My network operates within the framework of an export
development strategy that specifies priorities and
targets.
Without strategic guidelines that are known to all institutions
engaged in providing trade support services, the effectiveness of
the network could be questioned. Each element of the network must
work towards a common vision and common targets.
My network includes decision-makers from public sector
organizations concerned with key determinants of international
competitiveness.
For export performance to be sustained, trade support ser-vices
provided directly to the business community must be underpinned by
"export-positive" strategies for industry and agriculture, physical
infrastructure (including telecommunications) and finance. The
labour and education portfolios of government must also be directly
supportive of the national export effort. Regular consultation
among the national export strategy team and decision-makers in
other ministries and government departments is critical to the
national trade support network working within a best-practice
environment.
My network is sufficiently flexible to provide different
types and combinations of trade support services to its various
client categories.
Client segmentation is essential given the differences in the
nature of services required by different types of exporters.
Specialization within the network is essential to effective client
servicing. Client prioritization is also essential and certain
trade-offs will need to be made among client categories if the
network is to be focused and consistent.
My network is fully demand-responsive.
Resource limitations dictate that the network must focus on
servicing specific categories of clients (for example, existing
exporters, new exporters, potential exporters). Within the
priorities established by national export strategy, the focus
should be on ensuring that the demand for specific trade support
ser-vices of high-priority categories is met. Experience suggests
that demand is primarily for information and finance, irrespective
of the priority category. If the network adequately services these
two requirements, it has climbed the first rung of the
effectiveness ladder: it has established credibility within the
business community. Unless the network can satisfy clients' demand
for services they think they need, it will not have sufficient
influence to convince clients to avail themselves of the trade
support services they may really need (i.e. competency development
services).
My network has an effective referral
system.
Network specialization and responsiveness to demand requires the
network to maintain a referral system whereby the client can be
directed to relevant members of the network and receive prompt
attention. Best-practice scenarios suggest that a first-stop shop
is more realistic than a one-stop shop. Ideally, the first-stop
shop would focus on the information or finance aspects of the
clients' demand, or both, and assist the client completing an
"export-readiness review" to identify competitiveness needs and
coordinate subsequent referrals to specialized trade support
institutions in the network.
My network gives top priority to standards and quality
management issues.
Quality and standards are becoming increasingly important
determinants of international competitiveness and an enterprise's
position in the international value chain. Proactive involvement of
national standards institutes in the trade support network is
essential. An internationally recognized quality-control and
certification system will eventually be required to reinforce
international competitiveness. But a progressive approach to
establishing a comprehensive quality assurance infrastructure
should be taken given the complexities and costs involved.
Incentives should be available to encourage exporters to obtain
international certification.
My network caters to the trade support needs of the
potential exporter of services.
International trade in business and professional services is
growing at unprecedented rates and there is considerable scope for
developing and transition economy service companies to participate.
However, services exporters require different types of support
services than exporters of goods. The national trade support
network must evolve special programmes to address these special
needs. The creation of a national association of service exporters
to handle basic information, coordination and advocacy functions is
probably the first step.
My network addresses the issue of competency
development.
Entrepreneurs and export managers tend to think they possess the
necessary skills to be successful. They are often wrong. The
national trade support network should not only have the capacity to
train export managers, but the capability to generate demand for
such training. Offering and effectively promoting "applied"
training is a proven best-practice scenario. Close links between
the information and training arms of the network are
fundamental.
My network gives precedence to "border-in" capacity
development issues.
The tendency is for the national trade support network to
concentrate on "border-out" issues such as market information,
buyer identification and market access. The emphasis is on
servicing existing exporters and promoting existing export sectors.
However, for the network to work effectively, it must pay at least
as much attention on the border-in issues of developing new export
capacities, increasing export "value-added", lowering transaction
costs, accelerating the internationalization process and supporting
new international entrepreneurs, as well as competency development.
Prioritization of border-in issues often requires a complete switch
in the mindset of export strategists.
My network's border-in services include investment
promotion.
Investment promotion, and principally foreign investment
promotion, represents a key aspect of a trade support network.
Irrespective of whether the investment and trade promotion
functions are provided by one or more agencies, the key point is
that the networks investment promotion activities should include
the promotion of "competitiveness enhancement" investment in
existing export-oriented enterprises (joint ventures and technology
and marketing-support ventures), as well as the promotion of
foreign direct investment in "green field" projects.
My network works to simplify the supply chains of local
exporters and to raise their position in the value chains of
international buyers.
Successful networks work towards reducing the complexity and the
time dimension of the export community's supply chain. This
encompasses trade facilitation, assistance in sourcing materials
and management, and post-transaction logistics and delivery. It
also includes support to raising the profile of the exporter in the
international buyer's supply chain. Support in the development of
e-competence and e-trade capability is essential to both supply
chain perspectives.
My network is run like a business.
It is extremely unlikely that the majority of trade support
ser-vices can be self-financing. Within the business community, the
demand and capacity to pay for information, training, advice, etc.,
are simply too limited for the network as a whole, and for most of
the individual trade support organizations within the network, to
cover costs fully. However, the network should work on principles
of efficiency and client orientation. Charging for service, either
directly or through other means, provides the basis for a business
relationship to develop with the client. And each member of the
network should endeavour to establish such a relationship.
My network is effectively coordinated.
While the network should be flexible, both in structure and
approach, with each member of the network operating with a high
degree of autonomy, it must have cohesion. The existence of a
national export strategy provides part of the answer, and
coordination provides the remainder. Coordination of the network
should be the role of the national trade promotion agency, which
should ideally also act as first-stop shop and referral centre.
Effective coordination requires the network to be e-competent,
e-linked and e-cooperative.
My network is subject to performance
assessment.
It is difficult to assess the contribution of trade support
services to competitiveness. Few evaluation tools measure the
direct impact of the network's activities on trade performance. Yet
some attempt should be made to objectively gauge performance and to
measure impact. Such measurement provides the foundation for
decisions to be taken on network and programme refinement and
adaptation.