Economization of Diplomacy and Modernization of Global Trade Policy Within Geopolitically Unstable Environment

Abstract

Economization of diplomacy and modernization of global trade policy within geopolitically unstable environmentWe have entered the world where extreme uncertainty is dominating and we are dealing with new diplomacy boundaries. The velocity and scale of changes are unique, this is a fact and it should not be resisted, it would only be in vain. We must accept a new reality and adapt to it prioritizing flexibility and sustainability. The uncertainty has turned into a rule. Events that were not supposed to ever happen, are happening one after another. This way, "black swans" (exceptional events) will turn into a majority. These theses started the speech of Josep Borrell, the Chief of European Diplomacy and the High Representative of the Union for Foreign Affairs and Security Policy at EU Ambassadors Annual Conference in Brussels on October 10, 2022 [502]. He highlighted that the old world does not exist anymore and pointed out four factors of the global crisis. Firstly, Ukraine. The full-scale war in Ukraine continues and the country efficiently and successfully resists the enemy; also, open nuclear threats of Putin and mass mobilization in the Russian Federation. Secondly, China. Deep US-China competition and tension escalation in Taiwan. Thirdly, global food and energy crises.Josep Borrell stated that they had been predicted but not as acute as they are now and he also provided some examples and forecast that the food crisis would aggravate the situation in many parts of the world. Somali and Horn of Africa are examples of how a climate change along with a war can cause a humanitarian crisis of such a scale which Europe cannot even think of. He said that the world is entering a perfect storm. Firstly, prices are rising. Secondly, central banks are increasing interest rates. The United States is the first to do so and others have to do the same, otherwise their currency will be devalued; therefore, they all hurry to raise interest rates as there is no other way since the capital will leave states. And fourthly, security situation.Dangerous megatrends and security issues in the European neighbourhood that are not limited to Ukraine only. For instance, the exacerbation in Northern Africa was not a surprise but how Russia is becoming its major cause is rather unexpected. It is rapidly