One recent event that can be used as a good example for successful public diplomacy, is the presidential election campaign and subsequent election of Barack Obama. In the run up to his inauguration Barack Obama used numerous methods in order to persuade not only the US public, but also audiences all across the globe, that he was the right man for the job. Upon election, Obama realised the importance of this 'public diplomacy', and the power that it has in making or breaking a nation. Subsequently, since his election there have been numerous examples of public diplomacy on behalf of the US (Hillary Clinton's trip to Islamabad is one example, information about which can be found here: http://www.dnaindia.com/world/report_hillary-clinton-says-us-willing-to-consider-nuke-cooperation-with-pak_1362477).
As well as its successes, public diplomacy can also encounter failures, some of which can have disastrous effects on a nation's image. One of the most obvious examples of this can be seen in the failed attempts of the Bush administration to 'win the hearts and minds' of the Muslim population not involved in the Jihadist attacks of 9/11.
Although this is not a success story, I feel that it shows the importance of the correct use of public diplomacy in creating and maintaining a credible image as a state. The failed and somewhat laughable attempts of the post 9/11 public diplomacy, ultimately leading to a 'war on terror' which is still continuing today, illustrates just how important it can be to get it right and also how consequential it can be if you get it wrong. Public diplomacy is far greater than just influencing public opinions. When used correctly it can enable the international acceptance of widely shared beliefs, and when used incorrectly it can lead a nation into international ridicule.
For more information on the effects of public diplomacy and also the distinctions between PD and propaganda, this might be a useful site: http://www.diplomaticourier.org/kmitan/articleback.php?newsid=483
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