Posts Tagged ‘PMI’
Associations and Inconvenient Geography
5 May 2009
by Rebecca Rolfes
I wrote my master’s thesis on economic geography, the theory that as free trade spreads around the world, all boats rise together (a vast over-simplification). The theory also holds that when some boats are caught in low tides, the others will buoy them up. In grad school, we too easily glossed over the (we thought) unlikely case where all tides are low and all boats are mired. The interconnectedness of the world economy, the fact that our fates are inextricably tied to each other, makes this, we hope, a safer, more prosperous world. In the present unpleasant circumstances, we do seem to accept that we got into this together and will have to find a global solution.
Which brings me to associations. Many associations—PMI is an obvious example—are in the happy situation of attracting large numbers of members from around the world, of being able to host meetings and provide programming and services outside the United States, of being, as much as possible, a global organization. Other associations find themselves in the uncomfortable situation of straddling both sides of the globalization argument. Although MSCI, for instance, is a North American association and staunchly behind NAM’s advocacy agenda, some of its members have operations overseas and earn substantial revenues from non-US operations.
When the President says buy American, where do the borders of America stop? An “American” car may have parts from outside the US, may have been assembled outside the US. An “American” car may be a Toyota made in America.
Where does that leave the automotive-related associations? In order to advocate for their industry, they will inevitably anger some of their members.
An association executive once said to me that he knew that the content we create for his organization must “talk out of both sides of its mouth.” The association must be red, white and blue on some occasions and UN blue on others.
This begs the question: Can a trade association be truly global? I found that global trade associations are almost always federations. The International XYZ Federation is made up of the Belgian XYZ Association and so on around the world. Each represents the interests of its members within that country. But where does all of that local interest bubble up into a global solution?
I believe that associations can play an enormous role in helping solve global problems. But I don’t see trade associations doing it as much as they should. Rotary International is a big part of the almost complete eradication of polio around the world. The Institute of Food Technologists is helping make food safe for all of us, not just those in the country where it was produced.
These are big problems. Today there seem to be no small problems. To provide real value to members, to make them part of something they can believe in and want to be part of, associations must step up to solving those problems. And trade associations with their corporate members employing hundreds of people can have more impact more quickly than almost any other entity.
Times are bad. Times are bad for all of us. Association leaders cannot sit head in hands over their own bottom lines. Look up. Look out into a borderless world. Work to lift your boat and the rest of the world may well come with you.

