Instability, conflict and organized crime are self-explanatory obstacles and deterrents for the spread of foreign direct investments and other forms of trade. Any rational investor wouldn’t want to expose their capital to unnecessary risks. According to the World Development report of 2011, it is estimated that around 1.5 billion people live in countries affected by political and criminal violence. Instability and uncertainty are factors of disincentive for cooperation and as a result, the European Union which is the world’s largest common market has in its constitutional basis the Lisbon Treaty, which is a renowned policy to “strengthen international security.” (European Commission, 2017)
As the Lisbon Treaty was being drafted in 2007 the European Council Conclusions on Security and Development highlighted that conflict prevention “should be pursued as a priority goal in particular by fostering and strengthening development cooperation.”(European Commission, 2017)
Dr. Andrew Moravcsik of Princeton University and Professor Michael W. Doyle of Columbia University among other scholars have furthered developed theories and concepts relevant to the topic of economic integration. One concept widely debated and studied is the Commercial Peace Theory. In essence, Commercial Peace Theory states that trade causes interdependence, and interdependence causes peace (Doyle, M. 1986). The notion of Commercial Peace emerged already in 1910, when British Member of Parliament Normen Angell wrote “the Great Illusion” where he argued that trade and interdependence brings about peace. The more interlinked countries are with each other on a commercial level, the less likely they are to go into conflict with each other due to their interdependence. It is a rather simple cost and benefit analysis; as soon as two countries trade with one another, they start specializing for comparative advantage and maximum efficiency in certain goods (if they haven’t already done so). Comparative advantage therefore is not only the more efficient choice for profit, but it makes the country dependent on others for goods it has chosen not to produce vis-a-vis how the other countries become dependent on the goods others can produce more efficiently. In other words, if one produces bullets and the other produces guns, they will not be able to fight each other. This was the idea of an integrated Europe after World War II, which as a continent has not seen war since.
Furthermore, the sociological rational states that communities which trade with each other inevitably will interact and get to know each other better causing understanding, respect and even tourism as well as exchanges of knowledge and scientific developments. In this sense, trade helps promoting interaction with other cultures since it causes close connections and familiarity. This in turn will make it harder to demonize other nations and cultures. In this sense, the public opinion is unlikely to urge for conflict but rather enjoy the fruits of cooperation and prosperity.
ISDEF is proud to be a platform for commercial collaboration and interaction for over 50 countries which will further bonds between Israel and other nations. A prosperous, transparent and genuine interdependence is therefore something ISDEF is proud to promote and support.
Doyle, M. 1986. “Liberalism and World Politics” American Political Science Review 80: 4
(December): pp. 1151-69
Oneal, Zeev Maoz & Bruce Russett. 1996. “The Liberal Peace: Interdependence, Democracy and International Conflict, 1950-1986”. Journal of Peace
Research, vol. 33, no. 1, Feburary, pp. 11-28