© International
Trade Centre, International Trade Forum - Issue 1/2002
There is little doubt that in this age of
globalization, speed and digital distance, the effectiveness of a
trade support institution (TSI) is relative to its ability to
participate actively in formal and informal networks. Without
networks and their related industries, such as information and
communications, the modern economy would be much diminished, and
the TSI fundamentally altered.
The very attributes of a TSI mean that there is a need to
network, perhaps more so than for any other kind of organization.
Apart from the relationships that business firms usually have with
suppliers, customers and other industry players, the complex
environment within which TSIs operate requires an equally
complicated network of partners. Networks can thus ultimately shape
the reach and range of a TSI's scope of activities, and can delimit
a country's modes of participating in the global industrial fabric.
TSIs can also affect macroeconomic policy and economic performance,
and they shape the incentives facing firms in their market
activities. It is clear then that a successful trade support
network can bring about comparative economic advantages.
However, the export strategy-maker is faced with a daunting
task, since fostering a trade support network and maintaining its
momentum is not easy. There is often a void between rhetoric and
reality. Achieving a holistic approach to the trade support
environment is a challenge that requires time, resources,
reconciliation, ability and leadership.
At the national level, significant advantages can be achieved
through coherent and consistent efforts among the various players
involved in international trade. Whether national institutional
networking aims to project the country's image as a trading
partner, provide support services to industry, enhance SMEs'
international business opportunity capabilities, or to create a
suitable macroeconomic policy, the results can be productive and
include:
- a better flow of ideas from an enhanced skills-base, leading to
better results;
- greater achievement due to pooled resources, competencies and
cost-sharing;
- reduced duplication which cuts down waste and increases
resource use;
- holistic coverage which satisfies a greater number of
end-users' needs;
- a unified, consistent vision which reduces the risk of
confusing the target beneficiaries; and
- a more credible end product.
Leading the network: public or private
sector?
The question of which sector is best qualified to handle the
task is not about the issue of more or less government involvement,
it is about different governance - characterized by private sector
dynamism, efficiency and effectiveness. The export strategy-maker
may also consider a participatory approach. This presumes an
integrated effort of all stakeholders involved. It also depends on
many sources for initiatives and decision-making, allowing access
to a wide range of alternative institutions and funding mechanisms
in the network. In this way, participatory governance can be the
key to ensuring the network continues to serve the unifying
purpose. Network leadership can be provided by a public-private
advisory group or steering committee which defines its agenda,
plans cooperatively using shared resources, and fosters a climate
of trust.
No matter which approach is chosen, strong and resourceful
leadership is fundamental. The export strategy-maker also needs to
feel the pulse of industry; a consultative approach is, therefore,
more likely to render better results in a shorter time. Joint
ownership is commendable; but it must produce an integration of
assets, communication and command in an efficient and flexible
manner. Rules need to be broadly defined up-front, in terms of
inputs and rewards to be expected. At the same time, care must be
taken that momentum is not lost through excessive formality.
The need for evaluation
Performance measurement involves making judgements about the
merit or worth of an activity during or after implementation.
Evaluation needs to become an intrinsic part of the process of the
network's programme design and implementation. The reason for this
is simple - there is always room for improvement. A trade support
network can only be said to be completely successful when it makes
itself redundant - when business firms no longer need trade support
services.
Anton J. Said (anton.said@metco.net) is
Manager, Business Information and Technology Division, Malta
External Trade Corporation Ltd. This is an abstract from a paper
which can be found on the Executive Forum web site.