I have outlined five key areas where I see International Financial Centres (IFCs) will be able to play to their strengths and perform a major role in helping shape the future global economic leaders: 1 SUPPORTING THE STABILISATION OF LATIN
AMERICAN ECONOMIES Between 2008 and 2018, Latin America’s middleclass expanded from 33 million households to 46 million households. In 2018, 14 per cent of the population aged 15 or over in Latin America had attained a higher education degree, a rise from 8 per cent in 2000. But for that burgeoning generation to be able to realise its full potential in the next decade, its private sector will need to find some surety. Political uncertainty in the region’s largest economies and ongoing corruption have all played into disappointing growth forecasts – the International Monetary Fund predicts the region’s GDP will only rise by 1.4 per cent in 2019. A vital component to stabilising the Latin America region is creating security for individuals and businesses, given they live in regions that can lack the political stability and legal strength to ensure their long-term plans can be executed with certainty.
FIVE WAYS IN WHICH IFCs WILL HELP SHAPE EMERGING GLOBAL ECONOMIES BY 2030 By ELISE DONOVAN Chief Executive Officer BVI Finance
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y 2030, the world economy will likely look very different than it does today. Socio-economic changes, coupled with technological advances, will likely shift economic power from the West and towards today’s emerging economies in Africa, Latin America, Asia, and the Middle East. Amid this shift there will be a need for innovative solutions to new business problems arising from borderless economies, outmoded legal jurisdictions, and an increased need for international partnerships and co-operations.
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IFCs have a long track record of recognising and subscribing to the common-law principle of privacy and the individual’s right to privacy, especially in relation to personal and business transactions. We are seeing an increase in the number of small businesses and families seeking a safe and secure harbour for their wealth, away from disruptive politics and interventionist states. By incorporating their wealth and assets in an IFC, they are able to grow their businesses with steady income streams and business structures safe from businessunfriendly jurisdictions.
