Title: Conference on ASEAN Equity Study Asian Development Bank Securities Commission, Malaysia Centennial G
1Conference on ASEAN Equity StudyAsian
Development BankSecurities Commission,
MalaysiaCentennial GroupFramework, Stock-take
and Preliminary Views
- Andrew Sheng
- 29 March 2007
2Contents
- Purpose of Study -
- Chatham House Rules
- Listening to Market - this Conference
- Listening to Public Sector - Next Conference
- Finding the Process of Integration - Third
Conference - II. Framework to think about ASEAN Equity
Market Integration - III. The Changing Global Environment
- Stock-take of ASEAN market participants
- 2005 GMA Study and Recommendations
- Some Possible Options Forward
- Thanks go to Asian Development Bank, Securities
Commission Malaysia and Centennial Group for
organizing this Conference
3Mega-trends Globalization and Capital Markets
- Globalization in Financial Markets has
accelerated due to - Demography - Aging Population seeks higher
returns and diversified risks through investing
in Emerging Markets - Information Technology - lowering cost of
transactions - Financial Deregulation and Innovation - reducing
friction and improving risk management - Regulatory Arbitrage - rise of Hedge Funds and
Private Equity improves market turnover, creates
competition to improve issuer performance but
creates new challenges - Financial Markets are exhibiting market
concentration in key hubs with three Time Zones
(New York, London and Asia) - ASEAN has huge potential and savings, but if we
do not work together, the market could be
marginalized. - We need to find a way of working together.
4East Asian Capital Market remains small
East Asia 16.1
ASEAN 1.4
EU 26.2
EUZone 17.5
NAFTA 43.2
USA 39.5
UK 6.8
Source World Bank
5Getting to Shared Objectives, Common Principles,
Products and Platforms require Process of
Discovery
- Globalization has created choice from domestic
markets to regional markets and global markets. - We do not know what the final architecture and
form of ASEAN Capital Market Integration will be
like. - So, we must begin a process of search, through
working together. - THE PROCESS IS THE PASSAGE.
- This paper is a preliminary work-in-progress
towards that Process of Discovery.
6Market Architecture Centralized (Star) Network
Dominant Player
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
Centralized Network
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
7Decentralised Network Several Larger Hubs
more choice
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
Network C
Network B
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
Network A
MARKET
Network D
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
8Distributed Network Internet no key hub
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
MARKET
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MARKET
MARKET
MARKET
MARKET
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MARKET
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9Applying Network Theory to Capital Markets
- Capital Markets act as hubs to facilitate links
and flows at lower transaction costs with better
protection of property rights
Inflow
Outflow
Transmitter Capital Market Hub
SOURCE Node
SINK Node
Supplier of Capital
User of Capital
Node-link-hub reduces transaction costs and
brings benefits to all users
10Roadblocks in Deepening the East Asia Capital
Markets
- Shallow and lack of integration due to
- Large differences in market practices,
institutional development and regulatory
standards, laws and processes. - High transactions costs.
- Barriers to entry and regulatory obstacles to
financial innovation. - Conflict between national interests (closed
markets) vs. integration (openness). - Bureaucratic differences and lack of cooperation
between public and private interests. - No common philosophy and roadmap to integration.
11Six Degrees of Separation
- How to develop Common Vision?
- Common Standards and Common Rules whose rules?
- Principal-Agent Dilemma how to align
incentives? - Lower Transaction Costs how to lower barriers
to network transactions with each other? - Common Processes how to achieve institutional
convergence? - How to improve robustness and resilience?
12(1) Common Vision vs. Winner-Take-All
- Network effects of Winner-Take-All work against
integration, because smaller nodes fear market
dominance. - Having a single person or one countrys vision of
what ASEAN or Asian market integration is all
about, does not work. We need a shared vision. - That Vision could be common standards,
principles, products or platform must be owned
by all potential members. - Since we do not know what that Vision is like, we
must begin the Process of consultation,
cooperation and learning to work together and to
trust each other - hence this stock-take and
listening to all players.
13(2) Common Standards International Standards
Exist, but need huge coordination domestically to
achieve Convergence
- To ensure Common Standards in financial sector
requires the coordination by three key bodies
(1) Ministry of Finance, (2) Central Banks and
(3) Securities Regulators.
