Economic diplomacy and the liberal peace

The purpose of the chapter is twofold. The first is to relate the theory of liberal peace to the notion of economic diplomacy. The second objective is to relate the greater economic globalisation outcome of economic diplomacy, and its counterpart liberal peace objective, to the incidence and nature of domestic conflict. Nowadays, civil war has become the dominant form of war, mainly in developing countries. But other forms of social conflict and unrest short of war are also emerging, especially in the wake of the growing global tide of rising inequality and relative deprivation since the current phase of globalisation gathered pace after c. 1980. This is also reflected in voting in democratic countries, for example, the referendum in favour of Brexit in 2016. A game theoretic model of interaction between the state and a dissident group over the degree of globalisation is also presented.