University of Malta. Islands and Small States Institute
Abstract
Competitiveness is not only an economic matter; it is also a foreign policy issue. It
requires the coordinated action of the state, business community and civil society. Global
economic institutions now confront a new challenge to design strategies and roadmaps for
reform that will build on the achievements of the past, and cope with an increasingly new set
of ripples that poses risks to the orthodox practice of development and ignite a search for a new
kind of diplomacy. A global dialogue on competitiveness and economic development is in the
making, and small economies have a vested interest to be part of that dialogue. While small
states have fewer resources to devote to the tasks of diplomacy and effective interaction with
other states, this shortcoming can be reduced by alliances and networks, given the large number
of small states with common interests. Small states in Europe are strategically placed to
recalibrate that continent’s approach to regional and international diplomacy in its quest to
promote competitiveness, and sustain growth and equity in its development goals. As such, it
can bring important lessons to the attention of other small states in the world and add
considerably to the expectations of this exercise in global analytical leadership.peer-reviewe
