Sunday, June 29, 2014

Exim Bank Conference 2014 – Why do we need Exim?

The U.S. Exim Bank held its annual conference in Washington on April 24 and 25, 2014. When you watch the first minute of this event on the net, you immediately grasp the flavor of the conference, as you are invited to rise for the national anthem. If you would like to sing in front of your screen, please go ahead...
 
More seriously, the conference discusses why American exports and Exim Bank are so important and where the different experts expect the U.S. economy heading too. Overall, I must admit that I found the debate a bit superficial. Obviously, lots of symbolic events (A small business entrepreneur who creates jobs in rural America thanks Exim for its support and the like.) happened and nice business quotes were pronounced during the conference. But have I really learned something new?


Why is it important that Exim supports U.S. exports?

  • Develop new markets: If you sell abroad, you sell more. If you sell more, you produce more. If you produce more, you hire more (American) people.

Exports breathe new life into businesses. They transform whole communities through job growth. And that's what Exim delivers: global tools that reap lasting local benefits.
Fred P. Hochberg, U.S. Exim Bank, April 24, 2014


We made a lot of progress [in increasing U.S. exports]. We're exporting today a record amount of 2.3 tr USD of goods and services. But we need to continue.
Peggy Pritzker, U.S. Department of Commerce, April 25, 2014


  • Grow American small and medium sized businesses: This is linked to the above. If you find new markets abroad, you can obviously grow.

Gaining access to global markets is what empowers small companies to become big companies.
Fred P. Hochberg, U.S. Exim Bank, April 24, 2014


  • Compensate for foreign export support: Every country supports exports. That is why the U.S. has to do it too. Whether government support for exports is good or bad and whether it would be better to let only markets drive competition, doesn't really matter.

Supporting American job growth shouldn't be controversial. Keeping America competitive in the global economy shouldn't be controversial. And that, after all, is what we [Exim] do.
Fred P. Hochberg, U.S. Exim Bank, April 24, 2014


Everybody is entitled to their theories and dogmas, but theories, they don't pay bills. [referring to ECA critics in the U.S.].
Fred P. Hochberg, U.S. Exim Bank, April 24, 2014


  • Allow U.S. businesses to be competitive: In global markets, competition is huge, especially for U.S. companies. Exim helps U.S. companies in this cruel battle.

If you are an American exporter and you feel like you are wearing a big target, guess what, you’re not paranoid. Everybody wants to top the United States, so they’re pulling out all the stops to win trade deals and boost exports.
Fred P. Hochberg, U.S. Exim Bank, April 24, 2014


We [the U.S.] are competing in a voracious world – market and competitive-wise.
John Kerry, U.S. Secretary of State, April 24, 2014


We live in a competitive world. And, in order to compete, we need as many tools as possible. At the same time, we need to uphold our values and laws.
Peggy Pritzker, U.S. Department of Commerce, April 25, 2014


  • Globalization: Exports are an integral part of a more and more globalized economy. Supporting exports is, therefore, a necessary tool for economic policy.

As the world continues to globalize exports are increasingly vital to our economic success and job growth.
Fred P. Hochberg, U.S. Exim Bank, April 24, 2014


In the world we live in today, there are far fewer borders for trade and talent. And that means our companies have much more competition.
John Kerry, U.S. Secretary of State, April 24, 2014


  • Counter economic crisis: Supporting exports is simply an excellent means to boost your economy in times of crisis

The Exim bank has been a driver of economic growth [in the U.S.] for much of the past century, especially during difficult times.
John Kerry, U.S. Secretary of State, April 24, 2014


Is Exim a federal agency?
 
In a formal senses yes, Exim is part of the U.S. administration. However, in terms of functioning and values, the picture is completely different. This is, at least, the opinion of its chairman Fred P. Hochberg. He describes Exim as an organization that combines the best of both the world of public administration and the world of private entrepreneurship.

From the world of public administration, Exim adopts a special sense of responsibility towards the general public:


We [Exim] always take a responsible approach to risk.
Fred P. Hochberg, U.S. Exim Bank, April 24, 2014
 
 
On the other hand, Exim resembles its clients in terms of private initiative and dynamism:


We're [Exim] sleek, we're nimble, we're entrepreneurial-minded and we defy every tired stereotype about federal agencies; we deliver government at the speed of business. The reason for that is simple: we live in the world of business.
Fred P. Hochberg, U.S. Exim Bank, April 24, 2014


Fred can even do better:


At Exim we want to be the wind in your sails, equipping you with tools you need to venture out to new frontiers.
Fred P. Hochberg, U.S. Exim Bank, April 24, 2014


By the way, Exim partners with other U.S. administrations, even though this seems to be a special kind of partnership...


We go first. If we don't get the deal done, they [EXIM] come in after. So, this is a good and strong partnership.
Tom Vilsack, U.S. Department of Agriculture, April 25, 2014


Resource:

U.S.EXIM Bank Conference on April 25 and 25, 2014