International Insider: October 2020

Global Public Affairs During and Beyond COVID-19

Public affairs professionals on both sides of the Atlantic have quickly adapted to social distancing, and digital tools are now the preferred way of engaging with policymakers and other external stakeholders. In the United States, over 70% of respondents in our survey believe that it will continue to be more difficult to meet with federal policy makers in person, even after the COVID-19 pandemic is over. In Europe, 85% agree the COVID-19 pandemic accelerated the rise of digital tools, and that it will become increasingly common to schedule video conferences with European Union policymakers. Other digital advocacy tools deemed successful by European public affairs professionals were virtual events (59%) and social media engagement (35%).

But don’t discard traditional forms of lobbying just yet:

Even if an overwhelming majority of respondents agree that the pandemic brought about a decline in traditional forms of lobbying, practitioners shouldn’t discount “the old ways” just yet. Among our European respondents, more traditional and direct forms of advocacy, such as direct emails (61%), direct phone calls (50%), written briefings (37%) and public position papers (35%) remain important instruments in the practitioner’s toolkit, and their use during the lockdown was deemed successful.

(Virtual) teamwork makes the (real) dream work:

Digital tools have taken the leading role for external engagement, and the same can be said when it comes to internal communication. In Europe, a whopping 93% agree that it will become increasingly common for their organizations to communicate and coordinate internally using video conferences and other digital tools.

The impact on policy and politics:

Both in the United States and in Europe, most survey participants say the response to the COVID-19 pandemic will be the main issue driving policymakers in the months ahead. European practitioners agreed that this focus on responding to the fallout will affect how European Union policymakers will (or will not) be influenced by their organizations’ lobbying efforts. In the United States, 92% of participants predict that the pandemic will have a profound impact on the November presidential elections. At the policy level, three major changes that are expected are the approval of TARP-like loans to businesses (63%), a more restrictive trade policy (55%) and the passage of tougher regulations to protect the public’s health and safety (47%).

Keep calm, and carry on:

Despite the challenges, public affairs practitioners have a sense that their organizations have managed the pandemic well so far, despite the severity of the crisis. In Europe, an impressive 97% say their organization has handled the pandemic well. Which is not to say these have been, or will become, easy times. A large portion of participants report that their organizations have faced budget cuts (39% in the United States, as of May 2020, and 16% in Europe, as of August 2020), with others foreseeing the likelihood of cuts happening in the future.

The  pandemic has placed a premium on adaptability, digital proficiency, collaborative teamwork and effective political risk management. Public affairs teams that developed some or all of these traits are weathering the storm better than those that didn’t. But there is nothing innate about these skills — they can be learned and perfected, and there has never been a better time to do so. The Council will remain a source of executive education, peer learning and thought leadership to our members and the broader profession to help them successfully navigate the uncertainty of the times.

[* These results are based on two Public Affairs Council surveys. Results referring to the United States are based on responses from 245 US-based government affairs executives who completed an online poll in May 2020. Results referring to Europe are based on responses from 52 Europe-based executives between July and August 2020]. [/vc_toggle]

Working Through COVID-19 Around the World

Andrew Retfalvi, Director and Associate General Manager,
Ontario (Global Public Affairs)

How do you assess the current public affairs environment in your region, given the COVID-19 pandemic and possible lockdowns?

Canada remains vigilant in efforts to stop COVID from spreading; our border with the United States remains closed to regular traffic, and quarantines are mandatory for those travelling abroad. Canadian decision-makers are taking this very seriously – case numbers have risen as business re-open and kids go back to school; as a result, some jurisdictions have put further restrictions on business, or in some cases, ordered them to temporarily close.

One important factor in Canada is our geography. Any public affairs approach can’t be a ‘one size fits all’ for the country, as there are significant differences in the way regions have handled COVID-19. Take Atlantic Canada for example. Comprised of four provinces with small populations, the region has created a ‘bubble’ severely limiting travel to the area. This has resulted in almost no cases in the area. More populated areas like Ontario and Quebec took a more open approach and saw significantly higher numbers.

That said, the Canadian environment is changing on a daily basis. Any public affairs strategy in Canada needs to be nimble and easily adaptable to changing circumstances.

What tip would you give to international companies operating in your region on how to successfully adapt to the present context in the months ahead?

Be proactive but be patient and manage expectations internally. Like many other jurisdictions, Canadian governments – federal, provincial and municipal – are only now starting to see the true effects of COVID-19 on our economy and society, and are driving policy changes accordingly. Government operating cycles have shifted – 2020 didn’t feature a typical budget cycle – and this has moved the goalposts when it comes to engaging government. Some routine things could take longer than usual. Having your organization’s leadership understand this is important.

Make your public affairs engagements even more purposeful, targeted and meaningful than usual. If your organization believes it can help in the efforts to contain and recover from COVID-19, by all means engage government. But don’t engage for the sake of engaging. Align your priorities with those of relevant decision-makers and seek on-the-ground advice to maximize chances for success.[/vc_toggle][vc_toggle title=”Brazil”]Julia Esmanhoto, Managing Partner (PATRI Public Affairs)

How do you assess the current public affairs environment in your region, given the COVID-19 pandemic and possible lockdowns?

Before the pandemic, Brazil was already a country with a huge number of bills, as well as normative and regulatory acts at the federal, state and local levels. This number has increased since the pandemic hit the country, although not everything is related to COVID-19. Amidst a plethora of legislation, there was even a conflict of decrees at the three levels of government on the list of essential activities, which cried out for Supreme Court intervention.

