A VIEW BEYOND THE HORIZON
VANESSA KING KERRY ANDERSON
Sailing Into The Headwinds Of An Evolving Global Economy
SETTING THE STAGE: GLOBAL ECONOMIC CHALLENGES
When viewing BVI’s prospects for economic development, the horizon looks endless. Change simply needs vision and proactive, intelligent management to ensure it is implemented and adopted. How the Territory chooses to take hold of advantages and act on opportunities will make a world of difference in its ability to race against the headwinds.
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he world economy continues to grow, not only in complexity but in competitiveness. Although the British Virgin Islands is recognised as a significant contributor to global wealth, the country continues to face headwinds in the race to keep pace with evolving trends in technology, education, infrastructure, and data stewardship. To maintain (and grow) its relevance in the global economy, the BVI can no longer ignore deficiencies in its domestic economy and expect to compete, effectively. Change and investment must occur. How leaders, decision makers, citizens, and residents accept and manage necessary change will make all the difference. It is one thing to establish new expectations and quite another to provide the support, talent, and
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financial investment that will allow the BVI to implement changes and thrive in the 21st century global economy. Looking back to the 2017 hurricanes Irma and Maria, the wake-up call they delivered was unwelcome. But there is a silver lining. Disruption can serve as a catalyst for progress. In this case, perhaps, it has energised the country in its march toward increased global competitiveness. The sweeping change of BVI government in February 2019, to many, signals a healthy disruption to the status quo—a renewed will to achieve a higher level of government performance. But beyond government, meaningful transformation requires a mindset, across all people and all interests, that fosters and supports entrepreneurial vision and creativity, and a commitment to adapt to change.
In 2014, the BVI engaged the prestigious McKinsey and Company, an American world-wide management consulting firm, to prepare a report titled “Building on a thriving and sustainable financial services industry in the British Virgin Islands,” commonly referred to as the McKinsey report. The report identified significant factors affecting the BVI financial services economic pillar. The top four external factors the report identified are: 1. The increase in international pressure for greater transparency to identify potential tax evasion in the face of eroding tax bases in G1 countries following the global recession. 2. The policy changes by major international banks in response to home regulators which make it difficult for BVI companies to open bank accounts. 3. The proliferation of low-cost, competitor jurisdictions, and market competition in general. 4. The acceleration of the international regulatory environment.