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Many cities in the Asia-Pacific region serve as financial centres
in their respective national jurisdictions or local areas. Noting
that most were engaged in efforts to become premier international
financial centres (IFCs) in competition with one another, the Korea
National Committee for Pacific Economic Cooperation (KOPEC)
convened an international conference in Seoul, Korea in October
2007 to examine the prospects for success for seven such financial
centres (Hong Kong, Seoul, Shanghai, Singapore, Sydney, Tokyo and
Wellington), weigh the costs and benefits of such competition for
local economies as well as the region as a whole, and derive
implications for cooperation among the regional governments. The
present volume consists of case studies and commentaries presented
at the conference as well as the synthesis report, which draws
conclusions from those papers and commentaries. One of those
conclusions is that, given the power of scale economies as well as
the lack of integration of the financial markets in the region,
none of the regional financial centres, even Hong Kong, Singapore
or Tokyo, considered alone represents a meaningful rival to London
or New York, the two existing global financial centres. The
synthesis report thus argues for regional cooperation to integrate
all those financial centres into an Asia-Pacific IFC network. It
further argues that the present global financial crisis presents a
major opportunity for regional governments to create such an IFC
network that will challenge London and New York in quality as well
as quantity of international financial business while helping the
latter two overcome the current global crisis. This would open the
path towards a stable and resilient Asia-Pacific financial
community, with the constituent regional economies no longer
vulnerable to the problems of the so-called original sin and double
mismatch.
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