The External Needs and Goals of States

3.2. Economic Prosperity and Development

Beyond survival, states must secure the means for economic prosperity, which increasingly depends on external engagement. The international economy provides markets for exports, sources of investment, and access to critical resources. Economic interdependence, while sometimes a source of vulnerability, also creates opportunities for mutual growth and stability.

Mercantilist traditions viewed international trade as a zero-sum competition for wealth and power. However, liberal economic theories—articulated by thinkers such as Adam Smith and David Ricardo—emphasized comparative advantage and mutual benefit. Modern states pursue external economic goals through trade agreements, investment treaties, and participation in global institutions like the World Trade Organization (WTO) and the International Monetary Fund (IMF). These engagements not only facilitate economic growth but also enhance political influence by integrating states into global networks of cooperation.

In the twenty-first century, economic globalization has reshaped external needs and goals. States no longer seek autarky but rather strive for integration into global value chains. Yet, this interdependence also introduces strategic vulnerabilities. The COVID-19 pandemic, for example, revealed the risks of supply chain dependency, prompting many states to reconsider the balance between global integration and national resilience. Economic diplomacy—using financial instruments, development aid, and trade partnerships—has thus emerged as a key tool for achieving external goals without resorting to coercive means.