Holy Trinity
Coordination of Fiscal Policies Tax Codes
Coordination of Banking Regulations
Ministries of Finance
Global Core Standards
National Standards
Securities Regulators
Central Bankers
Coordination of Exchange Rate Policies
Coordination of Securities Regulations Common
Standards of Accounting
Coordination of Market Information
Implementation of Common Laws
14(3) Principal-Agent Dilemma alignment of
incentives
- We cannot avoid that one of the more efficient
exchanges is to go through a hub. For example,
which is Asian Time-Zone Financial Hub? - Smaller markets fear that the Winner-Take-All
hub would take away their domestic liquidity,
rather than remembering that networking may
increase liquidity in all Asian markets. - Hence, we need to align incentives to cooperate
by (different options)- - Having common ownership of the Hub
- Allowing development of several Hubs, with each
specializing in different products and services - Leading Hubs distributing greater public goods
- A commonly agreed mechanism to ensure that
Principal-Agent (members) can resolve disputes
when benefits and interests are not aligned.
15(4) Lowering Transactions or Friction Costs
- Markets that have become dominant in global
trading are also efficient because they have the
lowest transactions/friction costs for exchanges
and transactions, i.e. market participants are
free to transact with relatively few legal or
regulatory obstacles or barriers. - Many of the barriers or friction costs to higher
liquidity are due to regulatory or protective
barriers that create market segmentation and
therefore lower efficiency. - There is a need to identify a sequencing of
convergence of transactions costs so that ASEAN
network effects are maximized. Each market has
to identify the key barriers and friction costs
and work with others to reduce these costs,
taking into consideration the network benefits.
16(5) Common Platforms encourage interconnectivity
and interoperability
- Common trading, clearing, settlement and payment
technology is now readily available G-30
Basle/IOSCO standards for real-time platforms
(common trading and clearing and
settlement/payment systems) that can work
together in real time and generate huge common
liquidity and high transparency.
Common Platforms Infrastructure
Inflow
Outflow
SOURCES
USERS
17(6) Common Ownership and Resilience
- Market networks are about building market
institutions that would involve political, and
social-cultural change. It is also about change
management. - Change Management is all about Ownership, so that
we all have a stake in building more prosperous
ASEAN Capital Market, with higher efficiency
(lower transaction or friction costs), higher
transparency and liquidity, and also robustness
(resilience to shocks). - This is a process that must take into
consideration political perceptions and
realities. - How to build these political and social support
is a key question. - OWNERSHIP STAKE through cross holdings in mutual
win-win situation may be a way forward.
18Raising the Game through improving Domestic
Markets
- Regional Integration will require massive
coordination of many jurisdictions - of balancing
vested interests, building coalitions, changing
laws, standards, and ultimately market and
bureaucratic behaviour. - Each economy has responsibility to
- Using international rules and standards to raise
and enforce domestic market standards, codes, and
rules of the game and - put in place the property rights infrastructure
of a market economy that is fair, transparent,
robust, flexible, and efficient. - Asian Development Bank and larger markets can
help smaller markets achieve these goals through
technical assistance - The first step of process reform begins at home!
19Benefits from Participating in Regional or Global
Game
- Global players (oil producers, India China,
pension funds, hedge funds and private equity)
are keen to participate in Emerging Markets that
offer higher liquidity and transaction efficiency
in order to diversify their risks - Emerging Markets can learn and improve their own
Capital Markets and institutions through - Joint Ventures or welcoming foreign investors
- Learning through doing - participating in
regional institutions through different channels - Using foreign or regional financial institutions
to invest in and train upgrade domestic players
infrastructure - Development is learning to achieve Adaptive
Efficiency
20Framework for Assessing Readiness of ASEAN
Countries for Equity Market Integration
- Strategic Objectives
- Strategic Options
- Strategic Risks/Constraints
- Reform Programme
- Are countries clear about what they want out of
regional integration? - Is there consensus on how they wish to position
ASEAN? - What are the key strategic choices that they
face? - What are the implications of these options on
national interest, institutional infrastructure? - What steps are they taking towards regional
market integration?
