Ford & SPPG Conference 20121 The Vital Commons By Beaver and Eagle (Beagle) Consulting.

Ford & SPPG Conference 2012 1

The Vital Commons

By Beaver and Eagle (Beagle) Consulting


GLSR region produces:- $4.6 tr USD in annual economic output- 75% of Canadian manufacturing - 33% of American manufacturing

Changes in the world economy threaten this region’s economic position and the well-being of its future. Part of this problem is the lack of coordination between countries to revitalize this area.

GLSR region risks:- 2 million jobs- 42% of US – Canada two-way merchandising trade- Further continuation of rust-belt communities

Strategic Context


Our mission for the council is to revive economic development in the region. Our objective is to start with the immediate variables that block the public-private sector coordination needed for robust and sustainable economic growth.

Barriers to short-term integration:- Regulation policies [commerce]- Transportation [physical]Outcomes:- Short-term: reduce barriers to boost trade and align economic

activity- Long-term: provides platform for more lengthy initiatives such

as investment in new sectors and training worker

The role is to remove main trade barriers for private market sector agents to make the region more attractive to current and potential businesses.

Strategic Context


This requires that the council- be politically favorable and balanced- garner commercial and community support- understand how large businesses and SMEs realistically work

Limitations and boundaries….- ST: cannot create coordinated new industry sectors and

economic diversity without proper infrastructure- can’t get complete consensus

Strategic Context


Status Quo: Businesses

Costs• Costs due to

transportation/border delays

• Costs due to regulatory dis-alignment

• Costs due to lack of understanding of regulatory framework (ie fines, redundancy, etc...)

Benefits• No administrative costs from

operating a council


Costs• Threat to competitiveness and trade secrets as a result of

greater transparency• Setting up the secretariat & funding on-going operations• Administrative and HR burden for business to interface with

council• Costs to integrate policies of the council and change operating

practices• Certification costs for the SME-specific trusted trader program• Costs to businesses that currently benefit from protectionist

policies (harmonization costs)

GLPC: Businesses


Benefits• Increased trade (for SMEs in particular)• More integrated supply chains• Shorter shipping times• Reduced paperwork and internal resources dedicated to

regulatory compliance• Collaborative relationships increase the potential for

innovation• Social capital from networks and connections• More attractive investment environment• Increased business competitiveness

GLPC: Businesses


Status Quo: Governments

Costs• Lost tax revenue due to

smaller tax base/less growth potential

• Individual communities/ states could be negatively impacted by change in business climate

• Political objections and challenges

Benefits• No administrative burden

associated with implementing new policies


GLPC: Governments

Costs• Administrative costs and

future uncertainty from interfacing with current free trade agreements

• Transaction costs to change the regulatory framework

Benefits• Decreased administrative

burden with regulatory enforcement

• Increased tax revenue due to larger tax base/greater growth potential

• Increased efficiency and use of manpower at boarder points


Status Quo: Civil Society

Costs• Higher prices due to higher

business costs• Increased environmental

impact from global trade• Security concerns from reliance

on unstable trading partners• Less stability in trade• Fewer job opportunities and

lower wages due to sub-optimal business competitiveness

Benefits• Familiarity with current

system and relationship


GLPC: Civil Society

Costs• Impingement on "Made in the US" and other

Pro-American Consumption Movement• Increased ease of crossing the border

increases the potential for security risks


GLPC: Civil Society

Benefits• Guaranteed, consistent supply of products that rely on Canada-US

Trading• Lower prices as a result of economies of scale and increased

competition• Lower environmental impact from regional focus of trade• Increased trade with a stable trading partner• Diminished fuel and energy consumption from transportation of goods• More job opportunities and higher wages due to increased business

competitiveness• Positive image associated with cross-border trade• Increased understanding of the importance of cross-border

collaboration


Status Quo: Existing Sectorial Interest Groups and Organizations

Costs• Sectorial focus does foster

regional collaboration

Benefits• No administrative costs

associated with interfacing with a new comission


GLPC: Existing Sectorial Interest Groups and Organizations

Costs• Costs of participating in a

new council and potential to detract current collaborative effort

• Communications and information costs to foster buy-in

Benefits• Resources for collaboration

and coordination of political priorities across the region

• Resource for advocacy of economic development and political priorities


Implementation plan

• Approach the existing collaborative organizations to glean support and provide info

SHORT TERM• Establish regulatory inventory and identify

opportunities for harmonization and streamlining• Pilot program in a specific port of trade to

facilitate increased trade and labour mobility• Create an SME-specific trusted program


Implementation Plan

MEDIUM TERM• Develop mentorship program to help businesses navigate current

and changing regulatory system• Approach government decision-makers to advise on border-

thickening impacts• Utilize lessons learned from pilots and to advocate for regulatory

changeLONG TERM• Expand program region wide to all major ports• Plan to prevent emergence of new regulatory barriers to trade• Conduct ongoing evaluation and review


Justification – Addressing Risks

• Legitimacy is key • Keep it simple• Focus access and economic recovery• Utilize the geographic advantage of the lakes • Leverage existing collaborative structures• Enhanced entrepreneurialism from cross-

sector and cross-border collaboration


Organizational Structure

Board of Directors

Stakeholder Steering

Committees

Priority Initiative Steering

Committees

Responsibilities:• Strategic direction and vision• Determine programs to

advance goals• Evaluate performance• Financial oversight

• Governments• Private Sector

• Regulations• Transportation

Membership:• Chairpersons from each

Steering Committee• Representatives from

funders• GLPC Executive Director

(ex officio)


Accountability

• Defining Objectives– Determined by each Steering Committee

• Monitoring Progress– Measures defined and tracked by Steering Committees

• Reporting Progress– Internal annual scorecards to demonstrate changes

• Activities completed• Changes observed

– External reports to the public every two years• Timeframes and Priority Initiatives

– Defined by strategic planning processes of the Board of Directors– Guided by internal reporting processes


Communications Strategy

• The first step of our communications strategy is to develop a handful of key messages on the benefits of this initiative and our approach.

• Stakeholder input will play a critical role and we will reach out to a variety of groups, such as small businesses, major industry groups, environmental stakeholders and government officials to gain their perspective.– Individual strategies will be developed for different

types of stakeholders



• Overall message:– This strategy will promote economic growth, cut

costs and streamline overall regulatory efforts. All of these efforts are critical amid ongoing economic difficulties.

• Success will be determined by measuring overall stakeholder support.



FIVE KEY POINTS• Promote economic development and investment

into the region• Will encourage U.S. and Canadian governments to

cut their budget, reduce redundancies• Will allow small and medium-sized businesses to

avoid burdensome regulations• Promote environmental sustainability• Increase cross-border cooperation



OUTREACH• Reach out to mainstream media – Print and radio– Major and small publications

• Educational outreach– Advertisements and informational website – Stakeholder dialogue

• Social media campaign

Ford & SPPG Conference 20121 The Vital Commons By Beaver and Eagle (Beagle) Consulting.

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Transcript of Ford & SPPG Conference 20121 The Vital Commons By Beaver and Eagle (Beagle) Consulting.