There’s already a back and forth going on about the business mission Mayor Gregor led to London recently, but here’s the story I wrote, belatedly.
These kinds of missions are becoming more popular among the mayoral set, it seems to me. This is Gregor’s second. Surrey Mayor Dianne Watts led one to India not too long ago. It appears to be part of a world-wide trend to connect more city to city, which is the way some economists think the world’s trading systems really work.
The Rise of Municipal Diplomacy
This trend reflects a fundamental shift in how global commerce operates. While senior levels of government focus on broad trade agreements and diplomatic protocols, cities are increasingly positioning themselves as direct economic actors. Vancouver’s appeal isn’t just as a Canadian city — it’s as a Pacific gateway with specific advantages in sectors like clean technology, film production, and international education.
The “glocalization” phenomenon means that companies often make investment decisions based on municipal-level factors: local talent pools, infrastructure quality, regulatory efficiency, and quality of life. A mayor can speak directly to these competitive advantages in ways that federal trade representatives cannot.
The Accountability Challenge
But these efforts are difficult to judge, since cities can’t offer the kind of tax credits or other incentives that a federal or provincial government can. And how do we judge their results? If a mayoral mission goes over and gets deal signed while there, it seems as though the actual trip was just for show because surely no company decides on the spot to commit to a complex and expensive deal. But if there are no deals or announcements made for months, how are we to judge whether the actual trip had anything to do with the ultimate results?
The measurement problem is particularly acute because international business development operates on timelines that don’t align with electoral cycles. A relationship established during a 2012 mission might not yield concrete results until 2015 or later. How do we attribute success or failure when multiple factors influence investment decisions?
The Networking Economics
What critics often miss is that these missions function primarily as relationship-building exercises rather than direct sales pitches. In many business cultures, particularly in Asia, personal relationships precede commercial transactions. A mayor’s presence signals municipal commitment and provides access to decision-makers who might not otherwise take meetings with lower-level officials.
The delegation model also creates valuable peer networks among local business leaders. When Vancouver companies accompany the mayor, they’re not just seeking individual opportunities — they’re building the international connections that can benefit the entire business community.
Private Sector Validation
Obviously, business people think these trips are worthwhile because they keep pushing for them and are willing to pay their own way to go along. (That was the case with both Robertson and Watts.) The fact that companies are willing to invest their own resources suggests they see value beyond municipal cheerleading.
This private sector participation also provides a form of market validation. If experienced business leaders couldn’t see potential returns, they wouldn’t commit their time and money to these missions.
The Opportunity Cost Question
The real debate shouldn’t be whether these missions have value, but whether they represent the best use of mayoral time and municipal resources. Could the same networking and relationship-building happen through other means? Are there more cost-effective approaches to international business development?
Some cities are experimenting with virtual missions, industry-specific delegations, and hosting international visitors rather than traveling. These alternatives might achieve similar results at lower costs.
But how shall we measure their cost-to-benefit ratio and success? Perhaps the answer lies in developing better metrics that account for the long-term, relationship-based nature of international business development, rather than expecting immediate, quantifiable returns.