21Strategic Objectives(Country Responses)
- No clear and unanimous view of goals for
integration - debate on speed (fast track vs..
gradualism). - Larger players feel aims include the following
- To develop deep financial markets
- To enhance capacity building in priority areas
- To achieve cross border collaboration among ASEAN
capital markets - Larger market size which will bring about
increased liquidity - Greater access by firms to cheaper sources of
funding - Expansion of investor base and investment
choices. - Smaller players feel that they may not be ready
for integration - Not yet on par with the other exchanges in the
region and participation in an integrated market
as premature and too far-fetched, with more
risk than gain in present circumstances. - more concerned with strengthening its national
financial infrastructure than to be outward
looking.
22Strategic Risks and Constraints National
Viewpoints
- Disparity in Size and Sophistication means fear
of losing even more domestic business to stronger
entrants - Smaller market capitalization
- Lack of scale and lack of balanced/ diverse mix
of companies to compete regionally - Fear of dominance of foreign invest
- Some markets are still a long way from regaining
their pre-crisis position in terms of market
capitalization and issuances growth. - Too many small companies and hence not efficient
for large funds to invest in a meaningful size. T - How to revive investor confidence and enhance the
investability of the market. - How to improve public float, deeper market depth
and raise the level of skills in the equity
market intermediaries?
23Reform Programmes at National Level
- ASEAN countries are aware that they have to
attain high standards of corporate governance,
transparency, efficiency and innovativeness in
order to keep up with global competition. - Capital market master plans have been launched to
drive the change momentum. - Bilateral strategic alliances with other
exchanges are being established to lay the
groundwork for more substantive cross border
transactions . - National resources are allocated for
participation in the ASEAN initiatives under the
umbrella of the ASEAN Finance Ministers Forum
24National Views on How to Proceed
- Listing of more regional companies
- Make available more ETFs and sub-indices (small
and mid-cap) - List bigger companies with exciting growth
prospects - More bilateral tie-ups to draw more foreign funds
and kick-start more co-trading links among
exchanges in the region (in line with the vision
of the ASEAN MOF for an interlinked regional
securities market by 2010). Settlement
procedures should not be cumbersome - Allowing qualified institutional investors(
pension, life insurance, social security and
other funds) to invest abroad in countries whose
regulators or exchanges are members of IOSCO or
WFE. - Leveling playing field between domestic and
foreign intermediaries - Participation in ASEAN Capital Market Forum
framework for mutual recognition and
harmonization of standards in information
disclosure, accounting and auditing,
comparability of credit rating, securities
distribution rules, and cross-recognition of
qualifications and certification of capital
market professionals. - Signing of MOUs with foreign stock exchanges in
North Asia to seek greater cooperation and mutual
recognition, initially through information
sharing and technical assistance.
25Preliminary Views
- Participants surveyed are still cautious about
regional integration until they have completed
the right things in getting their national
systems up to par with others in terms of
standards, technology, legal and regulatory
structure as well as skills. The time frame which
they have given themselves to complete their
reforms is 5-10 years - So far, participants are more comfortable with
signing bilateral agreements to co-operate in
easy-win areas like information sharing.
Multilateral agreements are deemed as more
difficult and complex. - There are efforts to gradually reduce transaction
costs, but little effort to evaluate the friction
costs of over-regulation and protection. - Co-ordination between regulatory authorities
needs to be improved and procedures streamlined - Soft skills in the market intermediaries are
still lacking.
26ADB-Commissioned GMA Regional Capital Markets
Report2005 Highlight of Views and
Recommendations
27Main GMA Message
- A high level strategy should be developed to
promote regional integration co-operation in
order for East Asian countries to gain from
globalization of financial markets - Individually, each East Asian market lacks market
size even as a group (ASEAN3) they are still
smaller than the international exchanges
28If nothing is done,East Asian equity markets will
soon be marginalized
- The larger listed companies in the region will be
migrating out of East Asian exchanges or seek to
cross list in the super-exchanges in the US and
Europe, attracted by the access to international
capital and price liquidity - The demutualised exchanges in East Asia are
already seeking alliances with exchanges in the
major trading blocks, which may preclude their
participation in a future regional integration
initiative - East Asia will be left with a a 2nd tier of
fragmented small exchanges, confined to trading
in domestic securities, for which growth will be
relatively flat
29The trend of looking outside East Asia is
already apparent
- Data shows that the East Asian markets have so,
far, developed stronger financial ties with the
advanced markets in Western Europe and the US,
rather than strong links with one another - The larger issuers in East Asia recognize that to
compete globally, they need to dual list in their
domestic market and in one other super-exchange
internationally - The larger cross-listing centers (such as the
NYSE and the LSE) attract a greater value of FDI
and have the capacity to implement a wider range
of technology to support their network of
alliances and partnerships in an intensely
competitive trading environment.
