In the prevailing world scenario, global economic engagement for an economy -- be it developed, developing or underdeveloped -- is critical for its growth and sustainability. Such engagements could be pursued both by the governments and private entrepreneurs depending on respective strategic needs.
Governmental engagements are pursued mainly in collaboration with foreign counterparts or with development agencies like the World Bank, IMF, Asian Development Bank, Islamic Development Bank, African Development Bank, USAID, British ODA, Kuwait Fund for Development, Japanese JICA and the like.
Greater involvement in the global economy helps open new markets and opportunities for growth of an economy. South Korea could be cited as an ideal example of benefits that it reaped from global investments. Following the Korean War, the U.S. invested in pursuing a better future for a country rising out of the ashes of war. 50 years after, South Korea is one of America's leading trading partners and over the years the country became an aid donor itself.
Businesses in the developed economies of the world in general and USA in particular are seeing the benefits of their foreign investments, especially in the developing world. To reach new customers in emerging markets, companies have fostered innovative partnerships that leverage not only the company's strengths, but also bring along additional partners to maximise engagement with their new customer base. Most importantly, such partnerships help utilise western businesses and their ingenuities in creating jobs at home and in countries where investments are made.
For instance, Coca-Cola has participated in successful public-private partnerships to increase access to safe drinking water in the developing world. Through Coca-Cola's Water and Development Alliance partnership with USAID, Coca-Cola set an ambitious goal for qualitative improvement of water used in its beverages and production thereof by 2020.
With western investments in Sub-Saharan African countries like Nigeria, Zambia, and Ghana, the benefits are already being felt by the local population and can eventually improve the livelihood of citizens of those countries, as well as build opportunities for economic growth.
Americans have seen decades of successes from U.S. economic engagement, particularly through helping to promote economic growth and poverty reduction.
In order to spur economic growth and create jobs in their home countries, developed economies must remain competitive in an increasingly interconnected global economy and continue to build new markets for their goods and services.
Trade has tripled as a share of the U.S. economy in the last four decades, with more than 1 out of 5 American jobs tied to international trade. America's fastest growing markets - representing roughly half of U.S. exports - are located in developing countries. Export promotion programmes funded by the International Affairs Budget are essential to expanding U.S. trade in these emerging markets.
Striving to maintain a higher level of employee engagement not only contributes toward short-term survival during economic volatility, but also is a key factor for longer-term business performance and better positioning when market conditions become favourable.
The companies that get engagement right can enjoy a surplus of competitive advantage in talent strategy and business results that is hard for others to replicate. If one believes that talent is one of the last sources of competitive advantage, and that motivated and productive employees are the make-or-break ingredient to successfully navigating the business pressures, employee engagement should be a top business imperative for all business leaders.
Over the last three decades, Bangladesh has also been reaping benefits from its global engagements by both private and public sectors thereby impacting the over all growth and development of the national economy positively.
(This is an abridged version of a paper presented by the author at the Invest North Conclave 2014 organised by CII in New Delhi recently)
The writer is secretary and CEO India-Bangladesh Chamber of Commerce and Industry.
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