
July 2004


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Washington Diplomat
PO Box 1345
Wheaton, MD 20915
Tel: 301.933.3552
Fax: 301.949.0065
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K Street Teams With Embassy Row To Improve International Lobbying Efforts
by Alan B. Nichols
On April 6, Stonebridge International, a Washington-based global business strategy firm founded by former National Security Adviser Samuel Berger, announced the hiring of Rubens Barbosa, the former Brazilian ambassador to the United States.
Barbosa, who will remain based in Sa? Paulo where he has his own consulting firm, joins the company as senior director. The former envoy brings to Stonebridge a glittering portfolio in diplomacy and decades of experience with international investment and trade issues.
Barbosaís appointment is an example of the logical bridge between diplomats and K Street, the geographical center and symbol of Washingtonís power brokersólobbyists, lawyers and global business strategists. This link can also be seen in the lucrative contracts between law firms and the foreign countries that seek not only assistance in gaining political access in Washington, but also in creating a better public image of their countries in the United States. A recent and powerful example of this partnership is the contract between the Embassy of Saudi Arabia in Washington and Qorvis Communications.
The link between diplomacy and international power brokering is not new. Scores of former U.S. ambassadors and past administration officials have either founded or now work for global strategy firms. Former Secretary of State Madeleine Albright, Henry Kissinger, and secretaries of defense Robert McNamara and William Cohen are just a few of the many prominent U.S. officials to enter this profitable domain where politics and diplomacy converge.
Although U.S. lobbying and communications firms are well stocked with former government officials, there are far fewer foreign diplomats on these firmsí mastheads. This is not to say that foreign diplomats wouldnít be welcome. Their relative absence on U.S. staffs is more the result of differing attitudes toward public service. Foreign diplomats tend to view diplomatic service as a lifetime career, whereas high-level U.S. diplomats tend to serve in the public domain for a time before returning to their chosen professions or businesses.
But in Barbosaís case, Stonebridge was quick to add the former diplomat to their illustrious roster. ì[Barbosa] has been an extraordinarily effective representative of the government and people of Brazil in the United States, as well as the Brazilian business community,î said Berger. ìHe brings unique knowledge of the business and political environment in Brazil and Latin America.î
Barbosa didnít exactly walk into Stonebridgeís offices unknown. In fact, he had worked closely on bilateral trade and political issues with Anthony Harrington, the former U.S. ambassador to Brazil who is now Stonebridgeís president. ì[Barbosa] will be our local partner in a country in which more than 400 of the Fortune 500 are present and which has its own large and sophisticated business community,î Harrington said.
ìI have been in the Foreign Service for over 40 years. I have expertise and knowledge developed over a long career,î Barbosa said from his San Paulo office. ìIf Stonebridge clients have problems in doing business in Brazil, I will help solve them. I will try to identify business opportunities for them here and get clients talking with the right officials.î
ìInternational business involves international political issues,î Harrington said. ìMr. Barbosa is our first ambassador from another country, but we have had 20 to 25 former U.S. diplomats on staff. The ambassador will be an effective catalyst for bilateral dialogue. He is very business savvy. There is a growing amount of business between Brazil and China and that affects our clients in China.î
Former foreign diplomats can be a vital key to ìcutting through roadblocks in work with foreign governments,î Harrington added. They can also be a major asset when doing business in an increasingly interconnected world where misunderstandings can easily occur because of cultural and political differences. ìYou have to understand the psychology of doing business,î said James Collins, a former ambassador to Russia with AG Global Solutions, in an article in Influence, a lobbying industry magazine. ìThere are differences in culture and the ways in which decisions get made.î
For instance, it has been said that when negotiating with a Russian businessman, silence constitutes assent. In South America, life and business proceed at a much slower tempo than in the United States, and U.S. businessmen not accustomed to this can let opportunities slip away if they allow their impatience to interfere.
