scale. this will require the satisfactory resolution of three issues : 1. uniformity of legislation and regulation ; 2. appropriate technology ; and 3. the question of ownership. if our financial sector in the region is to reach its full potential the rules under which it operates must not be so widely different that they become more of an obstacle course than a facilitator of innovation and development. the amazing thing about the caribbean is how seriously we take our insularity. we come to the table with ingrained notions of how different we are, and argue vehemently about points which are in the wider scheme of things, singularly unimportant except to the protagonist who has been charged with protecting national pride and sovereignty with his life. on a less serious note, and this being trinidad where picong is a way of life, can you imagine a jamaican, trinidadian or barbadian conceding an argument to someone from the oecs and living to tell the tale! we must recognise that in a rule based environment, when there is the need for progress, the rules must be uniform and simple. once there are deviations and exceptions, rules become restrictions and not what they should be, that is, sign posts to allow progress to be made. the utilisation of technology is a critical factor in the evolution and development of the financial sector. the ability to connect across long distances and the necessity to handle large volumes of transactions at high speeds is the rationale for the use of technology. for our region, where face to face meetings are costly, both in terms of time and money, other means of communication through video and teleconferencing are important constructs for our progress. we must invest significantly in technology if we are going to be successful. ownership is a critical factor in any integration arrangement. integration in a fundamental way has to do with the allocation of productive resources and the distribution of benefits across countries. in a situation where capital and labour cannot move, benefits only accrue to the country or place where productive resources are located. if labour and capital can move freely then labour in a country where the productive resource is not located, can move to that location, and the benefits can be spread in that way. with the movement of capital, individuals can purchase shares in the enterprise and enjoy benefits while not being resident. this means of sharing benefits through the financial sector is much more palatable in the first instance and therefore stakes out a special place for

sir k dwight venner : growth, profitability and regulation – the imperatives opening address by sir k dwight venner, governor of the eastern caribbean central bank, of the 33rd annual caribbean association of indigenous banks conference “ growth, profitability and regulation - the imperatives ”, port of spain, 16 november 2006. * * * mr chairman i am appreciative of the invitation of the caib to address your opening ceremony at this very important juncture in our history. we are a very short time away from a year that will go into the before and after category, that is 2007. it can prove to be our undoing, or the path and stimulus to sustainable growth and development, which we have been waiting for these past four decades and counting. when it comes to caribbean affairs however, i am forever the optimist and see it as the golden opportunity we have been waiting for. your theme “ growth, profitability and regulation : the imperatives ” is sufficiently flexible, yet focused to allow me to build on the above statements. growth as has been recorded by economic historians has always been episodic and sometimes ephemeral in many countries and regions. its sustainability over substantial periods of time has been limited to a relatively few countries, most of them being in the northern hemisphere. the first instance of sustained economic growth in modern times took place in the united kingdom over the period 1760 - 1850. this was effected through a fundamental structural change from mercantile capitalism to industrial capitalism. this first episode has affected the thinking on growth and development to this day as we consider the sequential steps in the evolution of economies from the production of primary commodities in agriculture and mining, to secondary areas in manufacturing and processing, to high quality services in design, financial services, personal services and entertainment. this first growth episode was followed by similar sequels in continental europe, germany, france, the netherlands, and the united states of america. the so called g7 countries, which after a time included italy, particularly northern, and japan, seemed to have a monopoly on sustained growth. the post world war ii period ushered in a significant change in the thinking on growth and development. the coming into existence of many new countries through decolonisation and the intrusion of the east - west divide resulted in four significant imperatives for reviewing the nature and causes of growth. • the war ravaged countries were trying hard to reconstruct their economies. • the underdeveloped countries were attempting to initiate economic