Positive Economic Statecraft
The Atlantic Council’s Economic Statecraft Initiative coined the term “positive economic statecraft” (PES) to describe how governments use economic inducements to influence the behavior of another government. Common instruments of PES include official international development assistance or humanitarian aid (e.g., grants, capacity building, technical assistance, budget support), development finance (e.g., loans, credits or guarantees, public-private partnerships), access to currency, and preferential trade and investment agreements.
