Amid the spikes in geopolitical risk witnessed in recent years, there may be a need to explore some of the reserves in international mediation and diplomacy, including those pertaining to the mediation roles of regional organizations and small advanced economies. The distinguishing feature uniting some of the small open economies is that they perform important mediation roles not only in their respective regions, but also on a global scale.
Some of these developed small economies also have taken on a neutral status in international relations that enabled them to become credible mediators in key international disputes. In particular, Austria and Switzerland have the principle of neutrality enshrined in their Constitution. In the case of Austria the Declaration of Neutrality was enacted in 1955 as a constitutional act of parliament. In Switzerland neutrality as a foreign policy norm was included into the Constitutions of 1848, 1874 and 1999 and also featured in the country’s accession statement to the United Nations in 2002.
In Singapore neutrality has been pronounced as a de facto key foreign policy orientation, most notably with respect to the competitive tensions between the US and China in the South East Asia regions. Due to these strong de facto neutrality credentials Singapore was able to serve as venue for talks and negotiations between the US and North Korea in 2018 as well as between China’s leader Xi Jinping and Taiwan’s leader Ma Ying-jeou in 2015. In the words of Singapore’s Foreign Minister Vivian Balakrishnan, when it comes to the country’s foreign policy and its efforts be a credible and consistent partner, “the key to this is our neutrality… We will be nobody’s stooge, we will not act on behalf of any other power”
We cannot be bought, nor can we be bullied”. It is this neutrality that enables Singapore to expand the network of alliances in the world economy and to raise its weight in international affairs. Back in 2009 the architect of Singapore’s modernization Lee Kuan Yew observed: "Small countries have little power to alter the region, let alone the world. A small country must seek a maximum number of friends, while maintaining the freedom to be itself as a sovereign and independent nation... We must make ourselves relevant so that other countries have an interest in our continued survival and prosperity as a sovereign and independent nation."