CSVC: Thanks so much for taking the time to speak with me today. I know you just got back from a trip to New Delhi, India so you must be exhausted. I am really interested in your extensive international research and work. Can you tell me about what you are currently working on and how your passion for this area began?

Zelner: My research started in grad school at U.C. Berkeley, where I met my co-author, Witold Henisz. We were both students of of Oliver Williamson, who recently won the Nobel Prize and for developing a theoretical paradigm called “Transaction Costs Economics.” It’s an economic theory that also draws heavily on organization theory. The initial focus was on how firms use different types of formal structures to govern their relations with other firms—for example, writing a long-term contract vs. entering into a joint venture.

Oliver had begun to extend transaction cost logic to between government’ and firms, and Witold and I were both interested in moving farther down that path. We were studying different countries around the world that were on the process of adopting market-oriented policy reforms, such as privatization and deregulation, and we wanted to know how successful the reforms were at mitigating risks to private investors and fostering investment. We decided that instead of sitting in our offices and crunching data, we should talk to the people working on these issues in these countries. Specifically we focused on electric and telecom industries because during the 80’s and 90’s there was a global wave of market-oriented reform in these industries.

Went on a series of trips to 15 countries, in Central and Eastern Europe, the southern cone of Latin America, and Southeast Asia to interview investors and regulators to better understand the impact of regulation and reform on investment. During these interviews, though we heard that regulatory structure matters, we also observed how important social forces were in the success of reforms. Each person we interviewed hit on the “angry mob” in the aftermath of reforms and the political strife that could be caused by reforms that affected such sensitive matters as government subsidies and job security. We saw that these social forces were very important in the success of market reform and that regulation needed to be adapted to the local societal and cultural context. So, upon our return we reframed our research and schooled ourselves in new areas of study in political science and especially sociology. Now my research focuses on how public policies and business practices can be adapted to the local context.

CSVC: It sounds like you have learned a great deal about the cultural contexts and their economic implications around the world. How do you see the relationship between government and corporations creating social value in the countries where you have worked?

Zelner: Policy that creates a space for investment in infrastructure adds huge social value without always intending to. Think about the societal benefit for investment in telecom and electricity for example. Countries cannot develop beyond a certain point without electricity and telecom. Without these services, which are available to virtually all U.S. residents, countries cannot attract international investors. The rapid increase in access to the cellular market has been a boom in many countries, enabling them to jump past landlines, where penetration is as low as 3% in some countries. Access to cell phones provides not only economic opportunities but a voice against repressive governments as we saw by the use of Twitter and SMS messages in the Arab Spring. It is important to look at both the business and policy side of investment strategies to make countries able to attract investment and promote local growth.

The other clear connection to creating social value through investment is ensuring that policies that attract foreign investment do not cause social strife. Before the Japanese economic success of the 1980’s there was a widely held belief that the United State’s model of capitalism was an evolutionary pinnacle. Many held to the idea that other systems hasn’t matured until they looked similar to the US system. This was shattered by the success in Japan, which framed relationships between workers and mangers and firms and banks very differently. Today most economists would agree that there are different styles of capitalism. This should be taken into consideration when investment policies are designed, to create a more locally relevant strategy that creates opportunities for growth but does not cause political strife because it has been developed to fit one specific mold.

CSVC: In addition to your research will you be teaching any courses in the near future at Smith that students should look out for?

Zelner: Actually, I am going to be teaching three sections of the MBA core course BUSI 683: Global Economic Environment this summer. This course is really important in understanding how global competition and markets works. I am also teaching an elective in the fall called Strategies for Emerging Markets at the Shady Grove campus. I am very excited about this course as it is right up my alley and is about how to transplant market-oriented principles and practices into other contexts in a way that is also good for people in the communities where the change is taking place. Prior to coming to Smith I taught in the full time, EMBA and cross-continent programs at Duke. I really enjoyed working with all these different communities and would encourage current students to connect with the different cohorts in the Smith community.

CSVC: You came to the University of Maryland in 2011, how has the transition been and how are you enjoying College Park and the DC area?

Zelner: One of the reasons that I was excited to come to the Smith School and the University of Maryland was the proximity to DC. My wife’s work really requires her to live in DC so I had been commuting from North Carolina to DC over past five years. I lived in DC years ago so am psyched to be back and am amazed at how much has changed and find the city to be a great balance between having urban amenities, surprises but also very manageable. From my research I had already gotten to know some of the other faculty at Smith and am really excited to be a part of an energetic group with many other young, energetic peers who have received tenure in the past several years.

CSVC: With all your international experience and work in emerging markets do you have any advice for students interested in working internationally?

Zelner: Take advantage of the international study abroad and consulting programs that you have available to you while you are in school. Go on these programs, have fun with your classmates for sure, but keep your eyes open, research the companies you meet with and ask questions. Today, part of the job search involves merit for sure, but a great proportion of people find employment through personal connections and networking. These programs are great opportunities to make connections and get into a market or country that otherwise would be challenging.

Before coming to Smith I led a global study course to Singapore, Vietnam and Thailand at Duke. Landing in a place like Da Nang, Vietnam for the first time was a real eye-opening experience for many students. Many students had never been outside the United States before, so they would return form this trip with a totally new worldview. In some instances students changed their whole career path and pursued work in the countries we visited. So much of the world is different than what we experience on a daily basis, and we live in a very rarified and wealthy environment. I think it is very important that students are exposed to these differences.

CSVC: Between all the traveling, research and preparing for the courses you will teach this summer and fall what else do you like to do when you get spare time?

Zelner: I am a big Foodie and have recently gotten into the craft cocktail movement. I have found a few restaurants in DC, New York, San Francisco, and even San Antonio that make their own cocktails and ingredients, and I have been inspired to start making my own. My wife and I are also obsessed with our Labradoodle named Grimaldi.