Even though Brazil is a country that values human interactions, there generally have not been problems maintaining and establishing engagement with policy makers virtually. A great majority of lawmakers are open to meetings with the private sector.

What tip would you give to international companies operating in your region on how to successfully adapt to the present context in the months ahead?

It has become even more challenging to cut through the noise to manage and filter what impacts your business. In addition, the increasingly polarized political landscape requires extra attention to not associate your brand with either side of the aisle. The digital environment can be tricky in terms of compliance since it is still poorly regulated and there is no control, for example, on whether the content is being recorded or if your information may be misused.

This increases the need for management of the political environment to position your company in an increasingly polarized, virtual and uncontrolled environment.[/vc_toggle][vc_toggle title=”Mexico, Central & South America”]Gustavo Almaraz, Executive Director (Grupo Estratégia Politica)

How do you assess the current public affairs environment in your region, given the COVID-19 pandemic and possible lockdowns?

Public Affairs has become an essential activity during the pandemic. The need for permanent and timely tracking of official information has become clearer for all kinds of businesses. Our strategies should aim to provide certainty to the private sector’s work and to foster a better understanding of the government’s actions.

The amount of information that arises around COVID-19 creates a challenging situation for our industry. More than ever, we have the opportunity to fill in gaps. We must also acknowledge the responsibility we have in our work.

What tip would you give to international companies operating in your region on how to successfully adapt to the present context in the months ahead?

Understanding the authorities’ perspective and incentives as well as building strategic alliances are two key actions that can help companies anticipate scenarios and successfully operate in the region. The uncertainty we are facing pushes us to think of flexible and innovative strategies. It is really important to be fully aware of all relevant actors and build bridges. Having a thorough analysis of each stakeholder’s relevance is more important than ever.[/vc_toggle][vc_toggle title=”Russia, Southern Caucasus and Central Asia”]Evgeny Roshkov, Executive Partner (Kesarev Consulting)

How do you assess the current public affairs environment in your region, given the COVID-19 pandemic and possible lockdowns?

In Moscow, the Russian national government agencies as well as the Eurasian Economic Commission, which covers the work of five countries including members of the Eurasian Economic Union, are back from the lockdowns. Despite the fact Russia now faces a second wave of the pandemic – and had 11 615 infected on Oct.6 which is very close to the daily record Russia had in May 11 656 – this approach of governmental bodies is unlikely to change in the short term. Amid the increased risks of economic instability which should make the economic cost of any potential second wave of restrictions devastating the state will try to ensure officials will continue the work.

In Central and Eastern Europe, South Caucasus and Central Asia, working activities have also been suspended in this ‘new normal’ for months now. There are occasional meetings and mask-to-mask engagement, but most conversations happen virtually. The lack of networking has made it difficult to cultivate new relationships with prospects and stakeholders.

In Central and Eastern Europe, South Caucasus and Central Asia, working activities have also been suspended in this ‘new normal’ for months now. There are occasional meetings and mask-to-mask engagement, but most conversations happen virtually. The lack of networking has made it difficult to cultivate new relationships with prospects and stakeholders.

What tip would you give to international companies operating in your region on how to successfully adapt to the present context in the months ahead?

The ongoing pandemic and related crisis are now central to all government agendas, as they are to varying degrees across the business community. Interaction with state authorities needs to be viewed through this prism. Businesses may re-evaluate their objectives and show how they can support the recovery effort, both on a health and economic footing. This might require delaying some policy initiatives until further into the recovery cycle, perhaps substituting them for more pressing and nationally relevant initiatives.

Overall, the main efforts of public affairs specialists should be aimed at preventive measures that reduce the risks of force majeure situations: monitoring the positions of governmental and non-governmental stakeholders in areas of interest, adequate assessment of political and economic risks and developing a scenario-based response plan.[/vc_toggle][vc_toggle title=”East Asia (Japan and South Korea)”]James Fatheree, Executive Director – Washington (GR Group Asia)

How do you assess the current public affairs environment in your region, given the COVID-19 pandemic and possible lockdowns?

Although the situation is changing day by day, Seoul and Tokyo are clearly far more open than Washington, D.C. The Korean and Japanese governments remain intensely focused on managing and minimizing the health and economic damage from COVID-19. While high-level attention has been focused on the impacts of the pandemic, ongoing initiatives remain on track. There are some challenges for companies in terms of new regulations, restrictions on the movement of people in and out of country, etc. But there are also many opportunities to provide solutions – health, technology, hygiene and public safety – to central and local governments. In Japan the transition from Shinzo Abe to Yoshihide Suga as Prime Minister is not likely to have significant impact. There are some key ministers carrying over, and policy continuity is the key theme.

What tip would you give to international companies operating in your region on how to successfully adapt to the present context in the months ahead?

Having local staff or consultants who can stay on top of developments in regulations, politics, policies and procurement opportunities is critical, as much is in flux. The Japanese and Korean governments are adapting well to online engagement, so finding ways to maintain contact virtually, if not in person, is important. Presenting issues, ideally with solutions, that are connected to the broader context of mitigating health impact or supporting economic growth is likely to resonate. However, messaging must be compelling and plausible.[/vc_toggle]

Further Reading Ideas for Public Affairs Professionals