By Frederick W. Sonpon
I. Internal Peace as the Foundation for External Prosperity
The cornerstone of any successful international engagement lies in internal stability. Nations that are plagued by conflict, corruption, or poor governance struggle to present themselves as reliable partners in the global marketplace. Peace is not merely the absence of war; it encompasses functional institutions, social cohesion, justice, and inclusive governance.
For example, Rwanda emerged from the devastating genocide of 1994 to become one of Africa’s most stable and fastest-growing economies. This transformation was driven by deliberate peacebuilding, investment in community justice mechanisms like Gacaca, and the creation of a zero-tolerance anti-corruption culture. Rwanda’s internal peace enabled it to attract foreign direct investment (FDI) from nations like China and the Netherlands, and to rank second in Africa on the World Bank’s 2020 Doing Business Index (World Bank, 2020).
Policy Insight: Policymakers must prioritize conflict resolution, strengthen democratic institutions, and invest in social programs that reduce inequality and marginalization. Peace dividends are more than moral victories—they are economic enablers.
II. Regional Partnerships: Building Economic Gateways
Regional integration is a strategic stepping stone toward global relevance. When countries forge productive relationships with their neighbors, they create larger markets, boost cross-border infrastructure, and foster security alliances that are attractive to global investors.
The Association of Southeast Asian Nations (ASEAN) is a textbook example. Established in 1967, ASEAN has grown into one of the most dynamic regional blocs, providing its ten member states—including developing economies like Vietnam and the Philippines—with collective bargaining power. As a result, ASEAN nations negotiated major trade deals like the Regional Comprehensive Economic Partnership (RCEP), giving them access to the world’s largest free trade area.
Similarly, in Africa, the African Continental Free Trade Area (AfCFTA)—launched in 2021—aims to connect 1.3 billion people across 55 countries, creating a $3.4 trillion economic bloc (African Union, 2021). For countries like Ghana and Kenya, early adoption of AfCFTA provisions has already shown increased interest from global investors seeking centralized access to African markets.
Policy Insight: Governments must reduce tariffs, harmonize trade regulations, and invest in regional infrastructure (roads, ports, energy) to unlock shared economic benefits. A stable neighborhood is an invitation to global investors.
III. International Relations as an Economic Lever
Once internal peace and regional bonds are established, a developing nation is better positioned to engage with global powers and institutions. This engagement can take many forms: bilateral trade agreements, diplomatic missions, multilateral organization participation, and diaspora mobilization.
Take Vietnam, which normalized relations with the United States in 1995 after decades of war. By systematically reforming its economy through Doi Moi policies and opening to the world, Vietnam grew its GDP per capita from $289 in 1985 to over $3,700 by 2023 (IMF, 2023). Its strong diplomatic engagements, investment in education, and participation in global value chains have turned it into a major manufacturing hub for companies like Samsung and Nike.
Another compelling case is Costa Rica, which abolished its army in 1949, invested in education and health, and built a reputation for environmental sustainability. These strategic decisions, combined with stable governance, allowed the country to attract high-value industries like medical technology and ecotourism. In 2020 alone, Costa Rica generated over $4 billion from high-tech exports (World Bank, 2021).
Policy Insight: Developing nations should align foreign policy with economic goals—targeting sectors like agriculture, manufacturing, and tourism that benefit from FDI. Establishing economic consulates, attending global forums, and leveraging diaspora networks can accelerate investor confidence.
IV. The Economic Dividends: Foreign Investment and Job Creation
Once a nation is viewed as peaceful, regionally connected, and globally engaged, it becomes a magnet for foreign capital. FDI brings not just money, but also technology transfer, management skills, and market access.
According to UNCTAD’s 2023 World Investment Report, developing countries captured over 60% of global FDI inflows—highlighting the immense potential available to well-positioned nations. In Ethiopia, for example, the establishment of industrial parks such as Hawassa and the creation of a one-stop investment center contributed to thousands of textile jobs, primarily for women. FDI from China, Turkey, and India played key roles (UNCTAD, 2023).
Similarly, Bangladesh’s investment in peace and its apparel sector has made it the second-largest garment exporter globally. Its export-led growth created over 4 million jobs and lifted millions out of poverty.
Policy Insight: Governments must streamline investment processes, protect investors’ rights, and ensure labor market readiness. Vocational training and digital literacy programs can prepare citizens to benefit from new job opportunities brought by international engagement.
V. Conclusion and Recommendations
Strengthening international relations is not a standalone task; it is the culmination of intentional domestic peacebuilding and strategic regional engagement. The path to sustainable economic development lies in interdependence—not isolation.
Key Recommendations for Policymakers:
1. Invest in Peacebuilding – Establish inclusive governance, reform the justice system, and combat corruption.
2. Prioritize Regional Integration – Harmonize trade laws and connect infrastructure with neighboring countries.
3. Align Foreign Policy with Economic Strategy – Target FDI by promoting strategic sectors and developing global partnerships.
4. Build Investor Confidence – Simplify regulations, ensure legal protections, and maintain macroeconomic stability.
5. Empower the Workforce – Scale up education, technical training, and entrepreneurship programs to absorb jobs from foreign-led industries.
As the global economic landscape evolves, those developing nations that invest in peace and partnership today will harvest prosperity tomorrow. The road may be long, but the dividends of a globally respected, economically integrated nation are both profound and lasting.
By Frederick W. Sonpon, author of the books: Tragedies of modernity, Tribal Hatred Turned Civil War, While We Were Together, and From Poverty To Victory, which can be found on Google Play, Amazon and many other websites. He is passionate about promoting literacy in Liberia, as founder of the local non-governmental organization, Book World International-BWI, working with high schools promoting reading and writing.
