1. Private Sector Organisations
and New Approaches to Building Markets in Asia
Research Workshop
October 26-28, 2011
Lee Kuan Yew School of Public Policy, National University of Singapore
Reconstructing the Silk Road:
The Role of Chambers of Commerce Abroad
in the Development of Asian Markets
Alberto Asquer
Lecturer of Business Strategy and Policy
Faculty of Economics
University of Cagliari, Italy
aasquer@unica.it

2. Introduction
Within the fields of economic and organisational sociology,
markets may be broadly understood as institutions that develop
out of patterns of social relations.
What is the role played by a myriad of relatively small
enterprises that help moulding the social and economic 'fabric'
of markets?
What is the role played by the Chambers of Commerce Abroad
(CCA), understood as entrepreneurial agents that, as
representatives of member businesses, promote business
activity within Asian countries and between Asian countries and
home ones?

3. Introduction
This paper aims to examine the conceptual, empirical, and
managerial issues related to the activities carried out by the CCA
in the construction of markets in Asia.
Contents:
1. What are the CCA.
2. What CCA do, conceptually ('business diplomacy').
3. What CCA of main EU countries do in Asia, empirically.
4. What managerial and policy issues CCA face.
5. Conclusions.

4. 1. What are the CCA
The CCA are business associations that are established as
private sector organisations, are based on the principle of
freedom of association, and operate for the interests of their
members without any obligation to assist the government (i.e.,
CCA are akin to so-called 'Anglo-Saxon model' rather than
'Continental model' CC).
They generally originate from the spontaneous gathering of
businessmen and/or business company executives based in the
same local area within foreign countries, that later apply for
recognition of CCA status from home country public authorities or
home national association of CC.
The CCA play a silent albeit substantive role in trying to shape
institutions and regulations of foreign markets (e.g., Amcham
Belgium; Cowles, 1996, 2001, and Peterson and Cowles, 1998),
although they have not been largely researched so far.

5. 2. What CCA do, conceptually ('business diplomacy')
The CCA perform various activities generally intended to
establish favourable conditions for their members (business
companies), including (Saner et al., 2000)
influencing economic and social actors for creating and seizing
new business opportunities,
working with rule-making organisations that affect international
trade and foreign investments,
preventing potential conflicts with stakeholders and minimising
political risk,
and actively engaging the media and other public arenas for
safeguarding image and reputation of their members.
The meaning of what they do – sometimes labelled as 'business
diplomacy' – can be better defined by drawing some conceptual
boundaries between their activities and those of other related
concepts (Lakoff, 1987).

6. 2. What CCA do, conceptually ('business diplomacy')
Field of Organisational Desired Objectives of Mode of Role of
activity venues performance the activity operation actor(s)
Diplomacy Inter-governmental The pursue of To build and sustain Advising, organising, Facilitators
(Lee and peaceful means for positive and negotiating, information
Hudson, conducting business constructive relations gathering and analysis,
2004; Satow, between states between states rules compliance,
1917; Saner ambiguity handling
et al., 2000)
Economic/ Inter-governmental or The pursue of To promote exports, Advising, networking, Professional
commercial business- economic gains and attract inward foreign negotiating, gathering 'salesmanship'
diplomacy government advantages for investments, and information and
(Rana, 2002; countries stimulate other analysing it, and conflict
Lloyd, 2003; economic activities handling
Coolsaet,
2004; Yeung,
2004)
Business Inter-governmental or The pursue of To establish Creating and seizing Entrepreneurial
diplomacy business- economic gains and favourable conditions business opportunities, broker
(Saner et al., government advantages for for business safeguarding image and
2000) business companies companies' activities reputation of
business companies,
affecting rule-making,
conflict prevention
Public Inter-organisational The pursue of the To actively reap Communicating, Strategic
relations or personal interests of the opportunities or react cooperating, issue relationship
(Hutton, 1999; organisation or of the to threats management, gathering managers
Bernays, public information,
1955; Harlow, defining responsibilities,
1977) embrace change,
anticipate trends.

7. 3. What CCA of main EU countries do in Asia, empirically
Focus is placed on CCA established by four main EU countries:
Germany (Die Deutschen Auslandshandelskammern, AHK)
about 40,000 companies associated in 80 countries
France (Union des Chambres de Commerce et d'Industrie
̧
Francaises à l'Etranger, UCCIFE)
about 25,000 companies associated in 78 countries
Italy (Assocamereestero)
about 24,000 companies associated in 49 countries
The UK (British Chambers of Commerce Abroad)
in over 90 countries
in 15 Asian countries (Bangladesh, Cambodia, China, India,
Indonesia, Japan, South Korea, Laos, Malaysia, Philippines,
Singapore, Sri Lanka, Taiwan, Thailand, Vietnam)

8. 3. What CCA of main EU countries do in Asia, empirically
Country of origin
Host Germany France The UK Italy Total
Bangladesh X X 2
Cambodia X (BBA) 1
China X X X X 4
Hong Kong X X X X 4
India X X (UK-India BC) X 3
Indonesia X X X 3
Japan X X X X 4
South Korea X X X X 4
Laos (BBG)
Malaysia X X X 3
Philippines X X X 3
Singapore X X X X 4
Sri Lanka X (SL-Italy BC) 1
Taiwan X X X 3
Thailand X X X X 4
Vietnam X X X X 4
Total 11 14 13 9 47

9. 3. What CCA of main EU countries do in Asia, empirically
Country of origin
Host Germany France The UK Italy
Bangladesh 1996 1991
Cambodia 1998
China 1981 1992 1980s (1950s) 1991
Hong Kong N.A. 1986 N.A. 1997 (1993)
India N.A. 1977 N.A.
Indonesia 1970 (1924) 1979 1990s
Japan N.A. 1918 1950s 1972
South Korea 1981 1986 1977 2000s
Laos
Malaysia N.A. 1991 1964
Philippines N.A. 1919 1997 2011
Singapore 2004 1979 1998 (1974) N.A.
Sri Lanka N.A.
Taiwan 1981 1991 N.A.
Thailand N.A. 1960s 1946 1978
Vietnam N.A. 1989 1990s 1996