30The Lessons of Europe East Asia Differs
- Europe
- European regionalism was motivated by the aim of
political and economic union - Europe has established institutions of
transnational governance - ( European Commission, European Parliament,
European Court, European Central Bank)
- East Asia
- Political and economic union is not on the agenda
of East Asia, except for ASEAN - East Asia is weakly institutionalized it will
have to rely on inter-governmental agreements for
integration, not on transnational organizations
31Financial Integration - its Challenges and
Timeframe
- Financial integration in Europe took 15 years
and is still ongoing, even with the legal and
regulatory support as well as competitive
pressures exerted by an economic union - Without similar support and pressures for market
integration, the East Asian region may take
anything up to 10 years simply to reach an
agreement on the strategic objectives before
substantive integration activities can begin - By that time, the more advanced exchanges in the
region may have developed close alliances with
major exchanges outside the region - East Asia would have missed this window of
opportunity for integration
32Strategic Approach for Regional Integration in
East Asia
- First and foremost, the East Asian countries must
agree on a shared goal for strengthening regional
capital market integration - Next, the East Asian markets have to develop, in
addition to their domestic action plans, a
strategic approach for exchange integration - The exchanges, regulators and market players have
to agree and align their institutions to this
strategic approach and to continually update the
strategy and related initiatives as market
conditions, or competitive pressures,change
33Key Enabling Factors for Strategic Approach to
Exchange Integration
- Harmonization of securities market regulation, in
line with international standards, best practices
and agreed core principles - Allow open access to national markets by any
exchange within the East Asian integration region - Allow listed exchanges to merge with or acquire
other exchanges in the integration region - Footnote
- Difficult for players within independent East
Asian markets to voluntarily agree to above,
without force of law to drive progress
34Approach to Regional IntegrationOption 1
Open Membership vs. Initial Core Group
- Exchange integration - better chance of success
if participating exchanges are of similar size,
development geographical proximity - The creation of Euronext, comprising 3 initial
exchanges, was already a difficult and lengthy
process - Most feasible option for East Asia start with 3
or 4 of the developed exchanges (which are
sufficiently developed) in terms of - Market size
- Infrastructure
- Regulatory framework
- Common thinking
- Other markets can still be included in strategic
development and strategic/regulatory
harmonization initiatives
35Option 2 Exchange Integration vs. Alliance
- EU Experience exchange integration was driven
by mix of legal, regulatory pressures
commercial willingness - East Asia exchange integration could take form
of merging some or all participating exchanges
into a single East Asian regional exchange ( like
Euronext) - Barriers would still be significant
- Legal regulatory differences
- Tax laws
- Lack of common currency
- National and political boundaries
- Cost structures
- In nearly all East Asian markets, the prestige
and political interest in maintaining a national
exchange outweighs the need to seek cross border
exchange mergers
36Option 2a Exchange Alliance
- Instead of exchange mergers, partial integration
through an Exchange Alliance may be more
acceptable to East Asian countries. - An example is Norex (a shared trading system),
which is an alliance-based exchange in which 4
Nordic exchanges participate and share resources
but each market retains its national exchange - Globex is another jointly founded alliance to
create a new trading system that supplements
existing trading systems in each market. Members
of the alliance benefit from a single point of
access to the various products traded on the
system
37Exchange Alliance Model
- Key Commonalities
- Adopt common name marketing approach through
joint venture agreement - Agree on use of common listing standards
trading rules - Adopt common trading system, if possible
- Commit to trading all equities ( and later,
bonds) through this common trading system - Adopt a co-operative organizational structure,
with individual exchanges retaining their
existing legal autonomy management structures - Respective national regulators provide
supervision via the national exchanges of the
alliance
38An Exchange Alliance overcomes major barriers
concerns of exchange mergers
- National Political Interests
- Issuers list via national exchanges, using
Alliances common prospectus listing
requirements - Individual exchanges retain existing legal
autonomy and management structures - Other exchanges can join the alliance later
exchange alliance is scalable - Settlement depository services could still be
