June 26, 2008

By Darla Martin Tucker

A La Sierra University-based think tank that analyzes foreign investment opportunities recently broadened its scope and formalized agreements among its member organizations.

The nonprofit TransPacific Consortium, officially formed in October 2006, transitioned into the Transnational Research Consortium during a May 28 meeting at La Sierra University’s School of Business. Consortium leaders from La Sierra’s business school, the Mark O. Hatfield School of Government at Portland State University and the School of Politics and Economics at Claremont Graduate University exchanged memorandums of understanding outlining the group’s objectives and structure.

During its first year, the consortium aimed to analyze and smooth political and economic issues between the United States and rising superpowers, China and India. Its goal was to help businesses and politicians from those countries trade and deal with each other. To that end, the organization gathered provincial-level data in China and India to improve the accuracy of predictive models that could determine for example, the best investment
possibilities within a province.

Recently, the group decided to widen its reach. “We needed a comparative index that can showcase governmental efficiencies around the world. Our attempt would be the first of its kind in explaining effective tax policies and performance of nations,” said John Thomas, La Sierra’s business school dean and its Bashir Hasso associate professor of entrepreneurship.

Thomas is chair of the consortium. He holds a doctorate in political economy and has more than 20 years of experience in new venture start-ups, mergers, acquisitions, capital sourcing, research and development both domestically and internationally.

“We found that our research applied …in emerging countries throughout the world,” said Ron Tammen, consortium president and director of the Mark O. Hatfield School of Government at Portland State.

Tammen previously served as associate dean and chair of the Department of National Strategy at the National War College in Washington D.C. His background includes serving as chief of staff to the late U.S. Sen. William Proxmire, D-Wis., and as staff consultant to former U.S. Sen. Mark O. Hatfield, R-Ore.

Thus far, the consortium has collected data on taxation effectiveness, policy enforcement capabilities, population health statistics and other information on states and provinces of more than 20 countries. It has studied 50 countries at the national level. The consortium expects to release its first efficiency index at year’s end in publications.

Businesses can use the index to assess the political environments of countries in which they’re considering establishing a presence, said consortium board member and Claremont Graduate University Professor Jacek Kugler. He is the Elisabeth Helm Rosecrans professor of world politics in the university’s Department of Politics and Policy, School of Politics and Economics. Kugler has been a consultant to many organizations including the International Monetary Fund, the World Bank, U.S. State Department and U.S. Department of Defense.

Companies tend to focus primarily on bottom line costs such as labor, Kugler said. “We’re trying to provide information about how efficient the local governments they’re going to deal with are, how likely they’re going to be to keep promises” such as tax reductions and other deals, Kugler said.

The consortium is also creating a book for businesses titled “The Efficiency of Nations.” The group hopes to publish the work this fall. The book will provide techniques and data used to assess foreign investment opportunities.

In determining a state or nation’s efficiencies, the consortium studies how well a government extracts taxes, how well it demands societal compliance with its policies and whether it can gain compliance. It looks at how governments allocate discretionary funds and determines levels of political unrest and violence.

The consortium also analyzes the health of populations by studying birth and death rates to determine the existence of a healthy workforce. It researches population education levels.

The consortium’s founding educational institutions and their students will benefit from the group’s cutting edge research and expertise. “The consortium’s joint intellectual resources will provide research capabilities which are superior to the services which could be provided by any participant acting alone,” the memorandum document said.

The consortium will bring La Sierra students exposure to “tier one” research and faculty, said Thomas.

The Transnational Research Consortium’s members include five or six faculty fellows and student research fellows at La Sierra, another 10 individuals at Portland State University and 10 at Claremont Graduate University. It plans to enlist additional institutional members as the consortium becomes better known, Thomas said.

The consortium is holding its annual conference in Carmel, Ca. on Aug. 10, 11 and 12 and is aiming to hold a conference next year in China. It is striving to raise $100,000 to cover costs each year and has thus far gathered $25,000 in donations.

PR Contact: Larry Becker
Executive Director of University Relations
La Sierra University
Riverside, California
951.785.2460 (voice)