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WALLOON PIONEERS OF INTERNATIONALIZATION
THE ACADEMIC POINT OF VIEW
Exports and expansion open a world
Located at the heart of Europe, isolation has never been an option for Wallonia. Since the time of the Roman
trade markets. From the Middle Ages, it has experienced strong economic growth, and it was at the forefront of
revolution. As a region, it has historically embraced opportunities to spread its goods and services abroad.
by Kirsten ASLING
"SMALL COMPANIES
HAVE TO BUILD
THEIR REPUTATION
ABROAD – OFTEN
WITHOUT MANY
RESOURCES. THEY
USE TOOLS LIKE THE
INTERNET, ISO OR
ECO-CERTIFICATION
AND TRADE FAIRS
THAT FOCUS ON
SPECIFIC AREAS
OF ACTIVITY".
Jean-Charles Jacquemin,
FUNDP
Times have changed, demand has changed,
but the importance of being part of the global
market hasn’t. Jean-Charles Jacquemin,
Professor in the Department of Economics of
the Faculty of Economics, Social Sciences and
Business Administration of the FUNDP (University
of Namur), tackles the issues of how a country, or
a region like Wallonia, develops as its companies
turn towards exports and international expansion.
As we will see, the path is not always clear,
although the benefits are essential.
A member of the global market
"We’ve always known that exportation is an
important growth factor, simply because it opens
markets, smiles Jean-Charles Jacquemin. When
we look at the composition of the gross national
product, the commercial balance – that is, exports
minus imports – adds its weight to the creation of
wealth. So we see that exports generate revenue
for the region, while conversely imports reduce
that wealth. The technical side is very clear".
But he admits that on the practical and historical
side, the relationships and vectors involved are
much more complex. "Let’s start by considering
what happens in regions that don’t develop
their export markets. Historically, countries that
want autarky –to be «self-sufficient» – and that
therefore avoid international commerce actually
fall behind economically. Take the example of
Albania. It was unable to follow the growth rhythm
that we are familiar with in the rest of the world.
It is behind in terms of development, and has
trouble even giving its population an acceptable
standard of living. China as well was focussed
on self-sufficiency, and we can see how long it
has taken it to catch up – even though it had the
advantage of a very large internal market".
"There are many examples like this. And smaller
regions suffer even more quickly from isolationism.
They have much more difficulty growing if they do
not open to international trade. So, for small and
large regions and countries, it is clear that exports
offer direct benefits at all levels".
Expanding abroad to build at home
The situation is much more complex regarding
a region’s companies that establish themselves
abroad. "There, we see conflicting stories,
explains Jean-Charles Jacquemin. It is important
to remember that these companies have a
strategy of maximising their profits on a global
level, which means at the consolidated level.
32. Dynamisme December 2009