10. 3. What CCA of main EU countries do in Asia, empirically
Common membership services
(access to members directory, subscription to newsletters and bulletin, access to
sectoral industry publications and country reports, participation to social events,
workshops, and seminars, attendance to language courses, benefits from CCA's
media presence, and access to job seekers databases)
'On demand' services for members
(provision of information on specific companies or markets, the search and screening
of potential suppliers and business partners, the organisation of and assistance for
business meetings and trade missions, the organisation of and assistance for
participating to trade fairs and exhibitions, the legal assistance for the establishment
of businesses, business domiciliation and secretary services, legal assistance and
advice, translation and interpreter services, advertisement and sponsorships, and
employment services)
Consultative and policy advocacy functions
(members' committees focused on various thematic areas such as corporate social
responsibility, industrial relations, education, young professionals, government
relations, policy and consultation, sustainable development, taxation and regulation;
they also serve to share information and updates on legislation, policy initiatives,
government officers' political orientations, and turnover of key officers positions within
the governmental bureaucracy)

11. 3. What CCA of main EU countries do in Asia, empirically
Contemporary institutional and political context includes EU's
efforts to intensify bilateral or regional trade relationships with
Asia ('Global Europe: Competing in the World', EU DG Trade,
2006)
The coming into force of the Lisbon Treaty (2009) moved
international trade policy, including trade of services, trade-related
intellectual property rights protection, and foreign investment, to
the exclusive competence of the EU
Instance: Free Trade Agreement (FTA) between the EU and
South Korea (signed 6.10.2010, come into force 1.7.2011). It is
unprecedented in terms of scope and rapidity of tariff liberalisation
and removal of non-trade barriers across several sectors
(including automotive, pharmaceuticals, and consumer
electronics).
Regarded as a 'template FTA' for other similar negotiations

12. 3. What CCA of main EU countries do in Asia, empirically
Type of CCA Activities Orientation
'Proto-CCA' Maintenance of registered address, at least Establishing membership
minimal networking between members, emergent base and enlarging
visibility membership
'Transit node' Gathering data and providing general information Strengthening ties between
on the country and industries, facilitating members and diffusing
networking through social events and other venues information
'Service provider' Providing legal assistance and advice, Meeting business needs of
advertisement and sponsorship, translation and specific members
interpreter services, organisation and assistance
for business meetings and trade missions, and
organisation and assistance for participating to
trade fairs and exhibitions
'Prospector' Gathering data and providing information on Realising business
specific companies and markets, searching and opportunities
screening potential suppliers and business partners
'Policy advocate' Managing issue-specific committees, formulating Representing policy positions
policy issues, and communicating issues and policy on international trade and
proposals to policy-makers foreign investment issues
within policy-making venues

13. 3. What CCA of main EU countries do in Asia, empirically
Type of CCA Activities Orientation
'Proto-CCA' 'Escalation' at of registered address, at least
Maintenance the EU, rather than domestic, level:
Establishing membership
minimal networking between members, emergent base and enlarging
visibility membership
Instance: establishment of European-ASEAN Business Centre in
Thailand, by Eurochambers and various EU member states' CCA,
'Transit node'
under the country and industries, general information
Gathering data and providing
on
the patronage of the EU Commission. Strengthening diffusing
facilitating members and
ties between
networking through social events and other venues information
It aims to “drafting, publishing and dissemination of joint European
industry position papers and lobby them to the Royal Thai
'Service provider' Providing legal assistance and advice,
Government in and sponsorship, translation and regulations; supportingof
advertisement regards to new and existing Meeting members needs
specific
business
with trade related information, and assistance and advisory services
interpreter services, organisation legal analysis
for business meetings and trade missions, and
(IPR & Standard Helpdesk); organizing 'European Flagship' events/
organisation and assistance for participating to
conferences, seminars and EU pavilions at trade fairs to foster the
trade fairs and exhibitions
European dimension in the business community; and interacting as
'Prospector' the Gathering data and providing information on Realising business
European business voice in Thailand” (EABC, 2011).
specific companies and markets, searching and opportunities
screening potential suppliers and business partners
'Policy advocate' Managing issue-specific committees, formulating Representing policy positions
policy issues, and communicating issues and policy on international trade and
proposals to policy-makers foreign investment issues
within policy-making venues

14. 4. What managerial and policy issues CCA face.
Establishing presence and membership base in the host country
Attracting financial (and other) resources needed to install and
operate their membership services (deliver value-for-money
services in front of membership fees)
Confronting the competition of private service providers for 'on
demand' services for members
Develop resources and distinctive capabilities in order to enhance
their members' business success prospects (in competition with
other countries' CCA efforts)
Collaborating with other EU countries' CCA in 'pushing' policy views
to the attention of key decision makers (issues of jurisdictional
boundaries and overlaps between national CCA and EU Business
Centres)

15. 5. Conclusions
EU CCA play a role in the making of markets in Asia. Setting
aside their functions as venues for making and strengthening
social ties, the CCA act as collectors of policy views, creators of
shared policy positions, and vehicles for advocating policy
change at the governmental, inter-governmental, and super-
governmental level.
Open challenge is to aggregate and escalate policy advocacy
from the inter-governmental to the super-governmental level, in
reaction to changes of institutional and political context (Lisbon
Treaty), while constructing and maintaining their task domain in
the promotion of the interests of domestic businesses.

16. Thank you