2. Development of International Financial Services in the Caribbean.. Developed over the past two decades.Driven by active government support.Favorable fiscal incentives.Better macro-economic environment.Improved technology.Propitious time zone location.Excellent telecommunication links.. 3. I
1. “Recent Developments in the Eastern Caribbean Region” Presented by
Agatha Jeffers-Gooden, Ph.D
Director, Nevis Financial Services Department
The Offshore Institute Caribbean Regional
Conference & Exhibition
British Colonial Hilton Hotel
5-7th June 2000
2. 2 Development of International Financial Services in the Caribbean. Developed over the past two decades.
Driven by active government support.
Favorable fiscal incentives.
Better macro-economic environment.
Propitious time zone location.
Excellent telecommunication links.
3. 3 International Financial Services in the Caribbean. Is described as “an area of economic activity that is helping Caribbean island nations stand on their own feet.”
4. 4 Reason for Development of the International the Financial Services Sector. Economies vulnerable to threats of natural disasters and other economic shocks.
Sugar, banana & other agriculture cease to be viable economic industries.
Removal of preferential treatments and decrease in concessionary aid flows.
Compelled to diversify into service areas.
5. 5 Reason for Development of the International the Financial Services Sector. The respective government had the good foresight to develop into international financial services.
Expended considerable resources to develop expertise in the sector.
Compatible with tourism.
Offers opportunity for economic diversification & growth.
Has potential to generate foreign exchange earnings.
Contribute to government revenues & overall GDP.
6. 6 Importance of The Financial Services Sector. Generates employment.
Employs high technology and has favorable spin-off effect to other sectors of the economy.
7. 7 Importance of The Financial Services Sector (con’t) Contributes to the economic development of the countries.
Enhance the quality of life of the citizens.
8. 8 Importance of The Financial Services Sector (con’t) Sector now accounts for substantial proportion of the economies of these island states.
Direct revenues from registration & other gov’t fees.
Rental of office space & accommodation. Increased activity in the construction sector.
Well-paid, high-end employment.
10. 10 Unique characteristics of the Eastern Caribbean islands. Composed of 8 nations but 9 offshore jurisdictions (Federation of St. Kitts and Nevis have 2 separate governments and 2 offshore jurisdictions).
Six of the eight island nation states have full political independence while 2 (Anguilla & Montserrat) are British Overseas Territories.
11. 11 Anguilla
12. 12 Anguilla 2000
13. 13 Antigua & Barbuda
14. 14 Antigua & Barbuda’s 2000
15. 15 Dominica
16. 16 Dominica’s 2000
17. 17 Grenada
18. 18 Grenada (con’t)
19. 19 Grenada 2000
20. 20 Montserrat
21. 21 Montserrat (con’t)
22. 22 Montserrat 2000
23. 23 NEVIS
24. 24 NEVIS (con’t)
25. 25 NEVIS (con’t)
26. 26 NEVIS 2000
27. 27 Saint Christopher (St. Kitts)
28. 28 Saint Christopher (St. Kitts) 2000
29. 29 ST. LUCIA
30. 30 ST. LUCIA 2000
31. 31 St. Vincent & The Grenadines
32. 32 St. Vincent and the Grenadines 2000
33. 33 Threats to the Caribbean Nations. Threats from larger territories.
OECD Report: “Harmful Tax Competititon: An Emerging Global Issue.” - April 1998.
Classified certain low or no tax countries as tax havens with “harmful tax regimes.”
Report threatens legitimate business that is allowing small island states to “stand on their own feet.”
34. 34 Threats to the Caribbean Nations. Bahamas Government stated: “OECD Report perceived as a heavy handed approach to dealing with legitimate, properly-regulated international financial centres.”
35. 35 Threats (con’t) Other Reports:
UN Offshore Initiative.
Made distinction between money laundering and tax evasion.
However, initiative desires to eliminate confidentiality, which is one of the cornerstones of international financial centres.
36. 36 Main Threats Ability of major countries to cripple smaller countries.
Prospects for concerted punitive action against non-cooperating centres.
Loss of reputation for confidentiality.
Loss of competitiveness.
BIAC stated that “Report could make smaller countries economically dependent on other nations.”
37. 37 Conclusion. The jurisdictions of the Caribbean:
have demonstrated their capability to successfully compete in the global environment.
are committed to facilitating legitimate financial activity.
despite threats will prosper.