What Deglobalization and the World Economy Mean for Associations

March 30, 2023 By: Jakub Konysz, CAE

With the global economy seeing strains brought upon by the COVID-19 pandemic and conflict in war-torn regions, will deglobalization affect associations in the same way? Members of ASAE’s International Associations Advisory Council discuss the potential impact and strategies for U.S.-based associations to embrace.

As first-world explorers embarked on their global trade discoveries and conquests, it is likely no one considered the long-term implications of what became a closely interconnected world. From grueling ship voyages, we can now (fairly) easily traverse the globe and sample international cuisine in our backyard. You can also now buy your Venti Mocha Frappuccino in 80 countries and a Big Mac in more than 100 countries around the world.

Globalization affects nearly every industry and sector, from lumber grown in Northern Europe that is used to build houses in the U.S., cotton grown in India used in clothing that ends up on shelves in South America, and rice and soybeans grown in the U.S. that eventually make their way to kitchen tables throughout Asia.

In addition, behind every successful global profession and industry are associations that have embarked on their globalization journey to support their respective sectors, developing robust offerings centered on education, knowledge resources, and community engagement.

As globalization quickly took over the world economy after the Second World War, deglobalization is now threatening various professions. Some say it may also end the many perks and benefits we enjoy today. With the global economy seeing strains brought upon by the COVID-19 pandemic and conflict in war-torn regions, will deglobalization affect associations in the same way?

Members of ASAE’s International Associations Advisory Council (IAAC) recently discussed that question and more. The quick answer: it depends. However, the longer answer is much more complicated.

Keys to Long-Term Success

Associations have long been late indicators of the sectors they represent, and, for the most part, IAAC members have not seen deglobalization affecting the association sector directly. On the contrary, during the pandemic, many U.S. associations strengthened their global presence as members and customers from around the world became much more closely engaged from the comfort of their home. That does not mean we are completely immune from deglobalization, at least not just yet.

Global expansion may be more difficult now as some struggle with visas and travel arrangements, understanding the impact of strained economy and logistics, expanding nationalistic tendencies and isolation, and dealing with increasing costs and growing regulation and government oversight. Global professionals are also seeing more competitors emerge in the association and nonprofit space that directly compete with U.S. associations—competitors who are more aggressive and nimbler as they acted quickly to fill the void of U.S. associations in some sectors or to push back on U.S. associations coming into their “home turf.”

While U.S.-based association are still poised for a bright future internationally, consider these five steps to prepare your association for uncertain economic futures and position yourself for long-term success:

Develop a long-term strategy with short-term implications. Data-driven strategies are a proven way to understand key needs and opportunities, especially during uncertain and changing international landscapes. If you already have a strategy, take a close look at it to determine what, if anything, needs to be updated to reflect the current economic and geopolitical environments.

Keep it nimble. Your competitors are flexible, you should be too. While your overall strategic plan will give you long-term direction, your global strategy should be more flexible to give you the option to take a different path when needed. Global business comes with many unknowns, and you don’t want to be caught off guard.

Stay open to new opportunities. Many U.S. associations are risk-averse and take a long time to make decisions, as their competitors become much more aggressive. It’s important to consider new opportunities quickly as they emerge to best address needs in different markets.

Be ready to invest. Global growth often requires significant, long-term investment. Quality research, product development, and localization of services are not inexpensive. Budget in advance and be ready to invest when the time is right, sometimes with little notice.

Stick with it. Global expansion takes time and resources. If you were to develop a new offering in the U.S., it might take a couple of years for you to see the return on the investment. If you take a similar approach internationally, it might take even longer for you to see the ROI because you will have to learn and adjust your approach along the way.

Distant locations pose many complex barriers along the way, and you need to spend time understanding the needs and localizing your offerings. Be patient and commit to global growth to see long-term return.

Jakub Konysz, CAE

Jakub Konysz, MBA, IOM, CAE, is founder of Global Navigators and the Immediate Past Chair of ASAE’s International Associations Advisory Council.