New Paradigm for IFCs: New Products & New Markets Richard Stoneman 3rd Caribbean Conference on International Financial Services Sector, Nassau, April 1st
Last Conference in October 2012 Posed a few basic questions about the region’s International Financial Services Vision: Where are we going? Strategy: How will we get there? Need for a framework for regional action: The Task Force is a start But it must lead to coherent strategic action & institutional development New Products & New Markets, 1st April 2014
2
Where are we now? (18 months later)
Still responding to international agenda of death through strangulation.
Need paradigm shift: Recognise new world out there (Some do) Start turning problems into opportunities Not just survive, but prosper (Minister Pinder) Innovation, competitiveness & creativity New Products & New Markets, 1st April 2014
3
London Symposium on 27th March: Saving Havens: Offshore, Onshore or Mid-Shore Some clues for the future? Large
states at comparative disadvantage:
More risk and volatility Much more money laundering
Caribbean
at reputational disadvantage; yet its fundamentals are better Impact of IFCs on Trade & Development:
Hong Kong & Singapore influence China growth? Dearth of regional IFCs a problem for Africa?
IFC’s
importance to cross-border capital formation New Products & New Markets, 1st April 2014
4
London Symposium (cont.): Some IFC Product Areas?
Specialist Niches already – Need market research capability to identify new ones Regulation tailored for simplicity & stability
E.g. US/French Pharmaceutical M&A transaction
Conduits: Trade & investment facilitation Wealth Protection (in a more turbulent world)
X Tax Evasion (tax competition OK, except EU) X Secrecy (but playing field needs levelling) New Products & New Markets, 1st April 2014
5
Imperatives for Regional Action: What?
Advocacy: Must improve region’s reputation
Demonstrate performing on fundamentals Explain how activities are socially & economically constructive Transparent about what do (Combat Guardian/NGO agenda)
Product & Market Research:
New product niches, new market areas Complementing/servicing major centres New Products & New Markets, 1st April 2014
6
Imperatives for Regional Action: How?
Upgrading human capital crucial:
Advocacy & research even more important:
Regional training centre back on agenda Globally competitive professional training required For survival and growth of industry
Institutional development cannot be delayed World-class international research & educational centre in the region is essential Must organise how we are going to do it New Products & New Markets, 1st April 2014
7
