Here below are twelve reasons for engaging in effective government relations in emerging markets:

1. An effective strategy for success in emerging markets must be based on a company's business objectives. Achieving those objectives demands careful planning and attention to the political environment and key policies. It also requires professional team members and significant resources.

2. It is important to capture local policy information, analyze it and provide recommendations. Regular reporting and immediate notification of issues that arise allows for decisive action on changing political conditions and limits related risks.

3. Government relations focuses on establishing reliable channels of communication. It also means maintaining working relationships with relvant regulatory agencies and smoothing the way for operation and expansion in the country. Proper understanding of the policy environment and influential decision-makers is important for obtaining licences and approvals, developing production and distribution networks, and avoid operational risks.

4. The best insurance for crisis management is preparation. Identifying and countering potential issues ahead of time starts with communication. In the midst of a crises, being able to get in immediate contact with officials and individuals involved in sensitive time is even more important.

5. Team members responsible for managing corporate affairs in the country should have a solid grasp of the organizations and individuals they will be working with to secure the company's interests. They need sources of reliable information and they also need to understand how the government works from the central government in the capital city to the states, provinces, cities and even villages.

6. Targeted messages delivered to key influential decision-makers through position papers and lobbying efforts get results. Just as it is important to have a network of individuals to work with in developing a market position in the country, it is also important to develop a sophisticated rhetorical position. Strong positioning in both areas creates a powerful overall strategy and an environment of supporters.

7. Large investments demand input from experts who are thoroughly familiar with local conditions. Identifying potential partners or investment locations takes time and resources. On the ground support, including background and due diligence research, strategy and action plan development and implementation is critical.

8. Oftentimes, an outside opinion clarifies decisions that need to be made. Experienced, expert opinion ensures accurate and decisive judgements on both day to day management and any pressing issues that arise.

9. More and more, companies in emerging markets e.g. China, India etc., are finding the resources, capital and confidence to invest abroad. Europe is a natural investment location, but investors in emerging markets want to get to know and understand their counterparts first. Developing a reputation in the country among companies and government agencies responsible for directing these investment flows boosts the likelihood of attracting companies from emerging markets.

10. Companies operating in emerging markets should build a strong network for business communication. They should cooperate through various organizations and events to achieve goals they have in common. Engaging this community is an effective way to maximize information, resources and relationships.

11. Seeing things from two sides adds solidarity and credibility to actions. Companies that maintain their reputation among key influential decision-makers in the country will succeed and others will not. Knowing government priorities and identifying ways to cooperate will contribute to positive expectations within the government and enhance willigness to cooperate.

12. Last but not least companies that want to bid on local procurement discover there are legal restrictions on the supply of their products and/or services. Negotiations often involve more than the agency or organization purchasing the products and experts with experience in the government can ensure the process goes smoothly.

For contacts with Local Experts, please contact AALEP Secretariat at





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