provided by national markets this overcomes
concern that primary record of hodings will be
outside the national market - Common Currency - A common currency is not
required - Costs Competitiveness
- Lowers operational costs
- Expands liquidity pool and creates a broader
index - Increases trading volumes through cross-border
activity - Increases accessible investor base
39Market Surveillance of Exchange Alliance
- A single common surveillance system across
markets would be difficult owing to differing
stages of development and emphasis across even
the four developed Asian exchanges - Strategic options
- Continuation of bilateral MOUs to co-operate and
share information under defined circumstances - Implement a standard surveillance system in each
national market to make available information of
minimum defined level - Pool surveillance data from different markets in
a common database for access by participating
regulators
40Regulatory and Legal Requirements for Integrated
Capital Market Operations and Implementation
- I. Role of Market Regulator
- Fostering common regulatory standards
- Promoting cross-border co-operation (bilateral or
multilateral MOUs) - Approval of cross-border access between markets
- II.Harmonization of Regulatory and Legal
Frameworks Essential Areas - IOSCO Objectives Principles - consistent
approach to regulation, approval monitoring of
issuers, intermediaries, trading /settlement - Market Abuse Provisions ensure investors have
same safeguards in all markets encourage
transparency - Settlement Finality Ensure commonly agreed
legal/operational definition of finality of
settlements. Adhere to BIS core principles - Capital controls removal of capital controls
relating especially to foreign portfolio
investment, shares purchased abroad by residents,
shares issuance abroad etc
41Regulatory and Legal Requirements for Integrated
Capital Market Operations and Implementation
- III. Use of International Standards ( regulatory,
accounting, corporate governance) to create a
credible East Asian regional market - Essential areas
- CPSS-IOSCO Settlement Standards- to achieve a
common approach to Clearing Settlement
standards across East Asian regional markets - IAS and GAAP to achieve consistent approach to
company reporting and investor information across
East Asian regional market - BIS Risk Management Standards compulsory for
central banks in each market to adopt and enforce
BIS standards for financial institutions
42Clearing Settlement of East Asian Bonds and
Equities A Case for AsiaClear
- The GMA report has provided a lengthy discussion
on the viability of establishing a regional
clearing, settlement and depository in East Asia. - Premature to go into this area until the other
critical issues for regional exchange alliance
are addressed at the First ADB Conference.
43Development of a Regional Market Integration Plan
- Step 1 Agreeing on Strategic Objectives
- 1. Integrated Wholesale Market Objectives
- 1.1 Enable corporate issuers to raise finance on
competitive terms across region - Current Status
- No strategic regional plan to attract corporate
issuers from outside region,or to market
equity/bond listings across multiple East Asian
markets - HK and Singapore most successful in attracting
foreign listings but nos. are low
44Development of a Regional Market Integration Plan
- 1.2 Provide single point access to all
Participating East Asian markets - Current status
- No provision for single-point access
- Where national rules provide or remote
membership, firms required to maintain local
presence and use local trading/settlement systems - No strategy to create consolidated infrastructure
for listing and trading - 1.3 Allow investment service providers to offer
services across national borders without
significant barriers - Current status
- National market laws generally favour domestic
institutions and create obstacles for non-local
institutions - No concept of Regional Passport for service
providers to operate across region
45Development of a Regional Market Integration Plan
- 1.4 Establish a sound and well-integrated
prudential framework for investment by fund
managers - Current status
- No consistent prudential framework across the
region - Efforts are focused at domestic level
- 1.5 Create environment for legal certainty to
protect securities trades and settlements against
unnecessary counterparty risk - Current status
- Implementation of IOSCO standards and best
practice varies across region due to different
legal regimes - Concept of Central Counterparty institutions as
in Europe to minimize settlement risk not
favoured by East Asian region
46Development of a Regional Market Integration Plan
- 2. Objectives for an Open and Secure Retail
Market - 2.1 Provide consumers with the information and
safeguards to participate in an integrated East
Asian financial market - Current status
- In the absence of overarching legal, regulatory
and surveillance framework across the region,
these measures are focused at domestic level. - 2.2 Remove unjustified barriers to cross-border
provision of retail financial services - Current status
