturn is a tricky situation. It breeds panic and anxiety but at the same time holds lots of opportunities. The real danger lies in the way the world envisage it. It is no way an excuse to go back to the protectionism. It is an opportunity for a new way of growth.

Posted by Chamila Liyanage on March 29, 2009 at 02:30 AM BST #

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