LOBBYING IN ASIA

In most Asian-markets there is no such things as lobbying as it is understood in Western countries. Or, it might mean different things in different markets that are often not favourable. Lobbying can come across as ‘influence peddling’ or imply inappropriate methods of government manipulation. In different Asian markets, governments have varying attitudes towards lobbying. Asian markets range from one-party states to parliamentary monarchies to so-called ‘Managed Democracies”. Most have an authoritarian bent amplified and enabled by traditional hierarchical approaches. While traditional lobbying is common place in certain markets, there are sensitivities and cultural norms in Asia that need to be respected. Countries with a freer press, such as India, Japan and South Korea exhibit more government relations activity.

Challenges

• Asian regulators traditionally operate behind closed doors.
• Information on policy development can be hard to find and Western lobbying techniques don’t go down well in Asia and tend to come off as threatening.
• Lobby groups need to deploy a more delicate touch in Asia. Written exchanges tend to be gentler and more appreciative in tone, and play to the national interest of often suspicious regulators.
• Lobbyists engage Asian regulators through formal private meetings at their government offices.
• Airing problems in the international media, a common and effective pressure tactic in the West often alienates Asian regulators.
• Lobby groups in Asia spend a lot of time on education around technical issues, a long term strategy that positions them as a useful resource for developing market regulators, who may lack expertise. Lobbyists need to be looking at Asia’s development objectives and provide information and insight where they can. By doing so, they can be seen as improving the rule-making process.
• Personal relationship building is crucial in Asia. Because Asian policymakers are less accessible than those in the United States and Europe, executives with connections to regulatory officials are attractive candidates for lobby groups.

 The Players

 The standard-setting PR agencies in most Asian countries are often the ones that have established a Public Affairs and Government Relations capability, which includes monitoring and intelligence-gathering, policy analysis, community relations, issues management and stakeholder relationship management. This might be lobbying by another name in some case, but in general this is a broad spectrum public affairs and government relations work. While PR agencies may not be directly lobbying governments in Asia, they are certainly becoming more active in helping clients understand and navigate governments’ decision-making process.

Recommendations

• Companies are advised to build their own dedicated in-house capabilities supported by a network of local experts. In places where governments are not elected, there may be less willingness to listen to voices that are not from within the ‘ruling elite’.
• Every market in Asia is different and no company can afford to place an in-house resource in every single market in which they operate or plan to enter. A combination therefore of in-house and external lobbying capabilities is required. The key is to find the right balance in the in-house and external capabilities. Companies that are closer to regulators or policymakers have stronger incentives to set-up in-house lobbyists since it will cost them less time and effort to interact with decision makers.