Economic Enhancement is the next logical step in the evolutionary process that developed from Countertrade - the result of a transition from barter, to counterpurchase, through to indirect offsets. To fully grasp the concept, there are a number of core principles to be taken into account:
- Economic Enhancement is not confined to Defence or Aerospace contracts; it can be based around any large state procurement contract
- It is about forming partnerships between buyer and seller in order to harness the seller’s resources to help achieve strategic national objectives
- Taking traditional countertrade mechanisms (such as counterpurchase, direct or indirect offset) and marrying them to a broad range of financial tools (PFI, PPP, BOT etc.) can generate sufficient funds for a chosen programme, and reduce bulk expenditure by the client or other nominated parties
- Economic Enhancement should work to further the national socioeconomic and geo-political objectives of the client country
In order to ensure maximum potential, it is essential that Economic Enhancement should be enshrined in a country’s legislation and regulated by a legally recognised oversight agency - thereby providing a means of openness and transparency for all potential suppliers.
This presents both new challenges and opportunities for industry, especially Blenheim’s traditional multinational corporate client base (B2B). They are faced with ever changing and growing requirements as a result of Economic Enhancement obligations, and naturally demand increasingly innovative and creative solutions to these.
Blenheim Capital Partners provides total solutions for multinational corporations with either existing or unprecedented future obligations. This is all through a single source, creating effective and innovative structured solutions. Finally there is the added benefit that these can be used as marketing tools and create key points of difference in the process of bid evaluation and selection.