- No strategy for unfettered access to cross border
provision of retail services - Demand for such access by retail investors has
not been assessed
47Development of a Regional Market Integration Plan
- 2.3 Create legal conditions for electronic
commerce on a Pan-East Asia scale - Current status
- No overall strategy for a consistent legal
framework for electronic commerce in the region - This technical area is being addressed by each
market separately - 2.4 State-of-the-art prudential rules and
regulations - No strategic plan undertaken by national
regulators to apply best practice in this area
across the region - There are pockets of excellence in domestic
markets
48Development of a Regional Market Integration Plan
- Step 2 Establishing an Effective Structure for
Analysis and Decision Making - The favoured option for a structured approach to
integration is one driven by a combination of
Governments, exchanges, market participants and
national regulators. - ASEAN 3 would be the logical regional forum to
drive the process covering - Analysis of strategic options and implementation
approaches - Market consultation
- Policy making
- Agreement and decision making
- (Pg 195 has a suggested baseline organization
structure to undertake this process)
49Role of Various Stakeholders in the Regional
Integration Process
- Leadership will be critical at an individual and
institutional level to drive the Process - Role of Inter Governmental Body (comprising
Ministers of Finance) - To reach agreement on strategic objectives,
policies and specific initiatives - Role of Parallel ASEAN3 Inter Governmental Body
- To ensure consensus amongst participating
markets to ensure alignment with long term
economic integration in the region to
communicate with international community - Role of National Securities Regulators
- To reach agreement on policies and strategies
relating to regulation and surveillance issues at
regional and domestic levels to agree on set of
core principles to be applied across the region,
ensuring due consultation with all parties
50Getting Key Stakeholders Involved
- Role of East Asian Securities Institute/Securities
Committee - A new body to provide long term focus and project
management for integration strategies assess and
report on results of working groups propose
draft objectives and policies to Inter
Governmental bodies - Role of Consultative Committee
- An independent committee to provide a view on
overall process and help to resolve deadlocks at
decision making level. Members are industry
leaders and heads of each major exchange who are
knowledgeable about strategic aspects of
securities market, government policies, law and
economic development - Role of EMEAP
- To provide input and support from regions
central banks on market development and payment
systems
51Getting Stakeholders Involved
- Role of Multilateral Agencies
- Organizations such as the ADB, World Bank and IMF
could provide inputs to the ASI/Securities
Committee and technical advisory support to
working groups, including regulatory standards
compliance assessments - Role of Standards Bodies
- International standards setting bodies ( such as
IOSCO, BIS) would be able to advise on areas of
difference between markets to ensure adoption of
best practice to provide a point of reference
for technical integration and to provide
indication of future direction - Role of Technical Working Groups
- To analyze, consult and report on the initiatives
under their purview, and to interact with other
working groups - Role of Consultative Groups
- These comprise market participants with direct
interest in the initiatives (regulators,
exchanges,investment managers, bankers
associations etc),
52Development of a Regional Market Integration Plan
- Step 3 Agreeing on Policy Assumptions and Limits
of Possible Strategies - Recognizing and agreeing on the policy
constraints at the outset will help to guide the
potential integration process by defining the
limits of possible strategies. - GMA suggests a checklist of the key hurdles that
integration initiatives will face (See pgs 198
199) - An agreed final list of potential policy
constraints will be useful for - Assessing feasibility of achieving strategic
integration initiatives - Deciding to proceed with a particular integration
initiative - GMA emphasizes the importance of a
well-coordinated decision making structure with a
strategic vision from the start.
53Preliminary Thoughts
- Getting Agreement on Common Objectives and Vision
is a Process - Agreeing that we need to take care of Market
Disparities and achieve Common Goals to generate
liquid, transparent, highly efficient and low
transaction cost markets will require creative
thinking that- - Recognizes different policy constraints
- Need to build ownership
- Need to build framework to generate best
cooperative efforts in terms of technical
assistance, skills building and supervisory and
infrastructure capacity - . At end of the first Conference, tentative
conclusions will be tabled.
54Thank youQuestions to as_at_andrewsheng.net