Why Citizen Diplomacy is Good for Business

Vermont Council on World AffairsLake Champlain Regional Chamber of Commerce

August 18, 2010

• America and the World: Where Opinion Stands Today

• The Business Imperative: Success in the Global Economy

• The Citizen Connection: Why Citizen Diplomacy Matters

Presentation to Cover:

America and the World

Where Opinion Stands Today

“A climate of global cooperation is essential to our national security, our economy and our future.”

– Tom Donohue

2000 2008 Change

Germany 78 31 -47

Turkey 52 12 -40

Indonesia 75 37 -38

Britain 83 53 -30

Argentina 50 22 -28

Japan 77 50 -27

France 62 42 -20

Poland 86 68 -18

Spain 50 33 -17

Pakistan 23 19 -4

Source: The Pew Global Attitudes, June 2008

Favorable Opinions of the U.S.,2000–2008

Basically, we’re a cross between a good restaurant and an Italian coffee bar. We are not French and definitely not American.

America is the police

of the world.

Don’t wear its uniform.

2008 2009 Change

Germany 31 64 +33

Turkey 12 14 +2

Indonesia 37 63 +26

Britain 53 69 +16

Argentina 22 38 +16

Japan 50 59 +9

France 42 75 +33

Poland 68 67 -1

Spain 33 58 +25

Pakistan 19 16 -3

Source: The Pew Global Attitudes, July 2009

Favorable Opinions of the U.S.: Positive Change, 2008–2009

2009 2010 Change

Germany 64 63 -1

Turkey 14 17 +3

Indonesia 63 59 -4

Britain 69 65 -4

Argentina 38 42 +4

Japan 59 66 +7

France 75 73 -2

Poland 67 74 +7

Spain 58 61 +3

Pakistan 16 17 +1

Source: The Pew Global Attitudes, June 2010

Favorable Opinions of the U.S.: 2009–2010

Note: Countries include Australia, Canada, Chile, China, Egypt, France, Germany, Ghana, Great Britain, India, Indonesia, Italy, Japan, Mexico, Nigeria, Philippines, Russia, South Korea, Spain, and Turkey

U.S. Influence on the World

BBC World Poll, 2010

Belief that US Influence is Mainly Negative

BBC Poll 2010

2008 2010 ChangeTurkey 73 70 -3

Pakistan N/A 52 N/ARussia 53 50 -3Mexico 56 49 -7

Germany 72 47 -25China 46 44 -2France 51 39 -12

Indonesia 55 39 -16Canada 62 38 -24

South Korea 38 38 0

Trust in Business to Do What’s Right

44 44

48

51

48 49

53

58

38

54

32

41

35

40

3638

34

3636

42

30

35

40

45

50

55

60

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

United States

U.K./France/Germany

Source: 2010 Edelman Trust Barometer

Why Business?

• Touch more lives

• Good at international relationships

• Culturally attuned

• Efficient

• Credible

The Business Imperative

Success in the Global Economy

Key Trends Affecting Business

• Economy

• Technology

• Globalization

Key Trends in Globalization

• Trade

• Investment

• Tourism

US Exports 1989 – 2009 ($ billions)

International Trade Administration 2009

Vermont’s Export Markets

• Vermont's export shipments in first four months of 2010: +38.5%

• Compares to national average of 21.0%

• Ranks Vermont 6th nationally in export growth this year

• Vermont exports of merchandise in 2009: $3.2 B

• 963 companies exported goods from Vermont locations in 2007

• 86% were small and medium-sized enterprises with fewer than 500 employees

• Largest markets: Canada ($1.5 billion), Hong Kong ($258 million), China ($221 million), Malaysia ($184 million), and Japan ($181 million)

Source: International Trade Administration 2010

Trade and Employment

• International trade supported 77,886 jobs in Vermont in 2006

• 18.7% of total jobs depend on trade, up from 10.5% in 1992

• Over one-quarter of all manufacturing workers in the state depend on exports for their jobs

Sources: Business Roundtable, International Trade Administration 2010

Five million American workers earn a paycheck from the U.S. operations of foreign owned companies

– GMI 2005

Foreign Investment in Vermont

• 9,800 workers in Vermont employed by foreign-controlled companies in 2007 .

• Foreign investment in Vermont was responsible for 3.7 % of the state's total private-industry employment in 2007.

• Major sources of Vermont's FDI-created jobs in 2007: Switzerland, Japan, the United Kingdom, and Canada.

Source: International Trade Administration 2010

31%

-9%

0%

Change In International Travel: 2000-2009

Worldwide Travel

Travel to America

U.S. Travel Association, 2010

Travel and Tourism:Huge Growth Worldwide, But Not To U.S.

The Cost of Lost Travel to the U.S., 2000–2009

• Lost arrivals: 68 million

• Lost spending: $509 billion

• Lost tax revenues: $32 billion

• Lost jobs: 441 thousand

• Lost trade surplus: $270 billion

Source: U.S. Travel Association

The Citizen Connection

Why Citizen Diplomacy Matters

“As others see us”

Positives

• Opportunity

• Freedom

• Diversity

• Creativity

• Innovation

• Benevolence

Negatives

• Arrogant• Ignorant• Insensitive• Disrespectful• Exploitive• Self-centered

Negatives

• Arrogant• Ignorant• Insensitive• Disrespectful• Exploitive• Self-centered

70% of CEOs, other top business leaders agree:

“Research has shown that anti-American sentiment has grown in other countries in part due to what is viewed as arrogant and culturally insensitive behavior of Americans abroad. Since many thousands of Americans spend considerable time doing business elsewhere in the world, companies should ensure that their representatives outside the U.S. behave in a manner that builds understanding and respect for our country.”

Business Leaders Say: Citizen Diplomacy Skills Are Needed

Source: BDA/Zogby International Study of American Business Leaders, July 2010

Contributions of Citizen Diplomacy

• Deep cross-cultural experience

• Best practices in protocol

• Local community credibility

• Youth appeal

• Bilateral connections

• Global networks

Vermont and The World

• 32,978 passports issued to Vermonters in 2009, or, as a percentage of population: 5.30% (6th nationally)

• In 2007-2008, 1,834 Vermont students studied abroad, an 11.5% increase over the previous academic year.

• During 2008-2009, 1,022 international students were enrolled in Vermont colleges and universities and contributed $28.9 million to the Vermont economy.

What Can You Do?

• Tune in to the world

www.businessfordiplomaticaction.org

What Can You Do?

• Tune in to the world

• Get involved

What Can You Do?

• Tune in to the world

• Get involved

• Learn about cultures

“How to Help Your Country whileyou’re traveling for Your Company”

What Can You Do?

• Tune in to the world

• Get involved

• Cultural learning

• Learn a language

What Can You Do?

• Tune in to the world

• Get involved

• Cultural learning

• Learn a language

• Promote tourism and exchanges

What Can You Do?

• Tune in to the world

• Get involved

• Cultural learning

• Promote tourism and exchange

• Learn a language

• Influence policy

Thank you!