Although Harrington noted that Stonebridge doesnít currently expect to hire additional foreign diplomats, the practice is quite likely to continue in the future. As to the suitability of a particular former diplomat, Harrington said, ìIt depends on how much that individual has gotten involved in business issues during their tenure.î
With increasing international tensions and a need for more precise dialogue between governments, many foreign countries routinely hire public relations and lobbying firms to assist them. A case in point is the contract between the Saudi Embassy and Qorvis.
Qorvis, 15 percent of which is owned by Patton Boggs, is one of Washingtonís largest and most powerful communications firms. It scored a financial coup shortly after 9/11 by securing a multimillion contract with the Saudi Embassy in Washington. According to Influence magazine, the firm received an initial $200,000-per-month retainer from the Saudis. In addition, it received almost $4 million for services rendered in late 2002 and early 2003, according to Influence.
Among other services, Qorvis is helping to gain international support for the Saudi peace plan to resolve the Israeli-Palestinian conflict. Qorvis was founded in 2000 by Michael Petruzzello, former chief executive officer of Shandwick North America.
ìA lot of countries are recognizing that communicating to America is vital. There are big stakes,î Petruzzello told The Washington Diplomat. ìSince 9/11, we have been working with the Saudis to improve their image in the U.S. and to provide education and outreach to Americans to help them better understand the Saudi culture, its values and its view with regard to fighting international terrorism.î
Petruzzello said that given all of the negative publicity about Saudi Arabia in the U.S. news media, it is a monumental task to dispel strongly held misconceptions about the Saudis, especially since a majority of the 9/11 hijackers were Saudi nationals. One particular myth the firm is trying to dispel deals with alleged Saudi funding of madrassas schools in Pakistan that have turned into training grounds for al Qaeda.
According to Petruzzello, the Saudi government did fund the establishment of these schools in the 1980s as schools with a legitimate educational purpose. After the Russians were ousted from Afghanistan and the Taliban took over the country, the schools became orientation institutions for radical Islam. And even though the Saudis discontinued funding the schools at that point, for many people this did not dispel the countryís perceived connection to the school.
ìPeople in the Middle East and Europe know a lot more about America than we know about [Saudi Arabia],î said Petruzzello. ìThere are enormous gaps in understanding and information regarding other parts of the world, and you see so much nonsense in the media, particularly regarding the Middle East.î
The Qorvis plan is designed to help restore U.S.-Saudi relations. As part of its educational campaign, Qorvis invited some 200 journalists to visit Saudi Arabia, and it held a speakerís bureau composed in part of former ambassadors from both sides of the Atlantic. Qorvis has also sponsored meetings between local media and community groups, and it has used the Internet and advertising to spread a different public image of Saudi Arabia from that portrayed in the mainstream media.
ìItís a sophisticated, multilayered campaign,î Petruzzello said. ìWeíre not trying to influence legislation to favor Saudi Arabia. We are about the business of educating people.î
Education is certainly one ingredient in the art of lobbyingóone of many. ìWhen you talk about the bridge between K Street and Embassy Row, you need a broad definition of lobbying to include the business of in-bound investment that is helping foreign countries to gain access to our markets and which are interested in investment in the States,î said Stuart Pape, a managing partner at Patton Boggs.
ìWhen you hire an ambassador,î Pape continued, ìyou get a network of relationships that he has developed over the course of his diplomatic careers and you get insights into a countryís politics. Former ambassadors can tell you where the trapdoors are and
where the bridges are.î
Over the years Patton Boggs has added diplomatic stars to its staff, particularly from the ranks of the U.S. Foreign Service, including Timothy Chorba, former ambassador to Singapore, Thomas Siebert, former ambassador to Sweden, and Philip Kaplan, deputy chief of mission at the U.S. Embassy in the Philippines. Patton Boggs also had a staff member several years ago who had been the Croatian ambassador to the United States and who went on to become the Croatian foreign minister.
ìWe have had good success working with foreign diplomats, and weíd be delighted to see additional interest from them,î Pape said. ìThere is an increased recognition by foreign governments in the importance of having effective representation in Washington which we have provided over the years. We donít supplant their ambassadors. Rather, we act as an extension of their embassy.î
Alan B. Nichols is a contributing writer for The Washington Diplomat.
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