Economic Diplomacy and the Promotion of Development in Kenya

Abstract

This study seeks to understand the implications of economic diplomacy in the development process of Kenya, with a view to evaluating how diplomacy can be strategically utilized in the advancement of the country’s economy. With a focus on Kenya this study proposes to assess opportunities and challenges of utilizing diplomacy in the enhancement of economic status. The study aims to find an interaction between the diplomatic processes and economic results while stressing the roles of regional integration, trade liberalization, and partnerships in the promotion of the Kenyan economy. The research starts by assessing the background of Kenya’s foreign policy and its progress toward becoming an economic diplomacy. It points to the move away from long-established diplomacy to New Diplomacy that is mostly based on economics as one of the major sources of influence in the world. This transition is as result of appreciation of diplomacy’s potential for adding value to the achievement of the national development agenda and agenda 2030. As part of the literature review, realism, and idealism theories are used to provide a theoretical framework of economic diplomacy in relation to Kenya’s diplomacy. Based on the strategies highlighted above, the research establishes FDI, trade and trade cooperation, and regional economic integration as critical tools of economic diplomacy in the development process. The study also outlines real and potential implications of economic diplomacy, stressing that the nations’ strategy should align with specified development goals. The method of the study is qualitative and involves the use of case studies together with interviews with participants from Kenya’s diplomatic and economic front. This approach enables the assessment of diplomacy strategies for the promotion of economic growth in a detailed manner. From the study, it is evident that Kenya has had certain gains in its use of economic diplomacy; however, there are still barriers like bureaucratic stringencies, lack of requisite structures, and political rivalry. However, the study found that there are many ways through which Kenya could improve its economic diplomacy. Kenya is perhaps one of the most strategic countries in the East African region, given this strategic position with regard to regional trade and investment. Also, the endowed natural resource base and human capital in Kenya also reveal a great potential for FDI and diversification of the economy. The study also pays particular attention to the role of international and regional cooperation in solving common problems and achieving the maximum economic effect. The direction of Kenya’s economic diplomacy is favorable because of the constant striving to build diplomatic relations coupled with the expansion of economic cooperation. The study further recommends that if the government of Kenya focuses more on developing core competency industries such as agriculture, manufacturing, and technology, then this will result in the power of Kenya to strengthen its competitiveness and foster economic growth. Additionally, the research indicates that there is a dire need to employ a systematic and integrated strategy in the application of economic diplomacy to ensure diplomatic undertakings are aligned with the country’s developmental agendas for optimality.