Date: 12 October 2006
Time: 9:00 AM - 11:00 AM
Venue: SGV Caseroom, Asian Institute of Management
The Challenge of Commercial Trade Diplomacy
The Asian Institute of Management Policy Center and the Konrad Adenauer Stiftung, in cooperation with the Embassy of the United States of America presented the 59th Globalization Lecture Series,“The Challenge of Commercial Trade Diplomacy” featuring Mr. Geza Feketekuty, President of the Institute for Trade and Commercial Diplomacy, Inc. last October 12, 2006 at the SGV Case Room, Asian Institute of Management.
Ms. Romella Denopol, the Policy Center’s Global Competitiveness Program Manager, opened the lecture in line with the timely issue on the suspension of the Doha Round of Talks declared by World Trade Organization Director-General, Mr. Paschal Lamy. The vacation shall enable serious reflection on the situation, available options and positions of the two parties involved, the developed countries led by the G6 and the developing countries including the Philippines, India and Thailand, grouped as the G20.
Such complex situation is an example of a commercial issue posing challenges not only limited in its realm of trade, investments and economic issues (low politics), but also by high politics, encompassing peace and security matters. Thus Mr. Feketekuty introduces a new breed of professionals equipped to administer the multifaceted nature of international commerce.
To understand the global market, go by decomposition. Mr. Feketekuty suggested that we examine our purchases. Behind a seemingly plain product is the knowledge of its logistics. Another realization is that the origins of its assembled features are hardly traceable due to the phenomena of outsourcing, insourcing, and downsizing, some of former GLS Speaker, Thomas Friedman’s “Forces that Flattened the World.” Mr. Feketekuty cited Citibank’s data processing center moving in North Dakota, American Express’ in Nebraska, and of course, the exodus of manufacturing companies to China.
In the Philippine context, Mr. Feketekuty provided figures showing that at least 40% of the country’s economy is globalized. The services sector, whether remittances from abroad or BPOs at home, is at the heart of this. However, the rules and the playing field are still clouded. Mr. Feketekuty refers to his colleague, Professor Jagdish Bhagwati, who coined the term “spaghetti bowl effect,” on the proliferation and overlapping multilateral and bilateral free trade agreements across East Asia.
The commercial diplomat, such as Mr. Feketekuty himself and guest reactor Undersecretary for Trade and Economic Relations, Mr. Edsel Custodio, is precisely this professional tasked to manage the participation of a nation in a globalized system. This field is not solely for the diplomatic corps per se. Expatriates, managers of multinational corporations or organizations that have an influence to foreign government policy and regulatory decisions affecting global trade and investment belong to the classification as well.
Contributing to the said topic, Undersecretary Custodio gives the audience a quick look of his upcoming presentation for the Service Export Net Meeting of the International Trade Center in Geneva entitled “Government Support for Services Sector,” the declaration of a Philippine Services Coalition. The Philippine Services roadmap aims to promote a “brain gain” in the country by “services exporting.” The Undersecretary was proud to inform the AIM community that the Policy Center is one of the signatories to the said declaration.
Dr. Federico Macaranas, Executive Director of the Policy Center, closed the lecture with a special message for his economics class. As future service providers, he encourages the MBA students to add creativity in business rather than operating as mere assemblers. He was very pleased with the two presentations for incorporating a social angle. The social angle is the key to value addition because it empowers the product’s knowledge source. He refers to education as the opportunity equalizer and the avenue for uplifting lives that will bring about retention of skilled professionals and exportation of vibrant Philippine ambassadors, a “brain gain” in the country.
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