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Economic diplomacy in a multipolar world: Asia’s strategy for resilience

42 0
01.05.2026

The comforting fiction that global development is driven by shared goodwill has unraveled. What once passed as cooperative internationalism is now plainly shaped by competition, power asymmetries and strategic self-interest. In this unsettled environment, marked by geopolitical fragmentation and economic volatility, countries can no longer rely on the promise of benevolent globalization. Instead, they must actively negotiate their place in a world where cooperation is conditional and often transactional.

This shift is not entirely new. States have always pursued their own interests, even while framing their policies in the language of partnership and development. What has changed is the erosion of pretense. The institutions and norms that once gave structure to global engagement are increasingly contested, while great power rivalry has intensified across trade, technology and security domains. For policymakers, the implications are stark: waiting for systemic reform or external assistance is no longer a viable strategy.

Asia’s economic rise offers a compelling counterpoint to this uncertainty. Across diverse political systems and historical contexts, several Asian economies have demonstrated how to engage globally without surrendering strategic autonomy. Their success lies not in passive integration but in deliberate, often hard-nosed economic diplomacy-combining domestic capacity building with selective international collaboration.

At the center of this approach is a clear understanding that development cannot be outsourced. Countries such as India, China, Japan, South Korea and Vietnam have all leveraged external opportunities-foreign investment, technology transfers and access to export markets-but have done so on terms that reinforce domestic priorities. They did not simply adopt global best practices; they adapted them, reshaping external inputs to fit........

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