The Hindu : Opinion / News Analysis : The changing face of diplomacy

Online edition of India's National Newspaper
Wednesday, May 11, 2005

Opinion

Opinion - News Analysis

The changing face of diplomacy

Sushma Ramchandran

The genteel world of diplomacy has been transformed. Aggressive promotion of economic interests is in.

Presenting a case: Dinesh Keskar of Boeing at a press meet in New Delhi recently. — Photo: Kamal Narang

THE SPAT between Airbus and Boeing in this country is part of a global battle between these two giant corporations. Airbus Industrie, the European consortium, has the backing of France, Germany and the U.K. while Boeing is supported by the U.S. The entry of the French Ambassador into the fray last week raised decibel levels.

In fact, aircraft purchase deals involving large investments and the fate of many jobs tend to become acrimonious.

In the past, the battle between the world's two largest aircraft manufacturers was largely in the phase before orders were actually placed. Whenever Air India or Indian Airlines planned to refurbish their fleets, the two corporations went into a publicity overdrive. Detailed briefings of the bureaucrats handling the deal as well as seasoned civil aviation correspondents were part of these campaigns. Trips for groups of journalists to the U.S. and European headquarters of the two companies were virtually mandatory. While the media blitz was always in the public domain, the negotiations with bureaucrats and politicians remained in the realm of speculation and gossip. Finalising aircraft purchases is a long drawn out affair with innumerable government committees approving and disapproving decisions.

Few recall now that the entry of the fly-by-wire Airbus aircraft into the IA fleet was accompanied by considerable controversy.

This time round, the tiff began after AI decided to opt for new planes from Boeing. With Airbus making allegations and Boeing holding press meets to deny them, the scenario is now quite different especially with the entry of the French Ambassador who publicly questioned the decision. He has insisted he was misquoted but there is no doubt the French Government must be extremely concerned over the failure of Airbus Industrie to bag the order. A large part of Airbus production is carried out in France and its viability is therefore of considerable importance in a country worried about growing unemployment levels.

The public tiff between the two corporations with foreign envoys getting involved also highlights the shifting role of diplomacy in a globalised world. The French Ambassador's keen interest in the deal is similar to that of other envoys in New Delhi whenever corporates from their home countries are seeking to tie up commercial agreements. In fact taking on an activist role on behalf of their country's industry has become par for the course for most diplomats. New Delhi has become used to Ambassadors from countries such as the U.S. and the U.K. lobbying aggressively for home companies. In many cases, diplomatic initiatives are rumoured to be followed up by discreet phone calls from governments concerned directly to top political leaders to clinch the deals. Such developments may be difficult to confirm, but it is clear that the genteel world of diplomacy has been transformed. Aggressive promotion of economic interests is on the agenda now.

It is time for Indian diplomats to recognise the critical importance of economy and industry.

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