being part of the dutch kingdom was also an important advantage for establishing international financial services activities in curacao. however, the prosperity of the international financial services sector came to a halt with the termination of the tax treaty with the united states, and the abolishment of the us foreign withholding tax in 1985. over the past two decades, the sector was also negatively affected by other developments, such as the negative connotation of offshore tax planning and increased bundling as tax - haven region. furthermore, we have in the past failed to adapt quickly to market conditions, and to be innovative in terms of introduction of new products to increase the attractiveness and competitiveness of our jurisdiction. notwithstanding the gradual decline over the decades, the international financial services sector is still an important pillar of our economy as it directly contributes approximately 6 percent to gdp, and is an important generator of high - skilled jobs. furthermore, over the past years, the sector contributed on average approximately 6 percent to foreign exchange receipts from the export of primarily services. besides its direct contribution, the international financial services industry also has positive spillover effects to other related industries, including telecommunication services, transportation services and hospitality services. curacao has taken several measures to meet international standards over the past years. one of the main measures taken, reason for which we are here today, was the enactment of a new fiscal regime to be in full compliance with the policies of the organization for economic cooperation and development ( oecd ) for fair tax practices. the new fiscal framework became effective in 2002, and aimed to eliminate the difference between offshore and onshore designations. the new fiscal framework also stipulated that international companies established before 2002 were subjected to a special tax treaty until the year 2019. this transitional special treatment, also referred to as the grandfathering rule, ensured the orderly and smooth transition from the old offshore regime to the new fiscal regime. this grandfathering period, which will remain applicable until 2019, represents the old, and as we are entering the twilight stage of the grandfathering period, we are preparing to welcome new opportunities on the horizon. ladies and gentlemen, when we thought that we have seen it all, we are now witnessing the rapid development of a global digital economy. these innovative changes are shaking global financial services and service providers to their core. we all know the benefits that disruptive technologies and innovation can bring to consumers and our economy in terms of opening accessibility to a larger part of the global population to local providers of services.

are indeed interconnected drivers for growth and well - being, we must be committed to build sustainable and resilient financial infrastructures and regulatory environments based upon wider participation. a sustained economic development and growth strategy requires diversification, which is precisely where innovation can play an important role contributing to economic prosperity and well - being of our communities. it is no surprise that we are having this discussion of inclusiveness and innovation at this year ’ s conference. according to the financial stability board, crowd funding, peer - to - peer lending, and other innovative products will certainly affect financial services provision such as bank lending services, investment management and advisory functions. pre - emptively discarding innovation in the name of financial stability would certainly stifle innovation and inclusive progress, whilst depriving households of the benefit of technological progress. on the other hand, allowing risks to accumulate in an unregulated sector may undermine financial stability and undo the benefits of past regulatory efforts. therefore, finding the right balance between facilitating innovation and ensuring financial stability and consumer protection is of essential importance, but also an inherently difficult task. the issues raised by innovation in financial services have become priorities at the global level. the financial stability board, the iosco, the basel committee for banking supervision, the international association of insurance supervisors have all taken up innovation from their unique perspectives in recent years. underlying all of this work is the realization that actors across the financial services spectrum need to adapt along with the changing industry. an innovative environment requires an innovative regulatory approach. we are increasingly called upon to apply our regulations and processes in the context of new business models, products and services. it is therefore, that today will be an exciting day for all of us, since we will be interacting with experts on innovation and regulation, about the developments and way forward from various perspectives, including the regulatory perspective. we have a line - up of distinguished speakers from all the different corners of the innovation and technology ecosystem, as well as from standard setting bodies and regulatory authorities. we kick off our innovation day with an interesting take by mrs. lopes from the worldbank on inclusive innovation : the challenges and opportunities. following the presentation of mrs. lopes, we have short introductions from mrs. chaukos from the ontario securities commission, and mr. cova from the cbcs on how we as regulators support innovation and modernize regulation to position our markets favorably in the wake of these developments. subsequently, we will have an interactive panel discussion with mrs.