By Carl Delfeld of the Center for Economic Diplomacy
The Center for Economic Diplomacy is seeking seed capital and like-minded partners as it support policies and programs that help American companies grow with and export to global and especially emerging markets.
The only way out of America’s financial predicament is a combination of fiscal discipline and economic growth. Since consumption and government spending will have to be pared back, investment and exports have to fuel higher economic growth. A robust pickup in exports is the key and the target has to be fast growing countries in Asia and emerging markets. While exports account for 7% of US GDP, they account for 47% of German’s GDP and 15% of Japan’s GDP. There is definitely room for significant improvement.
The center’s initial efforts will be focused on three themes.
small & medium sized business – America’s large multinationals have the experience, skills and resources to penetrate emerging export markets. For example, Proctor & Gamble’s sales from emerging markets represent 32% of its $78 billion in annual revenue, up from 23% four years ago. Sales from emerging countries are doubling every four years. But many smaller businesses need some help not to mention are America’s premier job engine. Research done by the Kauffman foundation shows 80% of jobs are created by firms started in the last five years. The Senate Small Business Committee reports that only 1% of America’s 26 million small businesses export at all but they surprisingly account for 29% of export volume. If we can get the participation rate to 5%, the impact export growth would be dramatic.
reform, reorganize and revolutionize trade initiatives – we need to think bigger and smarter on both trade deals and initiatives. While we are struggling with the Columbia trade pact, China and 10 Southeast Asian nations (ASEAN) began last month world’s third-largest free trade area that will remove tariffs on 90% of traded goods. Trade between China and ASEAN members has soared to $192.5 billion in 2008, from $59.6 billion in 2003.
America’s patchwork of trade-related agencies and departments is far too bureaucratic and slow moving – undercutting the leverage we have as the world’s largest consumer market. Some examples are that the government-backed Overseas Private Investment Corp. (OPIC) is still financially supporting funds that invest in foreign emerging market companies, the Department of State needs to be able to bring in more staff with international executive experience, SBA programs should provide ample incentives for small business to pursue overseas markets.
from euro-centric to emerging markets – our attention and resources need to be much more focused on emerging markets since all indications are that this is where global growth with be centered.
For further information, please contact Carl Delfeld at 719.264.1503 or go to the Center for Economic Diplomacy.
The Center for Economic Diplomacy is seeking seed capital and like-minded partners as it support policies and programs that help American companies grow with and export to global and especially emerging markets.
The only way out of America’s financial predicament is a combination of fiscal discipline and economic growth. Since consumption and government spending will have to be pared back, investment and exports have to fuel higher economic growth. A robust pickup in exports is the key and the target has to be fast growing countries in Asia and emerging markets. While exports account for 7% of US GDP, they account for 47% of German’s GDP and 15% of Japan’s GDP. There is definitely room for significant improvement.
The center’s initial efforts will be focused on three themes.
small & medium sized business – America’s large multinationals have the experience, skills and resources to penetrate emerging export markets. For example, Proctor & Gamble’s sales from emerging markets represent 32% of its $78 billion in annual revenue, up from 23% four years ago. Sales from emerging countries are doubling every four years. But many smaller businesses need some help not to mention are America’s premier job engine. Research done by the Kauffman foundation shows 80% of jobs are created by firms started in the last five years. The Senate Small Business Committee reports that only 1% of America’s 26 million small businesses export at all but they surprisingly account for 29% of export volume. If we can get the participation rate to 5%, the impact export growth would be dramatic.
reform, reorganize and revolutionize trade initiatives – we need to think bigger and smarter on both trade deals and initiatives. While we are struggling with the Columbia trade pact, China and 10 Southeast Asian nations (ASEAN) began last month world’s third-largest free trade area that will remove tariffs on 90% of traded goods. Trade between China and ASEAN members has soared to $192.5 billion in 2008, from $59.6 billion in 2003.
America’s patchwork of trade-related agencies and departments is far too bureaucratic and slow moving – undercutting the leverage we have as the world’s largest consumer market. Some examples are that the government-backed Overseas Private Investment Corp. (OPIC) is still financially supporting funds that invest in foreign emerging market companies, the Department of State needs to be able to bring in more staff with international executive experience, SBA programs should provide ample incentives for small business to pursue overseas markets.
from euro-centric to emerging markets – our attention and resources need to be much more focused on emerging markets since all indications are that this is where global growth with be centered.
For further information, please contact Carl Delfeld at 719.264.1503 or go to the Center for Economic Diplomacy.
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