The Shady Side of Subnational Diplomacy

Spotlights are focusing on the shady side of #SubnationalDiplomacy influence during US elections. This evil twin of a transparent and productive form of local-to-local commercial engagement lays traps among unsuspecting state and local elected officials (see below). The effect is pronounced during too-close-to-call elections. Longer term, it erodes the economic health of institutes, research centers, and communities by simplifying theft of intellectual property and cyber incursions.

Trade and investment accords between local governments and institutions abound on the sunny side of the street, underpinning national-level trade agreements and fortifying local economies. I discussed these beneficial accords in a recent address to Southern California business leaders, and cautioned them against dubious and insidious influence peddling that targets locally elected officials and ultimately weakens the economic resolve of communities.

"Recently, foreign governments have increasingly used cutouts to circumvent U.S. lobbying laws and contact state-level officials directly," stated an excellent article in Foreign Policy. Recent newsworthy skullduggery involving foreign players infiltrating the functions and campaigns of trusted public officials in New York, New Jersey, Tennessee, California, and New York City illustrates how porous the barriers can be against such influence in local jurisdictions.

Foreign representatives act locally to advance their causes — or thwart that of their political opponents — in most unexpected ways, under the guise of delivering foreign investment wins in the hyper-competitive world of economic development. Contact details for such agents may include the terms Institutes, Cultural Societies, or Sovereign Wealth Funds.

Also slipping through these porous barriers are cyber criminals who take aim at highly prized intellectual property conceived and formed by US research and development facilities. When I was stationed at the US Embassy in Bucharest as Commercial Officer, I teamed with US Department of Justice colleagues to elucidate these vulnerabilities to the country's leading research arms, supported by the Federal Bureau of Investigation's anticorruption arms. Statistics on the damage done report losses to national economies in the hundreds of billions.

Leaders of research facilities, local and state elected officials, and industry regulators must remain hyper-vigilant against such incursions under the guise of new partnerships. My work as a global trade advisor includes formation of vetted and trusted channel partnerships of reseller and technology developers, especially in large and complex international markets; and guidance for foreign companies who intend to expand and operate in North America.