Sales are not the only thing the advanced economies can draw from their emerging counterparts, especially in places like Latin America and Asia. Some lessons in how to right their proverbial fiscal ships could also be on the list, said the first speaker at the 24th Annual FCIB Global Conference in Philadelphia Monday.
Peter Blair Henry, dean of the Leonard N. Stern School of Business at New York University and key member of President Barack Obama's 2008 transition team, said there are three key things the advanced economies could learn how to do from the up-and-comers:
1. Embrace discipline
2. Offer clarity
3. Show some trust in other well-performing economies.
Perhaps the biggest takeaway of the three, especially for the United States and European Union, would be clarity. As Henry characterized it, those advanced economies have “anything but clarity.”
“Look at Latin America since 1994. The inflation has dropped like a stone,” he told attendees. “A number of third world countries [there and elsewhere] turned themselves around and became emerging economies when their leaders embraced a clear commitment to a change of direction.” In short, clarity fueled their surges in growth rates.
He, along with Export-Important Bank of the U.S. Director Sean Mulvaney, suggested that particular attention needed to be paid to improving Latin and Asian economies because of massive strides they have made. To wit, Mulvaney estimated that 20% of all Ex-Im activity involves Latin America, the most of any region in the world, and Asia is close behind. The potential impact is undeniable in both regions.
-Brian Shappell, CBA, CICP, NACM staff writer
Check back at the NACM blog throughout the week, this week's eNews (available Thursday) and the November/December issue of Business Credit for more coverage from FCIB Global.