The paths of diplomacy

In this article for politik&kommunikation, Elisabeth Engel analyses the added value that German embassies could bring for German enterprises operating abroad – German Foreign Affairs Minister Frank-Walter Steinmeier declared in 2005 that support of foreign trade was a priority of German foreign policy.

Alongside the form of government, the author argues, it is the strength of bilateral economic relations that determines the value that German embassies have for enterprises operating abroad. Today, each embassy has at least one attaché for economic affairs – in Peking, this has even increased to 23 during recent years.

According to Engel, there is a “cosmos” of public and private players surrounding an ambassador. Bringing together the know-how of entrepreneurs and the ability of the ambassador to build a positive social environment, Engels says, would be the key to successful networking. 

While in American, French or British embassies enterprises are represented by lobbying offices, German businesses abroad operate separate from the country’s embassies. Some 120 chambers of commerce in 80 countries worldwide provide consulting services related to legal and political-economic issues. According to Engels, these chambers cannot weild any influence on the host countries’ policies. But, the bigger the enterprise, the less important the embassy and the need to take up diplomatic services declines.  

Large enterprises, Engels says, prefer to use official trips by the German foreign minister in which they participate, in order to have direct contact with key personalities and organise their business activities in the host country. For small- and medium-sized enterprises (SMEs) the embassy could serve both as political side protection and as a door opener. In this respect, the author explains, the ambassador provides aid and balances a lack of human resources, networks and know-how. 

When bilateral relations are at stake, the ambassador is placed in the centre of activity. According to Engels, this would be much more often the case in Moscow than, say, in New Delhi. But in democratic and market-based states, political lobbying of embassies would not have any effect. 

Generally, the representation of economic interests of enterprises would come to an end when the ambassador enters legal grey areas or when Germany’s “moral values” are at risk. 

To read the full article (in German), click here.