Contemporary diplomacy: Between politics, security and economics

By Wissam Kalakeche

Diplomacy is evolving in an increasingly complex and unpredictable world. The speed of events, influence and changing factors of international relations have added to this. Today, priorities are shifting from merely developing diplomatic tools to understanding changes, anticipating outcomes and responding proactively.

Contemporary diplomacy must adapt to the rapid transformation driven by information technology and artificial intelligence by leveraging faster communication and analysis while preserving the fundamental purpose of building understanding, managing competing interests, resolving differences and promoting stability among states and peoples.

Currently, video conferencing and AI have accelerated diplomatic meetings, information analysis, risk assessment and crisis response. These help diplomats to anticipate developments rather than merely react. However, technology remains a tool, not diplomacy’s purpose.  Its true value lies in helping nations manage differences, build understanding and trust, serve people, prevent escalation and preserve stability, rather than simply increasing the speed or sophistication of diplomatic processes.

In essence, technology should strengthen, not replace, diplomacy’s human dimension, particularly the ability to understand emotions, build trust and bridge differences remain sacrosanct.

Meanwhile, the prevailing international situation has shown that military conflict and geopolitical tensions shape economic diplomacy, disrupt global trades, investment, energy prices, supply chains and maritime security, while threatening states ability to protect their economic interests.

The Russia-Ukraine war demonstrates how geopolitical tensions reshape global energy, food, transportation and trade. Sanctions have redirected energy relationships, forcing European countries to seek alternative supplies. Similarly, disruptions in the Strait of Hormuz and Red Sea increased shipping costs, delayed deliveries and threatened the global supply chain.

These tensions heightened uncertainty, discourage investment and constrain foreign trade through increased costs, insurance premiums and restrictions. Consequently, economic diplomacy becomes more challenging as states struggle to attract investors, access markets and maintain trade flows. Governments may also divert resources from development priorities to security and defense. This shows the need for diplomacy that anticipates geopolitical risks, protects national economic interests and strengthens international economic cooperation.

However, while geopolitical tensions can weaken economic diplomacy, it can create increased military spending and demand for defense equipment, technology and research. This creates a paradox where conflicts impose economic costs while potentially stimulating economic growth, employment and domestic supply chains.

Germany illustrates this shift with a military budget exceeding $114 billion in 2025, up from 24 per cent in 2024 making it the world’s fourth largest military spender. As Vicente Palacio of Foundacion Alternativas observes, defence spending can extend beyond purchasing weapons to supporting manufacturing, innovation and technological development.

These opportunities also extend internationally. Countries with established defence industries can export equipment and expertise to states seeking stronger military capabilities. Such agreements often develop into broader partnerships, involving training, maintenance, technological transfer and military cooperation. Consequently, the defence industry can become tools of economic diplomacy, straightening strategic relationships and commercial opportunities. This must however be weighed against wider economy and humanitarian costs.

Global security tensions are driving demand for weapons, ammunition and defence technology, as Europe strengthens its military capabilities, Middle East states respond to regional threats and countries affected by conflict seek military supplies. For major producers like the United States, Russia, Germany and France, the defence industries have become instruments of economic growth and foreign policy.

Modern warfare increasingly depends on artificial intelligence, satellites, electronic systems, and unmanned aircraft. France’s Minister for the armed forces, Catherine Vautrin, has highlighted the significance of tactical drones in the Russia-Ukraine war. This shows the need to adapt military strategies and develop effective interception systems.

These developments show the growing interdependence of technology, diplomacy, international trade and military production. Technologies that disrupt maritime navigations and threaten oil supplies can also threaten domestic industries and create export opportunities for producing countries. Consequently, technological capabilities both determine national security and economic competitiveness.

According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure reached approximately $2.8 trillion in 2025, rising by 9 .4 per cent in real terms from 2024. This shows how geopolitical instability is reshaping industrial priorities, international partnerships and economic diplomacy worldwide.

The scale of military expenditure and arms sales associated with the current global conflicts is an indication that economics and security can no longer be considered separate fields. Security needs generate economic demand, while economic and technological capacity gives states the ability to respond to that demand.

Economic diplomacy, therefore, is no longer limited to attracting investment, promoting exports or opening new markets. It now operates within a wider network of interests that includes energy, technology, industry, defence and security. A diplomat cannot look at any one of these areas in complete isolation, because a decision taken in one field may have immediate consequences in another.

In the end, the challenge is not simply that diplomacy has acquired new tools. The world in which diplomacy operates has itself changed. It has become faster, more interconnected and, in many cases, more difficult to predict. This places a greater responsibility on diplomats. Their evolving role is to understand what lies behind them, see how developments in different fields are connected, and anticipate their consequences before they turn into crises.

Contemporary diplomacy must find leeway to adapt without losing its essence. The tools may change, and the sources of power and influence may multiply, but the need for dialogue, for understanding and for building bridges of trust between states and peoples remains. The effective diplomacy is therefore not necessarily the most technologically advanced. It is diplomacy that can combine flexibility in a changing world with clarity while preserving the human dimension that gives its real meaning.

Dr Kalakeche is the Ambassador of Lebanon to Nigeria. He can be reached via Abuja.leb@ gmail.com