Economic development is vital for every country. In economic development, economic alliances are immensely helpful. By forming economic alliances with other countries, nations get access to new markets, technologies and resources that help drive economic growth and innovation. Consequently, many countries put emphasis on forming and/or joining economic alliances at the regional levels and beyond and there are various economic alliances including the North American Free Trade Agreement, the Association of Southeast Asian Nations and the African Continental Free Trade Area. Given that there is a lack of financial and technological capabilities — needed to compete on a global scale — among less resourceful countries, economic alliances can help develop the economy and increase the capacity of many such countries.
It is notable that policy based, political and other reasons put barriers to less resourceful countries to foster economic alliances with other countries. Differing economic interests, differing political priorities and limited bargaining power in negotiations are some barriers. Conflicting national interests, political instability, unequal distribution of benefits and a lack of trust among nations also put barriers for many such countries to forming or joining such alliances. Armed conflicts, geopolitical tensions and historical grievances often hinder many less resourceful countries from forming economic alliances many times. Political instability and armed conflicts among many less resourceful countries including, but not limited to, South Sudan, the DR Congo and Yemen not only put barriers to economic development but also hinder effective economic alliances.
Less resourceful countries take diplomatic, policy based and other steps to make economic alliances with other countries and address barriers, leading to positive outcomes. Many less resourceful countries now emphasize making economic alliances and strengthened diplomatic steps with other countries and established alliances to join. Additionally, different countries invest in infrastructure and transportation networks to improve connectivity. Among others, many less resourceful countries increasingly focus on streamlining bureaucratic processes and reducing red tape to make it easier to form or join economic alliances. Many less resourceful countries including Rwanda, Vietnam and Costa Rica addressed various challenges, implemented policies to promote trade and investment and formed or joined economic alliances, leading to economic growth and increased business opportunities.
But because of various limitations in the steps in addressing the challenges, it turns out to be difficult for less resourceful countries to form or join economic alliances. There remains a limited policy focus and a lack of bargaining power in negotiations — due to various causes including smaller economies, limited resources and challenges in meeting the requirements and standards in forming economic alliances — in many less resourceful countries. Additionally, the emphasis is given less on infrastructural development and addressing bureaucratic barriers, needed to form or join economic alliances with other countries. Among others, less emphasis is often given to addressing political instability and armed conflicts with talks in many less resourceful countries.
Given that those countries that actively participate in economic alliances often experience increased foreign investment, access to transnational markets, improved infrastructure development and other beneficial outcomes, fostering such alliances for less resourceful countries can is vital. But putting emphasis on improving business friendly conditions is vital for this. Investing in infrastructure development to improve connectivity and facilitate trade with other nations, putting emphasis on economic diplomacy and seeking out partnerships with more developed nations to access their markets and technology may be helpful many times. Focusing on neighboring countries can also help form or join economic alliances and boost economic growth and stability through increased commerce and investment opportunities for many countries.
But it is vital to resolve armed conflicts and political problems — crucial barriers to many less resourceful countries. For this, the emphasis needs to be given to talks, not only for resolving political problems and addressing armed conflicts between different parties involved within the national boundary but also for addressing conflicts between nations including neighboring countries. Peaceful resolutions and trust building steps among nations will help make or join economic alliances, economic growth and prosperity.
