Sometimes the conditions for the formation of today’s top IFCs happened organically and largely because of the related domestic markets (eg New York); sometimes the conditions were a combination of originally organic growth because of the related domestic market combined with luck (ie common language and legal system with its successor) and then sure-footedness (eg London); sometimes a combination of being an international trade hub, luck (ie language and legal system) and sure-footedness (eg Hong Kong and Singapore); and sometimes as a very conscious and precise government decision (eg Dubai).
The US replaced the UK (and Empire) as the world’s biggest economy nearly 150 years ago, yet London essentially remains on a par with New York as an IFC. London main advantages, seem to arise from various cross-border transactions in diverse currencies. Some of the pre-eminence of London and New York would seem to come from their advantages of first movers (financial centres of world’s biggest economies, or economic blocs, at various times), and the related use of English as the international business language. There are possibly a number of reasons why London has been able to maintain a position at the top of the IFC table, but the most fundamental may be that the new economic power house (ie […]
Relative to Japan’s economic power, Tokyo has not performed very well as an IFC. A 2011 paper published by the “China Center at Brookings” entitled, “Building A Global Financial Center in Shanghai: Observations from Other Centers”, nominated Tokyo as “an example of a potential global financial centre whose governmental policies and overall structure of business and government held it back from gaining true global status, despite major advantages”. These advantages include: a large pool of private savings; some of the largest financial institutions in the world; an educated and hardworking labour force; and a high quality of life. “Clearly, the bursting of its major bubbles in real estate and equity markets, followed by well over a decade of anemic overall […]
In 2010 the Russian government launched the Moscow International Financial Centre (MIFC) project and sought international assistance, including from TheCityUK (the self-described “representative voice of Financial Services in the UK”). A Memorandum of Understanding between the MIFC Taskforce, TheCityUK and Vnesheconombank was signed in Moscow in 2011 in the presence of President Dmitri Medvedev and Prime Minister David Cameron.
Arner DW 2008, ‘The Competition of International Financial Centres and the Role of Law’, Asian Institute of International Law, in Meesen, K, Economic Law as an Economic Good, Its Rule Function and its Tool Function in the Competition of Systems. Germany, Sellier, p193-207. Australian Financial Centre Forum, 2009, ‘Australia as a Financial Centre: Building on our Strengths, November. Carmichael J, 21 May 2009, ‘Regulation by Objective – The Australian Approach to Regulation’, Statement to the US Senate Committee on State Homeland Security and Governmental Affairs, 21 May. Dow Jones Indices 2013, Xinhua-Dow Jones International Financial Centers Development Index, September 2013. Elliott DJ 2011, ‘Building A Global Financial Center in Shanghai: Observations from Other Centers’, China Center at Brookings”, June. IBRD […]