Read our interview with Global Business, Finance & Society Concentration Chair, Professor David Wallis. Professor Wallis answers questions about why finance is important to an international affairs education; the relationship between government, business, and civil society; and what type of graduates GBFS produces.
Q: What advice would you give to International Relations students looking to pursue a career in finance? What is the best way to break into the industry? How can students bring in their knowledge of international affairs?
A: Big picture, my advice would be very similar to that for students wishing to pursue almost any career; develop relevant, overlapping, themed knowledge. Doing so produces the necessary “core depth” to demonstrate appropriate expertise and consequently get the job! Aside from classes, extra-curricular activity and internships are definitely part of the equation.
Similarly, breaking into any industry is about levering the distinctive competences held in the desired direction of career travel. International Relations study is relevant via either or both of the knowledge gained, or the skills learned.
In general, “knowledge-based” jobs are easier to spot and to see a match with International Relations study. Skills based jobs (perhaps involving communication skills, multi-cultural awareness and affinity, disciplined research) are tougher to spot as they demand a refined understanding of the required match between personal capability and job requirements. Finance related jobs in political risk would be an example of the former, jobs in government relations the latter.
Q: How does geopolitics influence the financial services industry?
A: The “financial services industry” is a very broad church – the Bureau of Labor Statistics reports that 9,000,000 people are currently employed in the sector in the US – so it’s unsurprising that geopolitics will influence “it” in many ways. Geopolitical influence upon economic policy and trade are obviously important, with the pricing of capital markets being a very visible assessment of changing future expectation and possibility.
Q: What should the relationship between business, government and civil society look like?
A: Great question!
The relationships should aim at maximizing welfare subject to appropriate constraints (for example perhaps with regard to market induced negative externalities, income distribution, security, sustainability etc). What it takes is deep understanding and communication by all “sides” in relation to their respective operating environments, incentives and constraints.
As business, government and civil society change then the inter relationships between these sectors will (and should) change too. The ongoing debates through Friedmanite “the social responsibility of business is to make profits”, corporate social responsibility, stakeholder capitalism, ESG and DEI demonstrate this nicely.
The hope would be that we can navigate required ongoing change in a productive manner. I think that MSFS students – well placed to become “tri-sector athletes” able to work in or across business, government and civil society – can play a significant role in developing these important relationships.
Q: How can students of International Relations improve their financial literacy and why is financial literacy important to IR work?
A: On the why, it is sometimes said that “capitalism is the worst economic system, except for all the others”. I’d tend to agree and note that finance lies at the center of capitalism (both in pure and less pure forms of capitalism). Hence if an IR Student wishes to get a full view of the world, a finance lens is extremely useful.
On the how, read financial press / listen to “finance centered” podcasts – you may be surprised at how interlinked finance and IR really are plus, of course, think about courses / extra-curricular activities. You could even attend a Financial Fluency session!
Q: What motivated you to transition from the financial services industry into academia?
A: Trying to live a full life involves periodic change. To an extent, I’d “been there and done that” with respect to financial services, plus as my business roles became more senior I noticed that much of the fun emanated from developing people. Before my second spell in Japan, I’d also enjoyed being an Adjunct at Georgetown. Summing up, transitioning to academia permitted me to stay engaged in subjects which fascinate me, and to help develop people (students!) in an environment that I had experience of and value enormously.
It’s just a shame about the marking!
Q: Could you share your motivation behind holding the Financial Fluency sessions throughout the semester?
A: Perhaps I should rename Financial Fluency to Finance is Fun, or Finance is Relevant or perhaps Finance is Everywhere! I hold these sessions to create a better awareness of all the above (!), with the fluency element being designed to give students a no-pressure opportunity to practice and learn speaking a new language (finance).
Q: When it comes to the GBFS Concentration, what skills, lessons, and expertise do you hope students will take with them after graduating from the program?
A: Another great question! GBFS Students have the opportunity to put a new and distinctive arrow into their IR quiver. The knowledge is highly relevant whatever future road students take. I know of many FSO’s who are grateful for the corporate finance training received!
One aspect of GBFS is some emphasis on “hard skills” (how I dislike that phrase!) and this can be a refreshing and challenging point of distinction as against other studies. It’s good to have demonstrable knowledge and skills.