When you see a full-page ad in small print in the New York Times, it’s a sure sign of a communication strategy in disarray.
Argentina offered the latest example yesterday, writing about its long-running dispute with investors over a debt restructuring. Argentina might have a good argument, but you won’t find it in its advertising.
Things haven’t exactly gone Argentina’s way of late. After losing a key decision in the US court in mid-June, Argentina may have to pay billions of dollars to investors who challenged its 2005 debt restructuring. The country will be forced into a fresh default if it doesn’t pay up.
Argentina was not just losing in the courts, it was losing in the media, making statements to the press that were ineffective at best.
So it’s no surprise that Argentina’s Ministry of Finance bought a full page of advertising to try to tell its story. The trouble is, the ad doesn’t tell the story very well. It reads like a brief from an earnest first-year associate at a law firm. And the message it has chosen – attacking the US courts and accusing the judge of bias – might play well in Argentina but fails nearly everywhere else. This has produced a surprising publicity windfall for the otherwise unloved hedge funds that have been pressing their legal claim against Argentina.
Ironically, Argentina has a reasonable case to make, even if it hasn’t persuaded the US courts. There’s a large international community of sovereign creditors, investors, development banks and government bodies that are concerned about the court decisions and want to see stronger rules on sovereign borrowing and restructuring. A spirited effort by Argentina would help, particularly if it is cast in simple language that’s easy to understand – not legal terminology and invective.
Argentina could use more Don Draper. The advice from the “Mad Men” star is good in nearly any setting: “If you don’t like what’s being said, change the conversation.” For Argentina, Draper would favor a simple message and lots of white space.
Even this late in the game, Argentina can benefit from stronger communication. The court battle, while important, might not be the decisive blow investors expected. It has brought the parties to the bargaining table ( a prospect that sparked a rally in Argentine bonds). Negotiations between Argentina and its investors seem like the best outcome for all sides. Strong communication can help frame the issues and open the way to an acceptable settlement.
We’ll see if Argentina improves its pitch and rallies support.